Why Are You Marketing That Way?

I was recently working with a business on a one-to-one consulting session for a downtown revitalization project in Georgia.  The business was a flower shop and I was working with the new owners. They had purchased an established business that was in need of a fresh outlook, a fresh look, and fresh enthusiasm that only a new owner or new management can bring to a business. The owners had worked very hard at the physical cleaning and were ready to move forward with some new marketing initiatives. Let me first say that I liked the owners and employees very much and have no doubt they will succeed but they will certainly experience some ups and downs.

There was an exchange between the owners, employees, and myself that was so interesting and revealing I have shared it with every audience I have spoken to since. The strange part about it is I don't think it had the impact on the store I was working with as much as it did me. Let me explain what happened and then I will explain where the encounter lead me.

It started with a simple question from me. I asked the owners how they planned on marketing their new business. The owner quickly said, "We collect email addresses from everyone we do business with."

I thought that was great, but then I asked each of the four people in the consult the same question. I asked, "If someone were to get in touch with you what would be the best way?" One of the owners said to call her on her cell phone, the other owner said to just call the store and leave a message and he will always get to that. One of the younger floral designers said that we had to text her while the other said to call her at home and leave a message.

I then sheepishly admitted that I had over 6000 emails that I needed to sort out. (I will read my emails but mostly on my Blackberry and rarely delete them from there.)  But there are definitely emails that slip through and the best way to reach me is to text me.  So here were 5 potential customer types that would most likely not be reached with an email marketing initiative.

This store didn't do anything wrong. It's just that the world, specifically the marketing world, has changed dramatically and we better wake up to the new normal.

Now let's think about all of the ways someone can communicate with you. I made up a list but frankly I believe it is even bigger than the list below.

• Face to face
• Telephone
  • at home
  • at work
  • via cell phone
• Answering machine (ever communicate by leaving messages to one another?)
• Email
  • How many email accounts do you have?
• Text messaging
• Faxing- How old fashioned! Does anyone fax anymore?
• Newsletters- we read on a regular basis
• Blogs-same with blogs
• Online Bulletin boards
• Online Forums
• All the Social Media
  • Facebook
  • Twitter
  • YouTube
• Websites

I haven't even mentioned any of the traditional advertising vehicles!

The point is simple: we have a new assortment of what I call  "Touch  Tools". You can call them vehicles, strategies, techniques, methods, or anything else you can think of but Touch Tools works for me.

But it is even more than that that has changed. Those new tools, the Touch Tools, are cheap. The cost of communication is cheaper and more effective than the days of the town crier. I like to refer to this as "The age of Word of Mouth on Steroids".

Just this past week Verizon announced a deal with Skype for mobile phones. Skype allows customers to talk each other via computer for FREE anywhere in the world. But if someone you are calling isn't a Skype member the rates are about 1.5 cents a minute. Now, you are not limited by your computer-- you can use your mobile phone. I don't know how they make money but I signed up.

If having many tools wasn't bad or good enough (depending on your point of view), then there are tools like Ping.fm that will send your message to all of the social media sites you choose. Here is the site to check out. Notice you can send all of these messages via your cell phone.

Now check out the amount of sites one mouse click can deliver your message to. Oh by the way, it's also FREE.

Then think about the Speed of communication. But when we think about speed it's not just how fast our message gets from point A to Point, but how fast these new vehicles and tools are coming to market. And then how fast they can gain acceptance and mass useage! How many of you had heard of Facebook two years ago? Marketing books are being rewritten as you are reading this.

So what is the bottom-line? What will the future of marketing look like? It rests within an old ad campaign from Burger King. "Have it your way." The customer today will decide what they want to read, watch, or listen to and will determine the method they will use to gather that information. The days of mass marketing are nearing the end of a very good run but the future belongs to one-to-one marketing messages. What is the solution? What choices do we have? 

Well, the solution is simple but the implementation will confuse us for years to come and that is Inbound Marketing. That means we become the source that customers seek out and we must be seen, read, and watched in as many places as possible. We are living in the dawning of Pull Marketing where we no longer use "Push" or traditional advertising to attract customers. We want customers to discover us because people are talking about what we do and us. Then we just PULL them into our world and our community.

Discuss & Dismiss

A way to move on and move forward

Many years ago when my kids were young, we went on the classic American learning vacation. We drove to Washington, DC and visited the national monuments, the great museums, and for the highlight of the trip, watched congress in session. As we sat in the balcony of the House of Representatives the congressmen were involved in a major debate and the argument got rather heated.

