The Canadian dollar has fallen. And there is a chance itcould fall even more. Since the beginning of the year, you’ve probably noticed that the costs of goods have begun to increase. Customers have started to notice too.
How quickly things change. Just less than 24 months ago, the dollar was at parity with the US. Your margins were high. Things felt generally positive. Today when looking to buy goods priced in USD, after you’ve added 30%, plus any additional import costs, the prices don’t look as attractive.
Everything is more expensive: phones, parts, accessories, everything!
Here are 4 tips to help you survive the slumping dollar:
1. Pay attention to the details
Are you maximizing each sale? High margin attachments like accessories will put more money in your pocket. Although you’ve always known this, now is the time to actually put systems in place to maximize these opportunities. Adding services like warranties are other high margin services that will improve your profitability on each sale.
2. Buy Canadian
Compare the prices from local suppliers with foreign options. Where just 24 months ago there was a clear advantage to buying inventory from foreign sources, things have changed and it’s time to see if the advantages still apply. This strategy will work well for the short term. Expect prices to rise from local sources once your suppliers begin repurchasing their supplies using their weak CDN dollars.
3. Start effective marketing systems
Are you collecting customer email addresses at the point of sale? Are you effective at driving customers back into your store? As the economy slows, you’ll need to spend more time building sales engines that you control to keep your business humming. A simple system of collecting email addresses and sending out targeted and relevant communications will keep you front of mind and will boost slow sales weeks. Today, free Point of Sale systems like CellStore Software make setting up these systems easier than ever.
4. Get creative
Trade in programs gives you access to the phone and parts at prices that are compelling. Yeah, it’s more work, introduces some additional complexity, and is generally riskier, but a well-run customer buy-back program can turn the economies back in your favor.
There is no doubt that the falling dollar is going to make things generally more difficult for Canadian cell shop owners, but these are the times where the right decisions will separate you from others. Paying attention to the details, looking to buy locally, improving your marketing systems, and thinking out of the box and being creative will give you back control over your profits at a time when everything is getting more expensive.
CellStore Software is providing owners of cellular shops with the tools required to drive more profits, reduce stress, and thrive in today’s economic environment.
To your wireless success,
CellStore is a Free POS, CRM, Inventory Management System for Cell Phone Shops