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News of the day - National Returns Day? UPS reported a couple of days before Christmas that December 18 was National Returns Day. OK; don't expect it to show up on a calendar and be an event like Black Friday and Cyber Monday. UPS reported the day would be the biggest day for returns according to what they ship and pick up. January 5 was National Returns Day for 2017. The National Retail Federation reports between 15% and 30% of all items purchased online are returned; not just for Christmas but in general throughout the year. You know in your business how much extra personnel you would have to add to handle that. We read this statistic as saying people desperately need the help of salespeople that know their products and services, and know how to sell. Let's look further.
Part of the lure of online shopping is "free shipping". We hear this frequently from readers and respond that they are just falling for the same gimmick as others. There is no such thing as free shipping; the cost is simply hidden in the price of the item.
They promise the convenience and ease of online shopping and easy returns. Apparently online shopping is not that easy with that sizable return rate we just spoke of.
We can make shopping easier by solving that desperate need of knowledgeable sales people. How are you doing in the "returns department"? Let us offer several suggestions.
When speaking to a customer making a return don't tell people what your return policy is and how you are going to extend special circumstances for them. Just handle the return cheerfully.
If your employee is not authorized to handle the return, do not let them engage in the conversation. When a customer says they have something to return to this employee, have them immediately get someone who can handle the return. No customer wants to repeat their story.
Look at your return policy. Could accepting a return gain you more loyalty from a customer? Don't tell me about specific customers and their extreme stories of requests for returns. Every business has customers who are a pain. That is a part of owning a business. Do not waste your time trying to create a "return policy" that will handle every problematic situation. That same customer is still going to ask to return something and you are going to turn off other customers.
Could returns be your advantage?
Article of the Month - Amazon is not going to beat you Keeping with this month's advisory on the Internet, our article for January is about the Internet as a whole, even though we mention Amazon. And for those of you on the service side of small business, you should be aware of how many services and installations are being offered by businesses online. The article is a personal experience that shows how we can differentiate ourselves, while at the same time telling of how the Internet is learning how to duplicate what we do.
Book of the Month - Satisfied Customers Tell Three Friends, Angry Customers Tell 3,000: Running a Business in Today's Consumer-Driven World by Pete Bradshaw As I write this segment of our Small Business News, I have been sitting on hold for 30 minutes waiting for a company to resolve an issue regarding my experience with their company. While we eventually got to a resolution, it was a long and painful experience.
How does your business treat your customers? Are they bragging about the wonderful experience of doing business with you? Take a look at Yelp or Google Business before you answer. This book, while written 10 years ago provides some sage wisdom as we invite you to read what Pete Bradshaw has to share and how you can do something with his information in your business.
Internet Tool for Your Business - Each month we highlight one of the 45 free tools on the Profits Plus website; we call them "calculators". While some provide analysis by numbers and ratios, some are assessments and others are self-examination questions. Many are downloadable while others, because of the complexity of the calculations going on behind the scene, are a part of the website and allow you to print your answers. None of them require you to give any personal information nor are there any "cookies" tracking you or your information.
If your business bills customers for products and/or services, the January tool is one you will want to pay close attention to as well as bookmark in your browser. Let's look at an example of a customer making a purchase from your business. They make the purchase on January 2, signing a ticket and allowing you to bill them. Your business sends statements at the end of each month meaning your customer will get the statement around February 3. If your statement says "net upon receipt" or "net 30", you likely have an expectation the customer will pay you by March 1.
Bankers tell us they are pleased if a business collects within 45 days. That would be approximately March 15. Meaning you are getting the money 75 days after the transaction. Looks like your business may be a part time interest free bank loaning money.
This Internet tool will allow you to look at your receivables to learn just where that accounts receivable money is.
Staff Incentive for Your Business - Who owns this? Your business always has things that need to be done. Not just the simple, one time things but many repetitive and substantial projects. Do you "own" this project? As the owner or manager, you likely own a lot of projects. That could be the reason your day is not letting you get to projects that only you can do.
You can take this challenge and transfer it to something that builds your business.
Let's look at a simple task as an example. Let's give the responsibility of a clean and efficient building to someone in your business. You get to detail what is included in that responsibility; cleaning floors, taking out trash, keeping signage up to date (like getting rid of the window or bulletin board sign for a non-profit's fund raiser from last September), changing light bulbs, etc.
Assign this responsibility to one individual. They can engage others, but it is their responsibility that all is taken care of. You have likely told individuals there are opportunity for advancement, but advancement should not be based on the length of employment. Instead it should be demonstrated by each individual.
And as they demonstrate their skills, be sure to add recognition in private or in front of their fellow employees along with a small reward.
Growing responsible employees. Who owns this?
You do!
We want to recognize A Carrot A Day by Adrian Gostick and Chester Elton, whose book provides the basis for each month's incentive idea.
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MAY 2024
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With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.
Small Business
The May Small Business Advisory is titled "Planning for a successful accountant" and is appropriate for many with the April 15 tax deadline having passed.
Did you work with your accountant? Or, did you just give them a bunch of papers and wait to receive a completed tax return?
Successfully working with an accountant requires a partnership. This month's Small Business Advisory gives suggestions of how to make this happen in 2024.
Small Business
We see that many small business owners have too much of a focus on the "top line" of their income statement.
Increasing revenue is great, but it is not a cure all for any challenges your business is facing. And sometimes, incresing revenue can create a challenge.
Who is your customer? Some small businesses have no focus. Their customer is whoever calls or walks in the door.
And some small businesses have determined which customers, in sufficient numbers, they should spend their efforts to attract.
The article of the month shares an old Southern rhyming couplet about business; "The bertter you niche, the more you get rich."
Lean Startup by Eric Reis is our suggested book for May.
As the title suggests, the reader of the book would be someone that is starting their business. However, we see more value than just that.
Perhaps you have been in business for many years. We think this book could give insight to items, and methods, that a small business owner should think about with their business today.
