A Wholesale Checklist to Becoming Retail Ready

Time and time again, people’s dreams of launching a product line come to life – therefore jumpstarting a million steps towards landing on retail shelves. Many wholesalers – whether designers themselves or vendors sourcing their product - miss vital steps along the way that create barriers for their brand to effectively position themselves at retail. Others take each careful step with consideration as to how it will lead them to the next. All steps have one goal in mind, however - gaining customers from retail sales.

To help prepare you for your own steps towards retail, consider the questions below.

1. At what pace (turn around time) can you support orders placed? Do you have shipping plans prepared for bulk deliveries and multiple deliveries, or are you paying traditional mark up for shipping? If you are paying traditional mark up, you are losing money.

2. Speaking of shipping, what are your packaging plans for this? Do you have boxes and all the packaging goods you will need to safely and securely ship your goods? Retailers don’t want broken pieces or loose garments arriving to their stores.

3. Of course, before you ship you need to gain sales. What is your sales strategy for reaching out to retailers? Door to door only goes so far. Trade shows, social media, sales reps… there are so many ways to go about this.

4. Do you have a Buyer’s Packet prepared to support retailers?  This is a must. Pitching to retailers without effective marketing / selling tools make you look unprepared to be retail ready.

5. Are you prepared for the time it takes to create sales? If you aren’t good at sales, what is your back up? Remember – good work costs money. Experienced support cost more.

While there are many more steps involved in reaching the retail market, the above checklist will help get you on track with the right steps you need to take. And if you happen to be in the middle of your path and not sure how to get on the right track, take time to review and analyze. It’s okay to step backwards if you trust it will get you moving in the right direction.

Need more support? Retail Minded is available for one on one phone consultations to help support your unique business. Additionally, we offer Buyers Packet creations at affordable prices to help position you to reach out to retailers. Learn more by emailing Retail Minded’s Nicole Reyhle at nicole@retailminded.com.

Friends & Family Incentives: The Good, The Bad & The Ugly

Okay, let’s get straight to the point here. When you have friends or family who own, manage or are key players in any business that excites you, it can be great. There are often perks such as free product giveaways, special events and privileged shopping deals. The catch? Sometimes the generosity of these businesses can be abused. Friends… and even family… often expect these types of incentives instead of appreciating them when they happen to come their way.

If you are standing in the shoes of someone who has to decide what makes sense to support your friends and family as customers, you know it can be tough. From everyday discounts to special holiday incentives to freebies and more, business owners are challenged with the drama – yes, drama – of making sure their friends and family feel special when shopping with them. As small business owners, it’s drama  enough just to handle your ever expanding to-do-list, so adding “keep friends and family shopping and happy” often becomes just another chore to check off. Luckily, with a little planning and a lot of heart, keeping your favorite people (or your not so favorite people but blood makes them count) happy can be  as easy as 1-2-3.

1. Set Limits.

Limits, boundaries, deadlines… call it what you want, but the key is to identify what you offer your friends and family in discounts and shopping incentives so that there is no confusion. If it’s written out and identified clearly, it’s easy to blame the “policy” versus having to take the blame yourself. If you still get heat for it, remind them you are running a business and policies are part of your business model. Still getting heat? Maybe you need to find new friends… Or at least accept that they may not be the right customer for your business.

2. Offer Exceptions

If your mom makes the cut, give her a special deal that exceeds your typical discount. On that same note, break rules whenever you want for whomever you want should you feel the urge, need, desire. But only you have this control, so use it wisely. Don’t throw this around whenever… save this for truly special occasions – if at all. Remember, you’re in business to make money – right? Plus, if you throw these types of exceptions around too often, they will become expected. This should definitely not be your goal.

3. Make Them Feel Happy

Sometimes just the feeling of “being special” or “standing out” is all your friends and family may need. Host a special evening just for your fav peeps to shop, offering great deals, discounts and some light appetizers and beverages. Take it up a notch with music, local designers or any other extra effort that shows you really went out of your way to make this special event worth attending. While shopping is the goal, sometimes it’s just nice to show them how much you appreciate that they support you and your business. Of course, this is assuming they are referring people your way, right?!?!

Extra, Extra

To round out these special incentives, discounts and more, make sure to always be thankful of any business you receive – plain and simple. The competition is tough, so friends, family or just some stranger on the street all equally deserve your appreciation as a business owner. Going the extra mile for those you care about is a perk you should enjoy… not dread due to the constant abuse of your generosity. So remember -  create boundaries, write out your policy and invite friends and family to shop away! But please… promise yourself, your friends, your family and me that you won’t become that business owner who depends on them for all your business. All the perks in the world don’t equal up to that making a successful business strategy.

