The 4 P’s of Retail Marketing

Marketing never gets old. It constantly surrounds us in new ways. What stays the same, however, are the 4 essential P’s to marketing. Product. Place. Price. Promotion.

Without a product – whether it’s a service offered, person or actual product being sold – there is no reason to put marketing efforts out there. Naturally, this product needs a “place” to be found, so identifying this is critical in your marketing outreach. Customers always want to know how much things will cost, so the price is a key component to this 4 part mix. And finally, the actually promotion of the product / place / price helps to create a call for action from customers. This part can be simple, elaborate or even fairly routine, but it should always provoke your customer’s interest.

When referring to the 4 P’s in retail marketing, it’s important to stay focused on your goals. For most of us, that is selling through your inventory…. and making money! Keeping your budget in check along the way is very important, so make sure your pricing strategy is built to support your marketing plans in addition to your product resources, selling efforts, time it takes to bring this product to life and much more. A few other key components to consider include:

1. The life span of your product. How will this influence the price? How will this influence your promotion strategy?

2. The buying behavior of your target market. Are they impulse buyers? Or do they research things before a purchase?

3. The competition of your product. Who are your comeptitiors? What points make up their marketing mix?

Beyond the 4 P’s of marketing, there are 4 environmental stimuli that greatly influence consumer behavior and buying trends. These are the economy, technology, politics and cultural life stlye. Consider how these will influence your unique 4 P’s, then respond accordingly. If you are aware of all contributors to consumer purchase decisions, you are more likely to win their actual purchase.

 

Holiday Visual Displays – Making An Impact

Nothing brings the holidays to life like a great visual display. Whether it is for Halloween, Thanksgiving, Valentine’s Day or Christmas, visual displays help bring excitement to stores and products leading up to each particular holiday. The catch is that you want to make sure your displays are appropriately planned so that you can support the holiday season with products being sold into it for your particular business. There is a reason Valentine’s Day products start to be merchandised just past the New Year… it’s the next big “holiday” to get consumers excited for. By getting them excited, you are also getting them in the thought process of what they want, what they need and what they simply can’t live without. Your displays help paint these pictures in their minds, so making sure your displays are powerful and leaving strong impressions are essential in gaining sales during the holidays.

Promoting Through Display

While it’s fun to create displays that are whimsical and appropriately designed for the holiday, it’s also great to incorporate products into your display that consumers can actually purchase. Identify some key products that you purchased to sell during a particular holiday season and see how you can include some of these products in your visual displays to help entice the customer while also giving them the feeling of the holiday season. This isn’t always easy… wrapping boxes with your store logo on them and placing them under a Christmas tree can be easier, of course, but how is this spotlighting what you have to offer them from your store assortment?

Remember to do the following in your displays to be more effective in having your displays support your sales:

1. Use product that is available for purchase within your displays, specifically highlighting product that accommodates the particular holiday season.

2. Use additional display product that is not part of your store assortment as accent pieces to help promote what they can actually purchase.

3. Use these three general rules of merchandising as your basis for a visually pleasing display - which are BALANCE, COLOR and HEIGHT. Balance refers to making sure your entire display coordinates from all angles. Color references both the wow factor it brings to your audience and the combination of how you use color to create that wow. Height refers to making sure key products are eye level to ensure they are visually seen versus having them in the corner, on the bottom of the display or anywhere else within the display that may be overlooked.

By incorporating these points together and combining your store product and display product together, the opportunities are endless for an amazing display.

Theme It

Tis’ the season for some great shout outs to holiday classics. Whether it’s referring to your favorite Halloween custome or referencing a Christmas movie classic, consumers respond to their own memories when drawn in by displays that capture them. Consider using a theme to embrace your entire holiday visual plans that carry through from the store front window to inside displays to promotional events. Make sure it’s an obvious theme that most consumers can relate to so that you don’t have a void in grabbing the attention of a lot of your consumers.

Switch It Up 

Many retailers create wonderful displays for the holidays that stay put for almost two months before getting a face lift. The work they put into the display is certainly worthy of a long run without interruption, but unfortunately this doesn’t always capture all of your customers. Why not consider doing smaller displays each week that help promote the holiday season versus one huge display to last all season? By switching it up, your regular customers will have a new reason to come into your store and potential customers are more inclined to walk in each time you offer something new in your display. You can make it even more fun by taking pictures of your displays and having customers vote on their favorite at the end of the season.

Whatever you decide works best for your store, just remember the opportunities that are being missed or taken by each display being made! The goal should be more than just a great visual masterpeice – it should be a support to the sales you are trying to make for your store.

