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To: dog breath

60 years ago a good salesperson could enjoy a middle class lifestyle in retail. In those days many stores paid salespeople low base pay plus a commission. A good salesperson would stay with one store for a career and develop a clientele of loyal customers.

Unfortunately as retail shops were bought up by chain stores commissions were ultimately eliminated to save operating expenses. Chain stores have expensive overhead structures and distribution networks to sustain. Plus the senior management of the big chains doesn’t work in the store so it is disconnected from customers and the associates working with customers in local markets. These executives create value by standardizing and streamlining operations, not by tailoring product assortments for a local market. Sales associates to them are an expense item to be minimized, not a resource to be trained and deployed as a competitive weapon.

The American people in mass have voted for the low prices and efficiency of national chain stores versus the high service local store model. When Walmart entered new markets in the 1970’s, 1980’s, and 1990’s the local stores serving a town would be crushed.

Today pure play Internet retailers, such as Amazon, are the latest manifestation of the low price trend. Their distribution networks are highly efficient, smaller, and simpler than national store chains. They require fewer people to operate, and they don’t incur the rent expenses of brick and mortar storefronts, nor do the incur the cost of placing inventory in thousands of stores.

Retailers are not stupid. I’ve worked in retailing and sold to retailers. The the good ones are constantly experimenting with new staffing concepts, new store designs, and product assortments. Unfortunately in most product categories adding to stre staff levels and training rarely delivers sufficient sales to justify the higher cost. Customers consistently vote with their dollars for low price and self service over high service.


21 posted on 01/02/2012 1:32:18 AM PST by Soul of the South (When times are tough the tough get going.)
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To: Soul of the South
Perhaps I am naive, but I refuse to believe that a person can't make a difference, that smaller smarter more efficient retailers can't arise to compete with the big chains. I have seen independent sales reps of such quality that they open up entire markets that the corporations were unable to do. I believe the same about manufacturing that will be be a demand for a better made and more customized product. I would pay six times as much for a pair of Red Wing shoes understanding that they will last six times as long. l I don't want to accept despair for despair accomplishes nothing. Think of the South after Sherman's March the infrastructure was destroyed down to the last warehouse in some areas. The people rebuilt, the human spirit is greater then mere things, my country is greater. The heck with government, it is more of a problem then a solution in many cases, it is us that matters.
27 posted on 01/02/2012 5:34:30 AM PST by dog breath
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