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  • Casual Articles - The Small Retailer's Survival Guide - Part 8 - The Highs and Lows of Refitting Your Store

    Automate Your Business with Barcodes
    Logistics, asset management and inventory control are so important to any business. Whether you operate a point of sale business, a shipping center, or any business that ships or receives supplies or products, it is difficult to manually keep track of what is coming and going. Bar codes and automation save time, money and lost assets. This method, once fully implemented, can save thousands or even millions of dollars over a short period of time.You may think it will cost a bundle of money to implement a barcode system to control and track assets. This is not true. A barcode label printer is quite affordable, durable and long lasting. Most businesses only require a few of these devices to effectively manage assets. The very small investment pays for itself almost immediately.The label printer produces printouts that are durable and will not smear or smudge so they can easily be read by a barcode reader. Most even have memory functions to store the most frequently printed label information. Also, an entire database of inventory and the associated barcodes can be downloaded from a computer into the label maker for easy printing of labels for each and every item in your inventory.The Brother International TP-1650 P-Touch Electronic Labeling System is o
    duce their visits to your store or may be gone forever. You may accept the short term pain, but some of your customers may not. It is always hard to quantify this affect, but you must take it into account.

    Merchandising
    As well as advising on layout and fixtures, a consultant may also discuss your product range, perhaps suggesting lines that you could introduce while encouraging you to stop other lines. All storekeepers hate to reduce stock to clear, especially non perishable items. Your consultant may persuade you to accept less backroom stock space and give this over to the sales floor. As a result you may need to be ruthless with those ladies slippers that have hardly moved over the past two years. As much as it hurts, accept that these and other stuck lines have failed and reduce them to clear. Your back room stock needs to kept low as the space is required for the sales floor. Once you have cleared the unwanted slippers and other stuck lines, you will have a vibrant range offering products that people want and you should have more total sales floor space. This will allow creative merchandising, using tr

    Bar Code Label Software
    Bar code label software is used to print symbols on bar codes. This software can render a pattern of black stripes and dots, each unique from the other, which is used to print bar code stickers. The software prints intricate patterns for each product. The pattern may be several black lines of different thicknesses or it may be a crisscross arrangement of thick and thin black dots.The software can also identify the product from the pattern. The pattern is fed into the bar code scanner, which transmits it to the computer. There the software can decode the pattern and identify the product.Bar code label software is used to code and decode stickers on a wide array of products. Departmental store goods, warehouse products, photo IDs, driving licenses and more contain unique bar code labels produced by such software.Bar code label software is virtually error-free. It can judge labels from the thickness of the lines and dots that by permutation can give several millions of different labels. The software can accurately identify the label from its wide database. The entire process of scanning the label and its decoding by the software takes just a couple of seconds. Hence, bar code label software is almost absolutely relied upon by institutes that retail a
    If you have decided to refit your store you may consider employing an independent consultant to advise you on the bet layouts an fixtures. A shop fitting consultant may plot the flow of customers around your store. One important factor is to try to marshal your customers past as many product displays as possible and especially the higher margin lines. By strategically placing staple everyday (low margin) goods at certain intervals around the store, the customers will need to walk past higher profit goods. Many store owners are tempted to put these fast sellers near the entrance of the store as this is near the checkout area and low stocks are easier to deal with. Perhaps more importantly for some store owners, the low profit stock tends also to be low value and theft of these products is less expensive than losing high value goods, hence why they are near the entrance/exit. As well as finding ways to maximise sales and profit, a good consultant will know all the latest - and the more traditional - methods of reducing wastage through theft and will advise you accordingly. They will also crucially advise on how to have customers use the whole sales space rather than have dead areas where nobody ventures. I often see dead areas, even in large superstores where the normal sales per square foot requirement seems not to apply. Your sales area is an asset that must be made to work for you.

    A good consultant can cost you a lot of money, but you may find that they add a considerable premium, not just to your sales, but more importantly to your profit. They may also prevent you falling into some of the many traps that are part of the shop refitting experience.

