Marketing for the Small Retailer
The Small Retailer's Marketing Plan... a real tightrope
Sep/26/2009 05:53
Marketing
for the Small Retailer – A Real Tightrope Act
For most small retailers, planning their marketing and allocating their marketing dollars is a real balancing act. One small slip and you come tumbling off that tightrope and for most there is no safety net below.
A marketing mistake can not only have serious short-term effects on your sales, but also affect your store reputation and brand. For the small retailer reputation and brand is key.
When developing your marketing plan, you need to have one goal in mind. That goal is to develop and maintain a relationship with your customer base. In the past a small retailer could be successful by serving a niche within a given market area. That’s not true in today’s “connected” world. Your customer can go on-line and shop that niche statewide, region wide, nationwide or worldwide. That means that to be successful you must offer more than just product.
The days of your marketing plan consisting of your yellow page ad and a few ads periodically scheduled in the local newspaper are gone. Mass marketing still works for some companies, but not the small retailer. Today that plan needs to be a balance between, direct mail, email, your website, blogs, social media and event marketing. The good news is that many of those tools are relatively inexpensive money wise to use. The bad news is that those same tools are usually quite time demanding until you move to the downhill side of the learning curve.
The key to the success of these marketing tools is that they communicate directly with your customer. Not all tools will reach all customers. It is your challenge to find which of these tools work best with your customer base and then concentrate on polishing your skills with those tools. The time invested will provide great dividends.
Solutions For Retailers is focused on helping small retailers. The majority of our clients are retailers that have decided for one reason or another that now is the time to conduct a store closing sale or going out of business sale. Most of these clients had failed to change their marketing strategy to focus on building strong and current relationships with their customers.
Don’t make the same mistake!
For most small retailers, planning their marketing and allocating their marketing dollars is a real balancing act. One small slip and you come tumbling off that tightrope and for most there is no safety net below.
A marketing mistake can not only have serious short-term effects on your sales, but also affect your store reputation and brand. For the small retailer reputation and brand is key.
When developing your marketing plan, you need to have one goal in mind. That goal is to develop and maintain a relationship with your customer base. In the past a small retailer could be successful by serving a niche within a given market area. That’s not true in today’s “connected” world. Your customer can go on-line and shop that niche statewide, region wide, nationwide or worldwide. That means that to be successful you must offer more than just product.
The days of your marketing plan consisting of your yellow page ad and a few ads periodically scheduled in the local newspaper are gone. Mass marketing still works for some companies, but not the small retailer. Today that plan needs to be a balance between, direct mail, email, your website, blogs, social media and event marketing. The good news is that many of those tools are relatively inexpensive money wise to use. The bad news is that those same tools are usually quite time demanding until you move to the downhill side of the learning curve.
The key to the success of these marketing tools is that they communicate directly with your customer. Not all tools will reach all customers. It is your challenge to find which of these tools work best with your customer base and then concentrate on polishing your skills with those tools. The time invested will provide great dividends.
Solutions For Retailers is focused on helping small retailers. The majority of our clients are retailers that have decided for one reason or another that now is the time to conduct a store closing sale or going out of business sale. Most of these clients had failed to change their marketing strategy to focus on building strong and current relationships with their customers.
Don’t make the same mistake!
Email Marketing - The Small Retailer's Friend
Sep/25/2009 07:22
Email
Marketing - The Small Retailer's Friend
With all of the hype on social media there’s a danger that the small retailer might take his eye off a marketing tool that really works. Email marketing continues to be an effective, low-cost way for the small retailer to reach out to, inform and retain their current customers. We all know that it’s a lot easier to get a previous customer back in the door than it is to find and motivate a new one.
Your customer likes receiving targeted messages about products and services they care about. That is why Email marketing works. Don’t mess-up your relationship with that customer by bombarding them with un-targeted messages.
Email marketing is all about customer retention and growing your business. It’s about building stronger relationships with customers who already know you. Your customer wants to hear about new products, hot deals and what’s going on at your store. When your messages land in their inbox it helps keep your stores name in their top of mind. No, they are not going to respond or even open every Email you send, but when they have a need guess who they’re going to think of first.
