Tips from a C-store Guy

In the “good old days” there used to be the corner mom-and-pop grocery store, the place you’d go to buy a loaf of bread or a gallon of milk. These days, the convenience store/gas station has, to a great extent, assumed that mantel.

I conduct seminars on marketing, advertising and sales and write on these topics for various publications. Some years ago I decided it would be helpful for me to get back into the trenches and see how many of the abstract issues I report on actually work in the real world. So I got a part-time job at a very nice market/gas station. The store has 12 pumps, more than 2,000 sq. ft. of product and a full-service deli.

Why a convenience store? The answer is simple: nobody else would hire me. I went to a number of chain and big-box stores and not a single one of them gave me the time of day. Then I found this store that had a need, wanted people who will actually show up on time (the world belongs to those who show up), are honest, reasonably intelligent and actually care about doing a good job and servicing customers.

The fun part of this deal is that not only have I made friends, I’m also validating what I write about and taking a look at what c-stores can do to increase gross margin ROI, turnover ratios, open-to-buy and all the other little details that can ensure they will be in business next year.

What else can be done?
Since this pursuit is about more than just getting a weekly paycheck, I keep an eye out for the things c-store owners can do differently and better to increase their bottom line. Here are my observations from behind the counter.

•Place a chime at the entrance alerting employees when a customer enters the store. In my case, we only have one person on duty on a shift, and it’s unnerving to turn around from counting cigarettes and find someone standing in front of you, unannounced.

•Make sure that everything in the store is either scannable or has a price tag on it. Customers don’t like to wait while a sales associate scurries around to find a price, and it aggravates the people waiting behind them in line even more.

•Train your staff in the subtle arts of building rapport and selling. Insist that every customer is greeted upon entering the store: It can be as simple as a “hi” or a “good morning,” but customers appreciate being acknowledged. Greeting also sends a signal to potential shoplifters that you have seen their faces, which can help reduce the rates of theft, leakage and fraud. And sales associates should smile when extending a greeting. Nobody wants to talk to or buy from a grump.

•Get to know your customers. While I don’t remember all the names of my “regulars,” I do know what brand and how many packs of cigarettes they buy. I know that Paul buys a large cappuccino and a gallon of milk nearly every day.

Relate to customers
Building relationships with customers isn’t just about knowing what they buy. They appreciate it if you ask how their daughters are doing in college, how their golf game is progressing or what’s new in their business. It’s all about being interested in the other person, engaging them and treating them nicely.

Our store is a couple hundred yards from a major supermarket location. I ask my customers why they buy a bag of chips or power drinks from us rather than crossing the street, where the items are likely to be less expensive. The general response: They shop with us because they get treated better — price isn’t the primary issue.

Employees should be coached in cross- and suggestive selling. If someone buys a pack of cigarettes, suggest a lighter. If it’s coffee, sell him a doughnut or pastry. If you have new items, point those products out to customers. Be aware of what’s happening in the wider marketplace. Our store is located in Wisconsin; when the Green Bay Packers went to the Super Bowl several years ago we sold a ton of team merchandise.

•Have a comprehensive, up-to-date systems and procedures manual on site. What happens if there is a power outage while you’re on vacation and all your pumps and the POS system go down? Does your staff know what to do if a customer pre-pays $25 for gas but only pumps $24.99? Do they know how to reset the slushie or shake machine if it malfunctions? What is your policy if a customer reaches for a doughnut and finds a fly in the doughnut case: Should your staff throw away all the doughnuts?

Such a manual is particularly important in a c-store setting because turnover rates tend to run high and most of the employees are part-timers. Over the last 16 months, for example, I’ve only had to change the carbonation hook-ups for our soda machine once; if I’d performed the function a half-dozen times, the procedure would be a slam-dunk. Written directions for functions like these are a great backstop.

•Give the customer a reason to shop with you. We offer customers a free medium soda if they purchase 10 or more gallons of gas. We have a coffee “punch” card that earns customers a free cup after their 10th purchase. If they buy $50 worth of merchandise, they receive a $5 discount on their next purchase.

Serve the community
Are you a good community citizen? We allow groups to hold car washes on our lot and promote local fundraisers. We took a stand against the high price of gas by shutting down the pumps for a day: we wrapped them in yellow “Do Not Cross” police crime scene tape. I’ve had customers say that they will drive extra miles to buy gas from us just because we made a statement, and the owner was interviewed on “Fox & Friends.” That’s national coverage.

These are the types of unique selling propositions that can differentiate you from the store down the street.

I’ve worked at specialty retail stores in the past, but c-stores are a completely different environment. For one, I have become a sounding board for my customers’ views on the burning issues of the day. People freely unburden themselves about the economy, politics, religion, sports — the whole nine yards. They seem to have a need to vent with someone that they know won’t get upset with them, and see our store as a safe haven where everyone is welcome. That goes a long way toward creating customers for life.