KNOWLEDGE OF THE STOCK
“THESE ARE BETTER”
The following is the experience of a Boston business man as told by him
to show the importance of a knowledge of the stock, on the part of the
salesman:
After having looked around in several of the shop windows I
finally saw a shoe that seemed to be just what I wanted.
Entering the store I was met by a young man to whom I pointed
out the shoe in which I was especially interested. Within a
short time he brought a shoe of the same style in my size and
placed it on my foot.
For some reason or other, however, the shoe did not seem to look
as well on my foot as it did in the window, and I asked to see
some other shape. The young man produced another and after
lacing it up explained that the price was twelve dollars, which
was two dollars more than the one first shown.
On a point of information I then inquired, “Why should this pair
be worth twelve dollars as compared with the other at ten?” And
the answer I received was:
“Oh, these are better shoes than those.”
Although the customer knew practically nothing about shoes and values
and may not have been able to distinguish a calfskin from an alligator
hide, and although he knew nothing of footwear styles and make, it was
an insult to his intelligence to tell him that he was paying two dollars
more because the twelve-dollar shoe was better than the ten-dollar one.
He might just as well have been told that he was paying two dollars more
because twelve was that much greater than ten. The salesman owes it to
himself and to his success in selling to acquire a knowledge of his
stock. On any other basis he can do nothing more than hand out shoes at
the customer’s direction and hope that no questions will be asked. But
it is not on this basis that success is measured out either in selling
or any other work calling for the use of brains.
STUDY OF THE STOCK
An investigation has recently been made among retail stores to determine
the causes accountable for the loss of customers. As a result of this
the fact has been brought out that among the chief reasons for the
customer’s dissatisfaction, and as a result of which he transfers his
business to some other store, is the salesman’s ignorance of the goods
being sold. Business to the extent of millions of dollars is lost every
year among retail shoe stores, due to this one cause. Satisfaction in
the way a customer is served depends upon his confidence in the salesman
who serves him. This cannot result unless the salesman shows an
understanding of his goods.
To know the stock does not mean simply to know the prices. It means
among other things that the salesman must know what he has in stock to
sell and where to lay his hands on the goods when he needs them. The man
who is a success at selling realizes that the better knowledge he has of
his stock, the greater will be the satisfaction of his trade. He knows
every line in the house thoroughly—even the odd pairs he knows by size
and width so that when he gets the foot that may be fitted with one of
these he can convert the dead or odd pair into cash.
To study the stock means actually to take the time to examine the
different qualities and styles, to know the materials of which they are
made and to understand _why_ the one shoe sells for twelve dollars as
compared with the other at ten. In most stores there are times in the
morning while business is quiet when the salesman has the opportunity to
get into the stock, to examine it carefully and to learn the “feel” of
the goods. This is something that will come to him only by getting the
goods in his hands. A few minutes each day spent in a close study of the
stock will pay dividends in the way of increased business and satisfied
customers.
Later in the Course will be taken up the comparative importance of
different kinds of leather, the advantages of one over the other, a
study of cloth fabrics that go into shoes and the “why and wherefore” of
each of them, a discussion of rubber, fibre and a dozen other materials
that have important parts to play in their own special ways. To have a
knowledge of the goods means to have an understanding of how shoes
should be fitted, of how they are made, an understanding of styles and
how they are originated and introduced. The shoe salesman who is in
business for a future must know these things and he will get results in
proportion as he learns these facts. They will all be fully treated in
following sections of the Course but are mentioned here to show how
closely they tie-up to the salesman’s everyday work in serving his
customers.
The best salesmen are those who know most about their product and their
business and no one can be permanently successful without such a
knowledge.
STYLES
One of the powerful forces to stimulate the customer’s desire to buy is
the wish to have something out of the ordinary in appearance. This is
another variation of the demand for variety that has been mentioned
before. To give the customer what is wanted in footwear variety calls
for the steady changing of styles season after season.
