YOUR DEFINITIVE GUIDE TO THE HARDWARE RETAIL ENVIRONMENT
AND INDUSTRIAL TRADE NEWS
D ITIO N
brands join forces CASH MANAGEMENT 12 WAREHOUSE MANAGEMENT 20 GET THE RIGHT INSURANCE 28
Heat Shrink Product
Lugs & Ferrules
Website: www.three-d.co.za Email: email@example.com
WE STOCK THE RIGHT PRODUCT FOR THOSE DIY PROJECTS
RETAILOUTLOOK YOUR DEFINITIVE GUIDE TO THE HARDWARE RETAIL ENVIRONMENT
PECIAL AND INDUSTRIAL TRADE NEWS
32 Advice on running a successful business
Moving with the times
10 Business report
34 Plan your marketing strategy
36 Decades of successful hardware
Get ERP sofware to manage your store
PROUDLY SOUTH AFRICAN COMPANY
22 Keeping online customers happy
40 Local is Lasher
24 Social media for brick and mortar retailers
4 | RETAIL OUTLOOK JANUARY 2018
Products to stock in 2018
Master Lock is recognized around the world as the authentic, enduring name in padlocks and security products. Since our founding in 1921, we have worked hard to earn and maintain the trust of our customers by delivering on our promise of strength and quality and by continually setting new standards for lock design, application and performance. As the largest global manufacturer and marketer of padlocks, we continue to build our founder’s passion for innovation, quality and compelling value into our expanding lines of security solutions.
At Master Lock we believe the key to effective security is innovation. This is highlighted by our continual unveiling of fit for purpose product and the Excell range of products is a perfect example of this.
NOW AVAILABLE IN KEYED ALIKE PACKS
The Master lock Excell range of products is fast becoming a favourite in the security industry and incorporates the use of patented “Hexagonal” shackles which are made from Boron Carbide, making them twice as resistant to attacks from Bolt cutters and pry bars, tools commonly used in theft attempts. The latest addition to this High Security range of product is the Excell Discus Combination padlock, which offers
a variation of the standard design features of other Excell padlocks. The hexagonal Boron Carbide shackle is standard, but now you have the choice of the world’s first Combination Dial Discus Padlock. The code is resettable and there are 10,000 possible permutations. You don’t even have to worry about forgetting the code because these can be stored on Master Lock “Vault” for future reference. Get your stocks today and don’t miss out on this unique profit opportunity. Contact your preferred Master Lock Wholesaler, today.
Widest Range of Mobile Security Padlocks
Cable / Chain
Safes / Chests
YOUR DEFINITIVE GUIDE TO THE HARDWARE RETAIL ENVIRONMENT
THE TEAM EDITORIAL EDITOR Johann Stadler Tel: 011-877-6178 Email: firstname.lastname@example.org SUB-EDITOR Gill Abrahams
LAYOUT & DESIGN Nazreen Bhyat Email: email@example.com
PECIAL AND INDUSTRIAL TRADE NEWS
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ADVERTISING ADVERTISING EXECUTIVES Natalie Sanders Tel: 082-450-2317 Email: email@example.com
EDITORIAL CONTRIBUTORS Rebecca Smith, Santam and Adéle Maritz
MOST OF US are looking forward to 2018. It’s a
attitude to stay relevant and performing optimally.
brand new year and a completely new adventure. My
Targeted marketing can now be done in your immediate
resolution for the year ahead is to think differently.
vicinity, in a province and even internationally (p24). Virtual shopping through e-commerce is technically
Times are changing and beating the same drum year after year is not a good idea. You’ll only fall off the
keeping your store’s door open 24/7. We elaborate more
business bus and be left behind.
about that on p22. Insurance is another headache that can make or
I think back five years and realise how much data costs and speed restricted us socially and especially in
break a business (p28).
business. Fast forward just a few years and both these problems have been addressed aggressively. Facebook
Read about this and other business related articles in this year’s Retail Outlook (p10). In the Outlook, we report on Lasher Tools (p40), a
had 2.07 billion users in November 2017. Five years ago Twitter had 160 million users – it recently registered
proudly South African company who has been able
330 million users. These numbers are not necessarily
to stay relevant in the retail arena for 113 years.
because of more interest, but accessibility.
Another proudly South African company, Q20, a
Devices are more affordable, internet availability is reaching further, speeds faster and data costs are lower. The direct impact of technology in our daily lives is
subsidiary of Triton Gloria Investments, announced its acquisition by CRC Industries Europe BVBA, a subsidiary of CRC Industries Inc.
incredible. Today, your fridge can order fresh produce on
Dear business owner or
your behalf and tell you when a product has expired. You
manager. We wish you
can now set alarms, air conditioning, lights – even unlock
the best of luck for the
your home, locks and gates from remote locations.
year ahead and that
Technology is impacting the way we conduct
remember – ‘may the
meetings with business partners via Skype.
odds be forever in
Information technology allows us to place a stock
Felicity Garbers Email: firstname.lastname@example.org UPDATE YOUR DETAILS HERE Web: www.diytradenews.co.za
PUBLISHING TEAM GENERAL MANAGER Dev Naidoo PUBLISHING MANAGER Johann Gerber Email: email@example.com PRODUCTION MANAGER Angela Silver ART DIRECTOR David Kyslinger Johannesburg Office: New Media Publishing, Ground floor, Media Park, 69 Kingsway Avenue, Auckland Park 2092 Postal Address: PO Box 784698, Sandton, Johannesburg 2146 Tel: +27 (0)11 877-6111 Fax: +27 (0)11 713-9024
MANAGING DIRECTOR Aileen Lamb CHIEF EXECUTIVE OFFICER Bridget McCarney EXECUTIVE DIRECTOR John Psillos NON EXECUTIVE DIRECTOR Irna van Zyl
order and follow every step from packing to it landing Happy trading!
world that is not directly or indirectly controlled by information technology. It is for this reason that it is
DISTRIBUTION & SUBSCRIPTIONS
Published on behalf of Media24 by New Media Publishing (Pty) Ltd.
on your shelf. There is not a single part of the modern
SOURCES Shutterstock, supplied images, editorial staff
PRINTING Printed and Bound by Novus Print Solutions
it will be a year to
business too. For example, you can have international
Unless previously agreed in writing, DIY and Industrial Trade News owns all rights to all contributions, whether image or text.
important in this day and age to look into ERP software and if you already have a system, to see how you can
Head Office: New Media House, 19 Bree Street, Cape Town, 8001 Postal Address: PO Box 440, Green Point, Cape Town, 8051 Tel: +27 (0)21 417-1111 Fax: +27 (0) 417-1112 Email: firstname.lastname@example.org
make it user friendly and more integrated to help you manage more of your business (p18). By understanding and utilising technology, you are saving time, money, resources and effectively growing your business. It is not about working harder, but working smarter. Who knows where we will be in another five years when it comes to information technology? No one does, but I am sure I would have revisited and revised my opinion on this topic a few times before then. Businesses need to adapt a forward thinking
Follow DIY and Industrial Trade News on: 6 | RETAIL OUTLOOK JANUARY 2018
DIY Trade News
While precautions have been taken to ensure the accuracy of its contents and information given to readers, neither the editor, publisher, or its agents can accept responsibility for damages or injury which may arise therefrom. All rights reserved. © DIY Trade News. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, photocopying, electronic, mechanical or otherwise without the prior written permission of the copyright owners.
COLOUR OF THE YEAR 2018
PICTURED ROCKS ALSO KNOWN AS NORDIC SAILS 2
Colour of the Year 2018 Pictured Rocks Nordic Sails 2
Steel Symphony 2
Blush Noisette 5
Transform your home with Dulux Colour of the Year Pictured Rocks. This sophisticated warm yet versatile colour is also available in Luxurious Silk. From South Africa’s icon and most loved paint brand. * The new Dulux Colour FuturesTM trends brochure is available in-store from October 2017. .
For product information or painting advice please contact Dulux Careline on 0860 330 111 or visit our website at www.dulux.co.za www.facebook.com/LetsColourSA
*Voted Icon Brand and Paint Category winner in the 2017/2018 Ask Afrika Icon Brands™ by TGI.
Colour reference is as accurate as the printing process allows. Please reference the Dulux colour charts for accurate representation of colours.
See how our trend colours for 2018 will look in your home with the Dulux Visualizer App.
