Creative Retailer Mini Magazine

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Welcome to Creative Retailer magazine! I’m Heidi Kaisand, publisher of Creative Retailer® and owner of Hen & Chicks Studio in Conrad, Iowa. The past 12 years of owning a quilt shop and retreat center have been amazing. Every day is a chance to meet new customers and learn new ways to improve my business. We wear so many hats as entrepreneurs and it’s a lot to try and keep all the plates spinning. That’s why it is our goal to provide you with the knowledge and information you need to run a successful small business. Each issue of our publication offers a variety of articles on the many topics that cover owning a retail business. We find the topics that are critical to running your business today and seek out the experts in those areas to give you the most accurate information possible. It’s like having a board room full of experts in every area of business wrapped up in each issue of the magazine. Enjoy this mini digital magazine as an extra bonus to our regular printed subscription publication.

RETAILER

®

“ BELIEVE YOU CAN AND YOU'RE HALFWAY THERE. —THEODORE ROOSEVELT ”

Please reach out and tell us what your challenges are in your business. We want to help you overcome those challenges and move your business forward.

You can always find me at heidi@creativeretailer.com or 641-751-3395.

» Access additional resources to elevate your business to the next level at CreativeRetailer.com.

THANK YOU!

Thank you to OLFA for sponsoring this special issue: Take Action! Move Your Business to the Next Level

OLFA North America Inc is the North American subsidiary of OLFA Corporation of Japan, pioneer of cutting tools worldwide since 1956.

PUBLISHER » Heidi Kaisand

CHIEF OPERATING OFFICER»

Andrea Abrahamson

ART DIRECTOR » Angie Hoogensen

COPY EDITOR » Nancy Dietz

OFFICE MANAGER » Jackie Stevens

HOW TO SUBSCRIBE

To subscribe, change an address, renew your subscription or ask a question visit creativeretailer.com or email info@CreativeRetailer.com.

CREATIVE RETAILER®

P.O. Box 205, Conrad, IA 50621 641-751-2801

©2023 Creative Retailer® (ISSN 1079 4824) is published bimonthly by Creative Retailer, Inc. Advertising rates available upon request at ads@creativeretailer.com. Print subscriptions are $59.95 for one year (United States only); digital subscriptions are $45 for one year; print back issues are available for $15 each plus shipping.

All rights reserved. Reproduction without written permission from the publisher is strictly prohibited.

Creative Retailer® always tries to relay accurate and useful information to the best of its ability. However, all of the articles are meant to help guide you to become a better-informed businessperson by seeking out professional answers for your own individual business needs. Creative Retailer holds no responsibility for any financial consequences and only hopes you’ll find generous financial gains from the information presented.

As a small business owner, you face many challenges but also incredible opportunities.

Register for the Creative Retailer Roundtable.

Each month you will meet with other retailers and discuss the obstacles and possibilities you face running your business.

» Led by publisher and shop owner Heidi Kaisand, each month we tackle a topic that is critical to your business.

» Not sure if this is for you? Schedule a free 30-minute consultation with Heidi to learn more about what joining the Creative Retailer® Rountable can do for your business. Schedule free consultation here: calendly.com/ creativeretailer/30min

REGISTER:

https://creativeretailer.com/table

QUESTIONS?

info@creativeretailer.com or 641-751-2801

Beyond Elementary Math

Why you need to learn margins, turn and dollar contribution

by TOM SHAY

At first, elementary school math focused on addition and subtraction. Then came multiplication. With a teacher’s help—and plenty of practice—most of us mastered the concept.

Retailers put these multiplication skills to work every day as they determine the price of the products they are selling. Although it seems like it should be simple, retailers need to consider many factors. Let’s start at the beginning.

DETERMINE THE SELLING PRICE

Many retailers simply take the cost of the item and multiply it by a certain number to get the selling price. This has become the dominant factor in determining the price by retailers nationwide, meaning the only consideration in the selling price of any item is what it cost you. For example, looking at an item with an initial cost of $2, multiply the cost by two (often referred to as “keystone”), and you have a selling price of $4.

As the cost is half, or 50 percent, of the selling price you have a 50 percent margin or markup. All you have to do is decide what number you are going to use to multiply the cost, right? It could be two three, four, or even something like 2.5 times the cost.

There is another unique, but incorrect, method of determining the selling price and calling it a margin or markup. This is when the buyer takes our $2 example item and says she wants a 50 percent margin or markup.

Knowing that 50 percent of the $2 cost is $1, they add $1 to the initial cost for a selling price of $3; this formula does not have a name. As simple as it sounds, it is the wrong approach for many reasons. As a buyer of merchandise, you have many responsibilities:

» Determine the selling price of an item.

» Make as much profit as you can (suggestions to follow).

» Order the right quantity, which can be a factor of what the selling price is as well as working to see that you minimize the amount of leftover merchandise and markdowns for seasonal products.

Following are explanations of common pitfalls and how to improve the way you buy and sell merchandise.