Rejected By a Retailer? Ask Why.

A lot can be learned from why retailers say “no” to your product. Often, it may simply be they have no more room in their open to buy dollars. Other times it could be that your product does not compliment their existing product assortment. Then again, it may be because they – dare I say it – don’t like your product…. or possibly even you (yes, this does happen). Whatever the reason, it can help you to know why your product isn’t right for them.

[tweetmeme]When pitching retailers, it’s obvious going into this scenario that not every retailer will want your product – at least not right away! But when “no” becomes a trend and “yes” is a rare exception when communicating with retailers, it’s important to understand WHY this is happening.

The key to asking retailers for their explanation of why they didn’t want your product in their stores is to:

1. Respect their time

2. Be professional in your approach 

3. Avoid an emotional reaction

4. Listen but don’t try and convince them otherwise

5. Learn from what you find out

Over time, you may find repeated reasons from a variety of retailers as to why they did not purchase your product. While you may not enjoy what you learn, you can in fact learn from retailers who aren’t your current customers. Really listen to what they have to tell you and respect that they are giving you a chance to communicate beyond your sales pitch. In time, you may get ahead in your game from these lessons and realize that a few “no’s” is what it took to get you many more “yes’s”.

Surviving Retail In January

The holidays are over, the mad rush to shop has passed and consumers are buckling their wallets tight. Or are they? Traditionally, consumers will shop New Year sales for larger purchases, such as cars, appliances, electronics, furniture and other more expensive ticket items. However, for those of you selling clothes, accessories, home decor and items priced more affordable, it can be a struggle to make your sales goals in January. A few survival ideas include the following:

1. Provide a variety of prices.Consumers may not be willing to spend as quickly as they were before the holidays, but they will still spend if something intrigues them enough. Make sure to catch their attention at every price point that your store caters to… and possibly a little lower than your norm to get a few additional sales. These prices can be regular priced or products on sale. Either way, make sure you make them worth wanting through your displays and sales pitch.

2. Don’t put everything on sale but rather showcase what you want to sell. Even if you know something has been in your inventory for too long, your customers may not. Highlight this product by freshening up it’s display, how you merchandise it, what you merchandise it with and how your sales team supports it. Taking a fresh approach towards merchandising and ultimately selling older goods can often surprise you in the results… quick sales or unexpected sales to surprising customers!

3. Consider who your audience is and if whether or not you are reaching out to the right demographics. Often the biggest mistake retailers make  is not knowing who their customers are. January is  the perfect time of year to evaluate your business, and with that comes evaluating who your customer is. If you believe you are missing a core customer, find ways to reach this new audience. Consider various marketing tactics that include business to business marketing, promotional mailers and more. Your new audience may be just who you need to reach in order to obtain the sales goals you set for your business.

4. Give thanks to those who have already shopped at your store. Why not let your customers from 2009 know just how much you appreciate their business? By offering an incentive for them to return to your store, you open up the opportunity to gain additional sales. You can do this through having a customer appreciation sale, a special event, offering an incentive based coupon or in many other ways. Be creative in how you reach out to your customers and what you offer them so that they will actually want to return to your store. 10%, 20%, even 30% may not do it alone.

4. Stand out from your competition. Whether it’s through visual displays, product assortment, customer service, sales or special events, make sure you stand out from your competitors. Customers who shop local or independent boutiques are typically aware of their shopping choices, so be  ahead of the game by being the best at the game. Work hard to stand out and be the best in your local area – not only through product assortment and customer service, but special events, exciting sales and more. January markdowns and cluttered sales racks can get old. Bring something new to the table that your competition is not.

5. Introduce new selling strategies to your business. Consider selling at local markets, cross selling with other boutiques, swapping stale merchandise with friend boutiques for new product, selling merchandise online and much more. Be creative and think out of the box – whatever your box may be. By introducing new avenues to make sales, you increase your opportunity to make money.

Finally, be realistic and work hard. Now is not the time to get cozy and sit back. Dive into 2010 with ambition, dedication and new ways to get your business ahead. Stay focused, keep learning and always look for ways to grow your retail business in what is still a tough retail market.

Make Your Cash Wrap Count

Want to make a few extra bucks? Who doesn’t. If you are a brick and mortar retailer with a cash wrap, then make sure you are taking the space around your cash wrap into account. Think about every square inch of space that surround your customer as they are preparing to close a sale, then think about how you may be able to add onto this sale. Using this space to entice your customer into an additional purchase, though often minimal in dollar amounts, adds up over time and can make a big impact on your overall sales. A few things to consider -

1. Keep the costs minimal.Adding items that are low in price points, such as candy, lip balm, apparel tape or whatever items that may be relavent for your store, offers customers the opportunity to add more to their purchase without feeling like they need to make a big decision about it. The idea is to keep the price points low and the decisions to buy these items simple and easy.

