Category Archives: AmericasMart Atlanta

Where Is The Script For Your Business?

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by Mike Gomez, President, Allegro ConsultingMike Gomez, Allegro Consulting. Speaker at July 2013 The Atlanta International Gift & Home Furnishings Market

I spoke to a large gathering of business owners and asked whether there was an inherent conflict between planning for growth and the more free spirited entrepreneurial-like approach – where  you stay agile and react to opportunities as they arise (i.e., operate without a plan, make decisions on the fly, etc.). This was a great question as it addresses a big misconception about planning: that it somehow handcuffs a business.

To answer the question I asked the audience to imagine that they accidentally walked onto the set of a movie production. Then imagine grabbing a megaphone from the ground and asking everyone on the set to freeze for a moment and to please hold up their script for the day. In this case, none of us would be too surprised to see that the cameraman, the director, the soundman, the actors, and even the caterers will all be able to produce a script for that specific day’s shoot. The cameraman will know which cameras he has to have ready and where they should be staged. Because of the script, the actors will know the lines and scenes he is expected to perform. And the script will reveal to the caterers how many meals they have to prepare for and where they will be served that day. You see, a movie will never come together without a good script.

I then asked the audience to imagine taking that same megaphone into their place of business ask your mangers and employees to produce their script for the day. How will they react to this request? I suspect most will give you that “deer in the headlights” look. There is not a producer in the world or investor that would pursue a movie production without a well written script. The idea is simply preposterous. Yet most of us will run our businesses without one.

The script for your company is a plan – a simple, concise document which aligns your team around a common objective or end-state that is consistent with your vision and market conditions. And, like the script for a movie, there are portions written specifically for specialized roles. Sales, operations, finance, human resources, marketing should each have a script which defines the specific tasks they must complete (and when) to keep your “movie” progressing.

The script governing the day-to-day operations are process documents which describe how things are done in your store/business.   You will find that businesses that grow consistently year after year operate to a well vetted long-term (3 year) and short-term (1 year) plan. It is the plan they refer to BEFORE making a hiring decision, investing in capital equipment, or spending precious cash on marketing campaigns and website improvements. It is also the plan that will guide them when building and executing a sales or marketing strategy.

These same growing companies also recognize that the process they use day-to-day impacts competitiveness. By documenting these critical processes they eliminate the risk of being dependent on any one person’s memory or contribution. It also gives them a foundation from which to explore innovative changes that will improve efficiency and thus increase profitability.

Now I hope I have convinced you that, like a movie, your business too requires scripting. Can you imagine actors, cameramen, and set designers coming to a specific location and then left to their own to interpret the verbal instructions of the producer’s vision for a movie. It would be chaotic at best with numerous costly ventures down one frustrating dead-end after another. Entrepreneurial or not, is this the atmosphere for a growing thriving business? No.

So, where is the script for your business? It is worthwhile to note that since 1980 more than 70 percent of the winners of the Academy Award for best picture also received the Oscar for best screenplay – the script.

Mike Gomez presents “10 Essential Elements for Long-Term Sustained Growth” as part of The Education Center at the Atlanta International Gift & Home Furnishings Market on Thursday, July 11 at 9:30 a.m. Visit AmericasMart.com for a complete list of seminars and events.

Mike Gomez is president of Allegro Consulting, a growth specialty firm with a singular purpose of helping businesses grow. Allegro helps owners with marketing strategy, sales, and operations. They also provide leadership and business coaching. For more information, visit http://allegroconsultant.com.

Oops! I Have No Money to Pay the Bills!

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ming wang 257By T.J. Reid

For now, we aren’t going to talk about Open-to-Buy and overstocked or poor season sales. Today let’s tackle EXPENSES!

Remember when you deduct the cost of merchandise from the sales figures, whatever remains is what you have left to pay all those other bills. (No running to the bank for borrowing!) The only way to successfully operate is to make sure your expenses do not exceed your gross margin percentage (what is left after paying vendors).

Rent is probably your most important cost, perhaps even over employee salaries. Once you sign a lease, this amount cannot be altered. Pay close attention to the amount of the lease, as well as the content and expiration. Know what you are responsible for, and for how long. You should only spend 10 percent or less of your monthly sales for rent.

Salaries and employee costs should run around 15-16 percent of your sales. Many retailers try to cut that down by having fewer or untrained people on staff. Do not scrimp on this and leave your store unmanned when needed. You may lose much more than an hour’s payroll on just one shoplifting episode. Many retailers offset higher salaries with better in-store relationships, rewards, environments, and employee discounts.