Another Cost to Consider

Attending a trade show incurs expenses such as hotel, meals and airfare. There is also the added expense of additional help to cover the sales floor in your absence. For many stores, this just becomes an operating expense. However, for those who find products at a lower price and unique items that can be sold at a premium, the extra margin gained will pay for the expense of attending the trade show.

PITFALLS OF USING ONE MULTIPLIER

If you are using the same multiplier for all products, you will more often be pricing the item too high or too low as compared to getting the price right for individual items. Retailers too often use a basic formula (cost multiplied by a certain number) for thread, another for zippers and a different multiplier for fabrics, and so on. And although it seems like a good idea, it doesn’t work so well in all situations.

When you find a unique thread that no one else in the area stocks, if you are using only one multiplier you are going to use the same multiplier as the more common thread you stock. Most likely the common thread you carry will be priced too high, and the unique thread is priced too low. Your customers may see how you have priced the common thread and walk out after seeing your higher price. You will not have an opportunity to tell them about the special thread and other products you that are unique. Improve your pricing by having more than one multiplier.

COST OF PRODUCT DOES NOT EQUAL SALE PRICE

The cost should technically have nothing to do with what something is sold for. The determining factor for the price is asking, “What will the customer pay for this item?”

Once you have made that decision, you can then consider how you are going to sell the item and if it is worth the effort of stocking the item. This is where other buying responsibilities come into play, such as deciding where and how to display the item within your shop.

The buyer also needs to know when the peaks and valleys of the sales cycle is for that item. Without these considerations we will have too much inventory at some point during the year. However, in answering the question of what the customer will pay for the item, we are going to look at more than just margin in another of our lessons.

If cost is the sole determination factor in how something is priced, consider the situation in which you have decided to add a new line of thread. At the trade show you place an order that provides a new display rack as well as plenty of spools of each thread. It is the best price you can get for the thread. With that cost in mind, you establish the retail price.

As you continue to sell through the product, you need to reorder. However, your order is not sizable enough to place an order through the manufacturer so you order the thread, at a higher, cost, from a local wholesaler.

Now how do you price the product? Using the current technique for pricing, you will have some colors at one price and other colors of the same thread at a different selling price.

Customers do not care how you purchased the thread. The only issue for them is deciding which color they want and if they believe it is a fair price. Perhaps we have too often heard the advertising by other businesses, especially auto dealerships, who state “We buy for less so we can sell for less.”

That may be a neat advertising tagline, but realistically, why would you work hard to pay a lesser price for an item followed by selling it for a lesser price? All this means is that with this extra effort, you are going to be making the same profit as the other businesses. It should be that by being an exceptional buyer, you will have increased margins and increased profits.

If you are the buyer working for the store owner, the only way you are going to get an increase in pay is by increasing the profit; not just increasing sales. Your additional pay has to come from additional profit.

UNDERSTANDING THE TERMS USED

The terms “margin” and “markup” are not interchangeable. The margin is calculated as we previously described. Note that the math for margin is the same as what is used in your profit and loss statement. Hence, it is the “correct” reference for retailing.

Markup, using the same cost and retail price as previously described, is 100 percent because you are taking 100 percent of the cost and adding it to the cost of the product to determine the retail price.

You can never have a margin that is 100 percent (this would mean you got the merchandise for free), and if you use markup, you can have an answer that is higher than 100 percent. If there are two of you in the conversation, you and the sales representative, make sure both of you are using the same terminology and the same method of calculating the answer.

However, in considering the suggestion of the sales representative for the selling price of the item, remember that in today’s market the idea of items having the same price in every retailer that stocks the item has gone by the wayside.

MAKING MONEY

So far we have talked about margins and markups. When you want a profitable store, you must look at the checking account and the profit and loss statement. Both of them use dollars, not percentages.

Let’s look at three methods of making as many dollars as possible in your store: turn, dollar contribution, and margin. Each has an appropriate place in your store in creating the best opportunity for profit as well as not having your customer see you as a high-priced local store. Consider how these concepts are illustrated in the examples, opposite.

“

THE COST SHOULD TECHNICALLY HAVE NOTHING TO DO WITH WHAT SOMETHING IS SOLD FOR. THE DETERMINING FACTOR FOR THE PRICE IS ASKING, “WHAT WILL THE CUSTOMER PAY FOR THIS ITEM?”

”

Of the three methods offered, which one do you want for your shop? It is a trick question because the correct answer is that you want all three methods in their appropriate places. You also note that all three create a gross profit of $600 for your business. You pay bills with this cash; you do not pay bills with the percentages in the margins (or markups for those we have not yet convinced to change their terminology). Dollar contribution, turn rate and margin are all necessary so that your merchandise is priced right.

The Price is Right

Consider how turn rate, dollar contribution and margin affect pricing in these three common scenarios.

Slow Turn, High Dollar, Medium Margin

The most expensive item in your shop sells for $999.99 and has a cost of $700. For the past several years you have sold, on average, two a year. The gross profit this item drives to the bottom line of the profit and loss statement of your business is just under $600 each tear. Your gross margin on this item is 30 percent. (To calculate the gross margin, you take the selling price and subtract the cost to determine your gross profit. Then you divide the gross profit by the selling price. The answer, stated as a percentage, is your gross margin.)

