Mine Your Own Business

Store Traffic Part 3

The post for today on increasing store traffic is from an article about a way to not only get more customers into your store (as the previous two postings have been), but is literally a way to make customers walk further in your store. The idea starts with creating a bargain bin in your store, but the really interesting part of the idea is to make sure you locate the bargain bin at the back of your store so people have to walk through all your high-margin items and sale items to get to the bargain bin.

So how does the bargain bin itself work? The article describes how it could be slow selling inventory or popular utility items, but the bargain bin inventory  must be full and fresh. The other important point is that you promote your bargain bin in all your promotions and advertising. If you keep your bargain bin full of well priced items that change on a regular basis, you'll not only build traffic through your store, but into your store as well. The last nice thing about the bargain bin is that it can also help reduce overstock or get rid or some items that are difficult to move at their normal price.

A Really Useful Site

Every so often we find something really useful to pass along to you and today's one of those days.  The site is called "Biz Tool Kit", a service of the James J. Hill Reference Library.  According to their web site, "BizToolkit puts the best online information resources at your fingertips including downloadable business plans, HR forms, financial calculators, industry research reports, plus expert Live Help."

There is a "Pro" version of the site ($7.95 per month) but the free site has more than enough information to keep you busy for a long time.

The downloadable forms section and the Sales and Business Development Resources section alone make this site a real goldmine for any small business.

Sales Tools by JustSell.com is especially interesting.  The sales download "201 Motivators" is a listing of thoughts and actions, people, books, movies, movie monologues, and audio with motivational themes.  For example, Al Pacino's pre-game talk to his football team from the movie "Any Given Sunday" is a classic.  Check it out on YouTube.  [Warning:  Explicit language including one use of the "F" word]

There's really just too much on this site to even scratch the surface here.  This is one site you really should bookmark and come back to again and again.  We've added it to "Useful Links".  Check it out and let us know what you think.

Are You a "New Millenium Merchant"?

In previous posts, we've mentioned Bob Negen.  Bob and his wife Susan are what you might call retailing "gurus".  They have extensive experience in retailing, both at the chain level and at the "your-own-money-on-the-line", entrepreneurial, retail level.  Many of you have seen and heard Bob's presentations at Baby Lock Tech and other industry events.

Bob and Susan have recently published a book called Marketing Your Retail Store in the Internet Age.

To quote from their web site, "This is not a rah-rah motivational book filled with corny cliches, worn out platitudes, or abstract theory coming from pedantic professors who have never spent a day on the floor of a retail store. This book was developed by retailers, for retailers."

I wouldn't normally recommend a book before I've read it, but I've read enough of it to know that at less than $20.00, it's a great investment.   I'm telling you about it now for two reasons.  One, it would make a great gift for anyone who's in the retail business and you still have time to get it before Christmas.  Two, Bob and Susan are offering a bonus to anyone who orders the book before December 10, including a full year of WhizBang tips and several downloadable audio files.  For more information check out their web site.  Or, you can read two sample chapters here. 

Watch MYOB for a review of the book sometime next week.
 

Point of Sale Systems

Chances are that when you voted yesterday, you might have had your first experience with electronic voting. Touch-screen voting devices are replacing the old punch card system in many areas. The system wasn’t without its problems, but since many of the machines were being used for the first time, it doesn’t look like the problems were all that bad. There’s no question that the days of the paper ballot are numbered.

In retail, the hand-written receipt is also nearing extinction. One of the things that let the big boxes get big is the electronic point-of-sale system. I imagine that Sam Walton probably used a receipt pad and a cigar box and kept the inventory in his head in his original five and ten cent store in Bentonville, but those days are long gone.

 The good news is that the type of systems that used to cost hundreds of thousands of dollars are available today to even the smallest business. Systems are available from big names like Microsoft and Intuit, and from smaller companies, many who specialize in software for particular industries.

If you haven’t taken the plunge yet, here are some suggestions from cnet.com.

Think beyond the cash register. While an off-the-shelf package may save you money up front, you really want a system that will help you run every aspect of your business including sales, inventory, payroll, and customer relationship management.

 Remote access may help. You don’t want everything tied to a single terminal.

 Make sure your system is flexible and expandable. Using your laptop as an additional check-out terminal can keep you from losing sales during busy periods.

 Decide on wireless handheld or a touch screen. There are a variety of data entry options. Your choice may vary depending on how you do business.

 Pay attention to support. When you have your entire business computerized, the computer had better work!

 Look for detailed reporting. What are your needs? Can a package system do what you need? Ask a lot of questions and don’t buy anything until you’re satisfied with the answers.

 The first point is probably the most important. If you’re going to spend the money and take the time to set up an electronic system, (and you will spend a lot of time getting it set up) you’re going to want it to do everything for you that it can. A system that records sales but doesn’t adjust your inventory isn’t going to save you much time. An ideal system will scan the item, enter the sale, record the customer information, and print a receipt.

Then it should update your inventory records, record serial number information for warranty, and let you know when it’s time to reorder the item. It should talk to your accounting software, making necessary changes automatically. If you pay commission, those records should also be updated by your system. Full payroll functionality is an added plus.

 Finally, your system should give you the information you need in reports that make sense for your business. For example, Microsoft has two point-of-sale packages, one cleverly called Microsoft Point of Sale and the other called Microsoft Retail Management System. Where Point of Sale offers a set of standard reports, Retail Management System allows you to design customized reports. MRMS has other features that you may find important.

 In addition to the two Microsoft packages, Intuit’s QuickBooks is also very popular. An advantage of either the Microsoft or QuickBooks packages is that they can be purchased from a local retailer who can provide the necessary set-up assistance and support. If you also need the hardware to build your system, Intuit has partnered with Dell for a complete package. Microsoft has a similar partnership with H-P. Local vendors usually offer packages of hardware and software which can be set up to suit your needs.

 So, what’s it going to cost? MS Point of Sale and QuickBooks alone have a street price in the $500.00 area for just the software. MS Retail Management System costs about $300.00-$400.00 more. The Microsoft/H-P software/hardware package starts at around $2,200. A Dell/QuickBooks bundle is slightly higher. A vendor here in St. Louis offers a complete hardware/software package with  Microsoft RMS, on-line training, completely loaded with Tacony and Baby Lock catalogs for about $5,000. Obviously, your price will vary depending on your needs.

One thing is certain, while some retailers may wish they’d gone with a better package, you seldom hear anyone say that they’re sorry they gave up the pad and the cigar box.