A thorough understanding of conditions of fashion demand that good taste
must be represented in footwear styles. Occasionally there will be a
demand for freak styles that do not meet the generally accepted idea of
good taste and common sense, but these constitute the exception. The
shoe business of the country is conducted on sound principles. It
requires foresight to anticipate the wishes of the public and to have
styles ready to supply when the demand is made. A high degree of good
judgment and common sense is needed. For instance, a manufacturer, in
making up his lines of women’s shoes for a coming season, must take into
account the colors of dress goods that will be popular at that time, in
order that he may be in a position to harmonize the leather or cloth in
the shoe with the costume. He must take into consideration the length of
the skirts to be worn and plan his styles accordingly. The weaves and
qualities of shoe fabrics must be considered, and so on all along the
line. All this must be planned in advance in order that the salesman may
have on his shelves the goods that are wanted and _when_ they are
wanted.
Styles are a necessary feature to the success of a shoe business, but
unless they are properly understood by the shoe salesman they may act
with a “back kick,” like a rifle in the hands of an amateur. The true
facts are clearly brought out in an article that appeared recently in a
booklet for the salespeople of a progressive mercantile company:
Merchandise that has its value based on style loses its value as
the season advances and something else is produced to take its
place. Seasonal merchandise must be sold during the period in
which it was intended to serve its purpose.
Sales on style merchandise are not only justified but essential.
The price of this character of goods is based on the newness of
style, and merchandise loses its value when this feature is
eliminated.
Sales are a necessity to keep a stock clear of all odds and
ends. To allow goods to remain in stock beyond the period during
which they should have been sold is only creating losses in the
end. No one serves the firm better than the salesman who always
makes special efforts to have stocks clean.
From this it is clear that for the salesman to give the best service,
both to the customer and the house he represents, it is essential that
he have a thorough working knowledge of his stock. The fact is often
overlooked that it is from _the last pairs_ of shoes in a line that the
proprietor gets his profit. If these are not sold they become dead stock
and their value decreases the longer they continue to lie on the
shelves.
STOCK ARRANGEMENT
The size of a store and its inside arrangement will have a great deal to
do with the way in which the layout of the stock is to be planned.
However, there are some important points to be remembered which apply
regardless of the amount of room available for storing the stock or the
kind of fixtures used.
A plan well worth following is that of keeping to the front the stock
first purchased so that it may get first attention on the part of the
salespeople. The tendency is to give the most prominent position to
goods just received and to overlook the goods that have been in stock
for some time. We naturally forget the things that are out of sight. To
do this with the stock means to pile up a number of short lines that
will later have to be sold at a sacrifice. Thus a loss results that
might have easily been avoided through a little care in the arrangement
of stock.
The following are some valuable suggestions on the care of stock made by
Mr. Conner of the George E. Keith Stores Company:
We shall assume that the salesman is required to do a certain
amount of stock work—that a certain number of sections are given
to him to be cared for. Rightly, he should take as much pride in
this stock as he would in new furnishings in his home. The
contents of the cartons should be kept clean and presentable at
all times. A liberal amount of tissue paper should be kept
between the shoes, and it should be well straightened out. The
cartons should be kept clean so that the salesman might justly
feel proud of the appearance of the goods if a customer should
enter the store hurriedly and notice a certain number in the
stock. The appearance of a particular pair of shoes pulled out
should be such that the customer would receive the impression
that it had just arrived from the factory. There should be the
look of freshness and newness that would at once appeal to the
customer and influence his decision in favor of buying.
The control of a stock section given over to a salesman does not
mean simply that the stock is to be kept clean and salable.
Depending on the volume of business and the size of stock
carried in the particular store, there are a minimum number of
pairs of shoes that constitute a profitable line. Assuming that
the business cannot operate profitably any one line of shoes
when there are less than twelve pairs, as soon as any one of the
lines in the salesman’s charge is brought down to that number he
should at once take sizes and report the facts to his manager.