    Full Package
    Many shop fitting companies will employ their own consultants. Obviously they would not be as free with their advice as an independent and they would understandably be in the business of maximising the shop fitter's sales to you. If the cost of the consultant is loaded into the price of the shop refitting, then make full use of this service. You can always reject advice if you do not like it, but you may find that it's very useful, even if you have to cherry pick the best bits. You should also bear in mind that if the shop fitting process should go wrong, it is easier to get redress when you are dealing with one company. If you are splitting responsibilities between the consultant and the fitter as two separate parties, then you may find them blaming each other. Even before anything goes wrong you may find that the two parties just don't get on. If, for example, you ask the consultant to be the specifier and the shop fitter to work to his specifications, you may discover that the relationship between them doesn't work and you will have your work cut out arbitrating between the two.

    Customer Resistance
    In part seven of this series of articles, I mainly concentrated on the benefits and pitfalls of refitting from the point of view of your business and crucially whether a refit would do harm or do good to your sales and profits. Store refitting is all about short term pain for long term gain. You may decide to shut the store down for a day or two (or even longer) in order to minimise and shorten the refit work. When calculating the cost of closing, always consider customer goodwill as well as sales for any given period of time. Yes, you have lost the takings for the closure period but you may also have lost some customers for good. Some may not appreciate that fact that you have withdrawn your service. Others may not take it so personally, but will have taken the trouble to discover another store which will give them the service they need. It is more likely that the former of the two "locked out" customers will return - at least they care enough to be upset. The second customer may be lost forever. If you multiply the loss of just one regular customer over a few years you may be shocked at how much profit you have turned away. So, when costing store closure for refitting, add a reasonable percentage for lost goodwill.

    Another very important point is the fact that customers will find products in all the wrong places if you have remerchandised most or all of your product ranges. Older customers, some disabled customers and those in a hurry will not be too happy about this. Most of them will undoubtedly get over it, but a few may not and may reduce their visits to your store or may be gone forever. You may accept the short term pain, but some of your customers may not. It is always hard to quantify this affect, but you must take it into account.

    Merchandising
    As well as advising on layout and fixtures, a consultant may also discuss your product range, perhaps suggesting lines that you could introduce while encouraging you to stop other lines. All storekeepers hate to reduce stock to clear, especially non perishable items. Your consultant may persuade you to accept less backroom stock space and give this over to the sales floor. As a result you may need to be ruthless with those ladies slippers that have hardly moved over the past two years. As much as it hurts, accept that these and other stuck lines have failed and reduce them to clear. Your back room stock needs to kept low as the space is required for the sales floor. Once you have cleared the unwanted slippers and other stuck lines, you will have a vibrant range offering products that people want and you should have more total sales floor space. This will allow creative merchandising, using tra

    How to Create a Perennial Brand
    Not many businesses can expect to create a perennial brand like Coca-Cola, but they can learn from Coca-Cola to try to create a rock-solid, lasting, recognizable brand. Why do some brands last for decades and continue to be strong? First, they must build credibility, recognition, track record, reliability, consistency, and they must be memorable. The longer the brand survives, the more entrenched it becomes in our culture.As stated, one of the most important ways to create a long-lasting brand is to be consistent. Do not change your strategy, your advertising, or your product and still expect brand power. Your original brand was built on an original reputation. Do not change that. Stay true to your brand, but don’t let it become boring. You want your brand to become an icon, not an eyesore.Your brand will only survive if it continually changes as consumer needs change. If your brand is successful, do not change it in an effort to grow. Find ways to expand the brand to complementary products that will support the original brand. If it works, don't fix it. You probably remember what happened when Coca-Cola tried change its formula.If the consumers recognize and are committed to your brand, your brand has power. The best result you can ho
    omers use the whole sales space rather than have dead areas where nobody ventures. I often see dead areas, even in large superstores where the normal sales per square foot requirement seems not to apply. Your sales area is an asset that must be made to work for you.

    A good consultant can cost you a lot of money, but you may find that they add a considerable premium, not just to your sales, but more importantly to your profit. They may also prevent you falling into some of the many traps that are part of the shop refitting experience.

    Full Package
    Many shop fitting companies will employ their own consultants. Obviously they would not be as free with their advice as an independent and they would understandably be in the business of maximising the shop fitter's sales to you. If the cost of the consultant is loaded into the price of the shop refitting, then make full use of this service. You can always reject advice if you do not like it, but you may find that it's very useful, even if you have to cherry pick the best bits. You should also bear in mind that if the shop fitting process should go wrong, it is easier to get redress when you are dealing with one company. If you are splitting responsibilities between the consultant and the fitter as two separate parties, then you may find them blaming each other. Even before anything goes wrong you may find that the two parties just don't get on. If, for example, you ask the consultant to be the specifier and the shop fitter to work to his specifications, you may discover that the relationship between them doesn't work and you will have your work cut out arbitrating between the two.

