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OBITUARIES

OBITUARIES

step6.

After tJre purchase has been made, few customers will ever come back to "go through that again" just to pay for an impulse purchase-they'll do without. And you've missed all the impact of modern merchandising and the many sales which will result.

THREE DOORS ENCOURAGE SHOPTIFTERS n We have three doors into our store. Y o Ho* can we have some control on pilferage or shoplifters?

A Set aside one door as an exit only z ro and put the check out stand right beside it. Also have a salesman or a clerk to handle the cash register. You don't like to come back to a store where you've had to wait several minutes to pay for what you've already picked out, do you? Well, neither does your cus;tomer.

The Salesman And His Desk

O We have a space 2-J by 30' behind Y. th" counter for our salesmen's desks. You've told us that we should eliminate that desk space...why?

A !,very square foot of average retail I rc hardware selling space, including aisles, should return $4.30 in gross sales each month. That 750 feet you would gain by moving out your desks will gross another $3225 in sales which rneans $320 to $640 NET PROFIT monthly or at least $3840 added to net profit.

Besides, retail salesmen can't sell sitting down. If they have much desk time, you either need to do more advertising and merchandising to build up your foot traffic or you have too many "salesmen."

Rule: Give a man a desk and he'll sir at it!

Advertising Budget

n I have a medium-sized lumber yard Yo *h"r" I now have about $20,000 per month in retail trade. How much do I budget for advertising if I want [o increase that traffic?

A I have to assume that operating ex- /ao penses are about 25 percent of your gross sales. By the accepted rule of thumb, you are now spending about four percent of your expenses$9,600 per yearfor advertising ! That rule of thumb applies to almost every retail business in the West, except lumber and building materials dealers. Most dealers of your size waste about $5,000 per year in ineffective advertising.

You should budget half again as much, or six percent of your exp€nses for a steadp planned increase in business.

You'll be surprised at how many con. tractors will respond to your advertisement that you thought you had aimed just at the consumer.

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