Here at Solutions For Retailers, when we run a store closing or going out of business sale, an Email campaign is always part of our marketing plan. That plan is a balance of direct mail, Email, traditional media and social media. Email remains the most cost effective marketing tool we use. Though running a store closing sale is different than trying to grow your business, Emails to existing customers always result in increased traffic at a low cost.
With all of the hype on social media there’s a danger that the small retailer might take his eye off a marketing tool that really works. Email marketing continues to be an effective, low-cost way for the small retailer to reach out to, inform and retain their current customers. We all know that it’s a lot easier to get a previous customer back in the door than it is to find and motivate a new one.
Your customer likes receiving targeted messages about products and services they care about. That is why Email marketing works. Don’t mess-up your relationship with that customer by bombarding them with un-targeted messages.
Email marketing is all about customer retention and growing your business. It’s about building stronger relationships with customers who already know you. Your customer wants to hear about new products, hot deals and what’s going on at your store. When your messages land in their inbox it helps keep your stores name in their top of mind. No, they are not going to respond or even open every Email you send, but when they have a need guess who they’re going to think of first.
Here at Solutions For Retailers, when we run a store closing or going out of business sale, an Email campaign is always part of our marketing plan. That plan is a balance of direct mail, Email, traditional media and social media. Email remains the most cost effective marketing tool we use. Though running a store closing sale is different than trying to grow your business, Emails to existing customers always result in increased traffic at a low cost.
A Bad Recipe For A Hot Dog Stand
Sep/24/2009 05:39
There
was a litttle old man who ran a hot dog stand in the
financial district in Chicago. He did really well
selling his hot dogs. One day, a customer that worked
in the district mentioned, while adding mustard to
his hot dog, that he felt there was an economic
downturn looming. The hot dog stand owner decided
he’d better prepare for the worst so he immediately
fired his helper, switched to lower quality hot dog
and stopped advertising. Sure enough, business
dropped off and he finally had to close down. “It’s a
good thing I was prepared,” said the hot dog stand
owner, as he signed his bankruptcy documents.
The fact is, that when times become tough, the first thing many business owners do is stop marketing, buy cheaper products and lay off staff. This most likely means there will be fewer customers coming in and fewer people to serve the ones that do show up—a good recipe for disaster
The fact is, that when times become tough, the first thing many business owners do is stop marketing, buy cheaper products and lay off staff. This most likely means there will be fewer customers coming in and fewer people to serve the ones that do show up—a good recipe for disaster
Small Independent Retailers Face Another Invasion
Jun/29/2009 15:45
Even
though brick & mortar storefronts sales continue
to struggle, the online retailers are seeing a
continued growth in sales.
Forrester Research forecasts
online sales to grow from 11 percent to 13 percent in
2009. That’s an increase of $156.1 billion. One has
to ask why?
Online retail stores are a convenient, easy way for customers to shop. It saves both gas and time from driving store to store. It allows the customer to compare prices without ever leaving their home or office. The return policies for online retailers continue to improve as store-front retailers seem to be making it more difficult. The shopping habits that consumers are developing during this recession are not going to go away when the recession ends. “Shopping” will never be the pass-time that so many once enjoyed.
In the past, small independent retailers had to face the invasion of the “big box stores”, Walmart and Target. Many survived – many did not. They now face the challenge of the “online” retailer. Again many will survive and many will not. Those small independent retailers that do survive will do it because they give their customers a reason to shop in their store.
“Why should I shop in your store?”
Online retail stores are a convenient, easy way for customers to shop. It saves both gas and time from driving store to store. It allows the customer to compare prices without ever leaving their home or office. The return policies for online retailers continue to improve as store-front retailers seem to be making it more difficult. The shopping habits that consumers are developing during this recession are not going to go away when the recession ends. “Shopping” will never be the pass-time that so many once enjoyed.
In the past, small independent retailers had to face the invasion of the “big box stores”, Walmart and Target. Many survived – many did not. They now face the challenge of the “online” retailer. Again many will survive and many will not. Those small independent retailers that do survive will do it because they give their customers a reason to shop in their store.
“Why should I shop in your store?”
Is Opportunity Knocking on Your Door?