Two iconic brands join forces CRC Industries Europe BVBA, a subsidiary of CRC Industries Inc., has announced its acquisition of Q20, a subsidiary of Triton Gloria Investments. CRC INDUSTRIES IS a global leader in the
& Development, production and distribution. The
company to increase the basket of products available
production of specialty chemicals for maintenance,
combined efforts of both companies provide the ideal
to customers and allows the business to increase its
repair and operational professionals and for do-it-
platform to further develop Q20 and CRC brands into
market awareness. “The biggest advantage is the
yourself enthusiasts within the automotive, heavy
the wider SADC countries.
access we now have to experience to help grow our
truck, marine, electrical, industrial, hardware and
“We’d like to take this opportunity to inform our
products even further,” he explained.
aviation market. Q20 boasts a wide range of products,
customers that it is business as usual and we have
including the famous Q20 multipurpose lubricant,
some exciting new developments coming in the New
Q20 will become the new Managing Director of CRC
Q10, Q Bike, Flight Hand Cleaner, and other DIY related
Year,” said Simon Smith, managing director, CRC
Industries RSA Proprietary Limited. Louis Munnick,
chemicals, manufactured and distributed from the
who has been with CRC Industries South Africa for six
company’s plant in Olifantsfontein, Johannesburg.
Simon Smith the current Managing Director of
“This acquisition puts Q products in a very strong
Through the acquisition of Q20, CRC reinforces its
years will remain with the company in the role of Sales
position to grow its complete range of products.
Director, and will be integral to the smooth integration
position in South Africa, particularly in the DIY market
We now have access to top formulas and we have
of the two organisations going forward. Roy Singh,
and incorporates its South-African Industrial Division
the unique opportunity to grow both Q20 and CRC
who has been with Q20 for 39 years, will remain as the
into one new company: CRC Industries RSA.
brands,” says Smith. The CRC brands operate in
financial director of CRC Industries RSA.
Alongside numerous synergies, both brands,
numerous fields including the industrial, food, military
Q20 and CRC, will benefit from the increased
and aviation industries.
knowledge and know-how in areas such as Research
The manufacturing, sales, customer service, distribution and administration offices will remain at
Smith continued that this move will allow the
the headquarters in Olifantsfontein.
Q Oil Europe is formed, manufacturing Q products in the UK. Q Products are manufactured from its 500m2 warehouse in Modderfontein with two aged production lines
Saudi Arabia and the Middle East start importing Q products
Q products move to its new home in Olifantsfontein
Construction starts on Q20’s new facility
A 3rd aerosol line is installed
The first exports of Q products to Mauritius, Zimbabwe and the UK
Greece starts manufacturing Q products
Focus on local market and consolidation
Turkey starts its manufacturing of Q products
CRC Industries acquires Q Products
Flight Chemicals is acquired, given focus and growth opportunities locally Q products are marketed in 60 countries
marine, heavy truck, hardware, electrical,
CRC began in a Pennsylvania garage in
industrial and aviation markets. CRC serves
1958 as Corrosion Reaction Consultants
customers around the world with manufacturing
with a single product: CRC Corrosion Inhibitor,
and distribution throughout North, Central
a multi-purpose lubricant.
and South America, Europe, South Africa and
Today, CRC is a global supplier of chemical
Asia-Pacific marketing areas. CRC operates
specialty products, manufacturing over 1 300
26 facilities that produce more than 80 million
items and developing specialised formulas
cans of aerosol products each year.
to meet the unique needs of the automotive,
MESSAGE FROM CRAIG MILNER For decades the Milner family owned
to the administrative staff and sales
Without them, manufacture and
enthusiasm, the Milner family is
and developed the iconic South African
team, and to my fellow directors who
sales would be impossible. They are
excited to see Q Products continue
brand, Q20 Multipurpose Lubricant.
have made my job as CEO/president
crucial to our brand’s success. This is
to dominate the market locally and
an absolute pleasure, I wish you all
a group of dynamic individuals that
make South Africa proud as a
behind the brand – some of whom
I must first acknowledge the people
the best going forward. You are a
shape the South African consumer’s
have been with the Milner family for
phenomenal force in this industry.
environment on a daily basis.
more than 30 years. From the factory employees who make the products, 8 | RETAIL OUTLOOK JANUARY 2018
I also acknowledge our clients – both our suppliers and our retailers.
Very humbly I thank you all.
With CRC’s commitment, vision and
The local political and economic situation does impact business. We hear from leading market suppliers how business has treated them in the past and what to expect in 2018. Michael Berg, Den Braven SA, national sales and marketing manager says…
ABOUT DEN BRAVEN Den Braven is a supplier of high quality sealants and solutions. It provides advanced hybrid, polyurethane, silicone, acrylic, sealants, construction foams and fire protect sealants for the construction, industrial and DIY markets. Den Braven has offices in Johannesburg, Durban and Cape Town and also services the Sub-Saharan Africa regions.
How did 2017 treat you from a business point of view? We certainly noticed economic challenges.
What was your 2017 business highlight of the year? Den Braven products contributed to various successful construction and fenestration projects nationally and in Sub-Saharan Africa. In the DIY sector we supported our customers. They remained assured with our quality product offerings, service and advice. With regards to policies, social, economic and markets Den Braven is compliant and it supports various structures and organisations.
What made doing business easier in 2017? Specifiers, developers, contractors and DIY alike are becoming more aware of using the correct products for a durable successful finish. Better results through knowledge and doing it right the first time.
What made doing business difficult in 2017? Like most businesses, industrial actions and the resulting snowball effect can be a challenge.
Was 2017 a better or worse year than 2016? Den Braven held its own. We do not compromise on our product qualities and services. As a team we remained focused and committed throughout the year and achieved accordingly.
What do you predict for your business/ industry in 2018? We think that the various challenges in South Africa will prevail for some time. However, we are proactive, optimistically positive and motivated. With our dedicated team we will remain focused and get business done. 10 | RETAIL OUTLOOK JANUARY 2018
Johannes van Rensburg, Eureka DIY Solutions, sales director says… ABOUT EUREKA DIY SOLUTIONS Eureka is one of southern Africa’s largest suppliers of pre-packed fasteners and fixers, security products and general DIY items. How did 2017 treat you from a business point of view? It was a tough year. It tested everyone. What was your 2017 business highlight of the year? Our new concept with updated layouts started rolling out. It has been very well received. With regards to policies, social, economic and market, corruption has started taking its toll on the economy. GDP per capital is
declining, the poor is getting poorer and education is not coming right. What made doing business easier in 2017? Not much… What made doing business difficult in 2017? Consumer confidence took a knock. It seems as though building projects declined somewhat. Was 2017 a better or worse year than 2016? Much the same, but only with higher costs. What do you predict for your business/industry in 2018? Growth from the second quarter.
Duram Smart Paint, Francois Swart, sales director says…
There is no question that 2017 was a tougher year than 2016, but we are still showing great growth and actually find a tight market very conducive to consumers trying our decorative products and most importantly staying with them.
What made doing business easier in 2017? Our brand is growing every day and customers are getting used to our decorative products. Our customer retention is very high and it was great to see customers buying more of the products and also trying out any newly launched ranges, due to their positive experience on the brand. What made doing business difficult in 2017? The paint industry is going through an interesting time with lots of price cutting to try and stimulate sales growth. We have remained true to our strategy and the retailers can now see the continued sales growth and secondly margin growth by staying with the Duram brand, even in the face of prices on other brands being cut.
What was your 2017 business highlight of the year?
Was 2017 a better or worse year than 2016?
The highlight for us certainly was not only holding on to our market share gains over the last couple of years, but actually accelerating further into the decorative space. Another highlight was our customers awarding us with their supplier of the year awards: We were awarded the Build It Supplier of the year in the house brand category and also won the DIY and Industrial Trade News’ paint supplier of the year award We also managed to be awarded DIY Trade News’ silver medal for Hardware supplier of the year. The biggest highlight was the feedback from our customers on how much they enjoyed our new ranges and how they are seeing the positive impact on their bottom line. With regards to policies, social, economic and markets, our political environment continues to be a cause of concern. Our focus is certainly going to remain on staying as cost effective as possible during these tough economic times and to ensure we continue to be price competitive.
We had another great year and we are delighted with the way the brand is growing and that we are still managing to find decent growth in this tough economic environment. We are deeply grateful to our retailers for sticking with the brand and for staying on this journey with us.