High Turn, Low Dollar, Low Margin

Our second item sells for $2 and has a cost of $1.75, meaning with each transaction you make 25 cents profit. Using the math we just explained, the gross margin is a mere 13 percent; however, over the course of the year your

ALL THINGS CONSIDERED

Using only the multiplier of cost factor in determining selling price is sure to leave you with many items that are priced incorrectly. Multiple factors should be considered in determining the selling price of each item in your shop. Determining the correct margin is definitely not elementary math.

shop sells 2,400 of this item. That 25-cent profit along with the quantity you sell drives $600 to the same bottom line of the profit and loss statement. And because you are reordering this product every two weeks, the turn is tremendous.

If you are selling 2,400 of this each year and have only 200 on the shelf at any given time, your turn rate is 12. This is calculated by dividing the quantity sold by the average quantity on hand in the shop.

Medium Turn, Medium Dollar, High Margin

The third item is selling for $9.99 and has a cost of $6, meaning you have a gross profit of almost $4 on each sale. Over the same year, your shop sells 150 of this item. Using the same formulas offered previously, we find this item has a 40 percent gross margin and drives $600 to the profit and loss statement bottom line. The turn rate on this may be a mere two or three times a year.

Create Lasting Connections

Insider tips share the power of communication to build strong relationships at home and at work.

by BETH MONTPAS

Early in my career, I understood how to build rapport with people to make the sale or persuade the audience, but true connection seemed to elude me. I yearned for personal and business relationships that really mattered, but I didn’t understand how to cultivate them as I hurried to the next encounter or opportunity.

My journey isn’t unique. For centuries, people have searched the world to find themselves and their purpose, along with spiritual and interpersonal connection. People you encounter professionally and personally will weave in and out of your life; if you value those connections, become more intentional about building connections that grow into authentic relationships. Here are a few of the ahas I’ve discovered while building authentic, lasting connections at home and at work.

CONNECTING IS KING (OR QUEEN) FOR SELLING PRODUCTS, IDEAS, OR YOU

It seems like some people are better at sales than others. Is it just easier for them? Do they naturally have the gift of gab? Are they just more outgoing, wittier, pushier, knowledgeable? No. The key to success in sales is building trust, and it all starts with connection.

A person’s willingness and ability to reach out and connect with others makes the difference. When people feel connected and in sync, they relax, open up and listen more. When people are open and listening, relationships are easier to build. And when you have a relationship with people, they trust you. Then, when you ask them to buy something, they feel comfortable doing so.

Connection + relationship + trust = sales

When sharing common ground with someone, communication flows more easily, conversation enjoyment is higher, and problem-solving can be less contentious. While some individuals seem more at ease with getting to know new people, anyone can develop the skill of connecting with others. Here are some simple ways to strengthen interpersonal connections.

» Spend time with others. Nothing substitutes for face-to-face time with someone. Shared experiences provide opportunities to get to know someone and form bonds. Be patient; this takes time. It might take multiple encounters with someone to build authentic connection.

» Be genuinely interested and ask questions. The operative phrase here is to “be genuinely interested.” If you try to connect with someone when you don’t really care about them, they’ll sense it. Most people’s favorite subject is themselves, and when you take time to ask questions and show interest in their lives from a sincere point of curiosity, you send a message that they are important.

» Listen to find common ground. Really listen if you are going to ask questions. Ask additional questions for clarity. Notice anything you have in common with the other person so you can say, “Me, too!” You might say, “I grew up in the Midwest, too,” or “My kids are also in middle school.” When you find common ground, the feeling goes from “you and me” to “we.” That is powerful.

» Move from your world to theirs. If you want to make a connection with people, it is up to you to go where they are. If they are older and speak more slowly, then slow down and maybe sit down so you match pace with their world. If they speak quickly and loudly, then pick up the pace and mirror their speed and volume. They will feel that sense of connection because you are adapting to them.

These strategies take deliberate, intentional action on your part. It also takes practice and focused energy, so be patient with yourself. For those who are already natural at this, you might focus on how well you do at connecting when you’re tired or grumpy or under pressure. It takes time and effort, and anyone can do it.

When you take the time and energy to build relationships, it builds trust. When you build trust, people will want to buy from you and the sales will come naturally.

CONNECTING TO YOUR PERSONAL AND PROFESSIONAL LIKABILITY

Tara Mohr, author of the book, Playing Big, observes that women are judged on two very important things when they walk in the room: warmth and competence.

While warmth and friendless walk through the door first, faith in someone’s competence takes longer to determine. However, people are more forgiving of a break in competence than they are with a break in warmth.

Unfortunately, women who are not naturally warm or who have more introverted or direct styles are judged harshly in the workplace for their lack of likability. The trick is finding the balance between the two. Everyone can be more intentional about their display of warmth and competence; the challenge is to amp up both of them without going over the top with either.

