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(August 2009) posted on Mon Aug 24, 2009

Some truths remain timelessly self evident.

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By Wade Swormstedt

I recently came across an article in which a sign salesperson responded to a customer’s very pointed question: “How do you know that an electric sign will bring people into my store?” The salesperson’s extended answer bears repeating, so I’ll paraphrase and quote from it. If I quote verbatim, I’ll put it in italics.

First, the salesman, Mr. Smith, asked the owner of the clothing store, Mr. Jones, how many people came into his store each day. Jones figured 100. Next, Smith asked Jones how many people he thought walked past his store (located on a busy downtown street) each day, between 6 a.m. and midnight. Jones figured maybe 1,000.

Smith doubted the figure was that low, but he accepted it, and then calculated that might mean 6,000 per week. Smith even conceded that many of these people probably walked past more than once, so he reduced the number to 3,000.

Next, Smith took some statistics from the latest government census and said the average household income in that community was $50,000. Smith then asked Jones for an estimate as to what percentage of that money would be spent on the type of clothes his store offered. He figured 5%, which would mean $2,500 a year, or roughly $50 a week.

So, 3,000 people a week times $50 per week would mean $150,000 a week would be spent annually by townspeople for the style of clothes Jones sells.

How much of this business are you getting? Smith asked.

Smith reiterated the figures Jones had provided: 100 people a day equals 600 per week, times $50 would mean Jones’ weekly gross would average $30,000. That subsequently means Jones’ $30,000 is approximately 20% of the $150,000 people are spending on his type of clothing.

Why are you not getting more of it? Won’t your store accommodate more customers? Can’t your clerks wait on at least twice as many more? Smith queried.

The trouble seems to be that your store doesn’t offer the strongest possible invitation to the crowds to come in and do business with you. People pass by before they have made up their minds whether they want to buy from you or not. You need to tell them who you are, where you are, and what you have to offer.