May/12/2009 12:20
The
Opportunity May Never Be Better
A “good” financial crisis creates opportunities for some.
Independent retailers thrive on risk-taking. They take risks every day. Buying merchandise; running promotions; hiring new people; etc, etc. These all are risks. It's every day life for retailers.
So what’s one more? Right now the retail world is full of stores anxious to be sold. For any of a thousand reasons, many owners of small retail operations either financially must sell or they have reached the "I give up" stage. This is unfortunate but very true
It’s a great time to seize an opportunity! Get the word out that you are looking to buy businesses that fit your business model. And you should be, but there is one caveat – it must be owner financing. Don't use much, if any, of your own cash. Yes, those deals are out there. So insist on them.
You and the right lawyer might be able to grow your business – fast! – right now. Lots of low-hanging, distressed fruit available. (And frankly, those retailers who have reached the "I give up" stage will be glad to realize some value from their business, instead of just winding it down. And the seller financing could give them an income stream over time as well. It can be a win-win situation for all parties...including employees and customers.)
Is now the right time for your “opportunity”.
A “good” financial crisis creates opportunities for some.
Independent retailers thrive on risk-taking. They take risks every day. Buying merchandise; running promotions; hiring new people; etc, etc. These all are risks. It's every day life for retailers.
So what’s one more? Right now the retail world is full of stores anxious to be sold. For any of a thousand reasons, many owners of small retail operations either financially must sell or they have reached the "I give up" stage. This is unfortunate but very true
It’s a great time to seize an opportunity! Get the word out that you are looking to buy businesses that fit your business model. And you should be, but there is one caveat – it must be owner financing. Don't use much, if any, of your own cash. Yes, those deals are out there. So insist on them.
You and the right lawyer might be able to grow your business – fast! – right now. Lots of low-hanging, distressed fruit available. (And frankly, those retailers who have reached the "I give up" stage will be glad to realize some value from their business, instead of just winding it down. And the seller financing could give them an income stream over time as well. It can be a win-win situation for all parties...including employees and customers.)
Is now the right time for your “opportunity”.
Repeat Customers - The Path to Success for the Small Retailer
Apr/27/2009 17:24
A Small Retailer’s Success is Tied to Repeat
Customers
Small retailers need to understand that success is rooted in building long-standing customer relationships. They should nurture their best customers by learning and remembering individual preferences and interests, acquiring this information directly from customers through personal interactions. And they should keep in touch with customers by offering mailing list sign-ups for newsletters, pre-sale announcements, coupons and mailings about other upcoming store events. These sign-ups should capture the customer’s email address also.
Small retailers need to grasp the importance of building customer relationships through personal communication and growing their profits through repeat sales.
Studies show that repeat customers:
• buy more often,
• spend more than first-time customers,
• cost less to acquire (because they already know your business), and
• even pay a premium price for your product.
And repeat customers refer new customers.
Add this up, and a repeat customer yield big profits over time
Small retailers need to understand that success is rooted in building long-standing customer relationships. They should nurture their best customers by learning and remembering individual preferences and interests, acquiring this information directly from customers through personal interactions. And they should keep in touch with customers by offering mailing list sign-ups for newsletters, pre-sale announcements, coupons and mailings about other upcoming store events. These sign-ups should capture the customer’s email address also.
Small retailers need to grasp the importance of building customer relationships through personal communication and growing their profits through repeat sales.
Studies show that repeat customers:
• buy more often,
• spend more than first-time customers,
• cost less to acquire (because they already know your business), and
• even pay a premium price for your product.
And repeat customers refer new customers.
Add this up, and a repeat customer yield big profits over time
Using Newspaper Ads For Store Closing Sale
Apr/20/2009 14:22
Using Newspaper Ads For Your Store Closing Sale
Although newspaper ads no longer produce the same results that they have in the past, they should still be considered when choosing which marketing tools to use.
When deciding if you are going use newspaper ads, follow these guidelines.
1. Determine your store’s prime market area. That is the area that the majority of your customers either work or live. In urban areas a store’s market area is usually a 2 – 5 mile radius around the store. In rural areas it can go out much farther.
