2009: The Year of Quality without Complication

This past year’s been interesting.

For me, 2008 was pretty terrific, albeit filled with too many third party political agendas (and I don’t mean election-related). For my friends who own retail stores, however, it was an uphill battle filled with enormous challenge--in most cases becoming critical as early as June.

Regardless of whether your year fell into the “terrific” or “challenging” category, it’s safe to say 2008 was complicated. Reeeeally complicated. The past twelve months generally gave a lot of pretty smart folks some pretty serious headaches.

Which is why I’m declaring 2009 The Year of Quality without Complication.

Think: Quality without overthinking. Quality of life plus quality of business. Quality that spills over to those around you in a sincere, productive way.

So what do you say we all unite under the following declarations?

In 2009, I, the undersigned, promise to:

1. Focus on what my customers need from me more than what I need from them.

2. Better understand the 80/20 rule, then buy according to that principle (and if I don’t understand that principle, I need to contact Cinda).

3. Take five minutes each month to send a hand written thank you note to someone who’s made a positive difference in my business. If I’m feeling particularly cheerful, I will write two.

4. Create a braintrust of me and four other local business owners, then meet for brainstorming breakfasts once per quarter where we’ll drink too much coffee, eat calorie-laden sticky buns, kick around wild ideas, listen to each other’s concerns, and find ways to grow each other’s businesses.

5. Try at least one new internet-based marketing method...even if it scares the hell out of me. If that requires relying on my 13 year old nephew for explanation, I will. If it requires hiring the 13 year nephew, I will.

6. Stop dead in my tracks when things begin to spin too quickly...take a breath...and regain control. Life can only race as fast as I allow it to.


I have read the above, agree to it with all my retail-lovin’ heart, and sign here in black ink (because red ink is no fun):

_________________________________
Name

__________________
Date


Now, print...sign...and tape to your office wall. Or your forehead. Your call.

When Mom goes mum

This morning, Lee Scott (CEO and President of WalMart) appeared on Meet the Press as part of a 5-person brain trust discussing the economy and where it’s headed. A comment he made really resonated with me; to paraphrase, when WalMart moms stop shopping for themselves--choosing instead to defer spending in lieu of their kids’ and spouse’s--it’s a sign of serious pull-back in the consumer market. As much as it pains me to say this, the leader of WalMart is dead-on-right.

Each Christmas, we marveled in the store over the “one for them, one for me” pattern our female customers exhibited this time of year-—more than during other seasons, although not exclusive to fourth quarter. The better the economy, the higher the likelihood “one for me” cost more than the original gift. Even last year, as the economy was slowing down, we still saw self-gifting continue, albeit at slightly reduced price points.

Now, however, self-gifting deferral seems to be the rule. Even I, who typically splurges for a $300-ish technological gadget of some sort this time of year, succumbed, opting instead to pop for a $25 calculator.

(Yes, that’s just as pitiful as it sounds, but hey...the old one was losing some of its digits on display screen, which made it a necessity item.)

Was I disappointed? Nope. Didn’t occur to me to be. Which is exactly my point.

The fact that a calculator made me (almost) as happy as an Apple Time Capsule proves that I, too, am deferring self gratification in favor of splurging on my nieces and nephew. Doesn’t mean I don’t still want nice things...but does mean that whatever I buy myself will be a more affordable splurge than in days past. At least for now.

Revlon knows this, and provides a good model to follow. Whenever the economy goes south, they begin cranking out more dramatic colors in both lipstick and nail polish...then watch their sales spike. As money becomes tight, women tend not to spend on spa trips and new clothes, but still want to feel pampered, vibrant, confident, and attractive. Thus, the appearance of affordable fashion items...and dramatic nail polish and lipstick that make a statement.

Think I’m nuts? How many women have you seen sporting near-black nail polish on t.v. and in the halls lately? Point proven.