My daughter,  ten years old at the time and by far the most sensitive of my kids, walked over to me as the reps argued. She was crying and very upset with what was going on. As the tears were rolling down her cheek said, "Daddy, why are they fighting ? Don't they know we are all Americans?"

Without thinking, I uttered these words. To this day I don't know where they came from. "It's OK to argue -- that's how things get accomplished."

Well, that explanation satisfied her needs at the time although it did trigger more discussion later. The bottom line is the simple fact that discussing, disagreeing, and even arguing are good. It's healthy, it's normal, and it's one of the most misunderstood and under appreciated tools and resources we have in communication today.

YES A TOOL! It's time we recognize it and start harnessing the power disagreements hold for all of us, especially in employer/employee relationships.

There is a point where we could run into a problem and that is we get so passionate about our position then our competitive spirit kicks in and we are now on a mission to WIN. Win at any cost and cost you it will.

Sometimes we forget what we are even arguing about.  That's we start throwing up all of the "stuff" that has bothered us for the last 5 years.  We have all been there and we all have regrets because of it.

The way we handle disagreements has a tremendous price. It costs relationships with families, friends, and it costs business people the potential of great employees or at the least hard working employees with good attitudes.

So what are we doing about one of the most natural elements in communication and leadership? NOTHING absolutely NOTHING! When was the last time you discussed a procedure to follow when disagreements or arguments occur?

I recently had an experience that brought this issue into focus. Actually it turned out to be one of the most unusual situations I have experienced as a speaker. After my program, two people (I later learned that one person was the store owner and the other was his general manager) started arguing about something I said. Or I should say the interpretation of a point I made. What ever it was triggered or uncovered a deeper problem.  So as attendees were walking out of the session these two people started arguing. They weren't loud at first but their voices got louder the more they got into their points of view and as more people left the room.

I wanted to intervene but before I was able to get there this woman who obviously had a lifetime of experience settled the two combatants down with some old fashion logic and a sweet but forceful style.

There were about 10 or so people around me asking questions when this happened. But as the argument intensified the questions stopped and we were all just focused on the side show that was unfolding. 

This amazing woman was captivating. It was like watching her putting her head into a lion's mouth. She started by simply saying calm down and putting her finger to her lips the way a librarian would.  Then she complimented them both for being so passionate about their positions. She said "That's good -- you are not afraid to express your positions. That's healthy and the first step to a strong relationship." 

Then she said, "I don't mean to butt in BUT I learned a tool along time ago that I think you two could use."  They were close enough in an almost empty room so it wasn't out of place  when I asked, "Do you mind if we all listen?" She said " Of course not!" Then she gave me a compliment about my presentation and said that I can take this and share it.  "To think you could make me famous."

She said to all of us that the problem with arguing is that we think we shouldn't argue.  Of course we should but if the argument is going to serve any purpose, we must learn the concept of Discuss and Dismiss.

 Just  follow these simple rules:

1. Accept that lingering disagreements are a cancer to any relationship (just buying into that simple concept is half the battle)
2. Both accept to agree to disagree and choose to resolve the issue
3. Agree to only focus only on the issues pertaining to  the disagreement
4. Then each side gets 7 uninterrupted minutes to present their point of view (knowing you only have 7 minutes really makes you focus)
5. Then each side suggests areas to compromise/ solutions for 3 to 5 minutes
6. Agree to a solution or Agree to Disagree
7. Dismiss and move on

Although the rules seem formal the strength is in its name. Discuss and Dismiss because it gives a vision of a solution.  It accepts that people will disagree and we can overcome it.  It's really important to focus on the moving on part.  When we become stuck in old arguments, never making any progress or resolution, this becomes a fresh source of tension and stress.

It's especially important for us, as managers, to develop the ability to move on.  While it would be wonderful to have employees who agree with every word we say and think we're brilliant at every turn, the truth is we become better when we're challenged, when we're presented with opposing points of view or information we hadn't considered.  It is the height of arrogance to think we're always right - but if we don't create an environment where it is safe to disagree,  our employees will not challenge us.  It's too risky for them. Recognizing that and implementing Discuss and Dismiss may be the most terrifying managerial move you ever make --  no one likes being disagreed with, after all - but it also offers some of the greatest rewards.

I never did get the name of that wise woman who went on to defuse a rather hot situation. So if you are reading this, thank you.   You do truly deserve to be famous for your wisdom!

