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Retail Business Environment

Notes you spend your dollars based on whom you would most like to continue doing business
with.
3. Be reasonable about where you travel to shop. Driving an additional ten miles to save
$1.00 probably isn’t worthwhile, try and maximize your savings per trip.
4. Limit credit card use. Retailers may be running great specials but stocking up at 70% isn’t
saving you money if the balance stays on your credit card for multiple billing periods.

Tips for Retailers and Business Owners

1. Just like consumers shouldn’t rely on debt to purchase items at a discount neither should
you. Financing unnecessary inventory with debt because it is being offered at reduced
prices won’t make you money in the long run.
2. Offer consumers lower price substitutes in your store. Lower price point options may
keep a consumer in your store from shopping at a discounter.

3. Don’t be afraid to have sales or specials to move inventory. The downturn won’t last
forever and getting more people in your store or restaurant is the key to building long
lasting customer relationships and repeat business. You might not make the same profit
per item or entrée that you were prior to the downturn, but you are making sales and
meeting customers.
4. Don’t assume the raising prices will keep your revenue stream stable during a downturn.
The price elasticity of the goods you sell will determine whether you can raise prices or
not. Do not raise prices on highly elastic goods as this will reduce the quantity demanded
dramatically.

5. Know your inventory. This might include keeping detailed records or journals of what
you sell the most of and to whom. Pay attention to your competition and their prices.
Being in touch with the nature of your inventory can limit lost revenue with respect to
price changes and stocking of inventory.
6. Consider low to no cost options to revitalize your space. Changing the layout of your
store can add instant appeal with little or no expense.
7. Be prepared to make some sacrifices and tough choices. Plan for the future and think
strategically about where you want to be when the down time ends.
8. Listen to your customers, they are your greatest asset.

Low marketing and advertising budgets will work out

To rectify the things, right solutions are always excavated. Whether the market growth is slower
or faster, its potential should not be left unused. Anyway, new and innovative solutions must be
invented to answer the current market slump. Cutting down the marketing and advertising
budgets will reduce the financial burden on retailing industry. Marketing and advertising are
the supreme factors for the retail industry to penetrate more into retail market. Following
innovative marketing and effective advertising at low prices will be a brilliant move for the
present day market trends.

Challenge to get more customers at low cost

In this current meltdown, driving the customers to the retail stores seems high and dry. But, the
markets always have the hidden potential despite the slump. Today, the changing market trends
demand the retail industry to expand its reach to the more customer touch points so as to drive

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