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What We Can Learn From Wal-Mart

When listening to small business owners speak about Wal-Mart, you most often hear negative comments and assurances that they will ruin the small business owner’s business.  Wal-Mart definitely is a competitor to take seriously, as is any competitor, but it is not necessarily an assurance of you having a going out of business sale in the near future.
When a challenge is presented, one needs to arise to the challenge and learn what is necessary to overcome it.  Believe it or not, there are some great business principles that can be learned from Wal-Mart.
1. Don’t be afraid to take a risk.  Wal-Mart started with two brothers and a dime store in Bentonville, Arkansas!  When you conduct studies on the risk factors in starting this business when and where they did, the results say, “Don’t even try it!”  However, they decided in their minds that it was going to work, and look at it today!
2. Don’t be afraid to buy in larger quantities.  Part of Sam Walton’s vision was to have large distribution centers that service area stores.  He could then purchase in enormous quantities for the best prices possible.  Because of this, they can offer “Everyday Low Prices”.  You will not be able to stock a distribution center, but if you know a product will sell, buy in larger quantities!  This gives you the opportunity to afford to offer a lower price and still get the mark up you are looking for.
3. Have an ever evolving store.  Another of Sam Walton’s visions was to be continually evaluating his stores to try different things to make sales better.  Frequently aisles will be rearranged or entire stores revamped to test the effect on sales.  Try the same in your store.  If your candle display is not pulling as many sales as you think it should, then move it to another location in your store.  Frequently rearrange displays and the layout of your store.  Part of the success in this is that now your customers have to look for something.  If you always keep it in the same spot, they can go right to what they need without really looking at anything else.
With these three tips, dare to take on big box stores like Wal-Mart.  With some smart business planning and niche marketing (which we discussed last time), you can succeed!

About Harvest Scents and Traders
Harvest Scents and Traders is based in the Fishers, Indiana suburb located on the northeast side of Indianapolis. Harvest Scents and Traders specializes in helping retailers become more profitable by providing uniquely designed wholesale home décor and giftware. Harvest Scents and Traders' customer base is made up of gift shops, chain stores, crafters, online retailers and general retailers.
Learn more about Harvest Scents and Traders.



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