I met a retailer last year.
We introduced ourselves.
He asked me what do you do.
I said, I improve the profitability of jewellery retailers.
He asked how would you do that?
I said jewellers have 33% of dead stock.
He asked me to visit his store and see for myself.
I said I don’t travel these days because of my health.
He said he has only 5% dead stock.
Did you say 5%? I asked?
If you are telling me the fact, it is really 5%; I am there tomorrow morning at 8 AM in front of your shop to learn from you.
I don’t travel these days but you are telling me that your average is 5% and I think industry average is 33% then I have something to learn from you.
Isn’t it correct?
He said no-no.
We will talk, please sit.
Which means it is not true.
It is not my ego.
If you have dead stock below 20-25% then I have something to learn from you.
I met somebody in Pune long ago.
He had 8-10 stores.
He said, no sir, we have only 10% dead stock.
I asked, how is it possible?
Please explain, sir.
He said, we keep moving stocks from one store to another store.
That’s not called 10%, I said.
10-20% from birth.
If it has born here in your first showroom on 1st of January, how long have you taken to sell it out, that is 33%.
It’s not like you keep changing the labels.
The ever greening doesn’t happen.
It’s not Bank NPA.
You should not do it.
Once you think about these big-big things, it is a marathon.
I was speaking to somebody and said; it is like a jigsaw puzzle.
Start thinking about these things.
I am not saying you, that are not thinking today.
But I am saying it’s not at all sufficient.
And as an industry, we have to wake up.
When I came out of Tanishq, internally the complaint was the process here is very slow.
We kept saying that.
It was a such a big company.
It takes a lot of time to decide.
But after having worked in the market now for 8 years, I think retailers are slower.
You are the boss, and you take a lot of time to make one decision.
This is the point.
I think you are too comfortable.
You are in a comfort zone of your own.
I have one more story for this.
There’s a tiger chasing 2 people.
One guy is saying why are you running, anyway tiger is going to eat us.
Second guy says I am not running away from the tiger.
I am running away from you.
The tiger is going to eat you.
By that time, I will be 2 step ahead of you.
That’s all I need to do.
After reading this article, think.
Lot of people ask me to tell me what is my competitor are doing, what is their turnover and all.
I say don’t worry.
You can do nothing, anyway.
Can you increase your stock rotation?
Think about that.
That is something you can do.
Can you increase the price?
Not at this point.
Figure out how are you going to increase the price?
I was doing a workshop for some chain store.
If the customer doesn’t have money, she will not come inside of the showroom.
This is a category where she has money to spend.
Why are you giving it away free?
There was one ad in South India, 3% making charges.
Why do you want to do business at 3%?
Somebody said they are killing the market.
I said, I don’t think so.
He will continue to bleed or continue to fund.
Honestly, I will take everybody’s competitive activity as input.
What can I do, is what I am interested in?
This guy may sell at 3% but there are people who are selling at 4,5,6,7,8%.
All of them have not come down to 3%.
That’s all I am saying.
It’s all starts with CHANGE.
I have one joke.
How many of us want change?
Everybody will lift a hand.
How many will change?
Very few people will lift their hand.
If you are in a showroom who will you ask these tough questions?
That’s what I keep saying.
Your family can’t ask you these questions.
Your competition can not ask you these questions.
Your drinking buddies can’t ask you these questions.
So who is going to ask you these questions?
That’s the tough part.
Somebody told me, I need a BOSS.
You need a boss.
Then only it will work.
Otherwise it won’t.
What do you think about this?
Please let me know in the comments.
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