Denial is Under-Rated?

by Sid Raisch

She actually said this? I could hardly believe my ears, and had to ask, “would you please repeat what you just said?”

She said it again, “Yes - denial is under-rated as a coping mechanism.” Having just met her for the first time, I was both aghast, and willing to give her the benefit of doubt. Maybe she had it backward in her mind? Sadly, the further the conversation went, the clearer it was that she actually believed herself – that denial is a good coping mechanism. But of course, she’s dead wrong.

The truth is, that denial is ineffective as a coping mechanism, and yet, it is widely practiced. Are you in denial? Yes. I say this with certainty. I sometimes joke that consulting is “unlicensed psychology”. It is, sadly, always the case, that a client is in denial about something, and they are enabling their employees and family to live the same fantasy.

Uncovering the areas of denial is linked with discovering overt problems and their causes and underlying issues. Look at your present reality. What is really going on? Are you in denial? Are you semi-consciously aware? Or, are you fully aware of your surroundings, and working to overcome the challenges? Do you want to be fully responsive, or will you deny this article too?

Here are the Top 13 Denials:

1.    There is no plan, being actively implemented, for exit from the business by the current owners, who are age 50, or older.

2.    Wage expenses are rising faster than margin growth.

3.    Employees have recently left, or are thinking about it, for higher wages and better benefits.

4.    Long term savings has long ago been depleted, and have not been fully replenished.

5.    Owners’ wages and benefits have decreased as a percent of sales over the past five years.

6.    Contributions have not been consistently made to long term savings or retirement funds each year.

7.    Facility maintenance has been deferred and major repair and replacement expenses are immediately necessary, or anticipated.

8.    There have not been significant consumer facing improvements made to the store shopping environment in the past 7 or more years.

9.    Credit card purchases or advances are used to free up cash needed to cover payroll gaps.

10.    Merchandise selection is often chosen on the length of terms available with large quantity purchases.

11.    Vendors are used based on available credit, discounts and terms of payment, more than on product selection or cost.

12.    The Internet will never replace the personal attention and seeing what you’re buying in a real brick and mortar store.

13.    Large numbers of customers are not coming back even if offset by increase in average purchase or attracting new customers with advertising.

Let’s take a closer look at #13:

Face This Reality: Your lost customers are not coming back.

Whether your transaction count is dwindling or not, you are losing customers – probably more than you realize (go look). I have been looking at this and I can tell you that it is shocking, but not unusual, that more than 30% of customers don’t return from one year to the next. What is the reason customers are not coming back? What can you do about it that isn’t just a stop-gap measure?  Increases in average transaction may be making up for the loss, and you may be coming out ahead - for now.

•    Will a loyalty program keep your customers loyal and coming back?

•    Will spending more on advertising or using a different mix of media bring in new customers?

•    Will increasing prices to make up for deeper discounts and more coupons keep customers?

•    Will lowering prices on important items to attract more business, so you can make it up on greater volume?

Before going further down the path you’re on, or taking new routes, ask the question, “what will happen if the remaining and new customers don’t come back either?”

Let’s get real. Why are the customers who aren’t coming back not coming back, and what can you do about that? (You might take a closer look at #12.)

You Can’t Deny This
Denial is a counter-productive coping mechanism because it is short-lived. Denial shortens life itself because almost everything worth denying gets worse over time. The best coping mechanism is to clarify and then face reality.

Executive Advantage Principle #1 – Leaders Define Reality

By facing what’s real we can gain perspective of the situation and create an appropriate plan to move through it, around it, over it, under it, or to go in another direction.

By the way, did you read any of the articles about Amazon buying Whole Foods? If not, Google them up, and clarify that reality. (Hint - It’s not because people want to buy their stuff in a real store and not on Amazon.)

Your friend,
Sid

Sid is a consulting Service Provider to The Garden Center Group and also serves as President/CEO of Bower & Branch. He is a board member of AmericanHort and Come Alive Outside. Sid has been inventing and reinventing the way things “don’t get done” into “get it done” strategies that increase profit-ability, market-ability, oper-ability, and owner-ability of garden centers, landscape operations and a few wise suppliers of plants and products. It’s not 38 years of the same thing, it’s thirty-eight increasingly effective years dedicated to improving and re-inventing the inter-dependent horticulture supply chain. He’s constantly challenging “that’s how we do it”, “we tried that”, and a dozen or so other excuses. Sid knows how to get people to get things done by overcoming underlying attitudes, fears and lacking resources. When you read Sid’s articles or hear Sid talk “put your ears on” and listen up, and get ready to think and implement changes that will take you and your company to new heights and new places. Contact Sid at 937-302-0423 or email to [email protected]