Across the country, people are pooling their resources in what has been termed the “sharing economy”.  Need a place to stay? Rent someone’s bedroom through AirBnb.  Want a ride? Call Uber and someone will pick you up in their own car. 

The sharing (or share) economy has been defined in many ways, but the one I like best is “collaborative consumption” — taking assets that may be underutilized and making them available to someone who needs them. This process is making increased inroads into the business world (although it is hardly a new concept).

What does the sharing economy mean to you as a retailer? Take a moment to thinks about what you have that you could share:

Share your space. If your rent is high and your net profit low, you might consider renting a space cooperatively with a compatible business — a coffee shop, for example.  Department stores have for many years followed this B2B (business to business) model by leasing floor space to independent cosmetics companies, shoe vendors, etc.  As far as the customer is concerned, the store is all one entity — but these separate departments provide their own staff and inventory.

Share your advertising. Collaborating with other businesses in your area helps make your promotional dollars go further. You should resist the idea of sharing your email list unless you have told those signing up for your mailings that you plan to do so. But there is no harm in including a message from a neighboring business within your email in exchange for them doing the same.

Share your tools. Do you have anything that your fellow businesses might need, such as a snowblower or packing peanuts? Let them know that you’re willing to share.  And if it’s appropriate to your business, think about whether there are some expensive tools that you can rent out to customers. Halloween costumes aren’t the only thing that shops can make money on renting — how about party props or even household items?

Share your knowledge.  Writing a blog is a great way to let others learn from your expertise.  You could also offer to give a talk on a subject you know a lot about, which will benefit your business by giving you exposure.

Share your time.  Volunteer to serve on a committee for your buy local group or Chamber of Commerce, or to help your business community with special events.

Happy Retailing,

Carol “Orange” Schroeder