ABOUT DURAM SMART PAINT Duram was founded in 1981 and started off as a specialist waterproofing and metal care coatings company. The company soon realised an opportunity in the full decorative space and have since developed its offering into a full range of decorative and protective coatings. All products are exclusively sold through retail stores.
How did 2017 treat you from a business point of view?
What do you predict for your business/industry in 2018? I think there will be some consolidation of brands and ranges. Bottom line will be the key in 2018 and turnover growth will be dangerous to chase. I don’t think we are going to see massive growth next year and we are certainly talking to our retailers about strategies that focus around making more bottom line and not more sales for less margin. In these tough times you need to make sure you are profitable on what you sell and not always just trying to sell more and draw these illusive ‘non-profitable feet’ that discount strategists like to advocate.
FLOOR AND WALL FINAL SOLUTIONS QUALITY TILE, CARPET AND LAMINATE TRIMS
QUALITY TILING TOOLS, CUTTERS & DIAMOND BLADES
TILE CLEANERS, SEALANTS & STRIPPERS
GAUTENG (Head Office) Tel: +27 (0)11 444 1441 Fax: +27 (0)11 444 1165 email@example.com
KWA-ZULU NATAL Tel: +27 (0)31 564 1175 Fax: +27 (0)88 031 564 1143 firstname.lastname@example.org
WESTERN CAPE Tel: +27 (0)21 949 2226 Fax: +27 (0)21 949 4531 email@example.com
EASTERN CAPE Tel: +27 (0)860 54 75 73 Fax: +27 (0)86 688 4908 firstname.lastname@example.org
email@example.com â€¢ www.kirk.co.za
CASH MANAGEMENT Businesses are increasingly targeted by criminals. Here are a few tips to safeguard your business, you and your staff.
Manage your cash risk MANY INDUSTRY EXPERTS believe that
receiver to a transmitter. This creates a direct line
once criminals have gained access to your
Security can be broken down into three
between the units. When the beam is broken, a
premises, there is little that can be done if you
sections: perimeter security (walls/gates/
radio signal is sent to the control panel.
don’t have the right outside resources in place.
motion sensors), security for access points like
Ideally, we’d all like to keep criminals out, but
windows and doors (burglar guards/sensors)
once they are in we need to get them out
and intruder detection and armed response
New systems operate wirelessly. This eliminates
quickly, without the loss of human life. Security
once criminals have gained access.
the need for unsightly wiring and sensors can
experts say that many South Africans are only
Technology in all categories has improved
alert after an incident. You need to look critically
dramatically in the past few years, especially in
security company headquarters can identify
at your security to make sure everything is in
the area of perimeter security and installed alarm
which zones have been activated. They may
place before criminals strike.
systems. Systems are integrated, streamlined and
also be linked to glass breakage detectors
easy to operate. In fact, simplicity is sought after.
which trigger the alarm when glass is broken.
Wireless technology has taken the hassle out
be better placed. Monitoring dispatchers at the
Criminals also have more at their disposal
When we think of security we generally think
of putting in an alarm system. Sensors are easy
with technological improvements, which means
about the latest gadgets and gizmos, but even
to install and batteries provided are also more
that business owners need to think smartly.
some low-tech advice can go a long way in helping
powerful offering a much longer life span. Newer
Signals from wireless devices going through
to secure your property. Make sure that the
systems can operate through a wireless Internet
to the control panel can be jammed. Criminals
property is well lit at night by security lights. Be
system (wireless/ADSL), through cell phone
may also be able to ‘grab’ the frequency that
aware of what happens on your business
networks or a combination of both.
your wireless technology uses and mimic the
premises and know the contact details of
signal to the panel. Newer products must be
your security company, neigbourhood watch
able to pick up these blocking devices and
and nearest police station. Consider what you
For perimeter security, motion detectors are
signal the user. Code hopping, where every
advertise as soft targets in your store. Criminals
essential. Passive infrared detectors or PIRs
transmission on the premises has a different
are opportunists. If you unwittingly show criminals
do not emit beams but measure infrared
code on a different frequency, which the
your patterns like where you keep keys for
temperature, while active infrared or AI sensors
control panel understands, has made
security gates, you will become a soft target.
send out pulsed beams of infrared light from a
wireless more secure.
12 | RETAIL OUTLOOK JANUARY 2018
8 Product categories WooD
Bolts & Nuts
800 Different poducts
1 943 SKUs
The most COMPREHENSIVE fastener range in South Africa! www.eureka.co.za â€¢ 011 471 0800
CASH MANAGEMENT CCTV SYSTEMS
• Test your alarm system on a regular basis and
With closed-circuit television (CCTV) cameras
ensure that your service is linked to a reputable
installed, you are also able to dial into the system
and reliable armed response company. Motion
and view the premises from anywhere in the
detection in the ceiling should be included more
world. This technology is now being used to
often than not, as burglars sometimes enter the
eliminate the high number of false alarms experienced by South African security companies.
store through the roof. • Remember that most attacks occur with some
form of insider participation. The more effective
DURING BUSINESS HOURS
the technology and procedure used to manage the
The retail industry, which accounts for 18%
cash, the greater the deterrent. Ultimately, it is far
of South Africa’s Gross Domestic Product,
better for criminals to become aware of the level of
is under fierce attack. The latest national crime
difficulty during the planning stage, as this will lead
statistics show a record 54 armed robbery attacks
to them moving on to softer, easier targets.
Richard Phillips Joint CEO Cash Connect Management Solutions
against businesses each day and nearly 20 000
trying to manage the risk associated with
business robberies for the last year.
The reality however is that many business
these practices is difficult and undesirable,
owners still make use of manual banking and
security professionals offer some guidelines
DIY cash counting methods. While
“Retailers would serve their interests well to review the security of their stores, and their cash management services in particular, to avoid falling victim to unexpected and violent attacks that can have dire consequences for the safety of staff and customers, as well as the reliability of trading during the high turnover season,” says Richard Phillips, joint CEO Cash Connect Management Solutions. While our retail sector is bracing itself for a continued upward spiral of business crime, here are a few guidelines for business owners to help lower their risk: • Make sure your cash vault or safe is robust and conforms to a level of categorisation that offers as much protection as possible against the use of plastic explosives. • The cash vault should be placed in a secure back room with strict access control and not where it is visible or accessible to customers. The latest trend with armed robberies is that criminals no longer just go for the cash in the tills or on the shop floor; they now head straight to the cash vaults. • CCTV cameras are an advantage in a retail environment, but the quality of the system is of utmost importance if it is to create deterrence and provide valuable evidence for police investigation and conviction. Regularly check on the quality of your CCTV footage and make sure that footage is backed up and records activity at entrances. • Ensure that your CCTV operating device is stored securely – this reduces the opportunity for damaging the device during a burglary or robbery and removing all evidence for later investigation. • The store can become vulnerable during the collection of cash, but the combination of the above suggested precautions go a long way to mitigating this risk. In many cases retailers even go as far as closing their stores for the brief (under 3 minutes) collection period. The impact on trading remains minimal, while the safety of staff and customers are treated with care and importance. 14 | RETAIL OUTLOOK JANUARY 2018
• Avoid paying wages in cash and make electronic transfers instead. • The process of manually banking deposits should be kept as confidential as possible. • Alternate the days and times when you do your manual cash deposits at the bank and avoid openly displaying cash being deposited at an ATM or teller. • Always avoid carrying money bags or briefcases when approaching an ATM or when standing in a bank queue. • Change your banking pattern by alternating between bank branches and/or ATMs so your banking routine is not easily recognisable. Organised crime has a direct impact on our Retail industry and our economy. As socioeconomic factors continue to deteriorate, cashrelated crime will continue to increase. “It’s therefore vital that business owners educate themselves on how to reduce their risk of an armed robbery, dramatically improve efficiencies and reduce the cost of cash,” says Phillips. Pioneering the drive to create a secure and efficient retail trading environment, as well as introducing multiple and varied payment solutions, Cash Connect has been progressive in reducing business crime since 2006, improving efficiencies and reducing the overall cost of cash deposits. Offering more than just a tin box to safeguard your hard-earned money, Cash Connect provides an all-inclusive, value guaranteed, robust automated cash management solution. 16 | RETAIL OUTLOOK JANUARY 2018
THE N10K CASH VAULT Cash Connect, has launched the N10K cash vault
management practices to deter criminals.
