“Volume feeds egos, profit feeds families” is Chip Averwater’s Retail Truth #32. I hadn’t ever thought about it that way, but it’s true that the bottom line is ultimately more important as a measure of success than sales volume, isn’t it? In his recently published book entitled Retail Truths: The Unconventional Wisdom of Retailing, Averwater shares over 400 similar insights gleaned over the course of a lifetime at Amro Music Stores in Memphis, TN.  As a third generation retailer, he grew up in the family business, so he has a lot of experience to draw on.

Each entry is elaborated on in a paragraph or two, occasionally with a quote or a retail example to further clarify the point.  After reading the examples that are based on Amro Music Stores, you get the impression that they must be great places to shop.

I’m sure that you would have your own favorites from among the many entries in Averwater’s book.  They cover the gamut of retailing, from selling, pricing, design and display, security, inventory, reps, hiring, training, cash flow and strategic management.  All topics that a retailer needs to know something about, although the entries in this book are short and pithy rather than in-depth.

Here’s a list of some of the truths which Averwater includes:
• Profit is not immoral.
• Expecting to get the sale is half of getting it. 
• A return policy is a tool, not a rule.
• Be-backs don’t come back.
• Good management is an attitude, not a technique. 
• You’re not in business if you’re not in show business.
• The last few percentage points are the profit.
• Merchandise is for sale, not for storage.
• People like to do business where business is being done.
• Inventory expands to fill all space. 
• Building a brand doesn’t make you its owner.
• A weak competitor is a useful nuisance.
• A company is known by the people it keeps.
• Employees treat customers as managers treat employees.
• Bankers want you most when you need them least.
• Two stores don’t make twice as much.
• A little success creates a lot of overhead.
• If at first you do succeed, try not to believe you’re infallible.

We clearly have different styles, because I don’t agree with all of the “truths” being presented (for example, “A retailer’s effectiveness can be measured by the animosity of his competitors”).  But I’m happy that I found a few dozen great insights and tips amongst Averwater’s 427, and I’m sure you’ll find a number of gems that speak to you as well.

Happy Retailing,

Carol “Orange” Schroeder