He should take sizes on his stock at least twice a week and
should know that no sizes are in the stock room that should be
on the shelves.
Another point of importance in connection with neatness and order in the
stock is that of returning to their proper places goods that have been
taken out to be shown to the customer. The slip-shod way is to put the
shoes in wherever there happens to be an empty space. The result of
doing this is that either the pair will be lost trace of, or it will
cause unnecessary work on the part of someone else in weeding out stock
incorrectly placed and in putting it where it properly belongs. It is as
easy to return stock to the special place provided for it as it is to
pick out the wrong place. The goods when rightly placed can always be
found when wanted without loss of time and effort on the salesman’s part
spent in searching around among half a dozen places where he or someone
else might have put them.
TIME SAVING
W. W. Willson, manager of retail stores for Rice & Hutchins, considers
the matter of a thorough acquaintance with the stock of particular value
to avoid wasting the customer’s time. He says:
The average customer today demands dispatch when making a
purchase. Dispatch does not mean to carelessly rush through a
sale, but to do away with unnecessary loss of time. People as a
rule have numerous things to attend to either in a business or
social way, and they will not waste valuable time waiting while
some uninformed salesperson tries to serve them and makes a
blunder of it. The customer invariably remembers an experience
with this kind of salesperson and makes a special point to avoid
him when the next purchase is made. He will find the salesman
who knows the stock.
It is often said that “time is money.” To convince yourself of
this divide your earnings each week by the number of hours that
you work and you will readily understand how much your own time
expresses in money on the expense account of the store or
department. Remember that this applies also to your customers.
You should know your stock so well as to require only the
minimum of time to properly transact the sale to the best
interest of the customer as well as yourself. A thorough
knowledge of the stock helps you to do this. Take care of it and
keep it in condition to show and to sell to the best advantage.
It is a recognized business fact that a following of satisfied
customers is the best possible advertisement that any business
or salesman can have. Satisfied customers return and make other
purchases; they influence other customers to come to the store
or department. This increases your sales and the profits of your
firm. An increased volume of sales increases the value of the
salesman. The person who sells the most goods with the greatest
satisfaction to all parties concerned receives the greatest
reward in compensation and promotion.
KEEPING POSTED ON NEW STOCK
Bearing in mind the important fact that style goods must be sold during
the current season, it is clear at once that the salesman must keep
himself posted at all times on new goods received. A week lost in
getting informed of the fact that there is a new style in stock means
more than the loss of six business days. It may mean that a certain
number of customers have been required to accept goods less desirable to
them, or it may mean that the business has been lost altogether. The
customer does not buy shoes every week or every month, and on that
account a sale lost this week often results in the loss of a sale for
the season. The time to sell seasonal goods is at the opening of the
season, and every day past the opening reduces the possibility of a
profitable turnover and increases the prospects of “left-overs” and dead
stock.
New styles coming in should be carefully studied to determine the type
of feet for which they are most suitable. To show a woman a new style of
shoe just received, and explain to her that it represents the most
advanced model of the season, would be good business provided she could
be properly fitted in such a shoe. On the other hand, if her foot is of
such a shape that it could not wear the new style, it would be better
business for the salesman to say nothing about the new styles and to
give his whole attention to the shoes he has to fit the particular foot.
To be prepared to meet this situation when it occurs requires that all
shoes in the stock be studied with the idea of learning their points of
advantage or limitation as applied to different classes of feet.
In line with this same suggestion is that of watching the stock of sizes
in new goods received. The particular size may have been out of stock
three days or a week ago, but there is always the possibility of a new
shipment having been received. If the salesman does not actually know
the condition of the stock in a certain size, he should make it a point
to find out rather than to accept the fact that it was out of stock when
he inquired yesterday or two days ago. Above all he should not advertise
the fact that he does not know the stock with any such remarks as “I’m
_not sure_ that I have your size,” or “I don’t _think_ we have that
style.”