2. Now you can begin to decide which newspaper to use to advertise your Store Closing Sale. Review the circulation map of the newspapers under consideration. If a newspaper has a large circulation, but most of it falls outside of your prime market area, it is not a good choice. You want to choose the newspaper that provides the best coverage for your prime market area. That could be a newspaper with a much smaller total circulation, but one that covers your prime market area better.
3. Always choose a newspaper that has editorial copy and paid circulation such as a weekly or metro daily. Free papers without editorial such as “shoppers” do not usually produce the results you need. The best choice is a “weekly” paper for a local market that has local editorial copy and paid circulation.
4. If you have more than one choice that meets the criteria, choose the one with the lowest rate per column inch for each 1000 circulation.
5. Always place the ad for best readership. The first section is always the best. The right hand side of the page has the best readership, so pages 3,5,7,9, or the back page is your best choice.
6. The size of your ad is very important. You need to dominate the page. A half page ad that extends above the horizontal center and to the right of vertical center will always dominate the page. A quarter page ad can also dominate the page if it is the largest ad on the page and is to the right of vertical center.
7. Always measure the results of any ad you run. Your measurement can be based on overall sales on the day the ad broke through the weekend, or measure the sales of the advertised items. You can also include a coupon with a special offer if the customer brings it into the store.
8. Do not continue to advertise in that newspaper if you do not get results. Consider using other forms of advertising such as flyers, direct mail, email, radio or TV.
Although newspaper ads no longer produce the same results that they have in the past, they should still be considered when choosing which marketing tools to use.
When deciding if you are going use newspaper ads, follow these guidelines.
1. Determine your store’s prime market area. That is the area that the majority of your customers either work or live. In urban areas a store’s market area is usually a 2 – 5 mile radius around the store. In rural areas it can go out much farther.
2. Now you can begin to decide which newspaper to use to advertise your Store Closing Sale. Review the circulation map of the newspapers under consideration. If a newspaper has a large circulation, but most of it falls outside of your prime market area, it is not a good choice. You want to choose the newspaper that provides the best coverage for your prime market area. That could be a newspaper with a much smaller total circulation, but one that covers your prime market area better.
3. Always choose a newspaper that has editorial copy and paid circulation such as a weekly or metro daily. Free papers without editorial such as “shoppers” do not usually produce the results you need. The best choice is a “weekly” paper for a local market that has local editorial copy and paid circulation.
4. If you have more than one choice that meets the criteria, choose the one with the lowest rate per column inch for each 1000 circulation.
5. Always place the ad for best readership. The first section is always the best. The right hand side of the page has the best readership, so pages 3,5,7,9, or the back page is your best choice.
6. The size of your ad is very important. You need to dominate the page. A half page ad that extends above the horizontal center and to the right of vertical center will always dominate the page. A quarter page ad can also dominate the page if it is the largest ad on the page and is to the right of vertical center.
7. Always measure the results of any ad you run. Your measurement can be based on overall sales on the day the ad broke through the weekend, or measure the sales of the advertised items. You can also include a coupon with a special offer if the customer brings it into the store.
8. Do not continue to advertise in that newspaper if you do not get results. Consider using other forms of advertising such as flyers, direct mail, email, radio or TV.
What about the small guy?
Apr/14/2009 11:16
The
media has given much coverage to what is happening in
the retail industry during this current recession.
Most of it has been focused on the large chains, the
shopping malls and major players in the retail game.
But what’s been happening to the small independent
retailer and what does the future hold for you.
Solutions For Retailers works only with small independent retailers. I have been helping small independent retailers like you for twenty plus years. At no time during that period has the retail environment been tougher, changed more quickly or had a more lasting impact on your business than it has recently.
Please click on the following link:
http://survey.constantcontact.com/survey/a07e2i46gm8ftd37dqd/start
and take a few moments to fill out the survey. We are attempting to gain a better understanding of how this recession is affecting you, the small independent retailer and provide an opportunity for you to gain insight into what other small retailers are experiencing.
It will only take a few minutes to complete. We will provide you with the summary of results for the survey.
Thank you in advance for your participation in the survey.
Solutions For Retailers works only with small independent retailers. I have been helping small independent retailers like you for twenty plus years. At no time during that period has the retail environment been tougher, changed more quickly or had a more lasting impact on your business than it has recently.