You are a Better Manager Than you Realize

I don't know about you but many times as an independent retailer I would get impressed and even intimidated by people from big companies or college professors. Just because someone works at Nordstrom's doesn't mean they are any better than the independent merchant. Actually, I would take the good independent over a Fortune 500 company employee. Independents can do many more things than a cog in the wheel at a big company. Yet we are still in awe.

Then we have the distinguished academics that are quick to tell us all of the things that we are doing wrong. The only issue is most, or I will be polite and use the word "many" of them, couldn't run a store in real life if they had to. In theory, they are experts but they are lacking real life experience. The things that always gets my blood boiling is when they are pompous or arrogant about their opinions and ignore or belittle opinions from people that they determine are not as important as themselves.

My father taught me a few very valuable lessons about business and life.

1. You can learn from a fool.  Some of the best ideas are the simplest ideas.  Sometimes a fresh set of eyes that look at things from the customer's point of view is the best advice we can ever get.
2. Let the other person feel important. When we can make someone else feel good about themselves, we will eventually be the big winner.

I bring this up because an old friend (one of 45 years...that's an old friend!) of ours who worked for a very distinguished university with a very prestigious business school made some of the dumbest management /moves I have ever seen a company or learning institution ever make. I am sharing this story because there are so many great learning points and if this doesn't boost your self esteem and your level of confidence nothing will. It's just too bad it is all at the expense of a pompous academic administrator.

Our friend, Marlene, worked at this university for 30 years as a part-time employee. As a part-time employee she was NOT entitled to any paid sick days, paid holiday or any pay for vacation time . If she had been a full time employee she would have been entitled to almost  8 weeks of paid time but due to health issues she could never take advantage of that option.

The other bit of background information that is important to know is that Marlene had a record of every outstanding evaluation. Over 30 years she had compiled reviews that were nothing short of spectacular.

Nine months ago the university offered a voluntary termination offer. The university's attendance was dropping along with falling donations falling due to economic conditions. This university is a private college with very expensive charges for tuition, room and board plus all the extras. The termination deal was 5 months of pay and health insurance for 1 full year. Although our friend is 64 she really had NO intention of retiring because she really likes working her 30 hours, plus the extra income comes in handy. So she had NO intention of ever taking the package until she heard the rumors flying about that if people didn't take the package there would be lay offs with NO packages.

Now after 30 years of distinguished service she really wasn't worried but the talk got stronger. So she set up an appointment with the VP of the university to let him know her intention to stay and ask if she really had anything to worry about. He said he couldn't say anything or advise her in any way.

Are you kidding me?  He couldn't say anything? What kind of strategy was that?  She then went to the director of HR and he asked if she could afford the health insurance if she had to get laid off? Huh?

Marlene was known for her laughter and enthusiasm. They were contagious and her spirit was legendary. You see Marlene was the type of person that people wanted to work with and wanted to be with. Plus the savings were substantial to the university and would have been financially prudent. They should have embraced the part time employee model.

Well she couldn't take a chance and was forced to terminate her employment after 30 years. The separation was only about 4 to 5 years prematurely. So at 64, she is out looking for a job. Do you think this is a morale booster for all of the other employees? How can you trust management when they can't keep one of the most popular, positive-attitude, hard working and economical employee the university employs? Why would anyone want to work there or do any extra? Instead of being treated as a valuable asset, she was treated as an expendable warm body.

The other issue that is a sign of poor management is the fact the new Vice President (he is in his third year at the college) never took the time to ever ask the front line employees their opinion about anything.  That is also a sign of poor leadership skills.  As the great World War II General, George S Patton, used to say, "I don't want to talk to Generals. I want to talk to the men on the front lines because they know what is going on."  But that was never done.

Well, last Friday was Marlene's last day and the outpouring of emotions made the day so bittersweet. There were two big parties for her one at work and one at night at a restaurant. Then the amount of emails, cards, and gifts were nothing short of amazing. Of course the VP was there and hugged her in front of everyone. He performed his best Shakespearian dramatic abilities as he uttered some hollow comments that everyone saw through, because he had the power to stop this but didn't.

The strength of any organization rests with the leadership on top. Great leaders succeed against all odds. Great leaders set the standards high and inspire their people to live up to those standards. Great leaders nurture and develop their people. They don't force good people to leave. Apparently, he didn't approve of part-time employees or was just intimidated with Marlene's experience and first hand observations of past leader's success and failures.