Utilities can usually not be changed much, except by making sure the store is properly insulated, the doors not left open, etc. Phone services have so many variations today, make it easy. Chose one for phone and Internet.

Advertising – my favorite – is a place you should NOT try to cut. If you are a new store, you probably need to spend upwards of 7-8 percent to get your name out there and your business introduced to the public. If it were my established specialty store I would try to spend 5-6 percent to continue my good business and customer rate. Please do not go to 3 percent or less. You are not telling anybody anything!

Find fun ways to communicate with, and delight your customers. Parties, giveaways, or even just “a martini with markdowns” event can create excitement. Partner with other merchants, restaurants, cleaners, spas, diet centers – anyone who also serves your target customer. Together you will save and succeed.

Postage rates continue to rise so pay close attention to those costs, but do not eliminate direct mail. Use on-line mail services and bill paying. Perhaps direct mail a little less often, but most of your customers are not solely dependent on emails and Facebook. And they are deleting some before even reading. A postcard is in their hand and on their refrigerator! Most Important: do not, I repeat, do not email a birthday card. The entire purpose of this process is to be warm, caring and friendly. Email is not!

Property tax rate, insurance, etc. is just a fact of life, but you can control your bookkeeping expenses and legal fees by doing a lot of this in-house or researching to find good, but inexpensive professionals. Maybe that cute, young C.P.A. might want to trade-out for clothes or at least, spend her fee with you.

Market expenses are also in your control. Use free room offers, discount travel, and of course, always eat in the showrooms. In Atlanta, Sandy and Bob Smith have a menu to die for, including her homemade ice cream; Tim Philbin’s wife cooks a fabulous meal; Ambrosia has lots and lots of goodies, and BF&J are known for fabulous barbecue and carrot cake. Find the perfect place for your taste. There are lots of choices for clothing AND for lunch!

Also there are frequent airfare sales. (I already have my tickets for two markets ahead!) Plus some folks love to drive to market. It gives you the opportunity to relax and contemplate seasons past and to come. And having a roommate is not a crime. Not only will you save money, you will network and probably improve your business by sharing with your mate!

T.J. Reid is editor of FASHION ADVANTAGE, a magazine for small store owners. She presents a workshop every Saturday at 10 a.m. during Atlanta Apparel shows. For more information visit www.tjreid.com.

 

On Display in April

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With so many incredible lines at the April 2013 Atlanta Apparel Market, it can tough for an exhibitor to stand out or for a buyer to see everything. Creative displays help both – just as innovation and imagination can help showcase merchandise in store.

One way multiple showrooms and temps made sure to stand out was using vintage props. Whether product is antique, reproduction, retro or contemporary, the alignment and juxtaposition makes people stop and take notice – just what you want from a display. The whole idea is to make someone notice enough to take a second look at the product.

Many apparel retailers extend their sales opportunities by selling props and display pieces. You never know when that antique icebox you’re using to show off jewelry or the reclaimed wood pallet used for a hanging display of the latest boho chic tops is exactly what a customer has been searching for. Turning the pieces used for displays as often as the merchandise displayed makes customers always see a store as fresh and different. If you don’t want to invest in buying furniture pieces, consider partnering with another local business to cross-promote. No matter where you get the pieces, think outside the box – unless you’re thinking about an antique box camera and photos of customers wearing outfits from your store, which would be a great idea.

Here’s a peek at a few of the fun props well used during April Market:

La Belle VieTreska Belvedere Society  Belvedere SocietyJP & Mattie

Textile Terms You Should Know

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Natalie Scott of Outdura held a great presentation yesterday on outdoor fabrics. Here are a  few textile terms Scott discussed.