Jeffrey Gitomer, author of Little Black Book of Connections, says that if you are friendly first, everything else will fall into place. People do business with people they like and trust. He also says that people who do something as simple as smiling are 100 times more attractive than those who don’t.

In addition to smiling, we convey warmth and friendliness through our bids for connection. According to Gitomer, these are “anything designed to promote or restore a feeling of connection and solidarity between two people.” These include things like making small talk, asking questions about someone’s life and showing physical signs of attention, such as nodding and leaning forward.

If you already consider yourself likable, then take note of what you are doing well, and keep it up—even (or especially) when you are tired, grumpy, or under pressure.

If you are not sure that you would appear to others as confident and interested, read the likability quiz (opposite) and pick one area you can focus on improving in the coming weeks. If it seems daunting, then simply smile more, and watch what happens.

CONNECTING TO COMMUNICATE

“The way we communicate with others, and with ourselves, ultimately determines the quality of our lives,” says life coach and author Tony Robbins. For something so critical, we are often lousy at it.

The struggle to communicate has many layers— poor listening habits, overreliance on technology, miscommunication and more. These inhibit our ability to communicate with each other.

Improving communication starts with a new way of thinking that forces each of us to be 100 percent

“

THE KEY TO SUCCESS IN SALES IS BUILDING TRUST, AND IT ALL STARTS WITH CONNECTION. ... WHEN YOU BUILD TRUST, PEOPLE WILL WANT TO BUY FROM YOU AND THE SALES WILL COME NATURALLY.

present and responsible for our 50 percent of every communication. When you take full responsibility for your part of the message, it keeps you in the driver’s seat as to whether the message is communicated successfully or not.

The value of your communication is the response you get. What does that mean? It means your communication is only as “valuable” as the receiver’s success in receiving it. In other words, it’s up to you to get the message through.

Many believe that when they send a message, it’s up to the person receiving the communication to “get it.” For example: “I sent the email. It’s not my fault she didn’t read it.” If we leave it all up to the receiver to get our message, we’ve given up our control of the message. Who does have control? It can’t be the receiver if she hasn’t seen it yet, so it’s no wonder the message gets dropped, and nothing gets communicated.

When we embrace the notion that the value of our communication is the response we get, then the success or failure of our message is up to us. That’s powerful!

Here’s how it works. Say you have an announcement to make to your staff. First, you want to craft your message, keeping in mind the individuals with whom you are communicating. Package your message so others can easily receive it. For example, you might just need to include the big picture for some people, but you may also need to include background details for others. Once you’ve communicated, then confirm that the message is received by asking, “Does that make sense?” or “Do you see what I mean?” If you notice confusion or lack of response, then you simply repackage the message in a way that the receiver can understand. In the process, you can say to yourself, Clearly, I did not say that well, so what can I change that will improve my communication?

Taking responsibility keeps you in control and challenges you to keep restating the message in new ways until you know that they get it. It’s worth it. If it is important enough for you to communicate, it is important enough to see that message all the way through.

You might also have to change the mode of communication you use. Here’s the rule: Never let the receiver have control of the tone (or emotions) of your message. If you text or email, you only have the words on the screen to tell the story. If the message is complex or highly emotional, or one that could easily be misconstrued, it’s critical that you deliver it by phone, or even better, face to face.

Are you likable?

Likability is so critical that leadership is also measured based on effectiveness in this area. Here are a few of the questions included on the Zenger Folkman likability index:

» How well do you balance “getting results” with concern for the needs of others?

» Are you trusted by all members of the group?

» Are you a role model who sets a good example for the group?

» Do you give honest feedback in a helpful way?

» Are you truly concerned about developing others?

» Are you trusted by others to use good judgement when meking decisions?

» Do you work hard to “walk the talk” and avoid saying one thing and doing another?

If you don’t like where you land on these queries, consider these ideas for becoming more likable:

» Project your confidence in a way that breeds confidence in others: stand tall, maintain eye contact, use a firm handshake, etc.

» Let go of your motives so you can focus first on connection.

» Show genuine interest in other people before asking them to take interest in you.

» The sooner you find something in common with the other person, the sooner barriers to communication will disappear.

» Be yourself—talk real, act real, be real—and you will find that others will do the same. People crave authenticity.

Since so much of our communication is nonverbal, observing the recipient’s voice or facial expression is key to determining if your message was received as you intended.

Another tip: ask that receivers let you know when they have received the message or request that an automatic “send/receive” notice be sent to you to confirm receipt of your email.

Remember that the value of your communication is up to you. Taking full responsibility for your share of the communication not only puts you in greater control of the message you want to communicate, but it also models for others to do the same.

Timing is Everything

How and why to schedule Facebook posts to maximize your efforts.

Including a Facebook business page in your marketing arsenal is a time-trusted technique, but striking a balance between timely and time-consuming is key to making the most out of Facebook.

