The Best of Best-Seller Advice

by Marguerite Esmonde

As a retailer, you naturally think of shopping as business. But have you ever thought of it as science? Author and retail consultant Paco Underhill did 20 years ago, when he and his team of researchers at Envirosell (New York City) first started tracking shoppers in stores—literally tracking their every move. Over the years, Underhill and his team spent countless hours in stores, making careful notes on more than 900 distinct shopping behaviors, including the merchandise displays shoppers noticed, the merchandise they handled, which parts of the store they visited, how many store employees they had contact with, whether they ultimately purchased anything and, if so, what.

In his new book, Why We Buy: The Science of Shopping (Simon and Schuster), Underhill reveals what he and his team of researchers found after 20 years of research in the field of "retail anthropology." Although some of these findings may sound like common sense, Underhill goes further: based on that research, he offers specific steps retailers can take to increase sales. His findings and suggestions include (but certainly aren't limited to) these:

Increasing front-entrance impact:
Underhill's research revealed that shoppers almost always turn right when they enter a store. So he suggests that retailers place their most important product line to the right of the store entrance. But at the same time, he cautions retailers not to place merchandise too close to the front door, because shoppers tend to ignore merchandise or displays directly inside the entrance. Underhill calls that area the "transition zone," in which customers acclimate to the store's environment, rather than contemplate making purchases. To get maximum sales, Underhill says retailers must recognize the transition zone, cater to it, and keep critical merchandise out of it.

Increasing shopper comfort levels:
Underhill says retailers need to leave enough room between displays for shoppers to move about and reach down comfortably without experiencing what he calls "butt brush"—brushing against displays or other shoppers. People hate butt brush. In fact, that or any factor that makes shoppers physically or psychologically uncomfortable reduces the time they spend shopping, Underhill says, emphasizing the direct connection between the amount of time spent shopping and the amount of money spent shopping.

Encouraging multiple purchases:
For retailers who supply hand-held shopping baskets, Underhill says placing them at the front of the store is not as effective as placing them farther back, where shoppers will see them after they have picked up a few items. He also recommends stacking the baskets high so that they're in the shopper's line of vision.

Merchandising for interaction:
Along with the other senses, touch plays a big part in shopping. As a result, says Underhill, retailers must make sure shoppers can handle and closely examine the merchandise, particularly items like clothing, where texture or softness adds to the product's appeal. Sometimes demographics play a part in interactive merchandising, too. For example, if your cart sells products targeted to older shoppers, don't display products low, forcing elderly customers to stoop down to examine them. (Stooping also increases the likelihood of butt brush.) Similarly, if your products appeal to children, place them at a child's eye level, not an adult's

Increasing interception rates:
"Interception," according to Underhill, is the direct contact between shoppers and employees. The greater the interception rate, the better the sales. "The more shopper-employee contacts that take place, the greater the average sale... Talking with an employee had a way of drawing a customer in closer." Included are suggestions to help increase interception rates.

Underhill also devotes several chapters to the trends and demographics of shopping: the differences in the shopping habits of men and women, for example, and how these habits have changed as the result of women working outside the home and men assuming more household responsibilities. He also discusses how the aging of the population affects retailing now and in the future.

Why We Buy is written in a chatty, accessible style; Underhill communicates his message clearly and concisely. The book's research-oriented approach is easy to grasp, and the suggestions are applicable to retailers of nearly every type and size. After reading this book, you'll look at your customers—and the "art and science" of selling to them—in a new and profitable way.

Books in Brief

These books offer advice for retailers on everything from improving visual displays to paying less tax.

1,001 Ideas to Create Retail Excitement by Edgar A. Falk (Prentice Hall, 1994)
This book is aptly named: it's packed with ideas for using promotional events and themes throughout your store and throughout the year. Ideas include holiday and seasonal promotions, in-store special events, sales that build business, contests, sports as a promotional vehicle, community involvement programs, and publicity. This is a good guide to keep on hand for those times when you need a creative spark, or want to brainstorm fresh promotion ideas.

1,001 Ways to Energize Employees by Bob Nelson (Workman Publishing, 1997)

1,001 Ways to Reward Employees by Bob Nelson (Workman Publishing, 1994)

1,001 Ways to Take Initiative at Work by Bob Nelson (Workman Publishing, 1999)
The first two books by speaker, trainer, consultant and SRR contributor Bob Nelson are packed with anecdotes and ideas for motivating employees. Nelson culled these ideas and suggestions from corporations large and small nationwide. Many of the employee rewards he suggests are simple and low-cost, such as sending handwritten thank-you notes, paying cab fare for employees who work late, or throwing a victory party for having met sales targets. Energizing ideas include finding out which part of the job an employee likes most and assigning work accordingly; acting on employee suggestions promptly; providing good training; creating career development plans for each worker; and brainstorming with employees and allowing them to develop the ideas they contribute. Turn to these books to spark creative ideas to boost employee performance at your store or RMU. (Nelson's newest book, 1,001 Ways to Take Initiative at Work, discusses self-leadership, with case studies of retailers who have excelled through initiative. The book also explores why trust between employers and employees is a critical component to success.)