This Vice-President is destined to failure. Great leaders work hard to keep great workers, not destroy them. Using the reference to the song American Pie with the line The Day The Music Died. This VP created a mood and attitude that last Friday became the day that:

The Day That Asset Management Died-Sure didn't protect the human assets

The Day That Good Management Principles Died-Sure was not the way to win The Malcolm Baldridge Award for Management

The Day That Human Decency Died-Even if she was a terrible worker, forcing a 64 year old single Mom out is bad PR and can take years to correct.

The Day That The Spirit Died-Never force the positive winners away. Not the spirited ones. That can help create an attitude.

The sad part about this entire situation is that we would probably still be intimidated by his title, office, and smooth demeanor of the VP, but the world knows that great managers keep great people and valuable assets. So I hope that for the sake of that university they realize there is a problem that needs to be addressed before morale reaches new lows. But this VP probably has no idea because he only talks to Generals.

Have a great week.

The 2010 Retail Survey - Part 2

Here are the rest of the results from the 2010 Retailers Survey. There are some definite surprises especially in the areas of compensation.  You'll see that I did not comment on the question about how many of the Google tools are being used. I am going to write a complete report on Google within the next couple of weeks.  I will also be writing an article about creating promotional plans as well. (There is a real need there!) I didn't create this survey to stimulate topics to write about but it certainly inspired some great topics.

 And this brings up an interesting idea. If you have any topics or situations that you would like discussed in this column, please send me your ideas. (I love real life situations, especially ones where I can get my readers to comment.) Thank you for responding to this survey and for all of the comments and encouraging words.

Question #9

I am impressed with the responses to this question. I say that because I believe 20% is the right discount to take on the first markdown. All professional liquidators will start cash raising or going out of business sales by marking everything down by 20%. The fact that 27% opted for 25% is still within a normal range.

The scary part about these results is that there were 14% that believed that the first markdown should be between a third off and half-price. I struggled trying to understand why anyone would want their first markdown to be so deep. However, there is another side to justify those deep markdowns. If the store can sell regular priced merchandise, then the only reason they would mark anything down would be to free up space. If you want merchandise to move quickly, then take the deep markdown immediately. The only question is how do you know if a 20 or 25% markdown wouldn't have worked as well?

My goal has always been  to keep your inventory as fresh as possible. But I also hate to leave money on the table. Taking a markdown that deep takes some of the joy out of the challenge of retailing. But I am just an old retail purist who believes you sell as much at the highest possible price, as fast as possible.

Question #10

The days of having manufacturers sell exclusively to stores in a territory are quickly coming to an end. Business conditions are so tough for many vendors that they will take orders wherever they can get them. This  includes the store across the street, the big-box retailer, and also selling it direct themselves.  That is the reason why you cannot be that dependent on any single vendor!

A major bridal manufacturer decided to open up their own stores and even in locations where the best accounts are located. I don't think that's quite fair but that is the new reality. I agree with just about any response here with the exception of the last one which said to buy more and discount it deeply. I think all of us would love to do that but we are just cutting off our nose to spite our face. Are you doing this because it's sound business practice or for revenge?

There were plenty of great vendors out there that you can use so that no one needs to be dependent on any particular vendor. Remember the most important brand you carry is the brand that is seen above your front door. Have your customers become loyal to you and your store, not a particular brand or the prices you charge. Trust me, in the long scheme of things, it is a much healthier way to build business. But don't stop complaining to the sales rep sales manager and president of the company. After all we're retailers-- we have right to complain.

Question #11

These numbers are good news and bad news because 65% of the stores reported that the sales were either the same as last year or up between 5% and 10% from last year. That part is encouraging in the part that over 50% of the stores are experiencing modest increases is also pretty good even though last year was not that strong a year. The fact that almost 45% of the stores experienced sales decreases in between 1% and 10% is scary but of course we  had one of the worst winters on record.

Of course any politician could read these numbers differently depending on the point of view. I could have said that 60% of the stores reported their sales were the  same as last year to 10% behind. The bottom-line is some stores are doing business and we need to find out what they're doing and how they're doing it.

I would love to hear from the the people who are reporting substantial sales increases. If you are in that group, I invite you to call or write me at Rick@RickSegel.com to share how you doing it. This could be fun!

Question #12

This is the one question that shocked me.  49% of the stores that responded are paying their full time salespeople $10.50 per hour or less.  It's hard to believe because $10 per hour translates into $400 a week which is only a little bit over $20,000 a year. I do realize that full time people  will work overtime and that will bump up their take home pay but it still seems low.  

