Submitted by John Rockweiler Sr. from WSJ
The long recession is helping to empty out the
promenades. Some analysts estimate that the
number of so-called “dead malls”---centers
debillitated by anemic sales and high vacancy
rates---will swell to more than 100 by the end
of this year.
The shopping mall industry’s woes are worsening.
Thinning customer traffic, and subsequent hits to
Tenants’ sales and profits, prompted Standard &
Poor’s last month (April ‘09) to lower the credit ratings
Of the department-store sector.
Any mall that’s sitting on life support is probably going
To get it’s plug pulled” as the economy stalls, says
Michael Glimcher, chairman and CEO of Glimcher
Realty Trust, which owns 23 U.S. properties. One
Industry rule of thumb holds that any large, enclosed
Mall generating sales per square foot of $250 or less--
The U.S. average is $381—is in danger of failure.
A 52% decline in square footageequals a 34% loss in revenue see below..............
1 million sq. ft. mall at $381 per foot: $419 million/sales
1 million sq. ft. mall at $250 per foot: $275 million/sales
By declining from $381 p/s/f to $250 p/s/f the loss in
Revenue is $144,000,000 or 34%. Losing 52% in square
Footage rates equals a 52% decline in revenue.
The loss places malls in peril of closing.
Ad reps and managers should encourage tenants to seek their own personality and bring shppers to their specific stores as additional sales growth will help struggling malls.
Monday, May 25, 2009
Opening Pandora's Box
by Mark Walsh
By shifting programming from television to the Web, TV networks are on a "slippery slope" that puts the combined $300 billion market valuation of the industry at risk, warns a new report. Analyst Laura Martin of Soleil Securities points to the implosion of the music and newspaper businesses as cautionary examples of what happens when media companies "unbundle" content (selling individual songs via iTunes instead of albums) or give it away free online. ... Read the whole story > >
By shifting programming from television to the Web, TV networks are on a "slippery slope" that puts the combined $300 billion market valuation of the industry at risk, warns a new report. Analyst Laura Martin of Soleil Securities points to the implosion of the music and newspaper businesses as cautionary examples of what happens when media companies "unbundle" content (selling individual songs via iTunes instead of albums) or give it away free online. ... Read the whole story > >
Wednesday, May 6, 2009
Unhappy Customers: How to Turn a Frown into Lifelong Profit
Read a great piece in Dealerscope....and I thought it would be a good piece for you to consider...given the state of the economy and the fact that no matter how you may try...some clients may not always seem satisfied what all that you do for them ....and crankiness when you're losing business is a natural phenomena.
This essay is by Bob Janet...and you can respond to him at www.BobJanet.com.
No matter how much you focus on customer satisfaction, you will inevitably have problems with at least one of them. Just remember that when the time comes, and it always does, the customer is always right. Sure, that saying is one of the oldest clichés in the book, but for a damn good reason.Remember that as soon as you make the customer feel they not right, they are no longer your customer. Of course there are some customers you might not want to keep. For now, though, let's deal with solving customers’ problems, making them happy, and making as much many as possible from that happiness. Here are a few tips for solving problems and retaining customers:- Get close: If a customer comes into your store with a problem, your first move should be to physically move closer to the customer. Never be behind a counter or desk. Never put a barrier between you and your customers. As you move toward the customer, reach out and shake their hand while assuring them you will take care of their problems, needs and wants.You might want to start by saying, “I'm sorry we are having a problem. Will you please tell me about it?” With these simple sentences you have now made it you and them against the problem. It is no longer them against you. If at all possible, get the customer to sit down next to you. People are not as aggressive sitting as when they are standing.- Ask plenty of questions: “Please tell me what your problem is.” “Please tell me all about your….” “Please explain to me all we did / or did not do …..” etc…- Empathize with them: “ I understand your frustration.” “ I would feel the same way.”- Let them vent. They are upset and angry at the problem, not you. Do not take what they are saying personally. Listen intently to them as they tell their story. If they happen to use unpleasant words, so be it. Just listen and nod your head in agreement. Say things like: “You don't say? We did that? Tell me more about that.” Or, “Oh no, we/the product did that?” Show concern.- Re-assure: Re-assure them that you will solve their problem and fulfill their needs and wants.