How’s this translate to gift retailers? Think like the WalMart mom or the 30-something woman sporting OPI’s “Black Cherry Chutney” nails. If it looks like a perk and it feels like a perk, then it is a perk that will be purchased...at under $20. Once the winter gift show circuit kicks in, items that replace more costly options in ways that improve the consumer’s lifestyle at a painless price point will be the hit that brings cash flow.

Given how late most retailers are pushing purchases right now, odds are good you’ll be buying for Valentine’s Day as well as Mother’s Day, graduation, and Father’s Day. Think: bold color, comfort, fashion, and experience-replacement purchases. Look for microwavable lavender neck wraps that will replace spa visits...for dramatic colors in scarves that will replace larger clothing purchases...and for high impact gifts that don’t need to be replaced (ie, refillable and reusable), then pair them with loyalty refill programs.

Don’t think this applies to higher priced boutiques? Guess again. Even luxury stores are choking as their previously cash-heavy customers pull back.

So how do you do this in an upscale environment? Here’s an example: Let’s say you currently sell $75-$100 cashmere scarves in a wide selection of colors. To tweak things a bit, consider paring down the color selection to black, white, red, and the top two or three colors seen in the current fashion magazines (so you don’t lose that particular customer), then add in a line of $35 or $40 silk scarves in twice as many colors. You’re still appealing to upscale customers while giving them high quality, fashion forward options that can be more easily justified.

If you can provide products that allow consumers to defer the more expensive alternatives by purchasing your current offerings instead, you’ll be ahead of the game. Give them options that are bold, confident, and affordable. If you don’t, well...they’ll look elsewhere. Remember, sacrifice eventually wears thin for most consumers.

Now...off to freshen up my “Eiffel for This Color” nails. They’re all the rage, you know.

Back home...for the moment

Just a quick post before I head back out of town to let you know the GHTA conference in Sanibel was terrific. The information shared was beyond helpful, and there were lots of open ears when it came to what retailers are going through these days.

I owe a huge thanks to the independent store owners who participated in the Retail Realities survey. Your wisdom and candor made all the difference, and allowed a lot of pretty big players in the gift, stationery, and home accessory industries to better understand what you need from them...both now and in the future.

Which brings me to the title: “Here and Now...and Tomorrow.” If you’d like to view a PDF of the slides used, visit the AlwaysUpward.com resource center (linked to from the “See Cinda” page). Will try to put together an audio counterpart upon returning home from Thanksgiving travels, to fill in the blanks.

Gobble, gobble, all.....and knock ‘em dead on Black Friday.

Photo credit: Carol Schroeder

Don’t write that check

Once again, I see a familiar name making the rounds in the stationery industry, coaxing retailers to join their “guild” and, by extension, their website, with promises of better Google results, more visibility, and heightened customer awareness. They’ve been trying to get this concept off the ground for two years, but only recently were able to actually produce the site itself. I do not endorse their program, and for that reason, will not mention them by name here. Rest assured, this is not a vendor.

Before you write a fat check to any third party offering inclusion on their website, seriously consider the following:

1. Links are golden, yes. But do the math. If you link to them from your site, link to them from your blog, link to them any time you write an article, and link to them any time you appear in a press release, they rack up more and more links. That brings them more and more visibility in Google searches. You, on other hand, still only get one link from their site, via the store locator. Not a very equitable trade. This will not pop you up the Google list.

2. Their new website is, admittedly, very elegant. It incorporates many elements that every stationery store website should include-—and my own did, during my retail storefront days. Explains why in web searches for “personal stationery Minneapolis,” “wedding invitations Minneapolis” or similar, my store was consistently one of the top two listings. Every time. Why pay to promote someone else’s website-—that includes your local competitors, by the way-—instead of investing in your own site, promoting only you in an equally elegant, equally information-rich, and equally professional manner, simultaneously pushing you up the Google list?