Having said all of that, the trend is away from the full-time employee to more part-time employees. The biggest issue here is the issue of benefits. The effects of the cost of  healthcare plays a major role in the total compensation package. I won't comment on the current healthcare debate but the state of Massachusetts has a universal healthcare in place and the rates have skyrocketed. Maybe paying $10 per hour is not so bad afterall.

Question #13

This question substantiates the fact that retailing is not a highly paid profession unless you're either the owner, the manager, or crack salesperson who is earning a substantial income from bonuses and/or commissions. Having said that, we also have to realize that many of the people working part-time in the retail store are not necessarily working there because of the income that they can earn. They're working there because they want small part-time jobs to supplement their income because they retired from another profession. Or because they want something to do and like the products or category that you sell.

You must understand it is not always about the money-- the things that motivate people to take and keep a job vary widely. Remember the number one reason why someone will take a job for less money and stay there is because it's convenient to where they live.

One of the things that skews up this question is the geographic area that the reporting stores are from since you have to pay more for help in certain areas of the country. But I think this question gives a good perspective and maybe even a sense of confidence when you offer someone a job.

Question #14

As you can see, this question has an overwhelming response. I am thrilled with this response because I don't see where paying commissions make a substantial difference in the performance of the average retail employee. I do believe in giving incentives sometimes referred to as  "spiffs" on slow selling merchandise. The reason being is if you were going to mark it down you would make less money. So why not give some of that money to your employees if they can sell it before you make the deep markdown. This works well in the shoe industry and it forces the salesperson to show merchandise that they might not normally show.

Having said all that, if a person can earn livable wage from commissions then the system works. At Nordstrom's, commission salesmen in any of their better departments such as shoes, coats, men's wear can earn substantial income and can consider themselves professional salespeople. But for the rest of us, commissions are unnecessary.

Question #15

OOPS! Here is in the area we need help and I promise to write one and possibly two articles about the need for promotional plans and how to do them. We are living in the age of proactive retailing. We can no longer sit idly by and wait for customers to come in. We need to build our businesses through events and let our customers know that there is always something going on at the store. These events do not all have to be price or sale events. There are lots of contests and awards ideas that need to be incorporated in every retailer's promotional plan.

I don't totally understand why 17% of the stores had promotional plans that  only employees and management could review.  My guess here is that the majority of the promotions are price related and it wouldn't be prudent to publish that list in fear that customers might wait.  The way around that is to publish a calendar of events  and title the sale events with a generic name such as Special Savings Event. The goal is to create events that will bring customers in the store that are not neccearily about price.

The 2010 Retail Survey

This year's retail survey as usual offered some surprises, along with the things we had hunches about that turned out to be right on target. Because of the amount of responses and because the responses keep on coming in, I am going to report on eight of the 15 questions and finish the survey next week.

Let's get to the first question and see how you compare to majorities.

Question #1: Are you using Facebook on a regular basis?

This was one of those questions that surprised me a little bit. Yes, I have preached about the benefits of Facebook but I have also listened to the retailers who have been overwhelmed with the prospects of learning and mastering Facebook. It didn't surprise me that 32% surveyed used Facebook on a daily basis and 16% that use it on weekly basis. That totals 48% or close to a simple majority of the retailers that responded. It is pretty significant because a year ago 40% of the retailers responding had never heard of or were vaguely familiar with Facebook. Then you add in an additional 23% that use Facebook once in a while you have 71% using this tool. That even impresses me! Facebook is no longer on the fringes of retailing-- it is an accepted way of communicating with your customers.

The real shocker to me was the fact that they were only 12% who expressed no interest at all. As hard as it might be to believe, I feel that a year from now those Facebook numbers will even improve. I also am of the belief that Facebook is replacing the traditional website. So my question is, what were those 12% thinking? Certainly there is an application that they could use. But I don't think that's the reason for the 12%. I believe there are many retailers who are simply intimidated by new technology. I might add justly so because we have been trained that new technology doesn't always work and Facebook to them is a new technology.

We will be doing more programs over the next 12 months solely dedicated to Facebook and relationship building between retailers and their customers.

Question #2: Have you created any videos on YouTube for your customers benefit.

I believe by the end of the year Youtube will be used by retailers in multiple ways that are 10 times more effective than traditional advertising and far more cost-effective. Having said that I am a bit surprised that only 5.6% surveyed have created more than five videos. The interesting part of this question was that 33% were not sure exactly how it applies but are curious.