designed to provide top-of-line functionality for
retailers and wholesalers requiring to secure
• Prevent cash from becoming a target by
large volumes of cash through high-speed, bulk
regularly depositing takings into the cash
cash deposits. The N10K is the largest model in
deposit device and keeping cash at points-
Cash Connect’s cash vault range, designed to
of-sale to a minimum
withstand the most forceful attacks. Built to minimum SABS category 4
• Keep in mind that robbers carefully survey their targets before an attack. Therefore, be
standards and weighing 950kg, the N10K
on the lookout for suspicious vehicles and
provides a formidable deterrent. Its design
people lurking in the area
includes a keyless sliding door feature that
• Urge staff to spread the word that your cash
removes the old swing door that traditionally
is secured and not generally available. It
intruded on available retail space.
won’t take long for would be criminals to
Additional features such as biometric user identification, a diagrammatic, touchscreen
realise that your store is a hard target • Encourage your staff to report suspicious
interface and a fool-proof bag loading system
enquiries to you immediately. They should
promotes easy and intuitive user operation.
be particularly wary of anyone wanting to
A high-speed validator with a mixed
know about banking habits, CIT providers
denomination acceptance rate of up to 300 notes per minute makes depositing cash
or CIT collection times • Closing shop for a few minutes before and
quick and easy. The N10K also offers scalable
during cash-in-transit collections is a tried
capacity of up to 10 000 bank notes, with
and tested ‘best practice’. Alternatively
notes being conveniently deposited into a
isolate and close down the area during the
single, disposable bag.
collections and ensure that the room where
The N10K is supported by a cloud based, real
the cash exchange or handover is being
time, financial management and payments
made has access restrictions. ‘Out of sight
software network that facilitates supplier
is out of mind’ is a valuable adage.
payments and fast deposit settlement into
• Assist the cash-in-transit collection
multiple bank account destinations.
team by being prepared. This keeps the
But even an automated cash management
collection service time window short,
solution needs vigilance and intelligent
sharp and safe.
Get ERP software to manage your store Enterprise Resource Planning is essentially the management of all resources in real time to streamline all business processes. ‘ENTERPRISE RESOURCE PLANNING’ is a term that was coined in the 1960’s but the software that we know today really only developed in the 1990’s. Essentially the concept resolves around the requirement for real time information and the streamlining of business processes, particularly as enterprises grow. Initially when a business has seen some expansion it is run using disparate systems governing finance, HR, and stock control. This is ok in a small business but can very quickly become over-stretched and cumbersome as the business grows. THE SOFTWARE REVOLUTION The way that ERP software revolutionises business processes can be seen throughout the various departments in any given business. With the business management system software, each of the business units - from HR through procurement, finance to delivery - is integrated, providing distribution information as part of the core business model. This ensures accurate and real time information around stock, cost, scheduling; all the way through to the shipping
and lack of capacity. It will also highlight overspend
expectation or relocate stock to fulfil orders. Good
schedules in the route to market. For the
in any area of the business so that decisions to
communication with your customers and the end
majority of enterprises this streamlines
reallocate budget is more clear cut.
user is imperative to maintaining a positive brand image in these days of social marketing.
working practices on the floor as much as the information flow to management.
In summary, although there is a significant outlay
HOW MUCH WILL AN ERP SOLUTION COST YOUR BUSINESS?
involved in buying into the ERP software solution
applications there is a great deal of re-keying
Historically, the cost of implementing such business
for your growing business, the returns you will reap
required to provide reports on capacity, stock
software has been a barrier to
will ensure it is of significant value for the future
management and sales data, but with ERP
growth for some businesses. This barrier has
of the business. Management and employees can
these are all integrated into a system that talks
now lessened as the variety of options has
make better decisions faster and streamline your
to each business unit and the information can
grown. Modular provisions are ideal to tailor
efficiencies for an advantage in the marketplace.
be pulled into reports encompassing many
the software to you individual business
aspects of business.
model, but still provides clear automated core
With separate spreadsheets and standalone
The uses of this kind of streamlining process are plain to see for those at the top of the chain.
business operation processes. The bottom line for your business is your
Providing real-time information makes any
customers’ satisfaction, and ERP Software
inefficiencies glaringly obvious and makes dealing
will contribute to ensuring your customers
with these issues a more efficient and timely
continue to purchase from you. By making your
operation. Whether it is a distribution issue or
processes smoother, and fulfilment of orders
procurement, the information provided by the
more streamlined, any issue with distribution will
integrated systems will flag both under-utilisation
be highlighted in advance, giving you time to align
18 | RETAIL OUTLOOK JANUARY 2018
WITH THE BUSINESS MANAGEMENT SYSTEM SOFTWARE, EACH OF THE BUSINESS UNITS IS INTEGRATED, PROVIDING DISTRIBUTION INFORMATION AS PART OF THE CORE BUSINESS MODEL
Principles of effective warehouse management If your business has a warehouse, then you’ll be aware of the importance of this facility as an essential part of the supply chain. A warehouse which is poorly managed means far more than just a weak link in the chain.
HELP YOUR BUSINESS ACHIEVE THE FIVE MAIN PRINCIPLES OF EFFECTIVE WAREHOUSE
KEEP OPTIMUM STOCK LEVELS
Accurate detailing of stock levels and the correct fulfilment of orders can only happen in a warehouse where both the storage and movement of stock is tightly controlled. K8 helps to model and manage the logical representation of the physical storage
POOR WAREHOUSE MANAGEMENT
facilities, such as racking, bins etc.
can ultimately affect sales and therefore profits, which becomes costly. There are many ways to
Holding excess stock is costly,
effectively manage a warehouse.
while not being able to fulfil orders
One, easy to use solution is the K8
fails to maximise profitability. The
warehouse management software
accurate and efficient receipt of
system from Kerridge Commercial
stock and returns into a facility
Systems that can help your business
enhances warehouse management
achieve the five main principles of
and K8 facilitates this. The ability to
effective warehouse management.
link into the platform’s function as
Tak bestuurder Hardeware groothandel
stock management software means that it is easier than ever before to
All transactions associated with the
optimise stock levels at all times.
warehouse have to be processed efficiently for the supply chain
PROCESS SALES ORDERS SPEEDILY
• ’n B.com graad, of soortgelyke kwalifikasie met Rekeningkunde as ’n vak sal hê • Aansienlike ondervinding in soortgelyke omgewing • Pro-aktief van natuur is en goed onder druk kan presteer • Goeie personeel verhoudinge en produktiwiteit kan handhaaf • Oor ’n redelike graad van rekenaar geletterdheid beskik. Vergoeding sal afhang van ondervinding, kwalifikasies en bevoegdheid.
to work well as a whole. This is another area the K8 warehouse management system can assist with, helping to process shipping,
’n Goed gevestigde Nationale Groothandelaar in Gereedskap en Algemene Hardeware benodig ’n bestuurder in hul tak in Meadowdale, Johannesburg.
Van die aansoeker word verwag dat hy :
PROCESS ASSOCIATED TRANSACTIONS EFFICIENTLY
receiving, put-aways, picking and pick face replenishments. LINK WAREHOUSE MANAGEMENT TO SALES ORDER PROCESSING The swift and accurate processing of sales orders doesn’t just happen at the point of sale, it starts way back in the warehouse, when sales orders are first lodged and filled in the storage facility. While K8 also acts as EPOS software, being able to enhance warehouse management further enables fast and accurate sales order processing. CONTROL THE MOVEMENT AND STORAGE OF MATERIALS
Given that warehouse management is a vital part of the supply chain, it is essential that it is linked to other operational areas such as sales order processing and logistics management in order to pick, pack and ship products out of the facility effectively and efficiently. If achieving all five of these
Belangstellendes moet hul CV stuur aan firstname.lastname@example.org 20 | RETAIL OUTLOOK JANUARY 2018
guiding principles of effective warehouse management seems a hard task, it isn’t with the advanced functionality of K8 from Kerridge Commercial Systems.