2. Add some fun to your assortment. Introducing unique, fun or unexpected items at your cash wrap is a great way to create conversation with your customers. Are you a pet store? Why not sell humans a treat? Gum, candy, whatever. Sell toys for kids? Why not introduce books on surviving parenthood or something light hearted but witty for parents to relate to.

3. Sell the obvious. In addition to adding some new and unexpected items to your cash wrap assortment, make sure to include the obvious. If you sell things that need batteries, make sure you have batteries clear and accessible for purchase when your customers go to check out. Are you a book store? Sell book marks. You get the idea.

4. Leave room for comfort.Don’t clutter your cash wrap so much that the point of a cash wrap – which is checking out a customer, closing a sale and packaging the purchase - is not considered. You want your customer to have room to comfortably pull out their wallet from their purse or pocket, sort through additional bags they may have on hand and easily sign a sales receipt without their elbows hitting a wall or display. In addition, the products you do choose to sell on the cash wrap should be merchandised consistently with the same style you have throughout your store.

Each store is different and each cash wrap the same. Make sure you are utilizing your space to  the best that you can to enhance your consumer experience while also increasing your sales.

Getting Rid Of The Bling

The good old days of multiple items per purchase and hefty commission checks for your associates are over. Consumers today are embracing the reality of their paychecks, or lack of them, and spending accordingly. To help let your customers know you are on board with them, eliminate the bling from your customer outreach. It’s time to get rid of the fancy and embrace simplicity. Consumers are and so should you.

With the economy still in an undesirable place and consumers still on guard about where and why they should spend their money, retailers and wholesalers both need to communicate in a style that customers today can relate to. Instead of offering all leather handbags, for example, offer some great fabric designed totes that are more affordable and just as stylish. Rather than suggest multiple layers for your spring look, suggest a single item dress as your trusted spring wardrobe staple. Embrace the simplicity that customers today are craving and respond to their needs. The goal, of course, is for you to not sell less but to sell smarter and to sell more as a result.

Let your customers know you are thinking about them in these tough times, as well. Sell your simple strategies by talking to your customers about how they will save from what you are offering them. Listen to their feedback, as well, and support them if you can. More than ever customers need to believe that retailers are on their side, so make sure your customers know this. As a result, you should find out they are on your side, as well. Don’t forget to know what your competition is up to, also, so you can stay one step ahead!

What are you doing to gain customer attention these days? We’d love to hear from you!

Boutique Extras – What Are They?

A lot of my retail clients ask me what they can do to help them stand out from other independent boutiques. Aside from providing products that customers will want to return to their store for, I suggest offering customers boutique “extras”. Hard to find at traditional big box retailers, such as Macy’s and Dillard’s, and yet not offered in most boutiques, boutique extras offer that “extra something” that customers appreciate.

Examples of boutique extras include:

Offer a beverage while shopping. So simple, and yet so nice. Depending on your store and your business license, you can offer anything from filtered water to sparkling water to tea to wine. Decide what you think may complement your store and go from there. Possibly you don’t offer alcohol but serve your beverages in wine glasses. Be creative with your presentation of this service but remember that this is just extra – don’t make it why your customers come to shop.

Provide complimentary gift wrapping. That said, don’t just tie a ribbon around the bag purchases are put in, but rather have a classic and charming gift wrapping style that will “wow” your customers and the receiver of the gift, as well. Make your gift wrapping stand, therefore creating a conversation about your store before they even open the gift!

Offer product delivery services – even for items purchased in the store  or within the same city. This is particularly important if the product purchased is heavy, hard to carry, breakable, or a special purchase of any kind. When possible, don’t charge for this service but rather offer it as part of your sales strategy.

Have “pass the time” options for shopper’s companions. Whether it’s a bored husband or restless child, if you can provide something that will engage your shopper’s companions so that they can shop more leisurely, you are not only offering your customers something extra but you are doing yourself a favor, as well. A comfortable chair, stylish or not depending on your concerns, is always nice to have on hand. Have  magazines available for both men and women – even friends can get bored while waiting on some shopping decisions to be made. Another idea is to offer internet access. Televisions can be nice, as well, but they may interfere with the shopping environment since they can be loud. For kids, a child size table with coordinating chairs is a great idea if you have the room. A basket of gender neutral toys or a nice variety is great, too. Make sure they are quiet toys, though. The next time a busy mom needs to shop and only has twenty minutes, the choice between your store or the one without a kids corner will definitely stand out in her mind.