A 2023 study reveals Facebook as the most popular social media globally, with 2.96 billion monthly active users. The average user is 25 to 34 years old and spends 33 minutes per day on their platform—great news for retailers who want to leverage this marketing tool.

by KIMBERLY CARLSON

Heidi Kaisand, owner of Hen & Chicks Studio in Conrad, Iowa, created a business Facebook page 12 years ago, and engagement has steadily increased. She’s amassed more than 10,000 followers with an average of reach of 18,000 views per post and has learned ways to make the most of her time online. Having a Facebook page is beneficial, she says, “because it’s free, and the minimal amount of effort and time required makes it totally worth it.”

POTENTIAL PITFALLS

Posting on Facebook can quickly become time-consuming. Like many Facebook users, Kaisand used to log on every day to create a post. Sometimes this went smoothly, and sometimes it was stressful. “Trying to keep track of what I posted on previous days, what was important only for today, and what I needed to wait to post was a bit mind-boggling,” she says. Kaisand posts on a variety of creative topics such as new merchandise, special events, classes, and retreats. Her site also hosts a private group, Hen & Chicks Studio Creative Community, with more than 3,000 members.

While daily posts are a good thing, logging in every day to post may not be the most efficient use of your time. Perhaps you log on to post your excitement about a new product, and before you know it an hour has passed and you are still online. And your shop and customers still need attention.

Or, maybe you don’t make it online because other work has consumed your time—and you miss the opportunity to tell your Facebook followers about a live, online sale event you are hosting tomorrow. When fewer customers than usual long on the next day, you wonder: Would sales have been better if you’d generated excitement about it on Facebook?

“My goal is to consistently be in front of my customers,” Kaisand says. The trick is to not spend too much time and effort on Facebook posts. While still getting your business in front of your customers as often as possible. That’s why savvy shop owners save time using Facebook’s feature for scheduling posts on business pages.

SET A SCHEDULE

Rather than posting as a daily chore, plan and write a week’s worth of posts in one session. You create the post, and Facebook will make it “live” whenever you want. This keeps you on track with a clear message and, best of all, consistently in front of your customers with the right message posted at the optimal time.

GET IT DONE

1. Set aside an hour or two at the beginning of your workweek to focus on Facebook postings.

2. Pull out your calendar of events and decide which things you’d like to post about and when they should go live.

3. Decide whether it will be a written post, a link to your website, an image, or any combination. Make sure you have all your images and links handy.

From the MetaBusiness Suite homepage, users can navigate to create content for multiple posts and schedule when each post will go live. “Insights” and other helpful tools for using business applications are linked beneath the “Home” icon on the left side of the page.

“ THE TRICK IS TO NOT SPEND TOO MUCH TIME AND EFFORT ON FACEBOOK POSTS. ... THAT’S WHY SAVVY SHOP OWNERS SAVE TIME USING FACEBOOK’S FEATURE FOR SCHEDULING POSTS ON BUSINESS PAGES.

4. Decide what time of day would be best for each of your posts. Does your Facebook reach extend better in the mornings, or are more of your customers online later in the day?

5. Once you have a cohesive list of posts, images, links, days and times, click in the “What have you been up to?” field, enter the information you want to share, and attach an image and/or paste your link for your first post.

6. Before you click “Post,” click on the clock icon found on the bottom left-hand side of the post window. From here you can choose the day and time you would like the post to appear. Repeat steps five and six until you have a week’s worth of posts.

Important Tips

» Read your “Insights” to discover the patterns of your audience. Facebook keeps track of your audience members’ demographics, their most active times of day, and the number of comments and “seen” posts.” Timing your scheduled posts to coincide with when most of your audience is online will boost your visibility.

» If your Facebook account is connected to your Twitter account, your scheduled posts may not automatically go out on Twitter. Test your results.

» While apps are available that help you manage all your social media accounts collectively, Facebook may filter out posts generated through these third parties.

You can always edit your scheduled posts or change their time and date. You can also delete them. The Facebook Meta Suite has many tools for making scheduling easy.

RHYTHM AND RESULTS

Find a rhythm that works for you. Kaisand writes a week’s worth of postings on Sunday afternoons. Then she does her best to hop on Facebook daily around lunchtime and again at the end of her day to check for comments or queries that need attention. Making time for this is important to take advantage of Facebook’s interactive feature. If you want people to engage with your posts, you must be responsive to their comments.

“Facebook is one of my regular advertising tools. I like knowing that no matter how crazy my days get, I have something posted every day,” Kaisand said.

Another tip: Plan ahead to generate anticipation for classes or holiday festivities.

When you have an important event coming up, schedule recurring posts to remind your customers of the big day. In addition, you can use Facebook’s event feature to invite followers to your shop’s upcoming attraction. Include your address, time and date of the event, and be sure to keep it “public” so your followers can invite and share the event with others.

The only cost for marketing on Facebook is your time, and savvy business owners have learned how to generate timely posts without wasting valuable time.

Customer Appreciation

Ten ways to make your customers feel valued—and keep them coming back.

by KAREN CHILDRESS

Take off your business owner hat for a moment and put on the one you wear as a customer— perhaps at the local hardware store, hair salon, or coffee shop. How appreciated do you feel when you visit these establishments? Chances are you spend your time and money in businesses where you feel like you matter, where the proprietor and staff put your needs and wants ahead of their own, and where you are treated with respect as an individual.

