Small Retailer
How To Avoid Needing A Store Closing Or Going Out Of Business Sale
Nov/12/2009 10:49
I
write and advise small retailers every day on how to
best use a Store Closing Sale to exit their retail
business . Today I want to share some toughts on how
to avoid needing to have a Store Closing Sale.
Business is going to continue to be tough. Here are
some ideas on how to keep your customers shopping at
your store.
1. Continue to market your business. History shows that those who stop marketing during a recession are the first to disappear.
2. Focus on your exisiting customers. It's more profitable to sell to someone that knows and trust you, than to spend money trying to earn a new customer.
3. Listen to customers. It will help you discover their needs and carry products to meet those needs.
4. Focus on the neighborhood. For most retailers, your primary market is within a two to five mile radius of their store.
5. Emphasize value in all of your marketing messages.
6. Be polite and greet customers as they enter your store and thank them as they leave.
7. Consider a loyalty program. It doesn't have to be complicated. It can be as simple as a punch card.
8. Know who your customers are. Build and maintain a current customer list - street addresses and email addresses.
9. Contact each customer at least four times a year - the more communciation the better.
10. Remember your customer is your greatess asset - without them you have no business.
1. Continue to market your business. History shows that those who stop marketing during a recession are the first to disappear.
2. Focus on your exisiting customers. It's more profitable to sell to someone that knows and trust you, than to spend money trying to earn a new customer.
3. Listen to customers. It will help you discover their needs and carry products to meet those needs.
4. Focus on the neighborhood. For most retailers, your primary market is within a two to five mile radius of their store.
5. Emphasize value in all of your marketing messages.
6. Be polite and greet customers as they enter your store and thank them as they leave.
7. Consider a loyalty program. It doesn't have to be complicated. It can be as simple as a punch card.
8. Know who your customers are. Build and maintain a current customer list - street addresses and email addresses.
9. Contact each customer at least four times a year - the more communciation the better.
10. Remember your customer is your greatess asset - without them you have no business.
Small Retailers Worry As Online Retailers Are Poised For Profits This Holiday Season
Nov/04/2009 07:58
As many small retailers
cut back on inventory levels and holiday staffing in
efforts to avoid the massive discounts needed last
holiday season, online retail is bringing in more
sales. What's standing between online and small
retailers? Maybe it's a little innovation.
According to Forrester's State of Online Retail 2009Profitability, Economy and Multichannel," 42% of the online retailers surveyed say they increased their conversion rates during the first half of 2009, compared to the same period of 2008, to an average of 3.4%. And beyond that, half of online retailers say sales should be better than for 2009, following an average growth rate of 18% in 2008 web sales over 2007. The National Retail Federation found that 80% of online retailers predict growth this quarter.
Those numbers are even more optimistic considering the state of general retail leading up to the quintessential holiday shopping season, where there is a predicted 1% drop in retail sales this holiday season.
U.S. shoppers on average rate e-commerce shopping more highly than at traditional retailers, according to the University of Michigan American Consumer Satisfaction Index. And online retailers are increasingly conscious of new ways to improve their business.
According to eMarketer, 57% of web retailers have a Facebook page or advertise there. 41% are on YouTube, 28.6% on MySpace and 20.4% on Twitter. In all, almost three-quarters of the merchants in the company's Internet Retailer Top 500 Guide have a presence on at least one of the major social networks or social shopping sites.
That's not saying there's a direct correlation between a social media presence and sales, but if offline retailers were spending more time getting where their customers are — and listening to what they want and care about — they might also be increasing sales this season instead of cutting back on inventory.
To contact Solutions For Retailers, call 520-305-9693
Visit www.retailstoreclosing.com for information on Store Closing Sales and Going Out of Business Sales
According to Forrester's State of Online Retail 2009Profitability, Economy and Multichannel," 42% of the online retailers surveyed say they increased their conversion rates during the first half of 2009, compared to the same period of 2008, to an average of 3.4%. And beyond that, half of online retailers say sales should be better than for 2009, following an average growth rate of 18% in 2008 web sales over 2007. The National Retail Federation found that 80% of online retailers predict growth this quarter.
Those numbers are even more optimistic considering the state of general retail leading up to the quintessential holiday shopping season, where there is a predicted 1% drop in retail sales this holiday season.
U.S. shoppers on average rate e-commerce shopping more highly than at traditional retailers, according to the University of Michigan American Consumer Satisfaction Index. And online retailers are increasingly conscious of new ways to improve their business.
According to eMarketer, 57% of web retailers have a Facebook page or advertise there. 41% are on YouTube, 28.6% on MySpace and 20.4% on Twitter. In all, almost three-quarters of the merchants in the company's Internet Retailer Top 500 Guide have a presence on at least one of the major social networks or social shopping sites.
That's not saying there's a direct correlation between a social media presence and sales, but if offline retailers were spending more time getting where their customers are — and listening to what they want and care about — they might also be increasing sales this season instead of cutting back on inventory.
