Moving from management to ownership
By Adam Martin
Since moving into the role of owner, I have been continually surprised by how thoughtful I must be about every business expense. Every time I make a decision about inventory, I have learned to always pay attention to the needs of the customer.
Barry Cross, a faculty member at Smith School of Business, Queen’s University, Ontario, has a simple but effective question that can serve as a reminder to put customer needs at the centre of your decision making: “would the customer be willing to pay for that?”
This question can help you evaluate every expense you put into a product or store, and make sure that it brings real value to the customer. If the answer is no, then you are wasting money and resources that could be better spent elsewhere.
As a brand owner, you want to create products that solve a problem, meet a need, or satisfy a desire for your customers. You also want to make sure that your products are competitive, profitable, and sustainable. To do that, you need to ask yourself the key question above for every aspect of your product, including:
the ingredients: are they natural, organic, ethical, and effective?
the packaging: is it attractive, functional, recyclable, and durable?
the marketing: is it clear, honest, engaging, and relevant?
the distribution: is it convenient, reliable, fast, and affordable?
As part of your sourcing conversations, you can help ensure that the answer to all these questions is a resounding “yes!” After all, your customers are counting on you.
As a retailer, you also want to ensure that you are offering products that appeal to your target market, generate sales, and build loyalty.
To make sure that your store is efficient, profitable, and sustainable, you need to once again ask yourself Barry’s key question for every aspect of your store, including:
the location: is it accessible, visible, safe, and convenient?
the layout: is it spacious, organized, attractive, and easy to navigate?
the staff: are they friendly, knowledgeable, helpful, and professional?
the inventory: is it diverse, fresh, quality, and in demand?
One of the best things about the health food industry is that we all share the common goal of seeing Canadians live more natural and healthy lives. This shared belief leads to amazing partnerships that cross the retailer-supplier divide.
Sharing feedback about where your stakeholders are creating real value for customers with their investments is crucial and leads to conversations that help us to reassure and uplift each other. Likewise, pointing out where investments are missing the mark—and where customers would not be willing to pay for them—prevents wasted resources and leads to conversations where we can be honest and vulnerable, and receive the most meaningful support.
If you are looking to help your partners, I would encourage you to take the leap and share your honest observations with them. At times, that feedback may not be easy to share or to hear, but that makes it all the more valuable.