From Dogs to Riches: A Wealth Building System by Vera D. Clark-Rugley (MCC Publishing Company, 1995)
This step-by-step guide to starting and operating your own mobile cart vending business was written by a woman who opened a hot-dog vending cart to put herself through law school. She liked the business so much that she delayed law school and expanded her cart operation. The book has a strong emphasis on food products, but also covers other product categories. It deals with the nuts and bolts of cart retailing, including product ideas, locations, equipment, legal considerations, finances, business plans, personnel and motivation. If you're thinking of opening your first mobile food cart or kiosk, From Dogs to Riches is an excellent starting point. Its practical, hands-on approach answers questions such as where to buy a cart, what permits are needed, and what products can be sold from a cart. And beginners especially will find the author's motivational tone reassuring.

Retail in Detail: How to Start and Manage a Small Retail Business by Ronald L. Bond (The Oasis Press/PSI Research, 1996)
So you want to be a retailer. Are you sure you're cut out for it? What do you want to sell? Where will you locate your business? How will you display your products? How will you manage inventory, employees and accounting? Retail in Detail, a practical guide for merchants looking for step-by-step advice, answers these questions and more in a practical, encouraging tone. Written by a small retailer, the book covers the everyday problems and challenges of retail operations. It also provides worksheets and samples for accounting, inventory and budgeting, plus a glossary, a list of recommended reading, and lists of wholesale market centers and trade associations.

Specialty Shop Retailing: How to Run Your Own Store by Carol L. Schroeder (John Wiley and Sons, 1997)
Schroeder draws on her experience in turning a small gift shop into a $1.5 million-a-year store. Schroeder offers a step-by-step approach to successful retailing for beginners, along with fresh ideas for established small retailers. The book discusses how to choose your product lines, develop a business plan, maintain up-to-date records, manage inventory, and merchandise your products. The book also provides ideas for making the most of a limited advertising budget.

Unlocking the Secrets of Retail Magic by Richard Fenton and Andrea Waltz (Accelerated Performance Training, 1998)
The authors, both retail sales and management consultants, take an allegorical approach to lessons for motivating employees. Through encounters with the fictional Rag Man, they discuss how to strategically coach and motivate others, identify the people you want on your team, and challenge employees to succeed by increasing their failure rate. An entertaining read, Unlocking the Secrets of Retail Magic (available at www.richardfenton. com) offers new angles on the old problems of hiring and motivating retail employees.

Small Time Operator: How to Start Your Own Small Business, Keep Your Books, Pay Your Taxes and Stay Out of Trouble! by Bernard B. Kamoroff, CPA (Bell Springs Publishing, 1999)

422 Tax Deductions for Businesses and Self-Employed Individuals by Bernard B. Kamoroff, CPA (Bell Springs Publishing, 1999)
Bernard Kamoroff, a Certified Public Accountant, has been writing books for small-business entrepreneurs for more than two decades. Small Time Operator is now in its 24th edition, with more than 600,000 copies in circulation. This comprehensive, well-thought-out guide to starting, running and expanding a small business covers dozens of topics, from choosing a location and financing your new venture to reconciling your cash-flow statements. It even includes ledger forms.

422 Tax Deductions for Businesses and Self-Employed Individuals is a cornucopia of tax advice for small-business owners. The list of deductions runs almost 200 pages, with deduction categories in alphabetical order from Accountants to Zoning, making information easy to find. Each entry includes the name of the tax category you should file the deduction under, as well as the names of special IRS forms you might need for your particular tax return.

Win-Win Selling: 68 Practical Tips for Developing Long-Term, Successful Sales Relationships by Tim Connor (Conner Resource Group, 2000)
Speaker, author of more than a dozen business books and founder of Connor Resource Group (Davidson, NC), Tim Connor is also the author of the best-selling Soft Sell: The New Art of Selling, Self-Empowerment and Persuasion (3rd ed., Sourcebooks Trade, 1998). In his latest book, Win-Win Selling, due out this spring, he includes sections on how to:

• "Competitor-proof" your customer relationships
• Increase repeat and referral business
• Ensure customer loyalty
• Develop sales strategies that contribute to long-term, win-win relationships
• Manage your time and territory
• Balance your life and career