Most people are predicting business in 2008 will be about the same as 2007, flat at best. What are you doing (or going to do) this year to improve your business?
-- Kids Today, 1/1/2008 12:00:00 AM
Michael Schaul, Lone Star Baby & Kids, Frisco, Texas
To survive in a flat sales market one must concentrate on the bottom line and try to maintain and grow profits. We are already looking at ways to reduce overall expenses. Using the Internet and e-mail more for advertising is an inexpensive approach to marketing. Also, we will be bringing in more direct furniture containers, which will reduce our freight expenses and help boost gross margins. Lastly, if traffic and sales are not expected to grow we will encourage our sales staff to work on more add-on sales with existing customers.
Gary Wiggs, W.S. Badcock, Mulberry, Fla.
As business still is in a stall I have tried to make promotional items more appealing. I have taken several promotional youth groups and cut retails. This is the time for the retailer to make as big of an impact on their customers as possible. Advertising is expensive so we felt if were going to pay for the expensive advertising, then let's make sure our customers saw a big savings. We took some hits on profits. It may have stung but sales increased. Going into the New Year our strategy is to be flexible but focused. We may have to do even deeper discounts but the goal is to keep the consumer coming into our stores. Retail is not a build it and they will come business. We have to give consumers a reason to keep coming back.
Phil Wrzesinski, Toy House, Jackson, Mich.
The biggest thing we will be doing is continuing to brand ourselves in the eyes of our customers. I have taken two classes from Roy H. Williams, a.k.a. Wizard of Ads, at his Wizard Academy in Texas and am applying his techniques for reaching out to customers in a way that creates a strong emotional bond. Our brand is “We're here to make you smile” and we're working towards making sure every aspect of our company (Web site, music, colors, brochures, registry, parking lot, services, interactions with customers), is designed to elicit a smile. As we improve the quality and consistency of our in-store performance, the rest takes care of itself.
The biggest change within this branding campaign will be the updates to our Web site including a new layout, new information and the eventual addition of an online store.
Since starting this campaign in late 2005 we have seen strong increases in sales and profits across the board (in spite of the weak Michigan economy) and expect those to continue through 2008.
Ali Wing, giggle, New York
We're maintaining our focus on differentiated products and value-added services. These will continue to be critically important in better specialty — especially in a tougher economy.
Doug Tritton, Stork Land, Wichita Falls, Texas
In 29 years I have never forecasted a “flat” year. Retailers can always come up with imaginative reasons why sales didn't meet expectations, so why would you want to start the year not expecting to do better? Sure, certain segments of the economy are in down times, but as long as unemployment stays level, the customers are out there. So go get 'em.
Sandy Buttrill, Kidspace, Amarillo, Texas
We have been blessed with good business for 2007 and are expecting and hoping that 2008 will be equal and, of course, even better. We set goals and chart our progress daily, weekly, monthly and annually. We consistently strive to improve the “wow” factor of our stores, improve customer service and improve every area of our business. We know our business is product driven so we strive to improve our product offerings constantly. The past few years we've discovered our in-stock availability has had the most positive impact on our business. Buying containers and being able to fill orders quickly has resulted in healthy sales increases. Some of our key vendors experienced tremendous growing pains in 2007 and at times, presented us with seemingly overwhelming problems. We are optimistic that many of their problems have been resolved and we anticipate a good year for 2008!
Doug Tritton Stork Land
Ali Wing giggle
Sandy Buttrill Kidspace
Michael Schaul Lone Star Baby & Kids
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