  • Weave: The method or process of interlacing two yarns so that they cross each other at right angles to produce woven fabric.
  • Warp: The set of yarn elements running lengthwise on a loom and in woven fabrics on the bolt. It is in place before the filling yarns are woven over and under it. Individual warp yarns are called ends.
  • Fill: The set of yarn elements in a woven fabric that run horizontally or from selvage to selvage, crossing and interlacing with the warp. Individual filling yarns are called picks.
  • Stria: A stripe that changes subtly in color and/or texture throughout the fabric usually creating an all-over effect. Light/Medium/Dark strands are rotated to make stria patterns.
  • Plain Weave: One of three basic weaves, in which a filling yarn crosses over a warp yarn and the under the next warp yarn. Each row alternates the “over” and “under” warp yarns.
  • Picks: Individual yarns that run horizontally to form the filling.
  • Pick Count: Number of picks per inch in a fabric.
  • SDA: Solution Dyed Acrylic—Acrylic fiber in which the coloring pigment is introduced into the spinning solution.
  • Jacquard: A system of weaving which, because of a pattern making mechanism of great versatility, permits the production of complicated patterns and weaves.
  • Dobby: A system of weaving, on a dobby loom, consisting of a simple structure.
  • DWR: Durable Water Resistance- special finish applied after weaving on Outdura fabrics which enhance water resistant and stain resistant features.
  • Selvage: A narrow woven edge portion of fabric parallel to the warp.
  • Width: Term used to determine measurement of finished fabric; the distance from selvage to selvage (47”, 54”, 60”, 99”, 108”).
  • Up the Roll: Term for the direction of a fabric- between selvage, the pattern goes up the goods.
  • Railroaded: Term for the direction of a fabric- between selvage, the pattern goes across the goods.

Outdura2

Marketing made Manageable

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AMCPatricia Norins, publisher and CEO of Pinnacle Publishing Group, Inc., prefers employing marketing tactics that maintain visibility within the marketplace and do so on a modest budget. She stresses the importance of incorporating marketing into your business plan and presented 50 Low-Cost Marketing Ideas to Boost Your Bottom Line at the January Market. Having and implementing a smart marketing plan results in increased sales because it keeps your business “top of mind” while building strong relationships with customers to create a larger sense of community.

Since marketing as a whole can be somewhat abstract and overwhelming, Patricia recommends business owners write a brief marketing plan and spend more energy on implementation. Her formula for a six-sentence plan is as follows

  • 1st sentence: State your purpose (To motivate people to visit and buy from my store and website).
  • 2nd sentence: Emphasize your primary competitive advantage (I carry the widest selection of eco-friendly gifts).
  • 3rd sentence: Describe your target audience (men, women and children ages 2-100).
  • 4th sentence: List the marketing tools you’ll use to implement your plan.
  • 5th sentence: Identify your niche and what you really stand for (quality gifts from around the world).
  • 6th sentence: Provide your marketing budget. Patricia recommends this be 10% of your store’s budget.

Patricia suggests incorporating some of the following tools into your marketing strategy. List them in your 4th sentence.

  • Patricia notes that 80% of sales usually come from the top 30% of buyers. Motivate your current customers to buy from you through referral programs, frequent buyer cards, money-back guarantees and personal contact, such as hand-written thank-you notes. Ask your customers to engage through surveys, polling, testimonials and reviews.
  • Establish a social media presence; add fresh content frequently; and interact with your customers through Facebook, Twitter and Pinterest to create a sense of familiarity and community. Maximize your reach by using Facebook and Google advertising.
  • Increase your email marketing by improving your email list, sending information on a regular schedule with call to action points and tracking your results. She suggests learning the CAN-Spam Act guidelines to make certain you are in compliance with the law.
  • Improve your SEO (Search Engine Optimization) by investing in your website and online presence. Add useful content to your website and update it regularly, blog frequently and link it to your website. Make certain your business is listed on websites like Google Maps and Yelp.
  • Host events to offer customers a reason to come into your store to shop and tie in themes like a sale or charitable benefit. Partner with other businesses in the area to co-op marketing and advertising efforts and expenses. Create a newsworthy angle for the event and promote it to your local media through a press release.

Better Selling Leads to Better Sales

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WilliamSmithWilliam Smith of William Smith Counseling returned to the AmericasMart Education Center to present “Getting to ‘I’ll Take It.’” According to William, successful retailing comes from properly hiring and training staff to increase the amount of daily transactions while raising the total dollar-amount-per-transaction through up-selling. By accomplishing these goals, you’ll both increase your bottom line and have satisfied customers wanting to return to your store.

He suggests training your staff to recognize the two main personality types – thinkers and feelers – and know the approach to selling that appeals to each individual. Thinkers use their brain to make purchases and want to know the details, facts and features of a product to help them determine if they want to buy the item. Feelers are emotionally driven to purchase and often select items based on form over function. Being able to identify customers’ personality types will help your staff control the shopping experience.

William suggests these steps to better retailing:

  • Properly greet each customer.Make sure that the customer is addressed as they enter the store and that a salesperson is always on the floor.
  • Create a personal and emotional connection with them.