    Customer Resistance
    In part seven of this series of articles, I mainly concentrated on the benefits and pitfalls of refitting from the point of view of your business and crucially whether a refit would do harm or do good to your sales and profits. Store refitting is all about short term pain for long term gain. You may decide to shut the store down for a day or two (or even longer) in order to minimise and shorten the refit work. When calculating the cost of closing, always consider customer goodwill as well as sales for any given period of time. Yes, you have lost the takings for the closure period but you may also have lost some customers for good. Some may not appreciate that fact that you have withdrawn your service. Others may not take it so personally, but will have taken the trouble to discover another store which will give them the service they need. It is more likely that the former of the two "locked out" customers will return - at least they care enough to be upset. The second customer may be lost forever. If you multiply the loss of just one regular customer over a few years you may be shocked at how much profit you have turned away. So, when costing store closure for refitting, add a reasonable percentage for lost goodwill.

    Another very important point is the fact that customers will find products in all the wrong places if you have remerchandised most or all of your product ranges. Older customers, some disabled customers and those in a hurry will not be too happy about this. Most of them will undoubtedly get over it, but a few may not and may reduce their visits to your store or may be gone forever. You may accept the short term pain, but some of your customers may not. It is always hard to quantify this affect, but you must take it into account.

    Merchandising
    As well as advising on layout and fixtures, a consultant may also discuss your product range, perhaps suggesting lines that you could introduce while encouraging you to stop other lines. All storekeepers hate to reduce stock to clear, especially non perishable items. Your consultant may persuade you to accept less backroom stock space and give this over to the sales floor. As a result you may need to be ruthless with those ladies slippers that have hardly moved over the past two years. As much as it hurts, accept that these and other stuck lines have failed and reduce them to clear. Your back room stock needs to kept low as the space is required for the sales floor. Once you have cleared the unwanted slippers and other stuck lines, you will have a vibrant range offering products that people want and you should have more total sales floor space. This will allow creative merchandising, using tr

    Networking is Like Black Jack
    Playing Black Jack (aka ‘21') requires that you play by the rules, or you ruin it for the other players. When the dealer has a card showing between 2 and 6, you never risk going over 21. That's the rule. More times than not, you will come out ahead and so will everyone at the table.You need to know and follow the rules in networking, too, or you risk upsetting everyone at the table! For example, when you have 30 seconds to talk about your business, respect that time.When you follow the rules consistently in Black Jack – combined with some skill - you win. When you follow the rules consistently in networking – combined with some skill - you win there, too!One of the rules that – when followed consistently – will work for you, is to network at the right location. Either you attend networking events where your target market hangs out (direct) or where your strategic alliances gather (indirect).For me, because there are numerous networking groups organized just so my target market can gather, I am able to gather where they meet. I target women small business owners. If you have not yet selected a target, consider in your selection process how accessible they are as well as if they will actually pay you for your product/service.Ano
    s easier to get redress when you are dealing with one company. If you are splitting responsibilities between the consultant and the fitter as two separate parties, then you may find them blaming each other. Even before anything goes wrong you may find that the two parties just don't get on. If, for example, you ask the consultant to be the specifier and the shop fitter to work to his specifications, you may discover that the relationship between them doesn't work and you will have your work cut out arbitrating between the two.

    Customer Resistance
    In part seven of this series of articles, I mainly concentrated on the benefits and pitfalls of refitting from the point of view of your business and crucially whether a refit would do harm or do good to your sales and profits. Store refitting is all about short term pain for long term gain. You may decide to shut the store down for a day or two (or even longer) in order to minimise and shorten the refit work. When calculating the cost of closing, always consider customer goodwill as well as sales for any given period of time. Yes, you have lost the takings for the closure period but you may also have lost some customers for good. Some may not appreciate that fact that you have withdrawn your service. Others may not take it so personally, but will have taken the trouble to discover another store which will give them the service they need. It is more likely that the former of the two "locked out" customers will return - at least they care enough to be upset. The second customer may be lost forever. If you multiply the loss of just one regular customer over a few years you may be shocked at how much profit you have turned away. So, when costing store closure for refitting, add a reasonable percentage for lost goodwill.

