 Chad Harris |
Pinpointing your biggest sellers seems to be an important task. But the real question you need to ask is this: What product or service do I sell that requires the least amount of Time, while creating the most Value for the customer and returning the most Money to the business? Success really can be that simple. Finding the best TVM (time, value, money) products or services starts with research. If you are using a POS system, estimating software or spreadsheets, use the data you collect to determine the following:
Case Study: Orchids at The Garden Gates. At our garden center, as I noted in the March column, marketing is very important. We use direct mail as the primary method to drive customers to the store. We follow up with Facebook postings and e-mail marketing to local customers only. Once our research showed us we had a potential to sell orchids, we applied the TVM Principle to find the best way to sell orchids. In each of our marketing efforts, we featured the plants potted in stylish containers—they looked great, but the real message we delivered in every marketing piece was that we consistently provide the same quality, the same product and the same price (see the example pictured). Originally, we offered orchids in 2-inch, 4-inch and 6-inch containers in a variety of colors. Our research showed that we sold about 30 a month (360 a year) from 3 square-feet of the store. On accident, we found a new grower that sold beautiful 4-inch double-spiked white orchids, so we worked those into the mix. Taking all this information and applying the TVM principle, we decided to try to grow demand by limiting our inventory to only orchids in white, including the new spiked versions. When no customers complained, we then cut back the selection to 2-inch and 4-inch only. As we narrowed the choices available, the question became, “How many to buy?,” and suddenly we were able to provide a product of outstanding quality, great value and 60- to 65-percent margins. It was a win for everyone—now we sell 1,500 orchids a year. Homework assignment. I would love to hear if you have a similar success story after applying the TVM Principle. Find 10 products at your store that have TVM potential, and create marketing pieces for each one. Submit them to us, and we will share the top ads (and success stories) on The Garden Gates and Garden Center magazine Facebook pages. Submit your entries to charris@ceverettharris.com. And please take note: A prize awaits the best TVM application. For more information about this article, contact Chad E. Harris, charris@ceverettharris.com; www.ceverettharris.com; www.thegardengates.com; follow him @ www.twitter.com/ceverettharris; friend him @ www.facebook.com/ceverettharris; watch him @ www.youtube/thegardengatesnola.com; read about him @ www.thegardengatesblog.com |
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