Now think for a moment about how customers most likely feel when they visit your shop. Are you and your staff doing everything possible to demonstrate that they are appreciated? Here are ten ways to increase the odds that your customers feel (and are) genuinely valued.

PRACTICE REMEMBERING NAMES.

1

Cheerfully greet every customer as soon as they walk through the door, and in the case of regular (and even semi-regular) customers, greet them by name. It may not be easy to remember names, but making it a priority works wonders when it comes to showing people they are appreciated. After a customer leaves the shop, chat with another staff member for a moment about the customer (in a positive way, of course!) and their crafting interests to associate details with names. Where do they work? What crafts do they enjoy? What sorts of products interest them? Talking about information like this creates stories connected to names, helping you remember them next time they come in.

GET TO KNOW PEOPLE.

2

A business thrives on repeat customers. This is especially true for retailers catering to creative customers. Your best customers may come in every week— or even several times each week. They come in to shop, for classes, or just to visit for a few minutes when they are downtown. Given this level of ongoing contact, many customers will become friends—with you and with one another. You’ll know, for example, what types and colors of fabric or yarn they prefer, what activities their schoolaged children enjoy, the type of handwork they carry with them for opportune moments, where grown children might live, what they do for fun in addition to creative pursuits, and a variety of other tidbits about their lives. Don’t pry and do not gossip—but if a customer wants to chat, be a good listener. Ask questions. Build relationships. Make your shop a safe haven where customers know you value their friendship in addition to their business.

SEEK OUT OPINIONS.

3

Everyone loves to be thought of as an expert. Listen to your customers—they will tell you what they want. When you return from a trade show or market, host an event to share what you saw and invite customers to provide input on what they’d like to see in your shop. Conduct an occasional survey of your clientele to gather their ideas about what kinds of classes you should offer next year, what types of products and notions they buy most often, and how you are doing in terms of customer service. Ask them to share what they think you do well and suggest ways you might improve. Consider conducting focus groups as part of some events. You could pass around a new book or pattern and ask whether there

is any interest in a class based on it. Or, do a demo of a new tool and observe participants’ reactions to see if it’s something you want to keep in stock. And remember: if you ask for ideas and feedback, make sure to acknowledge customer input and use their ideas whenever possible. Customers will know they are appreciated when they see you take action with their suggestions.

4 GIVE STUFF AWAY.

Everyone loves getting something at no additional cost, and you’re in a position to offer spontaneous tokens of appreciation to your customers. Giving stuff away will have little impact on your bottom line (except perhaps a positive impact in the long run). A few ideas:

» Create regular, themed giveaways. For example, cut fat-eighths of fabric left over after packaging kits or from the ends of bolts, tie them with ribbon and place in an attractive container by your cash register. On the 8th of each month, let customers who make a purchase chose one. Or, anyone who spends $8 or more any day in August, the 8th month, gets a free fight-eighth.

» On product demo days, give a small gift to the attendee whose birthday is closest to that day.

» Save product samples from company reps for giveaways.

» Gift with purchase: Offer sample skeins of yarn with a mug mat pattern to introduce customers to new colors or styles.

ASK TO SEE CUSTOMERS’ FINISHED PROJECTS.

5

When someone is choosing supplies for a new project, ask them to bring it in when it’s finished. Many will come back with “show and tell,” which is exciting for both the maker and the retailer. This practice sends the message that you are genuinely interested in what your customers are creating not just in selling products.

REWARD FREQUENT SHOPPERS.

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Opinions vary about whether or not to offer a frequent shopper program, and figuring out what works for your shop might take research. Popular options include:

» Point systems designate a goal for purchases and when it is reached, customers get a store credit.

» Reusable bag promotions encourage customers earn or purchase a shopping bag sporting your logo that can be used for special discounts or events.

» Punch cards reward customers for ongoing purchases of designated items such as spools of thread, skeins of yarn or floss, or yards of fabric, offering one free after a goal is achieved.

DON’T NICKEL AND DIME PEOPLE.

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Abundance begets abundance. There is no need to squeeze every last penny out of customers in order to be financially successful. For example, invite customers to bring their projects and spend time working in your classroom or gathering space on days the space is not in use. Could you impose a fee for this service? Yes, but making the space available without cost could be great for business. Keeping classroom and gathering spaces in use every day fills a shop with

creative energy that’s contagious. In addition, visiting makers are also shoppers.

DON’T TAKE UNFAIR ADVANTAGE.

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You are in business to make money and you should most certainly price your merchandise so that you turn a profit. That said, if you try to take advantage of people, they will figure it out. While it might be tempting to raise prices if you are the only shop of your kind in the area, but that backfires if shoppers decide to buy online rather than support a local business with inflated prices.

KEEP YOUR INVENTORY FRESH.