    Another very important point is the fact that customers will find products in all the wrong places if you have remerchandised most or all of your product ranges. Older customers, some disabled customers and those in a hurry will not be too happy about this. Most of them will undoubtedly get over it, but a few may not and may reduce their visits to your store or may be gone forever. You may accept the short term pain, but some of your customers may not. It is always hard to quantify this affect, but you must take it into account.

    Merchandising
    As well as advising on layout and fixtures, a consultant may also discuss your product range, perhaps suggesting lines that you could introduce while encouraging you to stop other lines. All storekeepers hate to reduce stock to clear, especially non perishable items. Your consultant may persuade you to accept less backroom stock space and give this over to the sales floor. As a result you may need to be ruthless with those ladies slippers that have hardly moved over the past two years. As much as it hurts, accept that these and other stuck lines have failed and reduce them to clear. Your back room stock needs to kept low as the space is required for the sales floor. Once you have cleared the unwanted slippers and other stuck lines, you will have a vibrant range offering products that people want and you should have more total sales floor space. This will allow creative merchandising, using tr

    Human Resource Department: How Do I Set Up?
    If you were given the task of setting up a new Human Resource Department in a small company where would you begin? Such a task would be extremely daunting, but not impossible, if you follow a few tips. To begin, you need to answer some basic questions:Why do you want to set one up? What’s changed to make you or the organization believe that an HR department is needed now? What do you want the HR department to do? How will this function contribute to the success and bottom-line of the organization? Will it add value?In other words, before you begin the task, you need to have a clear definition of the mission and goals of the department and secondly, what role you will play as “head” of the HR function. Once you have clear direction, there are some key “audit” issues that you need to focus on.Do you have personnel files on all your employees? Are they current? Do you have all the legally required documentation? Do you have items in the files that don’t belong there?Do you have policies and procedures? Are they up-to-date? Are they followed? Do you have an employee handbook? Do you have the right language in it? Have you inadvertently created a contract between you and your employees? Do you have policies dealing with ADA, EEO, FMLA, sexual har
    the cost of closing, always consider customer goodwill as well as sales for any given period of time. Yes, you have lost the takings for the closure period but you may also have lost some customers for good. Some may not appreciate that fact that you have withdrawn your service. Others may not take it so personally, but will have taken the trouble to discover another store which will give them the service they need. It is more likely that the former of the two "locked out" customers will return - at least they care enough to be upset. The second customer may be lost forever. If you multiply the loss of just one regular customer over a few years you may be shocked at how much profit you have turned away. So, when costing store closure for refitting, add a reasonable percentage for lost goodwill.

    Another very important point is the fact that customers will find products in all the wrong places if you have remerchandised most or all of your product ranges. Older customers, some disabled customers and those in a hurry will not be too happy about this. Most of them will undoubtedly get over it, but a few may not and may reduce their visits to your store or may be gone forever. You may accept the short term pain, but some of your customers may not. It is always hard to quantify this affect, but you must take it into account.

    Merchandising
    As well as advising on layout and fixtures, a consultant may also discuss your product range, perhaps suggesting lines that you could introduce while encouraging you to stop other lines. All storekeepers hate to reduce stock to clear, especially non perishable items. Your consultant may persuade you to accept less backroom stock space and give this over to the sales floor. As a result you may need to be ruthless with those ladies slippers that have hardly moved over the past two years. As much as it hurts, accept that these and other stuck lines have failed and reduce them to clear. Your back room stock needs to kept low as the space is required for the sales floor. Once you have cleared the unwanted slippers and other stuck lines, you will have a vibrant range offering products that people want and you should have more total sales floor space. This will allow creative merchandising, using tr

    3 Simple Steps of Business Success for Top Entrepreneurs
    All top entrepreneurs know that there are only three ways to grow any business1. Increase your customer baseIdentify the prospective customers in your target market. Review your marketing strategies, are they effective and cost efficient? Do they work? Make sure that the promotional or lead creating format you choose is best suited to your type of product or service. The aim of any enquiry or sales generating system is to attract as many qualified prospects and new customers as you can. It is important to have prospects coming to your business who are interested in what you have to sell and have the money to buy. You must test and monitor your marketing strategies on a small scale before you spend large sums of money on expensive campaigns. There are many ways to skin a cat and many extremely effective, low cost marketing ideas out there. 2. Increase your profit per saleEnsure the processes within your business are as efficient and cost effective as possible. Do you have systems in place that can give you information about who buys what, when and where? Do you manage your staff as well as you should? Are your staff appreciated, motivate
    duce their visits to your store or may be gone forever. You may accept the short term pain, but some of your customers may not. It is always hard to quantify this affect, but you must take it into account.

