18 October 2009
How Do You Out Run The Bear?
Oct/23/2009 09:03 Filed in: Small
Retailer
There is an
old joke about two campers who stumble a cross a bear
in the woods. Angered at being disturbed, the animal
runs headlong at the campers. The campers turn and
flee. The beast shows no sign of giving up the chase,
so after a while one camper worriedly says to his
pal: “I don’t think we can outrun this bear.” The
other says: “I’m not trying to outrun the bear. I’m
just trying to outrun you.”
In this joke the bear could represents a store closing sale for the the small retailer.
Business for the small retailer has been very tough. How should the small retailer react? Not panicking is a good start. However bad conditions may seem, they will be bad for your competition, too.
This recession is equivalent of Darwinism – a test where the fittest survive. The primary goal is survival, especially for small retailer that lack resources to help ride things out. Forget profits for the moment. Cash is the lifeblood of a small retail business. Retailers disappear for the lack of cash, not for the lack of profits.
Think about cash, where it comes from, and where it goes. Think also about reserves of cash that you can draw upon. For the small retailer that reserve is your inventory. Identify what you need to do to turn that inventory into cash that will keep your business alive for a month, 3 months, 6 months, and a year.
This holiday season offers the opportune time to turn that inventory into cash. Most small retailers are hesitant to conduct sales in season, but this holiday season should be the exception. Be realistic about your cash needs and take the necessary action to turn that inventory into cash.
In this joke the bear could represents a store closing sale for the the small retailer.
Business for the small retailer has been very tough. How should the small retailer react? Not panicking is a good start. However bad conditions may seem, they will be bad for your competition, too.
This recession is equivalent of Darwinism – a test where the fittest survive. The primary goal is survival, especially for small retailer that lack resources to help ride things out. Forget profits for the moment. Cash is the lifeblood of a small retail business. Retailers disappear for the lack of cash, not for the lack of profits.
Think about cash, where it comes from, and where it goes. Think also about reserves of cash that you can draw upon. For the small retailer that reserve is your inventory. Identify what you need to do to turn that inventory into cash that will keep your business alive for a month, 3 months, 6 months, and a year.
This holiday season offers the opportune time to turn that inventory into cash. Most small retailers are hesitant to conduct sales in season, but this holiday season should be the exception. Be realistic about your cash needs and take the necessary action to turn that inventory into cash.
The Best Way For Most Small Retailers To Plan & Conduct A Store Closing Sale.
Oct/22/2009 10:42 Filed in: Store Closing
Sale
It’s
proven that the best way for most small retailers to
exit their retail business is to conduct a store
closing or going out of business sale. In my two
previous blogs I wrote about the two polar approaches
to conducting a store closing sale, doing it yourself
or contracting with an experienced retail
professional that specializes in store closing sales
to be on site and to do it for you. As with most
things in life, the best approach for most small
retailers lies somewhere between the two poles.
Conducting a store closing sale for most retailers is hopefully only a one-time experience. Therefore they are not experienced at the ins and outs of how to maximize the results. A retail specialist can bring that experience to the sale. In most cases the retailer does not need a full time consultant on site throughout the sale.
The key areas of support that small retailers require are, marketing, pricing, the selling of fixtures, equipment and displays and timing. None of these require a full time consultant on site.
I suggest very strongly that you talk to several retail consultants to find one that is willing to customize their services to meet your specific needs. Why pay for more than you need?
Conducting a store closing sale for most retailers is hopefully only a one-time experience. Therefore they are not experienced at the ins and outs of how to maximize the results. A retail specialist can bring that experience to the sale. In most cases the retailer does not need a full time consultant on site throughout the sale.
The key areas of support that small retailers require are, marketing, pricing, the selling of fixtures, equipment and displays and timing. None of these require a full time consultant on site.
I suggest very strongly that you talk to several retail consultants to find one that is willing to customize their services to meet your specific needs. Why pay for more than you need?
Store Closing Sale - Should You Have Some One Else Do It?
Oct/21/2009 14:27
Sometimes
circumstances demand that you need to have someone
else run your Store Closing Sale.