Please click on the following link:
http://survey.constantcontact.com/survey/a07e2i46gm8ftd37dqd/start
and take a few moments to fill out the survey. We are attempting to gain a better understanding of how this recession is affecting you, the small independent retailer and provide an opportunity for you to gain insight into what other small retailers are experiencing.
It will only take a few minutes to complete. We will provide you with the summary of results for the survey.
Thank you in advance for your participation in the survey.
Writing Ad Copy
Feb/20/2009 14:13
Writing Ad Copy
Direct mail advertising is one of the key tools used by retailers today. When it comes time to write copy for those ads, you need to know which is better. Long Copy or Short Copy. Below is some advice from “Postcard Builder, Inc”, a Midwest company specializing in postcard marketing
Long Copy vs. Short Copy
The question is, does longer, more involved copy in a direct mail advertisement draw better response rates than shorter, more succinct copy? For mailings that ask for an immediate sale with little or no human interaction (Call Now and have your Credit Card Ready!), most research and experts agree that long copy works well; the long letters do the job of the salesmen. Short copy with great graphics (Postcards!) work best for products with longer sales cycles, for sales of products that need human interaction.
Product Sales Cycle. A short sales cycle is a Bose Wave Radio. A long cycle may be a real estate agent listing a home or sales of large equipment. The longest part of the cycle is actually waiting until that prospect needs your product. With home sales, the average is every 4-5 years. With equipment sales it may be 10 years or more! The goal then is to be in front of that customer at the time they decide to start their purchase process. Postcards and short copy are best for that type of awareness.
Short Copy and Getting the Lead. Image the pain your prospect will go through if you continually send them lengthy letters to get their attention. After the first letter, they go in the trash. The goal with short copy is to get their attention with quick words and great, relevant graphics - maintain awareness of your product. For real estate agents, a photo of the latest home listing is enough. With a construction company it may be a photo of their latest project. The prospect remembers you, they make the call, you get the lead.
Direct mail advertising is one of the key tools used by retailers today. When it comes time to write copy for those ads, you need to know which is better. Long Copy or Short Copy. Below is some advice from “Postcard Builder, Inc”, a Midwest company specializing in postcard marketing
Long Copy vs. Short Copy
The question is, does longer, more involved copy in a direct mail advertisement draw better response rates than shorter, more succinct copy? For mailings that ask for an immediate sale with little or no human interaction (Call Now and have your Credit Card Ready!), most research and experts agree that long copy works well; the long letters do the job of the salesmen. Short copy with great graphics (Postcards!) work best for products with longer sales cycles, for sales of products that need human interaction.
Product Sales Cycle. A short sales cycle is a Bose Wave Radio. A long cycle may be a real estate agent listing a home or sales of large equipment. The longest part of the cycle is actually waiting until that prospect needs your product. With home sales, the average is every 4-5 years. With equipment sales it may be 10 years or more! The goal then is to be in front of that customer at the time they decide to start their purchase process. Postcards and short copy are best for that type of awareness.
Short Copy and Getting the Lead. Image the pain your prospect will go through if you continually send them lengthy letters to get their attention. After the first letter, they go in the trash. The goal with short copy is to get their attention with quick words and great, relevant graphics - maintain awareness of your product. For real estate agents, a photo of the latest home listing is enough. With a construction company it may be a photo of their latest project. The prospect remembers you, they make the call, you get the lead.
Store Closings Sales & Newspaper Ads
Jan/27/2009 13:52
Store Closing Sales and Newspaper Ads
You hear it almost every day, “Newspapers are dying”. And for the most part that’s a true statement. Most people now get their news from cable TV or the internet. The daily newspaper gets thinner every day. In the current economy the multi pages of real estate ads and car dealer ads are no more. Classified ads are now on-line and ads on Craigslist are free.
So how do you advertise your Store Closing Sale? There are lots of choices, but believe it or not, advertising in the right kind of newspaper still pays off.