Offer frequent shopping incentives. Coupons, discounts, early bird specials – whatever you decide to offer, make sure your customers know it’s something extra to what other customer’s get. This is assuming these customers are on a mailing list of some sort and you have access to communicate these details to them separate from your normal communication with all other customers.

Offer coat and bag check services – complimentary, of course. If you live in Chicago like me, you know how much of a pain it can be to shop with a heavy coat on in the middle of January. Make it easy for customers to take their coats off, check in any bags and shop comfortably.

Provide neighborhood information to them. Since many boutique owners are located in neighborhoods that offer lots of shopping, some of your customers may not know which streets to walk, where to have lunch, or how to get to their next destination. Make their entire shopping experience more enjoyable by helping them along. By offering a street map and already written down restaurant suggestions, you are showing your customers that you care about their entire day, not just the time they are in your store. Whether they purchase something or not from you, this extra something will certainly be appreciated.

The great thing about independent boutiques is that each one is different. Whether you offer a little something extra or a lot of extra somethings, remember that your store represents itself and you want it to leave the best impression possible with your customer. Through all the attributes that make up your retail store, the most important thing is to make sure your customer knows you care. This is what being a boutique owner is all about.

January 09 Retail Sales Up 1%

Great news for retailers! There is hope that retail will survive in our struggling economy. Government research was released Thursday, February 12th, that stated that retail sales were unexpectedly up 1% in January. The Commerce Department stated that this is the first time in seven months that retail sales have rose, offering retailers hope that consumers are shopping.

Reuters had expected January sales to be down by 0.8% for January, so this welcome surprise has people talking. Helping to credit this increase was the significant amount of sales taking place in January from marked down holiday items and post-holiday discounts.

To keep this momemtum alive, make sure to keep your sales going and markdowns moving. Customers aren’t buying too far in advance like they use to, therefore spring items aren’t just yet on their must have lists. But shoppers are taking notice of sales and looking for deals out there. Continue to offer them while still getting your customers excited for spring. One idea may be to offer an additional percentage off a sale item with the purchase of a “just arrived” or spring item. Be creative and be proactive! There are customers shopping – you just need to make sure they are shopping with you!

Motivating Retail Employees Through Sales Contests

It can often be a challenge to keep retail employees motivated. Between slow days, snow days, and Sundays, working retail can sometimes leave much to be desired. Independent retail owners can often lose their momentum from days like this, not to mention their associates can definitely lose that “go get them” sales attitude. To help motivate your store employees, consider setting sales goals with incentives.

If you don’t already, you should set sales goals for your employees based on the day they are working, special events, previous year’s numbers, and other necessary factors specific to your store. Having these goals outlined and easily available to view offer your associates a sense of responsibility and something to work towards to. By offering sales goals incentives, you are giving your employees a sometimes necessary push to work a bit harder for something other than their paycheck. It provokes friendly competition at the same time.

Sales Contests With Incentives

Rather than just tell your employees to meet a sales goal, give them a reason to meet their sales goals. In a perfect world they would want to do this simply because it is their job, but the reality is it is not always that easy. If you offer your employees a reason to work harder to make their sales goals, you will reap the rewards in your sales numbers while also giving your employees something to get motivated about.

Wheel of Fortune – Rather than using the word fortune, though, insert whatever word makes sense for your business, such as footwear, jewelry, candy, etc. Once you have your contest title in place, simply cut out a cardboard circle and create pie peices on it with a marker. Each pie peice should have a prize listed, such as “additional paid 15 minutes  for lunch break”, “$10 store credit”, “local coffee shop gift card”, or “first choice of May hours”. You should list prizes that are both supportive of your store as well as rewarding to the employees individually. Be creative with what matters to your store associates and make this exciting. Use color and get creative when creating your “Wheel of Fortune”!

Fishing for Fun – Offer your employees the chance to “go fishing” by simply writing down some prizes, folding them up, and put them in a fish bowl. Make a bold, colorful, exciting sign that highlights the sales contests specifics and hang it from a branch (the goal is for it to look like a fishing pole – the real thing works too). Put your prizes in a bowl and let your employees go fishing when the meet their goals! Remember, use prizes that are both supportive to your store and individually rewarding, as well.