    Most people buy from people they like. Therefore, it is important to engage each customer and make them feel comfortable.

  • Discover their needs and get them to the proper merchandise.

    Ask probing questions (Who, What, Where and Why), rather than questions that they can answer with a “yes” or “no.”

  • Explain merchandise features and their corresponding benefits to the customer.

    Make sure your staff is knowledgeable about the merchandise you sell and understands the features of those items.

  • Carry unique merchandise.

    Make certain you offer items that are unique to your store and aren’t readily available for purchase online. Carry a selection of items that will give your customers a reason to return, rather than buying online.

  •  Close the sale.

    Be able to identify visual and verbal clues that indicate the customer is ready to close the sale. Then, suggest additional items that are related to what they are purchasing, why they are making the purchase, or for whom they are buying. For instance, if the customer is purchasing a birthday gift, ask them if they have other upcoming events that may require a gift.

Finally, William stresses the importance of thanking your customers with either a follow-up email or hand-written thank-you note to reinforce positive feelings about their shopping experience and make them more likely to return.

Atlanta Homes & Lifestyles’ Top Ten Under 40 Tastemakers

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Atlanta Homes & Lifestyles names its 2012 ten under 40 class

Atlanta Homes & Lifestyles names its ten under 40 class

Atlanta Homes & Lifestyles magazine has presented an annual list of Atlanta’s top young tastemakers since 2006. Editorial Director Clinton Smith announced the ten members of the 2012 under-40 class during The Atlanta International Gift & Home Furnishings Market® at AmericasMart. These creative and innovative individuals are making a lasting impression on the city’s interior spaces, creating works of art, and spreading the importance of dining, shopping and supporting all things local. This year’s list includes:

  • Tucker Berta – director of marketing, W Atlanta-Midtown
  • Kevin Gillespie – chef and author of Fire in my Belly
  • Sarah Dorio – commercial photographer
  • Amy Musarra – chair of the 2012 Decorators’ Show House & Gardens and manager of special events and projects for ADAC
  • Amy Osaba – owner, Amy Osaba Event.Floral.Design
  • Hillary Linthicum – co-founder, Design Collective
  • Michel Boyd – owner and principal designer, SMITHBOYDinteriors
  • James Farmer – author, A Time to Plant and A Time to Cook
  • Kelly Ottinger – kellymarket.com
  • Garnie Nygren – director of operations and head of real estate sales, Serenbe

To read more about each of these young tastemakers, pick up a copy of the February 2013 issue of Atlanta Homes & Lifestyles.

HGTV’s David Bromstad Brings a Splash of Color to Market

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IMG_BromstadWe were delighted to have David Bromstad, host of HGTV’s Color Splash, at Market where he presented, The Power of Color, to a packed, enthusiastic audience. David is passionate about color and its use in his designs, noting that color is an important part of how we live and the decisions we make on a daily basis. “Color is so important,” says David. “If you ask someone ‘Do you love the color purple?’ they will either be ‘yes,’ or ‘no,’ and it is a very hard response.” He continues “your favorite color is always something that is very true and dear to your heart.”

In the hour-long talk, David discussed the function of color, summarized positive and negative color associations, examined its psychological effects and explained why certain personality types tend to favor certain colors. For example, red is known as the most sensuous of all the colors. According to David, it represents love and sexuality, but it can also represent the opposite extreme of hatred and violence. It brings energy and warmth and is known to stimulate blood pressure and appetite. It is associated with people who love, are passionate and have great energy. They’re impulsive, assertive and aggressive. They have courage, strength, and power, and are adventurous and a little dangerous with a need for personal freedom.

David stresses the importance of color, especially when designing your store and storefront, setting up windows and when designing your own products. “Using the right color to stimulate that right person is so key,” states David. He suggests that every designer and storeowner research the psychology of color and how it affects behavior. He recommends that if you own a gourmet foods store, use warmer colors like red, orange and yellow, since these colors stimulate appetite and make people want to eat. He notes that certain colors can make people want to spend money and others can make people want to just hang out.

Using a bold color can make someone walk by a store and entice them to enter, but if you are displaying items like clothing, it is best to use a neutral like white or grey. Grey is the easiest color for the eye to adjust to, considered psychologically neutral and it promotes serenity. David stresses that a blank slate doesn’t need to be boring: “Bring in texture or use white-on-white or neutral wallpaper to create visual interest.”