- Propose an action plan: Offer a solution by giving them choices.When I worked as a retailer and wholesaler and reached this point, I always decided what the most important thing was that I could do for the customer to make them happy so that I would be able to keep them as a customer and not lose money. Notice I said “not lose money.” I did not say not lose pride. If you are wrong, you must admit it and fix it. Even if you are not wrong, you must take the responsibility and fix it. The seller who takes ownership of the customer’s problems will keep the customer for a lifetime of profits. Either way, the customer is always right.I then asked the customer what I could do to correct our problem. Ninety percent of the time they asked for less than I was prepared to give. I then gave them more than what they had asked for. If they ask for more than you can give, counter by giving the customer a choice of 3 options for solving the problem. If none of the choices satisfy them, give them 2 or 3 more choices. Offering the customer choices gives them the feeling of control. People will agree with you when they feel they are in control. When a solution is reached, touch the customer slightly on the shoulder and say positive things such as: “Good idea” or “Ok, let's continue” or “Thank you for your input.” Then put your agreement in writing, sign it, and have the customer sign it. Thank them again for bringing to your awareness the problem.Always work with a customer to solve a problem. Making it you and them against the problem is always better than them against you.
This essay is by Bob Janet...and you can respond to him at www.BobJanet.com.
No matter how much you focus on customer satisfaction, you will inevitably have problems with at least one of them. Just remember that when the time comes, and it always does, the customer is always right. Sure, that saying is one of the oldest clichés in the book, but for a damn good reason.Remember that as soon as you make the customer feel they not right, they are no longer your customer. Of course there are some customers you might not want to keep. For now, though, let's deal with solving customers’ problems, making them happy, and making as much many as possible from that happiness. Here are a few tips for solving problems and retaining customers:- Get close: If a customer comes into your store with a problem, your first move should be to physically move closer to the customer. Never be behind a counter or desk. Never put a barrier between you and your customers. As you move toward the customer, reach out and shake their hand while assuring them you will take care of their problems, needs and wants.You might want to start by saying, “I'm sorry we are having a problem. Will you please tell me about it?” With these simple sentences you have now made it you and them against the problem. It is no longer them against you. If at all possible, get the customer to sit down next to you. People are not as aggressive sitting as when they are standing.- Ask plenty of questions: “Please tell me what your problem is.” “Please tell me all about your….” “Please explain to me all we did / or did not do …..” etc…- Empathize with them: “ I understand your frustration.” “ I would feel the same way.”- Let them vent. They are upset and angry at the problem, not you. Do not take what they are saying personally. Listen intently to them as they tell their story. If they happen to use unpleasant words, so be it. Just listen and nod your head in agreement. Say things like: “You don't say? We did that? Tell me more about that.” Or, “Oh no, we/the product did that?” Show concern.- Re-assure: Re-assure them that you will solve their problem and fulfill their needs and wants.
- Propose an action plan: Offer a solution by giving them choices.When I worked as a retailer and wholesaler and reached this point, I always decided what the most important thing was that I could do for the customer to make them happy so that I would be able to keep them as a customer and not lose money. Notice I said “not lose money.” I did not say not lose pride. If you are wrong, you must admit it and fix it. Even if you are not wrong, you must take the responsibility and fix it. The seller who takes ownership of the customer’s problems will keep the customer for a lifetime of profits. Either way, the customer is always right.I then asked the customer what I could do to correct our problem. Ninety percent of the time they asked for less than I was prepared to give. I then gave them more than what they had asked for. If they ask for more than you can give, counter by giving the customer a choice of 3 options for solving the problem. If none of the choices satisfy them, give them 2 or 3 more choices. Offering the customer choices gives them the feeling of control. People will agree with you when they feel they are in control. When a solution is reached, touch the customer slightly on the shoulder and say positive things such as: “Good idea” or “Ok, let's continue” or “Thank you for your input.” Then put your agreement in writing, sign it, and have the customer sign it. Thank them again for bringing to your awareness the problem.Always work with a customer to solve a problem. Making it you and them against the problem is always better than them against you.
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