What do you do when you’ve done almost everything right and yet your business is failing? It’s not a hypothetical question and the answers I’ve come up with kind of scare me a little. Let’s see what you think.
The town from which I moved has fewer and fewer “mom and pop” stores. Most of them have been replaced by national chains. Main Street used to be unique, interesting retailers. Now it’s basically an outdoor copy of most malls with chain store after chain store packed in next door to one another. I still read the local news from the town in which I lived for 35 years and I was saddened to see that another one has bitten the dust. Let me explain why it raised some questions in my mind.
It was a local hardware store run by a family who is well-known in the town. As one local blogger wrote, “They’ve been the go-to place for gardening supplies in spring, rakes in the fall, paint and keys and pest control and light bulbs and a lot more whenever we need it.” It wasn’t huge but as local places go it had a fair amount of inventory and I suspect that it could satisfy the Do It Yourself needs of most folks. Therein lies the problem. The owner put it well, citing irreversible challenges, including online sales competition and the loss of skilled DIYers to a keypad culture.
Guilty as charged, sir. Much of the time I just have Amazon deliver what I know I’ll need in a day or two. Of course, in my old town, fewer and fewer people actually even do things themselves, preferring to call someone. When I changed out my first toilet fill valve here in my new place, I did think to myself that I probably would have called a plumber and paid for an hour of his or her time to do a 10-minute job – 40 if you count the time it took to run to Walmart to get the part.
This family did everything right. They were never too busy to help you understand how to do a repair or improvement job as they made sure you had the right materials and tools. They personalized everything, something the online world is still learning to do. Did you pay a little more (and it really was a little)? Yes, but you also were 100% sure you had what you needed. The market has changed, however, and competing with Home Depot or Lowes or Amazon (for the smaller number of people in town who still did things themselves) became impossible.
What would I have advised them? More in-store classes, a better online presence establishing themselves as local, available experts, maybe get a kid to deliver. Yes, the big guys do some of that too, but having the local, familiar edge could make a difference. I’m not sure any of that would have worked, but I also know that most retail is still brick and mortar, not online. I do think that competing with online as well as with giant home improvement centers, however, is too much. The benefits of technology are generally good, but in this case, tech has disrupted the local ecosystem, much as introducing a non-native predator to solve one problem can cause many others. Any local grocery stores in your town? Not in mine. Auto repair, restaurants, clothing stores, heck, even car dealers are all heading down this same path. Could your business be as well? What can you do NOW?
Consult Keith 