    Merchandising
    As well as advising on layout and fixtures, a consultant may also discuss your product range, perhaps suggesting lines that you could introduce while encouraging you to stop other lines. All storekeepers hate to reduce stock to clear, especially non perishable items. Your consultant may persuade you to accept less backroom stock space and give this over to the sales floor. As a result you may need to be ruthless with those ladies slippers that have hardly moved over the past two years. As much as it hurts, accept that these and other stuck lines have failed and reduce them to clear. Your back room stock needs to kept low as the space is required for the sales floor. Once you have cleared the unwanted slippers and other stuck lines, you will have a vibrant range offering products that people want and you should have more total sales floor space. This will allow creative merchandising, using traditional retail shelving as well more innovative designs such as carousels, hanging fixtures and display rings. You may group some product lines together and perhaps separate others. You will certainly ensure that higher profit premium products are prominently displayed very close to their everyday low profit items. For instance, if you sell milk, then most people will happily pick up the same low priced milk every other day. You can also display higher margin organic milk prominently nearby and, just now and again, your customers may try organic for a change, just because it is right there. This method of having low margin products shine a light on higher margin products is just one of the techniques that are employed when merchandising goods.

    There is a philosophy amongst some retailers and consultants that a store with a low volume turnover and a large sales floor should reduce their sales space, even going to the extent of erecting false walls. This is only true of fresh foods where sparse and empty displays can be off-putting. If you have a large space to fill - then use it! If you put up a false wall with a empty space behind, the space will soon be filled again with stock that nobody wants. If you cannot extend current product ranges then consider introducing a niche product range or a distant related range. For instance, if you sell ladies clothes only, perhaps it is time to introduce a niche men's range? If you sell computer accessories, consider having a section that sells audio products or cell phones. You may even consider having a third party use the space as a store-within-a-store concession.


    Lighting
    Food stores need bright, white lights that are as close as possible to natural light. Darkness is associated with a lack of hygiene. Clothes and fashion stores tend to have softer and colorful lighting. Whatever your product range, ensure that the lighting does not act as a barrier to sales. It is amazing that, if a light bulb suddenly goes out of action in one corner of a store, that corner suddenly looks less inviting. If your whole store has dull lighting, then the whole store is not inviting. Just as a town or street looks pleasant on a sunny day, as opposed to a grey day, so must your store look pleasant through the use of bright lighting.

    Cleaning and Moving Fixtures
    Whereas older fixtures can be hard to move and hard to clean, modern fixtures are made to a more modular format, so that bits can be snapped off and snapped on, and large items can be moved using castors etc. There are also less dirt traps and less hidden areas where stock can get lost. Shop fitting is mainly about making the products look good and bringing you more profit, but don't forget that modern fixtures may also save you valuable time if merchandising products, cleaning or moving fixtures is easier.

    Marketing
    It is common for stores to plan a marketing campaign to coincide with a refit. I would urge caution. You need to ensure that you and your customers are happy with the new layout. Trying to bring new customers in at this point may backfire, especially if there are teething troubles and some regular customers are complaining that they can't find some products. Let's face it, a refit is big stuff to a small retailer, but it won't light many fires with most customers. The refit alone should not be the centre of a marketing campaign. A new range, though, is a good enough reason, but you need to be cautious about promoting your store while it is still bedding down all the changes.

    One thing you should do is have a plan of the store printed so that your customers can find their way around the new layout. This would not be necessary if your store is very small, of course, but an average sized store would need some kind of simple plan for customers to follow. Even if they took little notice of the plan, it is a good public relations exercise as you at least will be doing something to recognise that the change may be inconvenient to customers and you are doing something to redress it.

    A store refit is certainly a gamble for a small retailer. You must think long and hard before you do it and make sure your reasoning is logical. If you decide to go through with it, make sure you do it well. You only get a very seldom bite at the cherry. It is worth spending extra on a good job rather than doing it on the cheap. You may just

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