Secret #19: Don't Forget the Little Things.

To win their loyalty and support, retailers should concentrate on enhancing their customers' shopping experience on all levels. Exceed their expectations. Nurture an environment that inspires comfort, joy, enthusiasm, and pleasure. Customers should leave your store happier and more relaxed than when they came. Do not underestimate the impact that a welcoming environment, free cup of coffee, ice-cold lemonade, or friendly conversation have on your company's growth.

Secret #20: Create a Unique Down-Home Shopping Experience that Your Customer Will Remember.

Company growth brings additional demands on the owner, usually behind the front lines. Although it is a natural progression for the independent retail owner to shift focus from customer interaction to business development, the owner's presence must continue to be felt tangibly in the store. Customers and employees respond to the personal connection that comes with knowing the owner is involved in day-to-day operations, even when he is behind the scenes. Develop ways to reflect the owner's presence, spirit, and individuality-and that of his family-throughout the shop.

Secret #21: Identify Known-Value and Price-Sensitive Products. Then Ignore the Competition.

Following the pricing strategy of big box stores will turn independent retailers into a herd of sheep heading for a cliff rather than successful leaders. Differentiate levels of price sensitivity, price known-value products within 10 or 15 percent of your competitors pricing, and sell price-sensitive products for the lowest price around. Then, ignore competition and strategize your own pricing trends. Remember that it might be wise take a profit loss on price-sensitive products by pricing below the competition because this fosters a reputation for reasonable prices, attracts customers, and ultimately generates increased profits on products set above standard pricing.

Secret #22: Stop Customers From Comparing Apples to Apples.

Controlling customer perception empowers independent retailers to exceed their necessary profit margin. Retailers who invest time and money into the perceived value, size, exclusivity, and brand of their products-setting them apart from big box store products (and pricing)-eradicate their customer's ability to comparison shop and allow growth through higher profit margins. Don't shop in your own backyard. Private label your products. Rely on size to distinguish your products from your competitors' products, and discourage comparison shopping.

Secret #23: Value Profit Margin Over Profit.

Focusing solely on profit is an outdated, ineffective business model for independent retailers. Retailers must consider the impact each potential investment has on their profit margin as well as their standard profit ratio. Careful analysis of both areas offers retailers the business insight necessary to enjoy the greatest profits.

Secret #24: Haggle With Your Vendors, not With Customers.

Independent retailers can easily sabotage their bottom line, even while maintaining and nurturing a personal relationship with their customers. Remedy this by making sure that all haggling happens before products hit the floor. Retailers must take advantage of their status as a customer of their vendors while being strategic in offering discounts to their own for customers.

"Retailing is a people business. The fundamental competitive advantage any independent retailer can build is to relentlessly hire A Players. As Andy Buyting shows in The Retailer's Roadmap to Success, all other advantages flow from having the right people managing your business and interfacing with your customers."
-Geoffrey H. Smart, Ph.D., Chairman and CEO, ghSMART