Keeping online customers happy
A guide to building a successful e-commerce self service environment, for your trade supplies customers. WE ALL LIKE to feel more in control of our lives –
competitors, how could you enable this
flexibility. Let the customer interact with you online
especially when it comes to dealing with businesses,
in the same way they do in store, make the brand
either as a consumer or as a business buyer. If many
Capture all of the buyer’s history so you can
of your customers are SMEs, chances are they’ll be
completely tailor their experience, and make it all
ordering from you on the go. 40% of people start
available online. Not only do you get better results
can cope with the growth in customers and can help
and end a purchase on different devices, some of
from your marketing campaigns (as they are fed with a
link together all your interactions with them. Cloud
which will be mobile.
complete picture of the customer) your customers can
storge provides a flexible option for this, as it can
access past order history and re-order with one click.
scale with your business and remove the headache
89% of companies in the retail and trade supplies trade don’t feel their e-commerce platforms
Create bespoke pricing and promotional activity
experience seamless. Scale for growth – establish an infrastructure that
of infrastructure management.
are up to the job of delivering what the customer
tailored to their activity, as well as have a general
Connect finances and order transactions to speed
needs when it comes to being online.
catch-all pricing and promotion strategy for the rest.
up order to cash as you let customers access their
If you’re wanting to win business over your
Link your channels together for maximum customer
account and resolve their own queries.
ANY CUSTOMER, ANY DEVICE Making it easy for customers to buy. What are the key things you need to do in order to take advantage of those customers that not only shop via mobile, but also swap between devices? 94% of marketers say that customer experience is the number one priority, and 40% of retail and trade supplies customers start and end their purchases on different devices. The good news is that this doesn’t have to be an operational headache. Following the steps below will get you ahead of the competition and give you competitive strength. Comprehensive – but simple. Don’t view mobile 22 | RETAIL OUTLOOK JANUARY 2018
as a ‘lite’ version of your e-commerce, make sure your customers can access the same features and item information, as well as the order process, on mobile. Accessing their account information should be as comprehensive as the desktop experience, but the number of clicks should be reduced and screen layouts simplified. Remember. Your customers are always on the go, on site, in the car, running around from one place to the other. You can make their lives easier by making sure your system remembers what’s in their basket across multiple devices and sessions. You should also plan to promote products they
have purchased before to increase basket size and to add value to the customer. Real time availability. Providing that comprehensive picture means real time availability is crucial, your customers are making promises to their customers, and you don’t want to be the reason they let them down. It is essential to make sure you have what they need, when they need it. One touch payments. Your customers are likely to be in a hurry, providing access to one touch payments, such as PayPal, makes it easy and fast for them to place the order.
THE PERFECT STRIKE
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By Rebecca Smith – www.starbright.co.za
My favourite social media related quote is a line from Erik Qualman, an American motivational speaker and author, “We don’t have a choice on whether we do social media, the question is how well we do it.”
for brick and mortar retailers
A DIGITAL PRESENCE is no longer a competitive
choice you may be asking ‘where do I start?’
advantage but a pre-requisite to making it in this
For brick and mortar retailers the best place to
a lot of customer service issues or those working
day and age.
start is Google My Business, although many argue
in media. Pinterest is mostly used by creative and
that this is no a social media platform, Google My
makers – so this can be very beneficial in the DIY
WHY YOUR BUSINESS NEEDS DIGITAL PRESENCE
Business will play a vital role in making your
industry, and Instagram only works if you have
That said it is important for businesses to understand
business searchable and then locatable.
visually appealing content. LinkedIn is best used
how to ‘do’ social media for their particular type of
Google My Business makes it easier for people to
Twitter is great for larger companies that deal with
for B2B marketing. Each platform has its cons and
business and industry. In the case of brick and mortar
find valuable information about your business on
should pros and considered carefully but for retailers
retailers many believe that it is not necessary to
Google search and Google Maps, including directions
Facebook is a no brainer.
have a strong digital presence and be on social media
to your company, trading hours, ratings and pictures
if their offerings are purely offline. Others believe
of inside and outside the store.
that simply creating a profile on every social media platform will do the trick. Neither are true.
To claim your business on Google My Business
This year Facebook announced that it has reached over two billion users. With this reach potential and Facebook’s superior advertising capabilities you can
simply visit www.google.co.za/business/ and follow
be sure that your business will be in good hands here.
the instructions on screen. Do not be alarmed when
With Facebook as your focus point pick one or two
that a large number of your customers will have
they tell you to wait for a postcard with a verification
other, supporting platforms and create a social media
their smart phone in hand. Many of them would have
code – this is how Google verifies your location. Hang
strategy around those platforms.
done online research, read reviews on your products
in there it will arrive.
If you look around your store I can guarantee you
and customer service, and compared pricing before stepping into the store. We live in a world where time is limited and instant gratification is king. People are reluctant to drive to
If you already have a Google My Business listing
KEEPING THE BOAT AFLOAT
check that all of your information is up to date. You do
Once you have set up your social media profiles you
not want to lose foot traffic because Google Maps is
may find yourself at a loss of what to do next. Many
telling people your business is closed.
start off strong and then fade out as everyday life
a store ‘blind’ and would rather drive further to go
gets in the way. It is important to keep your social
to a store that they know provides good service and
WHAT PLATFORMS TO USE
media activity consistent. When clients see that you
has stock of the product they are looking for. The
The saying ‘Jack of all trades and master of none’
haven’t posted to Facebook in months they can get
days of phoning a store to inquire about pricing and
can be applied to choosing social media platforms for
weary and wonder if the business is still running.
trading hours are over. If I can’t find the information I
your business. Many believe that they have to be on
am looking for online I will simply find a store that can
every possible platforms, but running a business’s
who can ensure that posting is done professionally,
provide such information.
social media is time consuming and most of these
creatively, and regularly. You can either hire a
It is best to assign the responsibility to someone
platforms are often neglected. It is better to pick out
marketing agency to handle this for you or assign the
WHERE TO START
two to three platforms and manage them well. But
task to a staff member who is properly trained in the
Now that you understand why social media is not a
which do you choose?
company policies and social media best practices.
24 | RETAIL OUTLOOK JANUARY 2018
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INSURANCE Source www.santam.co.za
Insurance is essential to protect your business assets and finances, but many business owners view it as a complicated and expensive responsibility.
Get the right insurance for your small business
CHECKLIST FOR COVER THE GOOD NEWS is that you can insure your
African businesses. Business owners often fall into
business cost-efficiently and without difficulty.
a trap of underinsurance because they are unaware
But you need to choose the right insurer and cover
of the repercussions. If your equipment is worth
that suits your pocket and business needs.
R500 000 and you only insure it for R400 000, only 80% of your loss will be paid out when you claim.
The last thing you need is to have to outlay additional
You must be able to rely on your insurer to pay your
funds following a loss during soft economic times,
claim, assist you in the claims process and give you
so it is critical to ensure that the value of your
good business insurance advice. To build a sustainable
possessions is updated regularly,” says Shehnaz.
business you need the best advice you can get. Never
“We understand that commercial businesses are
assume that the cheapest premium offered is your
under enormous pressure to produce results even
best option. It may cost you dearly in the end as
in times of reduced income, and this is where the
the cover could be quite restricted. Always compare
value of an intermediary comes in. We support
the cover, exclusions, excess and all the terms and
our network of intermediaries with unique client
conditions before deciding on an insurance provider.
risk profiling techniques, ongoing training, and an unmatched geographical presence and advice;
UNDERINSURANCE IS A CHALLENGE FOR THE
it makes complete sense to use professionals to
SOUTH AFRICAN BUSINESS SECTOR
help mitigate commercial risks.”
The South African commercial sector is traditionally
Santam also shares its legislative, commercial and
underinsured, and it gets worse during hard
scientific risk modeling expertise and insights with
its intermediaries to help them better manage the
“Commercial insurance continues to come under
potential risks and advise clients appropriately.
pressure due the slow recovery of the economy
“A good intermediary will guide commercial
as well as the fact that commercial clients remain
clients, by helping them manage and prepare for
cautious when purchasing new items such as
changes to the environments that affect their
vehicles, plant and machinery,” says Shehnaz Somers,
business and ultimately, help manage risks to
Santam’s head of commercial underwriting.
ensure their business’ sustainability.”