3. The suggestion that inclusion in their site significantly helps consumers find you is pretty thin. Think about it-—when a bride is looking for invites, she’s going to Google the term “letterpress wedding invitations Omaha,” not search for some association website she doesn’t have a connection to in hopes there might be someone listed nearby. Equally likely, she’s combed through wedding websites and publications, is going directly to vendor sites, then using their “find a retailer” function to locate the exact look she wants.

4. SEO, SEO, SEO....Search Engine Optimization. That’s a big term that freaks a lot of retailers out. Bottom line: Google (and other search engines) continually change their algorhythms-—the math used to search out sources and pages on the web-—so that no one...NO ONE...can hold those top positions hostage. There are a lot of SEO folks out there who claim to provide top-of-listing results, but they don’t guarantee it in print. They can’t. The algorhythms change faster than you change your socks. It’s like a meteorologist promising .253 inches of rain will fall at exactly 7:42 a.m. on Tuesday morning. Good luck with that.

So how do you find your way to the top of the listings? To customers’ eyeballs? By (a) hiring a knowledgeable web designer who builds attractive sites, understands search engine optimization, and provides references that can verify the success of both; (b) incorporating rich content into your site, including placement of applicable keywords in the text and metatags; and (c) frequently updating your site with fresh content. There aren’t any shortcuts, but once the site is built and running, the rest is a lot easier.

As for the articles, press releases, etc....? If you’re going to spend time writing anything, write it in support of your own store, not for another website. Include a link to your store site in everything that appears online; that helps build your Google visibility. Start a blog. Today. And visit PRWeb.com to learn about how easy it is to promote yourself through press releases (their free Press Release 101 section is terrific). Each press release should include links to your store too, again, raising your search odds.

Sink the money into you. Into your store. Into your website. That, dear friends, is your best investment, hands down.

It’s a lot smarter than handing someone else a fat check that pushes their site higher while yours languishes on the bottom of page 14 on Google.

P.S. In a search of just one city in their store locator, I’ve already turned up a discounter, who used to be storefront but is converting to all-internet as we speak. So much for vetting. Caveat emptor, folks.

Lead with a loss

Maxine Clark, founder of Build-A-Bear, announced a new program to address tightening budgets-—beginning today, the pre-adorned bears will drop in price to only $10.00 each. Whether that means all of them (including the $25 pink one) or just the basic brown version, I don’t know. The announcement is recent enough that the B-a-B website has yet to be updated.

In tradition retail terms, the $10 bear is called a “loss leader.” You offer one item at a discount-—usually a deep discount, nearing cost-—to bring in shoppers who are likely to continue buying other products at full price. In this case, the inexpensive bear acts as an effective vehicle for the full price add-ons that can quickly push the price of a simple toy into the stratosphere. Some consumers will come in that otherwise might not have...and a fair number (both new and regulars) will use the savings as justification for adding an extra piece or two, which more than likely will price out above the $10 saved up front.

That’s the idea behind loss leaders. Hook the customers, then let ‘em keep spending. It’s inconceivable that Grandma Liz would just buy the naked bear. That’s not what B-a-B offers. The moment granddaughter Madison gets the thumbs up, additional purchases are guaranteed.

Which gave me an idea. What if stationers were to offer deep savings on the price of the reception card in wedding orders? Deep enough to make it reeeeeally tempting, but not so deep you’re exceeding your comfort level. What bride needs just a reception card? To get the deal, they’ll also need to pick up the rest of the invitation suite, at full price.

Bait and switch? No. You aren’t hiding or raising prices on anything. You’re simply putting a sale price on a portion of the order that requires the remainder of the order to be complete. Kind of like a naked bear who needs pom poms.

If you have a young niece or daughter, you know what that means. If you don’t, well...don’t dwell on it.

Monday, 11.10.08 editor’s note: I see that today, Build a Bear is running actual commercials promoting the special. Look for this to be the first of many big box loss leaders coming your way.