Running a “Store Closing Ad” in a local weekly paper still produces good response. If your weekly newspaper provides lots of editorial about local people and events, and has paid circulation, it’s a pretty sure thing that it is still being read. But before you go out and sign-up to run your ad you need to make sure it covers your primary market area. That is an area that is usually a 2 – 5 mile radius of your store. 75% or more of your customers will live within that area. Any advertising outside that area is usually wasted.
The larger your store or the more sparse the population, the rather the radius of your prime market area extends.
Newspaper ads are not our first choice for advertising a Store Closing Sale, but they still are in the mix of the top three types of media we use. Just a reminder – the newspapers we use are almost always local, weekly, paid subscription papers that do a good job of covering your primary market area.
You hear it almost every day, “Newspapers are dying”. And for the most part that’s a true statement. Most people now get their news from cable TV or the internet. The daily newspaper gets thinner every day. In the current economy the multi pages of real estate ads and car dealer ads are no more. Classified ads are now on-line and ads on Craigslist are free.
So how do you advertise your Store Closing Sale? There are lots of choices, but believe it or not, advertising in the right kind of newspaper still pays off.
Running a “Store Closing Ad” in a local weekly paper still produces good response. If your weekly newspaper provides lots of editorial about local people and events, and has paid circulation, it’s a pretty sure thing that it is still being read. But before you go out and sign-up to run your ad you need to make sure it covers your primary market area. That is an area that is usually a 2 – 5 mile radius of your store. 75% or more of your customers will live within that area. Any advertising outside that area is usually wasted.
The larger your store or the more sparse the population, the rather the radius of your prime market area extends.
Newspaper ads are not our first choice for advertising a Store Closing Sale, but they still are in the mix of the top three types of media we use. Just a reminder – the newspapers we use are almost always local, weekly, paid subscription papers that do a good job of covering your primary market area.
Good Promotional Tool
Jan/19/2009 09:26
A Good Promotional Tool
Here’s a good tool that has produced good results for our client’s. It’s simple and easy to use. It’s designed to get the customer to return to the store quickly and more frequently. Here’s how it works – it starts after a customer makes a purchase.
Let’s say a customer makes a total purchase today for $200 and it is made up of several items. You, the store, gives the customer a coupon for 10% or 20% of the purchase that they just made. That coupon must be used within 10 days.
So the customer that just spent $200 dollars gets a $20 or $40 gift card. The card can’t be used the day of the original purchase but has to be used in the next ten days. Very few people will throw away $20 worth of FREE merchandise so they figure a way to get back into the store.
The customer has a very good reason to come back. The rate of return on these coupons is almost 70%. That’s a bunch of people that wouldn’t of come back at all.
I know, many of you are saying that this is no big deal, all you’re doing is giving away 20% and you know that they will only come in and spent the $20 and leave.
Well really what happens is – that customer is really getting a much smaller discount than you think. The % off is spread between two purchases, not one.
But that’s not really the important point. Although the customer who comes back in only plans to spent the $20 gift card, 93% of those customers will exceed that amount.
Which % discount should you give? It should be whatever the amount that is enough to get the customer back in the store in 10 days. Some stores have used a sliding scale. 20% under $100 and 10% or 15% over $100, it needs to be enough to motivate them to come back.
If you are having trouble increasing or maintaining your customer traffic in this tough economy, try it. There are a lot of ways to modify it to make it work for your store, but the whole idea is to get that customer back in to sell them more.
Here’s a good tool that has produced good results for our client’s. It’s simple and easy to use. It’s designed to get the customer to return to the store quickly and more frequently. Here’s how it works – it starts after a customer makes a purchase.
Let’s say a customer makes a total purchase today for $200 and it is made up of several items. You, the store, gives the customer a coupon for 10% or 20% of the purchase that they just made. That coupon must be used within 10 days.
So the customer that just spent $200 dollars gets a $20 or $40 gift card. The card can’t be used the day of the original purchase but has to be used in the next ten days. Very few people will throw away $20 worth of FREE merchandise so they figure a way to get back into the store.
The customer has a very good reason to come back. The rate of return on these coupons is almost 70%. That’s a bunch of people that wouldn’t of come back at all.
I know, many of you are saying that this is no big deal, all you’re doing is giving away 20% and you know that they will only come in and spent the $20 and leave.