“Underinsurance is a key challenge for South 28 | RETAIL OUTLOOK JANUARY 2018
“The insurance industry is complex. Commercial
Most important cover to consider: Liability insurance: This is a must. Every business, no matter how small and even home-based, needs it. It protects you if you, your employees or your products or services cause or are alleged to have caused injury or damage to a third party. Property insurance: If you own your building or just the office equipment, your policy should protect against perils such as fire and floods as well as other risks such as theft and vandalism. Remember that the building and its contents should be insured for its replacement value. That is, how much it will cost you to replace the building or equipment with similar, new structures or items. Commercial vehicle insurance: You can insure your business vehicles against damage, theft, hijacking and collisions. Vehicles should be insured at market replacement value. If you’re wondering what your business vehicles are worth, Santam has put together a car calculator to help you work out the reasonable market value of your car and it is available on its website. Business interruption/loss of revenue insurance: You may want to consider this to protect your revenue if the business is unable to operate.
INSURANCE Source www.santam.co.za
AVOID INSURANCE PITFALLS For business clients, an
The financial gross profit often
underinsurance shortfall can be
takes account of various direct
disastrous. When clients experience
manufacturing costs, for example,
business interruption they often find
wages, factory overheads, water
their cover falling short, which may
and lights etc. The Insurance gross
mean they are unable to continue
profit, however, takes account of the
trading and they could be forced
uninsured costs as chosen by the
to close their business. According
client. These uninsured costs would
to Karin Lombard, manager in
be indicated on the policy schedule,
the Santam Complex Claims Unit,
and as standard would include
underinsurance is the biggest reason
“purchases; bad debts; and
for unhappiness at claims stage.
discounts received and allowed”. By calculating the insurance gross
businesses and their management
best suited to mitigate the risks
don’t necessarily have the time
that are specific to your business
or expertise to navigate the wide
and your industry, and they are in
spectrum of insurance products
tune with an evolving risk climate.
available, and this is why the
All of this, put together, saves time,
intermediary is so important.
money, and effort and, in many
He or she knows your business,
cases, ensures the continued success
knows what insurance products are
of the business.”
WATCH OUT FOR THESE THREE
profit based on only the uninsured
costs, the rate of gross profit
1 Calculating gross profit correctly
would be higher, enabling the
The most common errors that are
client to pay the on-going expenses
made when insuring for business
such as wages, factory overheads,
interruption occur when the gross
water and lights.
profit of a business is miscalculated. The client is insured against applying
3 Ensuring that an adequate
the rate of gross profit to the
indemnity period is chosen
reduction of turnover, not against the
The indemnity period chosen needs
total reduction in turnover.
to be sufficient to allow for the building re-instatement, sourcing/
Branch Manager A well established national hardware wholesaler requires an operationally minded manager at its branch in Meadowdale, Johannesburg.
Requirements • B.Com degree of similar qualification with Accounting as a subject • Substantial managerial experience in a similar environment • Be pro-active by nature and the ability to perform well under pressure • Have good staff relations to maintain a productive working environment • Have a decent level of computer literacy.
Remuneration will depend on the candidates work experience, qualifications and abilities.
Please submit your CV to firstname.lastname@example.org 30 | RETAIL OUTLOOK JANUARY 2018
The gross profit sum insured should:
ordering and commissioning of a
• Include VAT
new plant, equipment, machinery
• Reflect a 12-month period where
etc. as well as returning to the
the maximum indemnity period
pre-loss production and turnover
is 12 months or less; or the
levels – in other words, the recovery
appropriate multiple of the annual
period. The length of the period
turnover where the maximum
would need to be sufficient to
indemnity period exceeds 12
cover from the date of the incident
until the business is no longer
• Cater for trend, taking cognisance of a loss that may occur close to or at the end of the insurance period.
affected by the disruption. It is important for intermediaries to fully understand the nature of a client’s business. You may have
2 Understanding the difference
to call upon your client’s auditors
between financial and insurance
or accountants to provide further
insights and information.
BUSINESS IF YOU ARE THINKING OF STARTING YOUR OWN BUSINESS OR RECENTLY OPENED A START-UP, HERE ARE SOME OF OUR TOP TIPS FOR A SUCCESSFUL VENTURE
Advice on running a successful business
Running a small business in South Africa remains an exciting adventure. A recent study found that small business is actually big business for our country. IT IS ESTIMATED that start-ups contribute between
Enter a small business award. Even just being
52% and 61% to the countries GDP. The same study
a finalist is something to mention – for example,
found that small businesses are also relatively
Entrepreneur of the Year, 702’s Small Business Awards
entrepreneurs. Keep an eye out for free events
successful, of the 400 business owners surveyed,
and The South African Small Business Awards.
such as MyBizExpo where you can hear inspiring
three out of four believe they are making more money than they would have working for someone else.
even if it’s a weekly or monthly phone call. You could also hang out with like-minded
talks and attend networking sessions. DON’T OVER-CAPITALISE ON EQUIPMENT Think carefully about each purchase you make for
or recently opened a start-up, here are some of our
your business. Take advice from Bos Ice Tea founder,
Time is a precious commodity for a small
top tips for a successful venture.
Grant Rushmere, “Don’t create anything that has
business owner so you have to be clever in how
only one use. Before you spend any money, ask the
you spend it. Get an overview of all your projects with
SPREADING THE WORD
question, ‘Can we use this in multiple places? Create
an easy-to-use project management tool such as
Marketing your new business can be time
assets that aren’t wasteful by being disciplined and
Trello or Basecamp.
consuming and expensive but if you work smartly,
putting thought into every spending decision.”
If you are thinking of starting your own business
you can get great results. Here are some cost effective
Block out an hour when you need to – no phone calls, no instant messaging, no checking emails –
CALL THE PROFESSIONALS
and put time aside in your diary to actively do
Something that is worth splurging on is the
marketing, get some exercise, come up with new
a business listing on Google. It will ensure that your
right professional advisor, from a tax expert and
ideas, etc. Apps like Evernote and Wunderlist can help
complete business infomation appear when people
accountants to a knowledgeable insurance broker.
you keep track of all your tasks and ideas,
are searching online.
The former can help you work out your tax liabilities
while RescueTime will show you exactly how much
to help prevent a cash shortfall, and point out ways
time you spend on each activity and show you where
Use testimonials. Don’t be shy to ask for feedback for
to save money in your business. Small business
your time is being wasted.
a job well done and display these soundbites on your
insurance may feel like an optional extra but could
website, LinkedIn profile and email signature.
mean keeping your doors open should disaster strike.
Work the power of word of mouth. If it suits your
Anat, went from a R600 food trailer to being the owner
business, start a customer referral programme by
A mentor truly helps you on your journey. Decide
of more than 25 franchises around the country. For
offering a free product or other discount for every
which former colleague, boss or client you’d like to
Anat, starting small, selling only the very best and
new customer that is introduced.
learn from and make time for regular advice sessions –
keeping things affordable paid off.
marketing ideas. ‘Google’ your business, in other words complete
KEEP BELIEVING IN YOURSELF Anat Apter, founder of Falafel and Schwarma franchise
32 | RETAIL OUTLOOK JANUARY 2018
By Adēle Maritz – www.ambrand.co.za
Plan your marketing strategy It’s that time of year again and retailers are probably giving deep thought to targets and budgets. DO YOU GET to the ‘marketing’ line item and really
are potential new customers? Spend some time thinking
and customer events. The sooner you get in a habit
give thought to the amount you allocate? The old
how to reach them best: What do they read? Where do
of measuring traditional product and price advertising
adage is true, ‘You have to spend money to make
they spend time? What would interest them?
campaigns the easier it gets.
money.’ But how much and where should it be spent? Many businesses have failed because they did
What is your goal for the upcoming year, attracting
There are various different ways to measure your
new customers, getting current customers to increase
return on investment - that we will discuss in future
not properly budget for and plan marketing
sales or maybe re-positioning your business in the
columns – the easiest way however is just measuring
activities. Companies can grow to a certain point
minds of customers? It goes without saying that your
sales quantities during promotional periods to
via word of mouth, but then hit a threshold and
marketing and business strategy should align perfectly.
stand the risk of stalling.