The "Do It-For-U" approach is the right choice when:
• personal or family illness limits owner's involvement
• an absentee owner is involved
• inventory level exceeds $1,000,000
• store owner feels he needs a full-time consultant
A full time consultant will usually more than earn their fee by increasing your sales results, helping you avoid serious mistakes, providing markdown guidance and maintaining customer trafic throughout the sale.
The "Do It-For-U" approach is the right choice when:
• personal or family illness limits owner's involvement
• an absentee owner is involved
• inventory level exceeds $1,000,000
• store owner feels he needs a full-time consultant
A full time consultant will usually more than earn their fee by increasing your sales results, helping you avoid serious mistakes, providing markdown guidance and maintaining customer trafic throughout the sale.
Store Closing Sale - Should You Do It Yourself?
Oct/20/2009 09:42 Filed in: Store Closing
Sale
There are three different approaches you can take when you decide to have a Store Closing Sale or Going Out Of Business Sale. You can do it yourself, you can contract with a retail consultant that specializes in store closing sales to plan and manage the sale for you or you can use a consultant to handle only those areas that you feel you need extra support with.
Almost every small retailer considers doing it their-self at some point. For some this is a good decision and for others it's a disaster. Here are some circumstances and situations when the retailer should "Do-It-Yourself":
• Inventory Levels below $40,000
• Projected sales results are less than retailer's debt.
• Projected sales results are less than the cost consultant's fees and projected advertising cost.
• Retailer is a hard-head and knows he won't follow consultant's advise.
The key to a successful Store Closing Sale is to have a detailed plan before you start. You need to know:
• best time to run your sale
• how long your sale should be
• what kind of sales volume to expect
• your markdown strategy
• your merchandising strategies
• a source for good signs
• how to best use signs.
• most effective marketing media
• your advertising schedule
• how to sell fixtures and equipment
• staffing needs
• legal requirements
Planning and managing a Store Closing Sale is much different than conducting a normal sale. You have only one chance to do it and you need to do it right. Every retailer considering a Store Closing Sale should talk with a retail professional that specializes in this type sale. Ask about the services they offer, the cost of those services and the results that they forecast for your sale.
The deciding factor for most small retailers should be, do you have the experience, energy and time to plan and manage something as important as this or will an experienced retail consultant achieve results that will not only cover their fees, but put more money in your pocket.
Unless there are other circumstances, the bottom line should always be how do you put more money in your pocket at the end of the sale
Store Closing Sale - The Small Retailer's Best Exit Strategy
Oct/19/2009 11:29 Filed in: Store Closing
Sale
There is
little doubt that a Store Closing Sale or Quitting
Business Sale is the best way for most small
retailers to exit their retail business.
A properly planned Store Closing or Going Out of Busines Sales will:
• maximize cash flow
• minimize expenses
• recover 100% - 130% of the cost of inventory
• sell fixtures & equipment for the highest possible price
• be completed in 60 - 90 days
So if you've decided that now is the time to close your retail store, no matter what the reason, you should conduct a Store Closing Sale or Going Out Of Business Sale. But what is the best way to do it? Should you:
• plan and implement the sale yourself?
• contract with a retail consultant that specializes in store closing sales to plan and manage your sale?
• use a retail consultant to support you only in areas that you feel you need help?
During each of the next three days we'll look at one of these approaches in depth, after which you'll have a good idea of the approach that is best for you.
A properly planned Store Closing or Going Out of Busines Sales will:
• maximize cash flow
• minimize expenses
• recover 100% - 130% of the cost of inventory
• sell fixtures & equipment for the highest possible price
• be completed in 60 - 90 days
So if you've decided that now is the time to close your retail store, no matter what the reason, you should conduct a Store Closing Sale or Going Out Of Business Sale. But what is the best way to do it? Should you:
• plan and implement the sale yourself?
• contract with a retail consultant that specializes in store closing sales to plan and manage your sale?
• use a retail consultant to support you only in areas that you feel you need help?
During each of the next three days we'll look at one of these approaches in depth, after which you'll have a good idea of the approach that is best for you.