SVI Magazine

I’m sure you probably did the same, and many of you (like me) probably still do in the hope that someone you know might ask what you’d like. Even now, there’s still an anticipation associated with Christmas, a feeling that good things will happen and a degree of optimism.

But times are hard at the moment and it seems that even Christmas isn’t immune from the effects of the credit crunch – sorry, that’s the recession, as it’s now officially bad, not just media-frenzy bad! Apparently Christmas spending is going to be 7% down on last year and jobs are being shed left, right and centre by large companies. In the US, the second largest CE retailer, Circuit City, has just announced it has filed for Chapter 11 Bankruptcy Protection. Depressing isn’t it?

There’s no denying that it’s going to be tough this Christmas, with high street sales down and people reigning in their spending, but there have to be some opportunities out there as well as calamity – it’s just a case of finding them. The Deloitte survey, which brought us the 7% downturn figures, also has some good news within it. Whilst 24% of those surveyed said they would spend less this year, 57% planned to spend the same and, happily, 19% said they would spend more. Within the 16–24 year old bracket, 36% of respondents said they’d spend more this year “and worry about the cost later”.

So let’s find that 19%, and more specifically, the 36% who have grown up with technology products and who Deloitte say are comfortable with debt...

make a list, check it twice
This is where the Christmas list comes in: why not write a list of the things you want to achieve in your business this Christmas and then work out how you’re going to do so? It shouldn’t take you long and it will really help you to focus on how to get the most out of a potentially tough time. Let’s take a look at a possible list, which includes targeting the aforementioned group who claim their spending will rise.

✔ Target those people with money who plan on spending more this year
✔ Attract technology-savvy 16-24 year-olds into the shop
✔ Make the shop more attractive to passers-by who wouldn’t necessarily go to a Hi-Fi shop
✔ Get some free publicity
✔ Make my staff feel positive despite the gloom

The question is how to successfully tackle each of the items on your list. What we’re trying to do here is focus attention on the primary issues and objectives, so as to remove the many distractions that exist within everyday business life. Once you’ve identified your issues, you can then further focus in by prioritising, giving each one a timescale and allocating resources to it.

In our imaginary scenario, we could prioritise thus: 1) make the shop more attractive; 2) target the spenders; 3) attract the tech-savvy youth; 4) staff morale; 5) free publicity.

Now let’s look at some examples of how we could achieve our objectives.

1. Why not create a Christmas-themed window display that features consumer-friendly products? Flat-panels showing favourite Christmas movies, a Christmas tree decorated with interconnects rather than tinsel, opened parcels with gift-type products showing, e.g. headphones, iPod docks, a Blu-ray player. Invite passers-by in for mince pies, run a competition to win a system for Christmas and don’t forget to have music playing in the shop (Christmas music if you can stand it!). Why not put a poster in the window reading, “Don’t know what to buy him? Come inside for ideas!” If your town does late night shopping in the run-up to Christmas, be open.

2. Make sure you are stocking the sort of products that people will want to buy as presents – that might mean initially swallowing your Hi-Fi pride and showing off your collection of DAB radios, iPod docks and the like. Invest in some publicity activity in the better-off areas of your neighbourhood to let them know you exist and are the perfect place to buy presents for the man
who has everything. Depending on how much you want to spend that could be a door drop, direct mail campaign or local radio advertising. Of course, once you’ve got people into the shop, you’ve got the perfect opportunity to show them what you’re really about.

3. iPods, iPods, iPods. And how to make them sound good!

4. Gloomy times can easily result in a downward spiral of morale, especially if business is tough and it’s taking its toll on you. As the business owner, your staff are looking to you for leadership and strength, so if you’re morose then they’ll be morose too. In the spirit of 'Goodwill to all men' and all that, why not allow your staff to borrow a really good system over Christmas so they can show it off to their family and friends? You never know, it might get you some new customers. Invest in a Christmas party, meal out or drinks evening. Fund an advance of a week’s wages just before Christmas to give an in-the-pocket boost.

5. Speak to your local radio station and/or free newspaper and organise a competition with them, or give them a list of products you sell that could be used in a 'Gifts for him' story. Lend a system to your local coffee shop or bookshop and supply them with promotional flyers or posters and do the same for them – publicise their shop within yours. At the BADA Conference in the summer, we received a presentation from business consultant David Topliss. David advocates the list of priorities system as part of his 'Business development programme', which a number of BADA dealers have enrolled in. It’s presentations from people like David and other practical benefits that make BADA the industry’s most proactive trade association. Why not give us a call and find out more about membership and how it will help your business.

Happy Christmas, and may your efforts make it a prosperous new year!

Phil Hansen is Operations and Marketing Manager for BADA, the British Audio-Visual Dealers Association and also runs Red Sheep, a successful Marketing and PR Consultancy operating within and outside the Hi-Fi industry.

For further information contact: +44 (0)20 8150 6741 or email: .(JavaScript must be enabled to view this email address)