When starting to allocate money towards different
Another quick way of evaluating the different
channels keep in mind what has worked well in the
mediums you are using is to be vigilant about tracking
past and what are potential avenues to reaching new
how customers find you or heard about a promotion;
Old rules of thumb have it that the amount you
customers. The size of your budget will also influence
salesmen can ask customers and give input in what
spend on marketing each year should range
your plan. Bigger budgets will allow for mass reach
is working and what not. You could even include a
anywhere from 1% to 10% of sales, or even more
mediums such as radio and certain magazines to
question on your website enquiry form.
depending on the industry.
be included in your plan. Smaller budgets will
It is also important that if something you
probably rely more on local press, leaflets aimed
experimented with is not working as well as you
Factors to include when deciding on your budget include variables such as:
at a smaller local market.
thought it might; tweak it, until you find the recipe that
• How established is your business? (if not everybody in your catchment area has heard of you, you should probably be spending more)
I do in the value of huge marketing budgets. A well
the great advantage over bigger chains in that they
planned, directed, interesting and perfectly executed
are able to adjust and change on the fly.
promotion could be way more valuable than thousands
I live by the saying, ‘failing to plan is planning to fail.’ I
• What type of industry are you in? (retail businesses in a competitive environment usually spend more that business to business type companies)
being spent on, for example radio advertisements.
dare you - think outside of the box, budget and plan to
• Does your business operate on high or low profit margins?
budgets. Remember when a potential customer visits
• Does your product or service require high or low involvement when a purchasing decision is being made?
however ‘make the sale’ and ensure that the image
• How active is your competitors? • Will you be launching a new product or service in the coming months? • Do you just want to maintain your current position or grow market share? In uncertain times it’s easy to – and completely acceptable – cut back on spend and wait for things to stabilise. The reverse is also true that while competitors are hurting you could make a move and ramp up spend. Keep in mind that there are so many cheap, but highly effective web options available today that you do not have to ‘spend yourself into a hole’.
2 PLAN Once you have an amount you are comfortable with in mind, putting a marketing plan in place is of critical importance. A plan enables you to track the performance of your spend and helps you to stay on track during the course of the year and make adjustments where needed. The best starting point when putting together your annual marketing plan is to decide who it is that you want to target. Who are your current customers? Who 34 | RETAIL OUTLOOK JANUARY 2018
I believe stronger in the value of good content than
Make sure to allocate money towards keeping your website up to date and including social media in your plan. These are cost effective mediums for smaller your website, they’ve already found you! You must of your business and information you convey makes them take the next step. Remember to include related expenses in your budget such as potential research work, attending trade shows, functions, brochures and training.
3 MEASURE Your marketing plan defines how you connect with your customers. If you are doing it well you should be able to measure the success. Some marketing initiatives are difficult to measure immediately, such as brand awareness campaigns, sales collateral, sponsorships
works best for your business. Small businesses have
make this a year to remember!
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Decades of successful hardware
A highly successful hardware business Kwa-Mnqandi Mica, located in the heart of KwaZulu-Natal is jointly owned by George Bond and John Carter boasts a history that dates back many decades. NORMAN BOND – A long time resident of
pregnant with her son, Brad, when the store opened
solely for hardware, they took the plunge and
Nongoma has been a trader in this part of
but this did not deter her. She was in store packing
expanded the store from 1 000m2 under roof, to
KwaZulu-Natal for many years. In the 1970’s the
shelves up until she went into labour – even in hospital
3 500m2 under roof – and the yard was also made
government wanted all whites out of Nongoma
she was signing documents for the store.
larger. The store front was now on the main street,
and started buying all white owned stores. Norman
George Bond, Norman’s son, worked in the
something the hardware had never offered before.
had a good relationship with both the King (King
wholesale operation from its inception. In the mid
This road frontage provided much needed visibility to
Goodwill Zwelithini) and the leader of the Inkatha
80’s they made a decision to split the wholesale
lure in more business, which added to their continued
Freedom Party, Prince Mangosuthu Buthelezi and
and hardware into two separate stores. George
growth and success.
managed to get permission to continue trading.
took over the management of the hardware store
John Carter in the meantime was working on his family farm near Pongola, but decided to move to Nongoma in the mid 70’s and approached Norman
In early 2017, Norman passed away at the age of
and John remained with the wholesale division –
89 and was given a hero’s funeral from the Nongoma
now solely focused on food.
residents who held him in extremely high regard. The
George became a partner in the hardware
entire town came to a standstill with a donkey cart
with the view to open up a new wholesale and
business in the early 90’s. As the years went by
funeral procession travelling through the centre of
hardware business alongside Norman’s trading store.
it became evident that the hardware store was in
the town in his honour.
On a handshake the agreement was concluded and
demand but the margins in the wholesale section
With the death of Norman, John and George
in 1981 John started the wholesale and hardware
were very small, so they decided to do away with
became equal partners. The business joined the
business focusing mainly on food wholesale. Denise
the wholesale division.
Mica stable some 20 years ago as their customers
Carter – John’s wife – was eight and a half months
In 2011 with the added yard and store space available
were brand conscious and joining Mica gave them
36 | RETAIL OUTLOOK JANUARY 2018
We have the diamonds you need!
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SUCCESSFUL RETAIL extra credibility amongst their already loyal clients. Brad and Greg Carter both joined the business in 2004 and are now very actively running it with George (John has basically retired and has interests in other businesses). Having been in this part of the world for much of their lives both Carter sons speak fluent Zulu and can converse with their customers, hear their needs and ensure they deliver. There is always at least one of them on the shop floor at any time. The success of Kwa-Mnqandi Mica Build is evident from the Mica Head office awards that the store has been achieving in the past couple of years. In 2016 it won ‘the Mica Growth’ award for the region
clients. Brad cannot stop singing the praises
unprecedented move by the hardware store owners,
and in 2017 it won the ‘Mica Growth’ award again –
of their suppliers and their willingness to help out,
they took the initiative to award its suppliers for
plus it won an award for being one of the Top five
deliver at short notice and call regularly (despite
their support and loyalty. The total value of the gifts
throughput stores – and recognised with the most
Nongoma being off the beaten track). Brad recognises
handed out that night were valued at R70 000, the
prestigious, ‘Store of the Year’ award – the top
that the suppliers are key to their success and
main prize going to Powafix as ‘Supplier of the Year’,
award for any retailer in the group.
acknowledges their input.
for which they won prizes valued over R30 000.
Brad and Greg Carter attribute their success
With this help and the marketing hype around the
to thinking out of the box, running innovative
day the promotion was a phenomenal success – way
promotions and to the support they have received
exceeding even the most optimistic expectations. The
from their suppliers.
store was abuzz, long ques forming at all the checkout
In 2017 they have already run three promotions.
points, but everyone in good spirits with boerewors
The first being the ‘Hamba Kahle’ promo, which ran on
rolls being handed out along with gifts from
30 June, the late Norman Bond’s birthday. They ran
participating suppliers. The yard was a hive of activity
another promo early in October and then the biggest
with bakkies lined up for hundreds of metres waiting
ever on 20 November – this promotion was widely
to collect. It appeared as if every Nongoma citizen was
advertised with broadsheet flyers being distributed
at Kwa-Mnqandi Mica Build on the 20th.
far and wide. The Carters enlisted the help of their
THE SUCCESS OF KWA-MNQANDI MICA BUILD IS EVIDENT FROM THE MICA HEAD OFFICE AWARDS THAT THE STORE HAS BEEN ACHIEVING IN THE PAST COUPLE OF YEARS
That evening the Bond and Carter families
loyal suppliers and secured phenomenal deals for their
hosted the suppliers for a celebration dinner. In an
Powafix won supplier of the year.
Mark Reeves from Mica and Mark Reeves from Marshal.
A hero’s funeral for Norman Bond by Nongoma residents. 38 | RETAIL OUTLOOK JANUARY 2018
Supplier support is important.
PROUDLY SOUTH AFRICAN COMPANY
Local is Lasher! The hardware industry in South Africa has over the past few years been inundated with inexpensive imports from around the globe. This has the potential of destroying local business despite the value for money offering being nowhere near what some local suppliers are able to offer.
THERE ARE A number of reasons to support local manufacturers. Look out for this regular feature in DIY & Industrial Trade News with special focus on local manufacturers. One of the most prominent local South African manufacturers, Lasher Tools, a brand that is under constant attack from counterfeit products, blatant copying and cheap imitations.
BENEFITS TO RETAILERS WHO SUPPORT LASHER TOOLS ARE: 1 Strength/weakness of the Rand to other currencies – not even the most astute economist seems able to hedge against or predict rand volatility, which leaves importers at risk. Dealing locally using local currency with the current economic turbulence makes absolute financial sense.
