Fall 2005

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Counter Intelligence: Improving Profits on the Front Line

“Be an educator, not an order taker,” said Randy Lipson as he was talking to his peers at SSIA’s 101st Annual Convention in Kansas City. “Take the time to look at the shoes, tell your customers what is really wrong with them and what you can do not only to repair the shoes, but to keep certain problems from happening again.”

Lipson, who owns Cobblestone Shoe Repair in St. Louis, spoke about what shoe repair retailers can do to improve profits at the counter. He identified several keys to profitability.

Sell Shoe Repair

“We all know that it’s a lot easier and less expensive to retain and upsell our existing customers than to get new ones,” Lipson says. “So when you’re looking to increase profits, start with the people who are already in your store.”

Lipson suggests that repairers start by telling their customers what they need as opposed to letting customers tell them. The customers may think they know, but repairers are the experts.

“Don’t let them tell you they want heels or soles and leave it at that,” he says. “Examine the upper. Point out dry leather, faded or missing color, worn heel pads, heel liners, sock liners, curled tassels or missing stitches. Excessive wear in the heel or toe areas are great opportunities to sell heel and toe plates. It’s also an opportunity to tell customers to bring their shoes in when they’re new for preventative maintenance.”

He also suggested asking customers where they work and recommending products suitable to that surface or environment.

“Take a look at your customers,” he says. “What is she wearing? What kind of purse is she carrying. How do the shoes on her feet look? If they are wearing quality items, they have many more at home.”

“Is she short? Then you know her purse straps are too long,” he continues. “Does he want a hole punched in his belt? Explain how much better the belt will look when it’s professionally shortened.”

Here’s how Lipson sizes up his customers

Ladies: Look at toe tips. Do they need protective soles? Sock liners? Heel shields? Shine? Refinish? Dyeing? Check out her purse as well.

Men: Look for excessive wear on toes, heels, heel pads and sock liners. Look for perspiration marks. Check the condition of the leather. If shines don’t last long enough, the leather is dry.

Finally, Lipson emphasized the importance of his point of sales software in tracking customer needs. He enters notes into his computer each time something happens with a customer he wants to remember. Then, next time they come in, he knows what they’ve purchased before and is reminded of any tidbit of information that might help him increase his sale this time around.

Educate Your Customers

Lipson stressed the importance of educating customers about the value of shoe repair, saying his chief competition is not other shoe repair shops, but shoe manufacturers.

“Our customers have three options. They can buy new shoes. Send their shoes back to the manufacturer for recrafting or bring them to us. We want them to choose option three,” he says. “So it’s up to us to point out the differences between us and the manufacturers – how we add value to the shoes they purchased.”

“Talk about the quality of our materials and explain in detail what you’re going to do,” he continues. “We’ll bring it back to its original appearance, but we’ll use better quality materials.”

Lipson does not recommend a price list as he believes customers stop listening as soon as they hear prices. Instead, he prefers to tell them what they’re getting before they hear the price.

“Offer them options – levels of quality material. Start at the top and work your way down,” he says. “For finishing, start with reconditioning and waterproofing. The next level is a shine. The next level is do-it-yourself and you can talk about your retail products.”

He recommends having samples of your finished work available so customers can see what they’re getting. Delivering the work when promised is important. And never, never use the “f” word – free.

“We have costs and our time is valuable,” he says. “Make sure to charge what you’re worth.”

Diversify

It has become increasingly difficult to survive solely on shoe repair. You need additional revenue from other sources. Consider ways that you can profit while offering your customers the convenience of shopping at your store rather than finding someone else. Some suggestions include:

  • Dyeable shoe sales and custom shoe dyeing

  • Quality orthotics and insoles

  • Have a large selection of shoe care items

  • Have plenty of laces

  • Cut keys

  • Sharpen knives and scissors

  • Repair luggage

  • Clean leather garments

If you can’t do some of these things yourself, outsource them. The key is getting your customer to buy from you.

Make sure your customers know about these services. Use signage in your store, bag stuffers, your web site and advertising to drive home the message.

 


© 2005 Shoe Service Institute of America.

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