Vendors selling products directly to end-customer is a big challenge to small retailers. When the prices billed to the retailer and end-users are equal, it is impossible for us to survive. So how does a small retailer like us sustain business in such a situation?
Prateek Kumar, Era Infotech, Mumbai
A GURURAJ — This is a question most people are pondering on in all industries. I have some suggestions for you. First and foremost you need to decide whether you want to be a price player or a value-added reseller. For being a price player, you have to build volumes and make your logistics so efficient that you create a price advantage over other volume players.
If you decide to be value-added player then your focus should not be on price but on providing best solutions and services to your customers. For this you need to develop a list of value-adds, which the big players with focus on volume cannot provide. This could include devising your own warranty or service packs.
Being a retailer, it is imperative that your sales people are trained in providing a good buying experience to the customer. When a customer walks in to your shop, don’t try to sell them products based on the price but rather present a strong case on the benefits of buying from your shop. Believe me, many customers will prefer to buy from you even if your prices are a bit higher than your competition, provided you are able to win their confidence by giving them a great buying experience.
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