2 Short lead times – proximity and control of the manufacturing process is easily managed.
3 Capacity – the Lasher Tools Manufacturing facilities offer unrivalled capacity.
4 Continuity of supply – Lasher boasts an average 98% first time stock in supply rate. This equates to no stock outs on the entire range affording the retailer complete peace of mind with regards to on time stock availability.
5 Smaller orders can be placed and fulfilled – more and more retailers are holding onto their cash and need the flexibility of being able to place small orders and not take the risk of large stockholding and cash outlays.
6 Engineering Development capabilities WHY SUPPORT LOCAL? Lasher tools have been in business for 113 years – a track record that not many South African companies can match. During this time it has never retrenched a single employee, which highlights the most important reasons to support local. It creates employment, something South Africa desperately needs. Lasher Tools boast a large manufacturing plant consisting of three, ISO 9000 SABS accredited factories situated in Wadeville, Germiston and Ladysmith and employ 650 staff.
– Lasher Tools is effectively an engineering development company which means that products can be and are custom made to top quality market specifications, thus making its products fit for purpose to work in the harshest conditions, hence the Lasher motto, ‘Tough reliable tools, guaranteed!’ New product development is ongoing translating to constant upgrades of products and producing many new product offerings.
7 Logistics – whether ordering bulk or break bulk directly from lasher or through the wellestablished wholesale network, Lasher Tools are able to offer a complete logistical solution.
8 Guarantees and Return policy – the Consumer Protection Act forces retailers to take returns and these are difficult to return to
40 | RETAIL OUTLOOK JANUARY 2018
international manufacturers by the container load. Lasher Tools support its brand and have confidence in the quality. Should there be a return this will be honoured and the retailer is covered.
9 Quality – Lasher Tools guarantees all its products against faulty manufacture and although this can happen from time to time, its return on faulty products runs on average at less than 0.75% per annum on total manufactured products.
10 Brand strength – is perhaps one of the most important reasons to support Lasher Tools. The brand is internationally recognised and is a market leader in many countries. Consumers demand quality brands and Lasher Tools rises to the challenge every time.
11 Support of other local manufacturers – Lasher Tools source all raw materials locally where possible, strengthening all aspects of the local economy. Where this is not possible, Lasher Tools employs a buy-out sourcing system that ensures that products are only bought from reputable suppliers who follow sustainable business practices.
12 Retailer product training and
merchandising support – lasher tools not only manufactures an unbeatable quality range, but it also follows its support through to the retail shop floor, assisting in the sell to consumers, thus giving the retailer complete peace of mind in stocking lasher products. Quality, continuity of stock, dedicated, passionate staff and brand loyalty will ensure ongoing customer support to the retailer. So next time you think of stocking your shelves or buying a fit for purpose, quality tool, think South African, think brands that are South African and think Lasher Tools.
PRODUCTS Agardo Urban PU Foam is a polyurethane PU FOAM
based insulation and construction
foam filler for industrial and building applications. It is specially developed for filling gaps between windows and door frames, loose tiles, boards, filling of joints between wallls, floors, ceilings and much more. Polyurethane adhesives and polyurethane sealants are finding increasing uses within the housing construction industry. The material offers good adhesion to numerous substrates, such as
CHECK IN AT HOME
The new Yale Home View IP Cameras offer peace of
concrete, wood, plastic, and glass
mind by allowing you to view inside your home from your
due to its elasticity and structural
Smartphone or Tablet in crystal clear HD720p quality.
properties. These features, along
Designed to suit modern lifestyles, the cameras, including
with continued technological
the Home View fixed and Pan Tilt and Zoom (PTZ) IP
improvement, have widened
cameras, connect wirelessly to an Internet connection, providing peace
the number of polyurethane
of mind for busy homeowners who want to check in on their property or
adhesive and polyurethane sealant
family at the touch of a button.
applications in residential projects.
DISTRIBUTOR: Yale Security (SA) CALL: 011-761-5000 | VISIT: www.yalelock.co.za
DISTRIBUTOR: Araf Industries CALL: 031-569-1961 | VISIT: www.araf.co.za
The versatile Dewalt DT7921B screwdriving and drilling set is an ideal gift. This 19 pieces set comprises of 2mm, 3mm, 4mm, 5mm, 6mm, 8mm Extreme 2 Metal Drill Bits, Ph 2x4, Ph2x50mm, Pz2x50mm, Slotted 5.5x50mm
SCREW AND DRILLING SET
screwdriver bits Marley’s Vynadeep range of
• Magnetic holder
half round gutters and round
• Magnetic drive guide
downpipes offers economical
• Supplied in tough case
installation, low maintenance requirements and proven performance, and can be easily connected to a water storage tank to provide your home with a reliable water supply. Backed by a 10-year guarantee, Marley Vynadeep products are manufactured using high quality materials that are heavy metal free, ensuring RAINWATER HARVESTING
long-term performance and environmental benefits.
DISTRIBUTOR: Marley Pipe Systems CALL: 011-739-8600 | VISIT: www.marleypipesystems.co.za
DISTRIBUTOR: Benray Tools CALL: 011-683-8350 | VISIT: www.benray.co.za JANUARY 2018 RETAIL OUTLOOK | 41
PRODUCTS Lawn Star presents another
fire proof massive air filter which
innovative and exciting product to the
keeps the ash dust from the motor
market. The latest product is the ash
and prevents it from returning to
vacuum, a1000 Watt lightweight
the room during the cleaning
vacuum cleaner that deals safely
process. Lawn Star has once again
with the dirty mess of cleaning wood-
made the job easier, safer and better
burning fireplaces, braais and fire pits.
for the environment.
No more shovelling ashes. Simply vacuum up the hot ashes in the 18l metal drum and dispose when full. This is the safest way of removing
NEW ASH VACUUM
ash debris. The most important part of this vac is the
The Triton WorkCentre WX7 is a
simple surface level calibration
versatile woodworking station with a
result in a perfectly flat work
multitude of accessories for tackling
surface. Positioning wheels improve
any woodworking task. Built-in
manoeuvrability for small position
mains isolated switch connector for
adjustments. The Workcentre also
connecting power tools, with knee-
folds down compactly for
off stop button function. Includes
clamping table module with 40 x 20mm diameter holes for securing
Accessories available include:
Router Module, Side Support,
Easy-to-fit module inserts quickly
Rugged Transit Wheels, Protractor
tool desired by the operator.
Assembly, Rugged Transit Handle
Module levelling screws for DISTRIBUTOR: Lawn Star CALL: 0860-529-678 | VISIT: www.lawnstar.co.za
Outfeed Support, Rugged Transit Kit,
transform the workcentre into the
and Saw Table Module.
DISTRIBUTOR: Vermont Sales CALL: 011-314-7711 | VISIT: www.vermontsales.co.za
The Stanley 27” Roller Cabinet is perfect for any workshop. 4 DRAWER: SKU: STST74305-8 ROLLER CABINETS
7 DRAWER: SKU: STST74306-8
FEATURES AND BENEFITS • Lockable castors • Multiple drawer sizes for flexible storage options • Perforated side panels for vertical storage • PVC bumpers on corners
Timbalok 90° Truss Hangers are specifically designed to support truss-to-girder and girder-to- girder connections in prefabricated timber roof structures. Timbalok 90° Truss Hangers can also be used for truss or girder to
• Ball bearing slides for durable drawers and smooth operation
concrete or masonry connections as well as timber joist and rafter supports.
• Lockable drawers
Product Code: UH12
DISTRIBUTOR: Stanley Black and Decker CALL: 011-472-0454 | VISIT: www.stanleytools.co.za 42 | RETAIL OUTLOOK JANUARY 2018
DISTRIBUTOR: Timbalok CALL: 011-397-4917 | VISIT: www.rooftruss.co.za
Our company started out way back in 1928 and we have a history in which every South African can take pride. Lasher Tools is the leading supplier of quality guaranteed hand tools for the DIY, gardening, agriculture, construction, industrial and mining industries in South Africa. We are immensely proud of being the only local manufacturer of hand tools in the country. We employ over 600 people, manufacture more than 1,200 stock tools and we stand behind every one of them
Bolts Nuts Washers
home & geNeral
our products are now
Wall aNchors & colourâ€“categorised for easy shopping Wall Plugs and the range
broader and better!
www.eureka.co.za â€˘ 011 471 0800
Your definitive guide to the hardware retail environment