The words “Going Out Of Business” conjures up many images for people, depending on which vantage point they are seeing them or hearing them through. For the consumer, it conjures up images of great deals and bargains not seen often, and for other consumers it conjures up images of sadness because of a business they may have frequented no longer being there for them to support.
But what about the business owner? The merchant who has spent many long, hard hours to build and maintain his or her business? What kinds of images do they imagine? Well, having worked with many business owners over the years who have either been forced or have simply chosen to go out of business, there are two distinct vantage points:
For the merchant who has been somewhat forced out of business because of poor marketing decisions or because of a larger competitor moving in and stealing customers it can be a sad, or even terrifying, image they conjure up. For the merchant who is retiring, moving on, or who is fed up and actually ready to leave, going out of business can actually be a good thing that leaves them with images of joy and happiness.
In any event, going out of business can actually be a good thing for everyone if a well-designed plan has been put into place and properly executed. Good for the consumer because they will have the chance to buy things at discounted prices for several weeks, and good for the business owner because they will have the chance to generate a lot of sales in a short period of time and, potentially, a large profit.
“Profit? But I thought merchants lost money when they closed their store and went out of business?”, say most people. This is absolutely true if a well-designed plan is not properly implemented AND executed, and this is something that should not be left to do alone or without professional help.
A Going Out Of Business Sale consists of a great marketing plan, including a powerful sign kit, and also a knowledgeable consultant to facilitate and manage the plan. What drives the success of a going out of business Sale is a fast start and a full stock of merchandise, which many people don’t understand.
Here’s why you want to have as much stock as you can when your Sale begins: because in order to liquidate effectively, you MUST have many customers, and in order to have many customers you MUST have a good marketing plan that gets implemented effectively. And it’s been proven through years of experience that the same amount of marketing must be done to generate a crowd that fills a store with a half stocked inventory as it does to generate a crowd that fills a store with a FULL inventory. So, if the money must be invested to fill the store anyway, WHY would you NOT want to have a full inventory for them to choose from?
Aside from a full inventory, a good marketing plan, and a knowledgeable consultant having a going out of business sale without the proper price reduction strategies will gnarl away nearly every cent of profit very quickly. Great for the customer because they’re getting better than great deals, but bad for the merchant because they’ve lost what could have been profit for them.
So, in order to avoid the pitfalls of closing a business you must understand what goes into one to make them successful. Once you know this you’ll have a firm understanding of how going out of business can actually be a good thing!