Well really what happens is – that customer is really getting a much smaller discount than you think. The % off is spread between two purchases, not one.
But that’s not really the important point. Although the customer who comes back in only plans to spent the $20 gift card, 93% of those customers will exceed that amount.
Which % discount should you give? It should be whatever the amount that is enough to get the customer back in the store in 10 days. Some stores have used a sliding scale. 20% under $100 and 10% or 15% over $100, it needs to be enough to motivate them to come back.
If you are having trouble increasing or maintaining your customer traffic in this tough economy, try it. There are a lot of ways to modify it to make it work for your store, but the whole idea is to get that customer back in to sell them more.
Choosing The Right Consutant For A Store Closing
Jan/17/2009 12:56
How to choose the right marketing consultant for
conducting a Store Closing Sale
A small guy needs help too
The recession is playing havoc with the retail industry. The International Council of Shopping Centers estimates that almost 150,000 stores closed their doors in 2008. Many of those were small retailers that tried to do it without any professional help. When large chains, with large staff like Mervyn’s, Sharper Image, Linen-n-Things, Whitehall Jewelers hire professional retail consulting organizations to run their store closing sale, you have to wonder why so many small retailers think they have the experience and knowledge to pull off the most important sale they will ever run.
There are quite a few very good retail consulting companies out there that help the small retailer maximize the results of his Store Closing Sale. But as with any group there are some questionable ones out there.
Here are some things to consider when choosing the right professional.
• Make sure that the consultant that you hire has experience marketing and managing a Store Closing Sale. Many of the larger consulting companies contract with former retail professionals who have a good retail background, but no experience conducting a Store Closing Sale. This type of sale is different.
• Be cautious of anyone that insists that a decision be made today. It’s OK to make a decision if you have done your due diligence and are comfortable with the plan. Do not be pressured into acting hastily.
• Who is going to be working with you to run your sale? Many times one guy sells you the program and another guy does the work. Be sure you have the opportunity to speak or visit with the consultant who will be working directly with you. That “sales” guy will be long gone after your sale starts.
• Can you cancel the agreement if they are not getting the results necessary? If not, don’t hire them.
• How is payment structured? If it is a flat fee, they get paid if they obtain results or not. The best scenario is a base fee (covers expenses) and percent of sales (based on performance). If they aren’t comfortable with that arrangement, they lack confidence in their ability to produce.
• You must be 100% comfortable with the consultant that you work with. You won’t always agree with him, but you must believe he has your best interest at heart.
A small guy needs help too
The recession is playing havoc with the retail industry. The International Council of Shopping Centers estimates that almost 150,000 stores closed their doors in 2008. Many of those were small retailers that tried to do it without any professional help. When large chains, with large staff like Mervyn’s, Sharper Image, Linen-n-Things, Whitehall Jewelers hire professional retail consulting organizations to run their store closing sale, you have to wonder why so many small retailers think they have the experience and knowledge to pull off the most important sale they will ever run.
There are quite a few very good retail consulting companies out there that help the small retailer maximize the results of his Store Closing Sale. But as with any group there are some questionable ones out there.
Here are some things to consider when choosing the right professional.
• Make sure that the consultant that you hire has experience marketing and managing a Store Closing Sale. Many of the larger consulting companies contract with former retail professionals who have a good retail background, but no experience conducting a Store Closing Sale. This type of sale is different.
• Be cautious of anyone that insists that a decision be made today. It’s OK to make a decision if you have done your due diligence and are comfortable with the plan. Do not be pressured into acting hastily.
• Who is going to be working with you to run your sale? Many times one guy sells you the program and another guy does the work. Be sure you have the opportunity to speak or visit with the consultant who will be working directly with you. That “sales” guy will be long gone after your sale starts.
• Can you cancel the agreement if they are not getting the results necessary? If not, don’t hire them.
• How is payment structured? If it is a flat fee, they get paid if they obtain results or not. The best scenario is a base fee (covers expenses) and percent of sales (based on performance). If they aren’t comfortable with that arrangement, they lack confidence in their ability to produce.
• You must be 100% comfortable with the consultant that you work with. You won’t always agree with him, but you must believe he has your best interest at heart.