Have holiday display ideas of your own? We’d love to hear from you! Comment below.

IN THE SPOTLIGHT – Good Fortune Soap

This  week’s featured bath  and body product is Good Fortune Soap.

What a name. Good Fortune. Who doesn’t want more of that? With Good Fortune Soap products, you will be wanting more of what they have to offer. Founder and soap creator Jennifer Jack wanted to change her corporate driven life and create a new lifestyle that left her feeling satisfied and happy while also enjoying what she did. Based in Tennessee, Jack founded Good Fortune Soap and applied her graphic design and photography background to help launch this exciting, affordable and unique soap brand. With a studio open to the public in an old family dairy barn in Athens, Tennessee and her mom working with her, Good Fortune is now sold in 5 other states outside of Tennessee and it won’t be long until Good Fortune has a home in many more stores – maybe even yours (strongly suggest you taking a peak at it).

While soap is the specialty at Good Fortune, there is more to offer. Body oils, lip balms, lotions, candles and more make up this natural assortment of bath and body products. Soap is the key peice to this mix, though, and my favorite is their surprisingly refreshing Faucet Soap. You can use this soap without water, with water and just about anywhere you want. It comes in a waterproof bag and a mesh sack that makes using and traveling with Faucet Soap super easy. On top of all that, it only retails for $10 and is so generous in size compared to what a lot of other soaps out there offer for $10 bucks! Finally, my favorite part are the amazinng  scents you have to choose from – Apple Jack, Red Apple Lavendar and more. There is even a soap with citronella to act as a repellant to bugs… How genuis is that? This soap is as versatile as it gets. Don’t believe me? Check it out for yourself.

Learn more about Jack and Good Fortune by visiting www.goodfortunesoap.com. For wholesale and press inquiries, please contact Good Fortune at sales@goodfortunesoap.com. Opening orders are available in small quantities, so don’t be shy! Get in touch today!

Through our IN THE SPOTLIGHT section, we offer retailers and wholesalers the opportunity to link together by being introduced to each other as well as general consumers. If you would like to be considered for IN THE SPOTLIGHT, please email Retail Minded at nicole@retailminded.com.

Should You Eliminate A Product Category?

So many stores, so much stuff. In light of our recession, retailers are trying to find ways to survive the reality of their retail sales – or lack of them. Inventory is being analyzed, sales and promotions are running wild and orders are being slashed for new goods. Finding balance in it all can be overwhelming – but important. One thought to consider is if you can simply begin to fade out and then ultimately eliminate one product category in your store.

If you are a shoe store selling handbags and jewelry to help enhance your shoe sales, maybe eliminating handbags is something to consider. This should, of course, be considered only after determining handbag sales are down. The goal should be to eliminate one or maybe a few categories that are not performing as well that in return will allow you to focus all your energy and financial availability towards the categories that are selling better. Dollars will open up and customer focus will be strengthened. In addition, the products that are moving will be highlighted more since there will be less product assortment for customers to consider. Take the opportunity to really analyze your current assortment of inventory and decide what is selling best and what isn’t selling at all. And ask yourself – are customers coming to your store for “this particular item / category” or do you have it in your store to help enhance other products? If customers aren’t coming to your store for it and it isn’t selling, maybe it’s time to reconsider why you have it in your product assortment at all.

Another thought is to eliminate a few brands without taking away total categories. This should be considered if you believe the category you are offering is vital to your overall store success.

Finally, be realistic with yourself. As boutique owners and small business buyers, we often tend to let our personal emotions get in the way of our professional decisions. Try and be netrual here to make the best decision right for your business.

IN THE SPOTLIGHT – Nomie Baby

Drop Shipping – Is It Right For You?

As small business retailers and wholesalers, you know just how valuable every dollar is to your business. Because of this, as well as our struggling economy, I encourage you to consider dropshipping if you have not already.

Dropshipping can be defined and understood in a variety of ways depending on who you are talking to. But for boutique store owners and small business wholesalers, dropshipping generally refers to when orders are shipped only once placed by a customer at a retail store and can be sent as single unit or more depending on the customer’s order. For example – if you are a children’s store owner and sell crib mattresses, you would only order a mattress from your wholesaler once a customer has ordered one from you. The customer would be informed about the delivery time schedule and typically would pay upfront or at least 50% when the order is placed. This gives you, as the retailer, the opportunity to then place the order with funds to cover your purchase while also giving the wholesaler the opportunity to make a new sale.