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Some shops advertise “Over 4,000 bolts of fabric!” But if you visit you might find merchandise that is four or five years old. If you think customers don’t notice when shops keep old inventory so that the shelves look full, think again. Appreciate and respect your customers by giving them credit for paying attention. They want new, fresh, interesting fabric to choose from. If a bolt has been in your shop for more than a year, it’s time for the clearance shelf.

TELL CUSTOMERS YOU APPRECIATE THEM. This should go without saying, but here it is anyway: always, always, always say, “Thank you for coming in,” “Thank you for shopping with us,” or “We appreciate your business,” when a customer (or browser) is getting ready to leave your store. It takes two seconds and leaves people with a positive feeling about your shop. If your staff isn’t already in the habit of using these important phrases, make it a new policy, and make it effective today.

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IF YOU ASK FOR IDEAS AND FEEDBACK, MAKE SURE TO ACKNOWLEDGE CUSTOMER INPUT AND USE THEIR IDEAS WHENEVER POSSIBLE. CUSTOMERS WILL KNOW THEY ARE APPRECIATED WHEN THEY SEE YOU TAKE ACTION WITH THEIR SUGGESTIONS. ”

Got to Have It

Plot a strategy for small item impulse purchases

Pull together powerful impulse areas near your cash register and cutting tables stocked with items from your inventory. Many small, low-priced items avoid notice when scattered throughout the store. In fact, if customers are seeking particular items, they may tune out smaller presentations. The key is to position small goods in areas customers may linger.

Shoppers’ walking pace often decreases as they head to the cash register, as if their subconscious is deliberating whether they are ready to complete the transaction and end the shopping trip. Take advantage of this slower speed with interesting items on display.

by ANNA WOODWARD

And when lines of shoppers jam the checkout or cutting area, avoid customers being annoyed by creating powerful impulse areas that will pass the time plus keep them shopping.

Follow these steps when staging impulse areas:

Keep it clean. Don’t try to say too much. It is better to have a few, meaningful product presentations in lieu of a sprinkle of lots of several different items. If your store has a large variety of good impulse items, consider rotating the products you display. Simplify your selection by leaving some in the back room. More choices don’t always translate into increased sales revenue. Contrary to the traditional rules of retail, a couple of options presented in a compelling manner are more likely to turn faster than a variety of items.

LEFT Encourage class sign-ups with project samples. ABOVE Showcase everything your store does to inspire your customers.

Consider your price points. A price-conscious customer may carefully tally up her choices throughout the entire shopping experience, being careful not to overspend. But once she reaches the cash wrap, she might throw caution to the wind. How many times have you stood in line and thought, “Oh, what is $10 more, really?” This thought is the definition of impulse buying and the store’s opportunity to add on to sales. Small items under $15 typically make the best impulse items. Make sure the presentation is powerful, quantities are strong, and fixture choices are interesting or unexpected.

Present quick and easy projects. A project can retail above the suggested price point if you offer an option that will not require a lot of time. A customer is more willing to justify the additional cost if she can imagine a specific date or time she could complete an extra project. For example, even though fat quarter bundles are three times higher than the typical impulse item, a quilter can quickly envision it being used in a fat-quarter-friendly project or as a stash builder. The chalkboard sign, right, helps plant that seed in the customer’s mind. The goal is to inspire the customer to take on an additional project.

Position products with convenience in mind. We’ve all left a store forgetting one crucial item. Help your customers by placing a double exposure of a must-have notion on the counter. It serves as a good reminder to those who came in the store for that item, plus it spurs others to question if they have a necessary color of thread or floss or if they have a good supply of hand or machine needles in the sizes and styles they need. More often than not, shoppers will want to ensure that they don’t leave the store regretful. Some might even thank you for the reminder!

Promote classes and services. Areas in the store that naturally force customers to wait are great for longer messages. Maximize this time to visually tell customers about your upcoming classes or retreat center packages through sample projects and short, creative signage. Brevity in text is key; keep it as visual as possible. Customers may not stand there to read a brochure, but they could take it home for further information. Don’t limit your sales to tangible goods; experiential offerings can be just as profitable.

These tips will help you maximize your square footage to achieve the highest sales revenue, not the most capacity or best efficiency.

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MORE CHOICES DON’T ALWAYS TRANSLATE INTO INCREASED SALES REVENUE. CONTRARY TO THE TRADITIONAL RULES OF RETAIL, A COUPLE OF OPTIONS PRESENTED IN A COMPELLING MANNER ARE MORE LIKELY TO TURN FASTER THAN A VARIETY OF ITEMS.

ABOVE Display fat quarter bundles along with quick and easy project ideas.

Cross-Marketing

Discover new audiences and revenue streams

by JO PACKHAM

One truism you can believe with equal certainty in life and in business: Nothing stays the same forever.

Growth happens when you embrace change, and entrepreneurs are always looking for ways to think ahead, plan ahead, and act now to be at the front of the line when “the same” begins to change. You may either redesign yourself or find new audiences and revenue streams so your business can succeed.

Redesigning yourself takes a considerable amount of forethought, time, energy, and money. A much easier way to continually be at the forefront of change is not to redesign yourself but to introduce yourself, your services, your product to markets who currently do not know you but should because you offer something they need.