Schedule Sweetness – Do you have employees fighting for Sundays off and early shifts? Make your sales contest rewarding by offering some incentives towards your schedule. Be creative as to what will work best for you business. Get your employees excited so that they will work harder to get their Saturdays off! By winning your outlined sales contests, your employees can pick their hours (within guidelines, of course).

Whatever your incentives are, make sure to hype them up and get your team excited! The difference in sitting still or standing up and taking some action to help motivate your team is up to you!

If you have any contest ideas or other sales incentive ideas, let us know! Please comment on this blog. Thanks!

Buying When You Already Have Too Much Inventory

Many small business owners are inspired to own their business because they want to surround themselves with their passion, hobby, or interests. While this can prove successful for some, it can also prove challenging for others when it comes to retail. For most people, buying for your store is not as easy or as fun as shopping for yourself.  In fact, it can be down right difficult, frustrating, and scary. Suddenly, a big “for sale” sign isn’t as exciting as it use to be for you since the possibility of what you buy for your store may end up on a sale rack if it does not sell well.  Because it’s your sale and your money, this can bring added stress to the already endless list of stress that the world of retail has.  However, that said, sales are part of the package when you sign up to work in retail, however there are ways to help limit how much of your inventory ends up on the sales racks.

To help control inventory, particularly in an economy when shoppers aren’t separating themselves from their wallets as easily as before, retailers should take a complete analysis of the current inventory assortment based on the points below. Consider how these points will help you with your current inventory sell through so that when you make future buy decisions, you will find your inventory balanced more evenly and your register filling up more quickly.

Product Sell-through vs. Square Footage of Product Allocation

How much space does the product you sell take up in your store? Is the product in your store that is not selling taking up more space? The goal is to maximize your store with products that are moving. You should markdown the product that is not selling to help increase the chances of it selling sooner, eventually opening up your store space for more products that have proven successful. It also allows your open to buy dollars to become more available, allowing you to potentially introduce new product. Make sure that you do not let slow moving product sit on your floor too long without marking it down, then make sure to continue to mark it down until it sells. It is wasted space if it is just sitting there. The first 30 days of any new product on your floor should allow you to understand if customers want this or if you will need to mark it down eventually. The goal is to have the products that sell faster, or even at all, take up the majority of your floor space. We all make poor buy decisions, so deal with these mistakes if necessary to get to where you want to be next time in your buying decisions.

Product Hot Spots and Weak Spots

By now, as a retailer, I am sure you have discovered the power of merchandising. Whether you have or have not paid much attention to this, make sure that you take the time to determine the retail real estate in your store that helps move products while on the contrary, determine your store space that doesn’t seem to help increase product sell through. By understanding this, you can maximize your sales. There is always going to be “dead space” on your floor and like it or not, you may need to use this space to merchandise some of your product. Make sure you merchandise and re-merchandise your product routinely so that you offer customers a refreshed shopping experience, but also the opportunity to move products from the hot spots to the weak spots and vice a versa as needed.

A merchandising note – If you have product that customers come to your store for, this is the product to put in a weak spot versus a hot spot since they already know they want it. Use your hot spots for products that you need to sell, not only the ones you know will sell. Mix it up!

Excess Inventory Control

Unless you are one of the few retail buyers who is always on target with what their customers want and you know will absolutely sell, it’s possible you have extra inventory sitting around. The goal for you is to move it. And move it now! Don’t wait for the possibility that it may come back in style or that the economy will get better. Mark it down and get it sold. Hold a special sale. Or sales. Offer discounts for special customers. Whatever your plan is, the plan should be to not let this product take up space on your retail floor or in your back room – even if you hate the thought of selling it for less than you planned to.

Controlling Your Buys

It’s so tempting to bring in a ton of great new things to your store and just start over, so to speak, when you have a lot of things that you know are not working for you. BUT – hold back. Find control and find balance to bring these new items in without cornering yourself in a position where your current inventory will financially put you in a hole. Unless you have the resources to be flexible and to buy without concern, then make sure you strategically plan to get your currently inventory out of your store before bringing in a ton of new things. I don’t believe that you can hold off on buying anything new, however. Customers want to be surprised and tempted and enticed to buy, so you need to give them that with what is in style, with what they want, and with what you know they need. That said, find balance and control with what you already have and what you want so that you can better manage your inventory needs.

Still looking  for more help? You may check AdvanceWare for its scalable and flexible inventory software (http://www.advanceware.net/) that is suited for Quickbooks users, wholesalers, distributors, online retailers, importers/exporters, 3rd party logistics warehouses, and any other inventory-based businesses to help you in your inventory needs. In addition, you can find some video demo at http://www.advanceware.net/videodemos.asp

 

 

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