As a wholesaler, we understand that you may prefer to write larger orders at once, such as selling six mattresses instead of one at a time, but to consider dropshipping may add benefits to your business that you would not have otherwise.

Advantages For Wholesalers Who Dropship

Dropshipping introduces a whole new business to wholesalers once they establish it and get it in place. A few advantages include:

1. New retailers are more likely agree to your dropshipping terms and then sell your prodcut as a result of dropshipping. Particuarly in this economy, retailers are cutting back on larger orders and looking for products that bring value to their store but that they can also afford. This allows for you to get in to retailers you may not otherwise.

2. Higher priced and larger scaled items are great products to consider for dropshipping. Retailers have to consider not only in dollars, but their space. When you give them a reason to bring your product  into their assortment without an initial, big investment, it’s a win-win (assuming your product sells, of course). In addition, if you offer a larger product, such as a headboard, it allows your retailers to still carry you without holding onto large inventory in their often small spaces.

3. You can typically charge more for shipping and other expenses with dropship items. Because you aren’t processing a larger order at once, need to mail each individual item seperately and have to deal with all the other logistics of an order for one single purchase, your processing and shipping fee can be a bit higher. Don’t be too extreme here, though. Cover your actual costs and maybe cushion yourself a little for your extra time.

4. Retailers may buy your product in larger quanities over time if they see the value it brings to their store. Start with dropshipping and give them an incentive if they purchase more than one product at once. 10% of second item, 15% off all others. Or possibly six or more items include free shipping. Your call. Or just dropship and call it a day. Whatever makes you happy. But as a general rule, dropshipping costs more on average than if bought in larger orders. AKA – you make more!

5. Customized items are great for dropshipping since you can only get one at once. This just makes sense – period.

Setting Up Your Dropship Terms

Make sure that when you set up a dropshipping program with your business, you have very clear, detailed terms written out that any retailer you sell to understands and signs an agreement to. Terms should include the following:

1. Retailer pays for their own in store sample unless you feel otherwise. This is a fair scenario since they will likely use or sell their store sample at one point anyway. If you have marketing collateral to support your product, you should provide this without any charge. For example, if you offer customized products, include a little Look Book with choices for customers to review.

2. Retailer provides credit card number for all orders to be processed through upon placement. This should be in your files and approved for credit prior to retail agreement.

3. Retailer pays for shipping per order unless determined otherwise. Typically, the retailer will bill this to their customer anyway. Another idea is to have the product shipped directly to the customer.

4. Deilvery timeline is discussed and understood prior to retail agreement being signed. This gives you security in delivering your products according to your production timeline. Be realistic here – 6 weeks is a long time for most items, but practical for some. Determine what is best for you.

5. Make sure all these details are written out in an agreement that is signed by your retailer. Give them a copy with your contact information and necessary order form details as well as retain a copy for yourself. Note – having an organized ordering system in place with your agreement will make the entire transaction easier to manage. Include details on tax, shipping, cancelled orders, returned products, right to modify agreement and more.

A List Of Some Dropship Wholesalers

Retailers, this is for you! Below are some wholesalers who offer dropshipping. Wholesalers who still aren’t on board yet with the idea? Check out your competition (in no particular order)!

Victoria P. Zurcher Designs - Stationery and Gifts – www.victoriapzurcher.com

Just Be Products – T-Shirts and More - www.jb-justbe.com

Artist Jeff Cane - Angel Artifacts in Prints, Candles, Charger Plates and More – www.AnEnglighManInLA.com

Coco Company – High End Baskets and Decorative Accessories – www.coco-company.com

Vintage Body Spa – Bath and Body Products – www.vintagebodyspa.com

PurBliss Candles – Soy Candles and Wedding Favors - www.Purbliss.com

Kt Steppers – Customized Step Stools – www.ktsteppers.com

Vogue Fabrics – Fabric Home, Crafts and More – www.VogueFabricsStore.com

Yeni Bath Arpons – Bath Aprons For Babies And Dogs – www.yenithing.com

Barcelona Bath and Body – Bath and Body Products – www.barcelonabathandbody.com

Three Peas - Children’s Fashion Apparel and Accessories – www.threepeasco.com

BowWowzerZ – Dog Collars, Leashes, Cat Accessories and More – http://www.etsy.com/shop.php?user_id=5297476

Wrong Product, Wrong Time, Wrong Market

It hurts to hear the truth sometimes. But hearing the truth is exactly what new business owners often need to hear so that they can better position themselves to be successful when launching a new product.

The “3 Wrongs” below can help you evaluate if your product is ready to launch or may need some support still before your big kick off.