You can accomplish this through cross-marketing— breaking into another existing category and broadening your popular appeal. There are commonsense guidelines to follow that will make your new crossover venture a little easier and not so expensive.

For example, those in the quilting, crafting, and sewing industries could actively cross-market to foodies, party planners, and event hosts to tap an international market that is expanding, profitable and diverse.

Eating habits in the United States are under pressure to shift from fast and processed food to the ancient practice of garden to table, and the markets pushing that change continue to grow. Find ways to link yourself to that growth. For example, food growers and party planners can buy your fabrics for their displays at farmer’s markets, to accent their restaurants, and to decorate their large events and small family parties. Show them that they do not have to be an expert sewist or spend countless hours out of the kitchen or their gardens to sew wonderful tablecloths, napkins, wine or bread bags, and so much more for their events, along with hot pads, towels, aprons and grocery bags for their kitchen needs.

Forward-thinking manufacturers in the food market have done the initial homework, introductions and legwork. Stores such as Williams-Sonoma, Anthropologie, and Crate & Barrel sell hundreds of styles of aprons and table linens at premium prices.

The retail fabric industry can teach this inspired, passionate group of foodies how to make one or multiples of what they need both easily and inexpensively. Tablecloths can have torn edges or minimal straightstitch hems. Aprons can be cut from one piece of fabric with ribbon ties and made in less than an hour. Personal touches, company logos, family names and celebration sentiments all can be added individually with ease and a small budget.

If you hear foodies say, “My grandmother used to sew, but I would rather be cooking or gardening to grow what my family will prepare for dinner,” show them in the most basic of approaches that a tablecloth in a bold color makes an outdoor barbeque taste even better, or new holiday dinner napkins each year can become a tradition, a record of passing time and styles.

What you already know how to do is easily recognizable and well known. You bring to the table an easier and more inexpensive way to achieve both existing and new customers’ ultimate goal: creating moments in every day that are centered around a good meal, which goes beyond the food that is served.

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A WAY TO CONTINUALLY BE AT THE FOREFRONT OF CHANGE IS NOT TO REDESIGN YOURSELF BUT TO INTRODUCE YOURSELF, YOUR SERVICES, YOUR PRODUCT TO MARKETS WHO CURRENTLY DO NOT KNOW YOU BUT SHOULD BECAUSE YOU OFFER SOMETHING THEY NEED.

This is just one example of the growth that can come through satisfying needs in another established market. Consider other trends and ask yourself how your shop can meet these needs:

» Slow stitching. This modern name for ancient crafts emphasizes gentle making, mending, and stitching. New generations of knitters, embroiderers, and handsewists are embracing the journey of making, often in community with others.

Tips for evaluating a new cross-marketing venture

1. Find a successful market that exists in another category. You want to move into their market, not create a new one.

2. Become an expert in that market. Visit trade shows, frequent retail outlets each season and holiday of the year, and buy the products.

3. Understand the designers, manufacturers, retailers and consumers.

4. Analyze the current and possible future trends in the industry.

5. Master the pricing structure: costs of manufacturing, shipping, and markups, being aware of industry obstacles and successes.

6. Create a need or desire for your product or service in that industry.

7. Introduce yourself to a new segment of consumers who are always looking for what is new so that they can be the first and considered a trendsetter, visionary, and leader.

» Sustainability. Values-driven shoppers want to sew and knit their own clothes as they turn from inexpensive and often low-quality fast fashion to help minimize environmental impacts through their buying decisions. They want styles and materials that will last and are willing to pay for quality. Appeal to new generations of makers by showing your customers how to create timeless looks with the products you carry.

» Buy Local. Consider carrying items produced by local makers to show your support for other independent businesses in your area, then curate product stories that sell within your displays. Handmade pottery serving bowls and candles, for example, could enhance a display of table linens and quilted runners, appealing to a values-driven home-grown, homecooked, home-made aesthetic. Locally sourced jewelry and accessories shown with hand-knit apparel demonstrate the opportunity to define your own style. According to retail expert Georganne Bender, “Stories organically sell additional product because they silently suggest shoppers choose more than one thing. Shoppers like product stories because it helps them visualize how the items will look in their homes; shop owners like them because the extra sales add to the bottom line.” Your story also emphasizes the interconnected nature of small businesses and the impact buying local has on the economy within your community.

I t’s n o t th e ORIGI N A L i f it do e sn ’ t s a y

OL FA !

MATS

• CM-9X12-01-YEL

• RM-MG-01-GRY

For more than 65 years, OLFA has been the brand behind countless creations from imaginative craf ters all over the world. Whether the projec t is large or small, simple or complex, OLFA has the long-lasting cutting tools and accessories to get the job done.

For one-of-a-kind creations, reach for the original. Reach for OLFA.

www.olfa.com

9x12 Yellow Cutting Mat, can be used with rotary or fixed knives

• RM-HG-01-YEL

6x18 Yellow Rotary Mat

24x36 Gray Rotary Mat

• RM-CG-01-GRY

12x18 Gray Rotary Mat