To contact Solutions For Retailers, call 520-305-9693
Visit www.retailstoreclosing.com for information on Store Closing Sales and Going Out of Business Sales
Holiday 2009 Will Be Extremely Tough For The Small Retailer
Nov/03/2009 11:13
If
what I’ve seen lately in the media is any indication
of what lies ahead for this holiday selling season,
hold on it’s going to be a wild ride. The promotions
are starting already.
Last weekend, the last week of October, Sears had their first holiday insert in the newspaper.
Kmart is promoting their layway program on TV to get customers to commit and shop now.
Walmart has lowered their prices on toys again and they’re promoting their price match guarantee.
Kohl’s is on TV with their first holiday promotion.
Heck, I haven’t even put away my Halloween costume yet!
What does this mean for the small retailer that is counting on holiday sales to save their business? You better take a hard look at your expectations and your promotional plans. The big boys are coming out strong and fighting for every dollar of sales they can get. If you’re not prepared to fight for your business, you can’t survive.
Some say the recession is over, but that’s not the message the consumer is sending. According to Carl Steidtmann, Deloitte Research chief economist, in a statement: “Although there are signs that suggest the economy is nearing the end of its darkest days, many consumers remain burdened by restricted credit availability, high unemployment and foreclosures. Americans continue to save at historically high rates while also paying down debt, and these factors combined suggest another chilly holiday season for retailers.”
The small retailer needs to be very realistic. Holiday sales for 2008 were bad and sales for 2009 are predicted to be down a little from then. The worst thing you can do is to continue to put more of your personal funds back into a business that continues to struggle. Retail is changing for the small guy. It will never be like it was.
Now is the time to evaluate the future of your small retail business, not after the Holidays.
If you are considering a Store Closing Sale or Going Out of Business Sale, this holiday season represents your best chance to recover your investment. Call 520-305-9693 or email me at chuckhaug@solutionsforretailers.com to discuss if now is the right time for you to exit your retail business
Last weekend, the last week of October, Sears had their first holiday insert in the newspaper.
Kmart is promoting their layway program on TV to get customers to commit and shop now.
Walmart has lowered their prices on toys again and they’re promoting their price match guarantee.
Kohl’s is on TV with their first holiday promotion.
Heck, I haven’t even put away my Halloween costume yet!
What does this mean for the small retailer that is counting on holiday sales to save their business? You better take a hard look at your expectations and your promotional plans. The big boys are coming out strong and fighting for every dollar of sales they can get. If you’re not prepared to fight for your business, you can’t survive.
Some say the recession is over, but that’s not the message the consumer is sending. According to Carl Steidtmann, Deloitte Research chief economist, in a statement: “Although there are signs that suggest the economy is nearing the end of its darkest days, many consumers remain burdened by restricted credit availability, high unemployment and foreclosures. Americans continue to save at historically high rates while also paying down debt, and these factors combined suggest another chilly holiday season for retailers.”
The small retailer needs to be very realistic. Holiday sales for 2008 were bad and sales for 2009 are predicted to be down a little from then. The worst thing you can do is to continue to put more of your personal funds back into a business that continues to struggle. Retail is changing for the small guy. It will never be like it was.
Now is the time to evaluate the future of your small retail business, not after the Holidays.
If you are considering a Store Closing Sale or Going Out of Business Sale, this holiday season represents your best chance to recover your investment. Call 520-305-9693 or email me at chuckhaug@solutionsforretailers.com to discuss if now is the right time for you to exit your retail business
A Small Retailer's Best Customer Is His Most Recent Customer
Oct/28/2009 08:44
Most small retailers will very shortly begin their
holiday marketing campaign. Direct marketing (direct
mail & email) has proven to be a very productive
tool for most. The big question is who do you mail or
email to get the biggest bang for your buck?
There is one basic rule-of-thumb in the direct marketing world that is helpful: RFM or Recentcy, Frequency and Monetary Value. It says that recentcy, frequency and monetary value are the 3 leading drivers of response - in that order. So, if you do a mailing to your current customers, the ones that had most recently purchased from you are the ones that will most likely respond to your offer. Frequency is second, so the customers that purchase more often will be the second most likely to respond. Monetary value is last, so the customers that had made one big purchase a long time ago are least likely to respond. People forget. If you don't make an immediate and ongoing effort to stay in front of your customers, then you run the risk of losing them forever.
There is one basic rule-of-thumb in the direct marketing world that is helpful: RFM or Recentcy, Frequency and Monetary Value. It says that recentcy, frequency and monetary value are the 3 leading drivers of response - in that order. So, if you do a mailing to your current customers, the ones that had most recently purchased from you are the ones that will most likely respond to your offer. Frequency is second, so the customers that purchase more often will be the second most likely to respond. Monetary value is last, so the customers that had made one big purchase a long time ago are least likely to respond. People forget. If you don't make an immediate and ongoing effort to stay in front of your customers, then you run the risk of losing them forever.
How Do You Out Run The Bear?
Oct/23/2009 09:03
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.
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