1. Wrong Product. Right or wrong, if your product isn’t on track with what consumers want or if your competition outshines you, then your product is wrong. Period. Consumers have access to many product reviews and many product choices. Don’t launch yours until it can keep up with this reality.

2. Wrong Time. It’s no secret the economy is tough with a capital “T”. Don’t let that steer you away from launching a product. But plan your timing on whatever it is you are launching. For example, if you are launching a seasonal item too late in the buy season, you could be effecting your overall brand launch. Want to introduce a new swimwear line? Stores are buying this as early as August and September for the holiday season and by October for the resort and early Spring season the following year. Be prepared.

3. Wrong Market. Trying to launch a baby’s luxury blanket collection to any baby store retailer? Whoops, try again! Make sure you know who your audience is so that you don’t waste your time or their time with communication. Know where your product would be best suited and target those markets when reaching out to potential clients. Way too many new wholesalers and designers think their product should be everywhere, but really it will only be wasted somewhere if it is not in the right space. Understand who your target market is, then decide which retailers sell to this same target market and reach out to these stores. Your success will be returned more easily this way and your initial time investment will be rewarded, as well.

Finally, preparing to launch a product takes time, investment, dedication and strategy. There are many, many layers involved in preparing a successful product launch. Getting your website up and ready (and looking sharp) as well as having a buyer’s packet ready for retail communication is key. But these are just a few steps in a million so if nothing else, make sure to slow down and be prepared before launching too soon. An early launch is like a buzz kill – it may be great at first, but it can quickly become miserable if you can’t handle it!

Pitching Retailers – What Retailers Want From You

When it comes to reaching out to retailers, first impressions mean a lot. As a wholesaler, it’s important to not only be prepared to communicate with retailers, but also to give them what they need and want in order to get their attention. This doesn’t mean you will even get an order, but the first step is to simply get their attention so that you can get an appointment. Once you have that, then you can concentrate on making the sale. But to start – let’s get their attention and keep it. Here are a few suggestions on how to do this:

1. Offer a unique product. Even better, offer a unique story to go with your product. Tell retailers how the product came to life. Make sure you do this FAST though – you only have a few seconds to capture someone’s attention, so your communication needs to be quick, effective and concise.

2. Share interesting facts that help support your product. This may include your dedication to leaving a smaller carbon footprint than your competition or possibly that you manufacture in the USA. Whatever your unique and important information is, let retailers know.

3. Remind retailers why customers want or need your product. Helping them understand this will make them want to see you for an appointment much more easily than if they don’t think customers need or want your product. But be realistic here, too. Retailers know their customers so if they tell you it won’t  work for them, don’t push it. No one likes pushy vendors – period. Do offer to send them more information, though. This can’t hurt – and possibly it may change their mind.

4. Be honest about the time it will take to meet with you. Don’t tell a busy retail store owner that you need 5 minutes of their time when really it takes you 5 minutes to set up your sales presentation and then another ten just to pitch your product. Be honest and they’ll appreciate this. If you are flexible with your availability, even better. And always, always, always understand that their customers come first. If you are at a retail store during store hours, you come second to all customers in the store at all times. Give them this respect and never act like they are doing you a favor for being there. Trust me, they are doing you a favor considering all the competition out there these days!

5. Make appointments to meet with retailers. Don’t show up unexpected and expect quality attention or interest. Respect their time and plan in advance to meet with them. Suggested route – email with PDF file of product information, follow up as necessary with phone call, then schedule appointment as appropriate. Some retailers prefer hard copies of line sheets and product information via snail mail, but I tend to lean on PDF files to save expenses and be more eco friendly when possible. Of course, provide them these tools if requested, though, and always have on hand during appointments.

Finally, after all the work it takes to secure an appointment with a retailer, make sure you are prepared and organized for your face to face meeting. This means having order forms ready to go, samples available, line sheets printed, and all other details polished and perfect for your face to face. Remember, retailers are short on time as it is, so give them the respect of being super organized and well polished in your presentation. The benefit for you? More likely that you will close the sale!

Retailers – we want to hear from you! What do you like wholesalers / vendors to do when pitching their products to you? Wholesalers - have some other suggestions? Please comment below. Thanks!

Re-Inventing Old Inventory

If  you are like most retailers, you are probably sitting on some inventory that has been around longer than you would like. You know this too well and most likely, your customers know this too. So how can you bring old merchandise new life? Here are a few tips to help you re-invent some products so that it has a new meaning to your overall product assortment.

