As a retail store owner, you’ll probably already be familiar with the delicate balancing act of balancing staffing and inventory needs against the need to cut costs and keep expenses down to a minimum. That’s why you handle most of your administrative tasks at home in your home office, and save money by not renting an office space, and are always looking to find other ways to decrease the costs of running a business.
Thanks to the rapidly increasing popularity of online shopping, staying competitive in retail means understanding what your customers are looking for and offering it to them along with providing excellent customer service in person and on social media pages. Cutting costs should be a crucial part of your retail store strategy. Here are some of our top tips for keeping costs low without compromising the quality of the customer experience.
Tip #1. Focus on Areas That Don’t Directly Affect Customers:
The first place to start when it comes to cutting costs are the areas of your business that don’t directly affect your customers. For example, you could conduct an energy audit to see if you’re spending more than you have to on keeping your retail store warm and well-lit or get rid of any phone lines that you don’t use. You could cut back on office equipment that’s barely used and try to re-use leftovers, recycle and eliminate waste wherever possible. Going green is great for the planet and could even earn you incentives from the government, particularly if you’re powering your business with renewable energy.
Tip #2. Understand What Customers Want:
Examining your customers’ buying habits to see which products or services sell best will help you spend smarter and cut unnecessary costs for your business. For example, if you notice that a product simply hasn’t sold well at all since you began to stock it, it may be time to re-evaluate whether you really need it on your shelves. Determine which products are selling best and stick to stocking them.
Tip #3. Save on Technology and POS Equipment:
If you’re in the process of setting up a new retail store, the point of sale equipment is likely to be one of the biggest expenses. However, there’s no need to invest in costly cash register equipment for your retail store; thanks to vendhq.com you can facilitate customer transactions easily and securely using an iPad or another tablet device. In addition to using your iPad as a cash register, the software also allows you to track purchasing habits, helping you better understand what your customers want.
Tip #4. Re-Evaluate Your Opening Hours:
It can be difficult to determine the best opening hours for a new retail store, particularly in an age where people are getting used to twenty-four-hour stores and the 24/7 availability of online shopping. It can be tempting to stay open for as long as possible, however, this could lead to additional unnecessary costs for your company. Instead, examine your sales figures in relation to the different times of day; if you find any times that are particularly slow or unprofitable, such as early in the morning or late in the evening, you may want to consider changing your opening hours to close during these times.
If these tips were helpful, we’d love to hear from you in the comments.