I plan on writing a column and a webinar just on the use of YouTube. But let me give you a couple of quick points on how this can apply to your business. A customer walks into the store and comes right up to the counter to give you a compliment about the last shopping experience in your store. Instead of wasting that testimonial, pull out the camera and make a quick one-minute testimonial about their experience at your store. You can add that your website, put it on Facebook, play it in the store on one of those inexpensive widescreen TVs that can help you and the vendor sell more merchandise. The other way of utilizing YouTube is to prepare a 3-minute educational tip about something you sell and the customer needs to know. Customers will appreciate the fact that you are offering it. Lastly you can create short videos that can be embedded into an e-mail and sent out to your customers personally inviting them to a store event.  It's powerful!

Questions #3: Do you sell from your website?

This question definitely surprised me the most. Maybe the reason I was so shocked at the results is because I remembered just a few short years ago when the retailers battle cry was that customers had to see it, hold it, and touch it before they would buy. I guess those days are over because the survey says, 41% are currently selling online and 36% plan on selling online in the near future. That is a whopping 77%-- a far cry the 5 to 10% or two ago! However, there is a solid 22% that have no interest in selling online at all.

My feelings are there is always some product you can offer your customers online even if it's just a book from Amazon's affiliate program. There's lots of opportunity out there.

Question #4: What percentage of your business are you doing online?

There were no surprises at least to me here. Although the majority of retailers trying to sell online over 83% admit that represents less than 5% of the business. It's as if lots of people are starting to jump on the online selling band wagon but the majority are not doing the biggest part of the business. That's a good sign that traditional brick-and-mortar stores still have a strong place in the marketplace. The interesting coincidence is that the number of 6% is often used for the amount of total retail sales being done online which would put that number in pretty close proximity.

There is some inspiring news within this question and that is 5% (that number keeps coming up) are doing 21% or more online. There is business that is being done there. It's encouraging to know that there is opportunity out there for those that are willing to make the commitment to Web sales and it is a commitment.

Question #5: I am pleased with my website?

I think the answers to this question surprised me the most. I think I've asked myself about 50 times if there was another answer that I could have included that might've made a difference in the response. I'm not sure because I can't think of any specific answer I could have or would have inserted. Having said that, it surprises me that over 62% of the businesses checked off pleased but feel they can do more. I think the term feel they can do more is a relative term and means different things to different people. However I think what people are saying is my site looks good to me but it's not working the way I hear about other business sites.

The thing that's interesting here is that less than 10% considered their sites to be excellent and works really happy. This is where I believe my job begins. The website reviews that I have now been doing for almost 2 years have exposed some sensational and pitiful websites. One thing I've learned is that the prettiest site is rarely the best site.

Question #6: How many various tools that Google offers for free do you employ?

I am not going to respond to this question in this article because I am planning on writing a complete report about Google and all of the free and fee services that they offer. I believe after you read my report on Google, the numbers could change significantly.

Question #7: How is business?

There are a few ways I can interpret responses to this question. I could look at it as if the glass is half-full and tell you that 62% of the businesses responding say their business ranges from I see a little uptick in business to it isn't bad but you have to work much harder to business is great. (As you can see over 13% said business was great.) So considering the depth of the recession that we lived through I suppose that's not bad.

However, almost 38% are saying that the recession isn't over and business is still rough. Let's not kid ourselves-that's scary. It's scarier than we realize because the majority of the people who read my newsletter are considered more proactive retailers. But when you think about it, it really doesn't matter because we have to be proactive retailers in order to survive. We must generate reasons to come to our store or a websites all the time.

#8. When should you markdowns slow selling merchandise?

Boy, things have changed the most is when it comes to markdowns. At one point the retailer would not reduce the price of any merchandise until he came close to the end of the selling cycle, which in many cases was a season or three months. Only about 8% responded that they would hold the merchandise for one month without any activity. The other 92% reported a more flexible attitude toward markdowns. 35% agreed with me that the time to markdown a piece of merchandise was the second you realize it was a dog.

64% did not back themselves into a corner or any rigid archive policy. But they would take markdowns at a time that they believe is appropriate. That's not necessarily a policy that I endorse, however it is a policy that I do respect

That wraps it up for the first half of the 2010 Retail Survey. Look for next week's response to the remaining seven questions and my special report on using Google. Have a great week and remember the Winter Olympics are over and spring training starts this week. There is a light at the end of the tunnel and I think it might just be sunlight. Hopefully we will all remember what it looks like!