1. Create gift baskets. Of course, this will only make sense if your store would be able to sell gift baskets. Consider grouping some products together and selling them in a package for one price. Retailers that are best suited for this type of selling include baby stores, gift shops, bath and body shops, accessory stores and general merchandise stores.

2. Re-arrange your floor plan to give the appearance of new products. Sometimes all it takes is moving your floor fixtures around and merchandising your products differently for your customers to think there are some great new products in your store. Time and time again I hear clients tell me they have customers buying things that have been on their shelves for months but because they re-arranged their store, the customer is now seeing this product for the first time. See how this may work for you.

3. Make a trade with another retailer. Have some retailer friends in another city? Reach out to see if other retailers would be interested in trading what isn’t working for you but may work for them for something that they would like to see go from their store, as well. Be creative with how you make this happen. Many retailers find great partners in retail friends through doing this, but it is usually best suited for retailers outside of your own community. If you don’t have retail friends like this, try and make some at your next trade show. They are great for a variety of reasons! And stay tuned – Retail Minded will be introducing a way for retailers to connect very soon!

4. Make your products an incentive with other purchase. In other words, have a table/rounder/bin of products you are looking to finally get out the door that are available at a discount with any purchase. Make the discount worth their wild, though. 50%, 60%, 75% off…. price to sell here! Sure, you may come out even or at a small loss – but the alternative is excess inventory sitting in your store and making no money at all on it… plus suggesting to customers that your product isn’t selling. No one likes to shop at stores that has a slow turnover of inventory (with some exceptions).

5. Merchandise your products in a new light with other products. Have a shirt that just isn’t selling? Layer it under this season’s hottest vests and see what it does for it. Think of new ways to sell old product through merchandising them with other products rather than highlighting them on their own.

6. When all else fails, ebay it. Craigslist, ebay and other online sites can give relief to retailers. Consider how this avenue may be right for you.

At the end of the day, the goal is to get your inventory out your door. If you are holding onto Fall 08′s products or older, you really need to figure out a way to sell them now. Start talking with retailers about a trade that will be ready and done for Fall 09. Re-invent your floor space through merchandising. Create package deals to sell old goods. Whatever you do, make it happen. Yes, easier said than done – but not impossible. Have ideas yourself? Let us know!

IN THE SPOTLIGHT – Baby Capes

This  week’s featured product for babies and children is Baby Capes.

Baby Capes is an innovative outerwear product invented by two moms from West Virgina. Designed to make getting babies and toddlers in and out of car seats and strollers an easier process since you can eliminate bulky winter coats when using Baby Capes, this brillant product is a must have addition to every baby and toddler’s wardrobe! Already a favorite in my house, Baby Capes offers some valuable selling points for retailers that sell this genuis product, including:

1. Made in the USA – always great, particuarly in our current economic times!

2. Versatile in use – from car seats to strollers to front facing carriers and more!

3. One size fits all from babies to toddlers up to about 4 years of age – even working as a poncho for years after!

4. Easy on and off features make using Baby Capes quick, accessible and ideal for moms and kids both! There is slit in the back, two arm openings in the front, CSPIA approved buttons near the neck line and a cozy hood that makes this product both comfortable and practical.

5. Most important – MUCH safer than adding bulky layers under child protecting straps in car seats and strollers. Eliminates the possibility of altering the safety of these straps.

Aside from offering a great product, Baby Capes is dedicated to the safety of children and reminds all of their customers this when purchasing their product. They also have a link on their website dedicated to the safety of carseat installation. You can view this here, as well as learn more about Baby Capes – http://www.babycapesonline.com/safety.html.

Baby Capes is, in my opinion, going to explode in the marketplace in the years to come. Still fairly young in their retail outreach and press, Baby Capes has exciting plans ahead of them to grow this fabulous line and reach out to families through stores everywhere. Be among the first to introduce Baby Capes to your community! Wholesale prices range from $30 to $40 and retail prices begin at $59. Opening orders need a six peice minimum, however the assortment of colors and fabrics you choose from is up to you. With a great variety of colors and fabrics available, you will be re-ordering in no time.

Learn more about Baby Capes by visiting www.babycapesonline.com or contact them directly at 304.582.8070 directly. All press and wholesale inquiries can be directed to this number. You can also email Baby Capes at sales@babycapesonline.com.

Through our IN THE SPOTLIGHT section, we offer retailers and wholesalers the opportunity to link together by being introduced to each other as well as general consumers. If you would like to be considered for IN THE SPOTLIGHT, please email Retail Minded at nicole@retailminded.com.

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