CUSTOMERS’ CRITICISMS
One of the very difficult problems that men in public life have to meet
is that of learning the opinions of the people they represent concerning
current matters of importance. For instance, the governor of a state or
the mayor of a city is seriously interested in the opinions and desires
of his constituents on matters that he will be called upon to settle. He
is not able to meet personally and learn the views of more than a dozen
or a few dozen people, and so he very wisely takes advantage of public
opinion—which includes criticism as well as favorable comment. In fact,
the experienced man will be more considerate of the criticism than the
commendation, because it gives him the advantage of good judgment on the
opposite side of the question. He is wise enough to know that his
opinion may not be sound, and for that reason he takes advice from his
critics.
In retail selling, also, there is the possibility of getting good advice
from critics. A customer may not be pleased with the style of a shoe,
the quality, color or fit, and will probably express that fact as a
criticism. Nobody delights in receiving criticisms, of course, but just
the same it is a wise merchant who considers these opinions of outsiders
and plans to take advantage of whatever good there may be in them. A
word dropped by a customer may contain the answer to the question of why
this or that line does not move. A word from the customer concerning the
kind of service he has received may contain a suggestion to the salesman
to give more attention to a feature of his work he may have been
overlooking and which may have been responsible for loss of sales.
A great many stores today take advantage of customers’ criticisms by
requiring the salesman to prepare a record of each sale that is lost and
the reason why it was lost. Every man, regardless of his position, can
afford to consider carefully any comments having to do with the quality
of his work. He should, moreover, consider them with an open mind, so
that he will be in a position to judge the value of each suggestion,
rather than simply to pass it by and try to forget it quickly because it
is unfavorable rather than a pat on the shoulder.
STOCK TURNOVER
A New England merchant operating a country general store made it one of
his business rules that he would never sell an article at less than
cost. His way of figuring was that if he never made a sale at a loss he
could never lose money and consequently his business was bound to
prosper. And so he went on year after year faithfully following out his
original idea, which later became as a law to him. Each year contributed
to pile up more stock, and each year he found himself with more dead
stock, that steadily decreased in value the longer he kept it. There
could be only one result following from such a short-sighted policy—the
business died of dry-rot. It was then for the creditors to sell the
goods at whatever they would bring, and it was an actual fact that some
of the goods were found to have been in stock for twenty-five and thirty
years.
For our purpose we are interested in this experience only as it shows
the importance of keeping the stock moving. The old country merchant
knew nothing of the meaning or importance of stock turnover. Today most
merchants understand that a great measure of their success in trading is
dependent upon the ability of the salesmen to sell out the stock
promptly. A profit is made only when the goods are sold, and therefore
the store’s success is measured by the number of times a line of goods
can be sold out or turned over during the course of a year. To say that
a certain line of shoes has a turnover of four, means that the line is
sold out and replaced with fresh stock four times during the year.
The following is a word of good advice given to merchants on this
important matter of turnover:
Did you ever think of shoes as so many dollar bills lying on
your shelves? Picture this thought in your mind. As long as they
repose on your shelves they do not work for you. In fact,
converted into shoes, they cost money and depreciate in value
the longer they stay there. It would be better to have real
dollar bills tucked away in your stocking; you would then
receive no interest but they would not cost you money.
Keep your stock moving!
Clean out slow sellers!
Stock turnover is the secret of success in conducting a store.
The salesman’s work has a very direct relation to the matter of stock
turnover, for, after all, he is closest to the customer and upon his
knowledge of the stock and selling ability depends a great deal of the
success in keeping the stock moving and of keeping it clean of short
lines and dead stock. This is no small responsibility. A knowledge of
the stock is essential. On the part of the salesman it requires that he
know what goods he has to offer, where he may find them _quickly_, their
particular merits and special advantages from the customer’s point of
view.