Articles


 

Retailer Marketing
And Working With Center Management …… (friend or foe)

By Darrell Berg-Smith

As a retailer we take on big risks when we enter into the domain of large national shopping center conglomerates, or even a smaller independent mall, and establish our businesses within the confines of their domain.

Whether we are an independent, a franchise, or part of a chain, every shop requires an enormous injection of capital, risk, apprehension and anxiety.

We enter into long leases requiring us to commit to our ability to operate a successful business for years on end, weathering recessions, booms, slowdowns, economic and customer uncertainty, which can and does happen.

But, yes, we are given certain benefits. We assess for ourselves that we set up in a promising locality with management that is likely to proceed to build the customer traffic over time. We ask the questions: what can I get out of all of this? What are the marketing allowances worth to my business? How will Center Management take care of me? What advertising will I get? What opportunities will they give me as a valued tenant? What marketing programs have they undertaken in the past, and what programs are they going to undertake in the future, (where I can get a benefit)?

After all, our extensive lease commitment is only one part of our capital commitments. We also have large capital exposure through stock, staff commitments, insurance, fixtures and fittings, signage, computers and telephones, and other necessary outlays with training, and utilities such as electricity, gas and water.

Well, these are fair questions to ask as part of our planning for the success of our enterprise. We of course need to be aware, and are grateful for, the fact that the success of any shopping mall, small or large, comes down to the amount of shopping traffic that is attracted to the center. So of course it is in the interest of Centre Management to increase both the shopper volume, and sales volume of the Center.

Nevertheless, over years of witnessing thousands of retailer’s experiences with the shopping centers, I have heard hundreds of complaints and stories from retailers about lack of support for marketing and advertising. I hear it time and time again all over the world.

But let me tell you, as a fellow retailer and as a coach to retailers, it is up to you to lead the way, - - - - not Centre Management. Now let’s get real, let’s put all the niceties aside and get down to what is real! Most retailers are individualists by character, at least to some degree. That is, when it comes down to it, we are really firstly relying upon ourselves to run a successful enterprise. Sure, we look for help at times, and we seek our fair share of the pie when it comes to marketing and advertising assistance from a landlord. Of course we have to rely on ourselves! Why on earth would we put anyone else in charge of seeing the fruits of our enormous commitments of money, time and lack of sleep, come to fruition!! BUT THAT IS WHAT I SEE HAPPENING, TIME AFTER TIME.

I hear the complaints of retailers saying they are not getting the support they either expected or were told they would receive. NOW, let me tell you something else. There is a common denominator I see in virtually every instance, and that is this:

“The retailer that I hear making the loudest complaints about not getting support, are the retailers that do the least for themselves, and do the least to add to the center’s success“.

In discussions around the world, I get the same story. It never ceases to amaze me that it is the same situation virtually every time. However, this is really an exciting revelation when you realize the reverse, and the opportunities it presents for us retailers.

You guessed it! The retailers that are supported the most are those that do the most for themselves, that get out there and pro actively promote their business, both internally in the shopping center, and externally, to bring more business and more customers to the center.

Marketing managers are ecstatic to see retailers take the initiative and help them with their job! And you will find that it is not usually a one off from that retailer. It is usually an ongoing process of self-promotion, often providing an element of goodwill and excitement in the region surrounding their shop. It’s great for the shop; it’s great for the center.

So when a marketing manager is talking to that retailer they are not having a conversation with someone coming from “a place of need”. They are seeing a retailer that is taking the ball and running with it. We all shy away from people that are coming from a “place of need”, rather than a place of wanting to “provide”. I regularly referred to this character trait in my seminars. Such a person, a storeowner, or any of the staff, give a very negative energy to those with whom they interact. So if such a retailer is like that with Center Management, they are probably the same with their customers, who see through them straight away. This becomes a Catch-22 situation, and all parties just become more frustrated with their predicament.

To the extreme, I even saw the Center Management recently spend about $3,000 on a consultant (not me), to advise the owner of a shop on what he needed to do to improve his business, and save himself from being kicked out, (due to breaking the terms of his lease in the presentation of the shop). It was more than Centre Management ever needed to do.

On the other hand, we award winners. We award excellence. We award initiative. We as human beings do this in all walks of life. Business, sports, education, health, etc. and human nature is no different in the shopping center.

I have worked with businesses and developed a vast array of very low cost (or no cost) promotions that are great for increasing business. They not only gain immediate benefits for themselves, but they become very popular with the other storeowners, and their staff. I love it when I witness, or hear about, other stores virtually lining up asking to get involved in the next promotion, and even being prepared to pay for the privilege.

Similarly, the story is no different with Center Management. I have also regularly witnessed marketing managers approaching such retailers with favors and gifts of encouragement and appreciation. This can range from giving full or even double page advertisements in newspapers, or other publications, and total support (and even considerable expenditure) to a more advanced form of promotion. Other benefits I have seen are tickets to entertainment or training events for owners and staff, and advance notice of opportunities in future promotions.

It is the retailers that never approach Center Management, (because they are so busy being proactive in organizing their own promotions), that can always count on support and encouragement from Centre Management. (Of course that does not mean you should not ask for it when you need it)

So get out there and take responsibility and take care of yourself first. That way you know you will always have the marketing support (and the opportunities) provided by your Center Management. I guarantee it!!!


This article is part of the business series of articles in the “Don’t Go Broke While You're Getting Rich”™ business series, presented by Darrell Berg-Smith… a speaker, author, consultant and entrepreneur who specializes in teaching low cost, high impact marketing and business building resources to businesses worldwide.  For lots of free resources visit
www.darrellberg-smith.com


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