Start with your head....

In a few weeks, I’ll be traveling to Sanibel for this year’s Gift and Home Trade Association national conference where I’ll be speaking about the current state of independent retail. Admittedly, it’s a tough year for many members—predominantly vendors, reps, marts, and media-—to justify the expense of attending, which begs the question “Will it really make a difference if I skip?”

Yes, it will.

Following is an email I wrote, later forwarded to the GHTA membership, explaining why it’s important they keep pushing ahead. To any reps, vendors, manufacturers who think curling up in a ball and waiting this thing out is a good strategy, well...buck up and get in gear. It’s time to be proactive about turning this industry around.

Times are tough for everyone in the gift industry, especially at the grass roots level. Now, more than ever, retailers need vendors, reps, sales agencies, and manufacturers to be plugged into resources that will help shore up our industry, from the top of the supply chain down to the stores and boutiques that rely on them.

And that's what the GHTA Sanibel conference is all about -- opportunities to connect as an industry, learn from one another, and forge new paths that lead us out of economic uncertainty and into productive partnership.

True, the world can't be reinvented in a three day conference, but groundwork can be laid for a year's worth of progress. Networking brings peers together who have never met before. Companies are exposed to fresh ideas and out-of-the-box thinking they can implement on home turf. And creative brainstorming opens channels to new ways of thinking, of doing, and of succeeding.

All of us on the retail side know the expense and time away may be a tough sell in such frustrating financial times. But the return on investment for those who attend with open minds, enthusiasm, and determination to learn will find that investment a sound one.

Please join us as we write the next chapter of this industry's history. Together, we can prosper.

Cinda Baxter


It’s not too late to sign up; click here to get the ball rolling.

Push me, pull you

The past ten days, I’ve spent a fair amount of time scoping out retailers large and small in the Twin Cities metro area, looking for patterns. From Mall of America to Main Street, there were plenty to see...one in particular was quite telling.

Last weekend, I noticed a lot of corporate stores stocking significantly less Christmas inventory than usual. It was equally clear that they saw the writing on the wall too late to cut back extensive Halloween offerings...but not too late to do so for for the December holidays. Given how many of those brands also sell through independent retailers, I set out to see what kind of shelf space they were getting at the grass roots level.

Sadly, what I found was both shocking and expected, based on observations at a number of markets the past six months.

See, one of my biggest concerns this summer was the hard sell many reps and vendors were pitching to buyers at each of the five markets I attended. From May through August, countless retailers were quietly pulling me aside to ask “Am I the only store having a rotten year?” as reps insisted orders were up and inventory was a necessity. Buyers were being hammered with “Other retailers are ordering big”...“Everyone else is moving lots of product”...“The worst of the economic slow down is behind us,” making them doubt themselves at the worst possible time.

At one point in Atlanta, I actually pleaded with a showroom vendor to stop telling retailers All is fabulous! since we were both aware of how many stores were already struggling.

Little did buyers know that while lines were hitting them hard for big orders, those same companies were simultaneously reducing their own 4Q commitments. Although locally Department 56 provides the most disparity between what their corporate store stocks versus what independents are saddled with, they are by no means the sole example. Time and time again, I found independent retailers hip deep in product that was next to non-existent in the same vendors’ corporate stores.

Herein lies the catch. To survive a lousy economy, an enormous amount of trust is required between buyer and supplier. It’s kind of like two people on opposite ends of a teeter totter. Working together, they take turns bobbing up and down in balance, but the moment one steps off to pursue their own agenda without mentioning it to the other, their counterpart lands on the ground pretty hard.

When you see a vendor say one thing, then do the opposite, the teeter totter analogy suddenly becomes quite real.

No one knows a store’s needs or limitations better than its owner. Vendors and reps who respected their independent retailers this summer (rather than opt for the hard sell) will be the ones buyers return to come January. They’ve successfully balanced their short term needs against a store’s long term goal. No one gets dropped in the dirt; the teeter totter continues to function.

Those who pushed large orders on teetering buyers this summer, however, will have to face them again in January, fresh off what will arguably be the most challenging holiday season in history. God help ‘em if their insistence on oversized orders didn’t pan out as lucrative holiday numbers...a roomful of retailers with still-stinging, slam-to-the-ground backsides might be a bit less than jovial to contend with.

And a lot less likely to order from the line ever again.

Yes, this year stinks for a lot of retailers. And yes, that means it stinks for a lot of vendors and reps too. But folks, we‘ve got to “honest up” and look out for each other on the retail teeter totter...or we’re all gonna end up in the dirt. Fast.

This week’s deals

Here’s what hit my inbox this week; note that most are still playing that “blink and you’ll miss it” game, with offers expiring on Monday 10/27/08:

Epson Clearance Center
Epson.com > Clearance Center
Save an additional 15% on items already marked 40% off. Granted, most of what you’ll see are refurbished items, but might be a good time to replace an all-in-one or grab a good scanner at a rock bottom prices. Check out the R2400 if you’re thinking about stepping up your in-house print operation. Use coupon code 8XTCASE. Offer expires Monday, 10/27/08.

Impact Images
clearbags.com
For those of you using Impact Images’ 4x6 or 5x7 crystal clear cellophane sleeves or photo boxes (think: acetate boxes for imprintables or photo cards), they’re offering 5% off both the list and bulk prices. Use coupon code 577896. Offer ends 11/15/08.

Total Training
totaltraining.com
These are the go-to folks for training on any Adobe product, and in the spirit of helping folks out during tight times, they have three offers running:

CS3 training: Now that CS4 has shipped (yippee! yippee!), all CS3 training packages are on sale-—pick up DVD titles for $99 or less -or- multi-program bundles at 25% off. No coupon code is necessary, no expiration date listed.

All training, including CS4: Save $20 off your entire DVD purchase (coupon code: save20weekend). If you’re looking for CS3, be sure to compare this against the above offer to see which fits your specific order best. Offer ends at midnight, Monday, 10/27/08.

Online training: Go green with a one-year subscription to the Total Training library. Titles are constantly updated, which makes this a great option for stores bringing in the Creative Suite for the first time or those who have several enployees who need training. Currently, no CS4 titles appear, but one has to believe they’ll be added soon. To get 30% off your first year, enter coupon code “save30online” during checkout. Offer ends at midnight on Monday, 10/27/08.

Lucky Onion
luckyonion.com
303.877.9585
Their new holiday album is out, and available for $139 ($60 off). Their book is unique, covering more than just the winter holidays. In addition to providing personalized options, stores may also order boxed or bulk for off-the-shelf sales. Album quantity is limited, so don’t sit on this for long. Contact Lucky Onion for a link to the online preview. Offer ends on Thanksgiving or when albums run out.

And since you’ve been working so hard this week, here’s a bonus tip:

Wholesale Crafts
wholesalecrafts.com
If you haven’t found this site yet, take a look. Whether you have an upscale boutique or an Americana store, there’s a treasure trove of handmade gifts and jewelry here to be plucked from. Since this site is for legitimate retailers only, you’ll need to complete an online registration that includes either photos of your storefront or documentation proving you’re the real deal (truth be told, it’s harder to get into this site than it is to get into some of the trade shows). Once you’re in, though, it’s worth it-—especially if you’re looking for high end jewelry that won’t show up in the store next door.

Happy deal pouncing!

Big box, little inventory

I accompanied Mom to the Mall of America over the weekend (aka: The Big Retail Shrine), on her annual Christmas shopping visit to Minneapolis. While she looked for stocking stuffers and gifts, my eyes focused on inventory patterns and staffing...which were more educational than expected.

Because her visit is an annual event occurring the same week each October, I have a pretty reliable yardstick to measure one holiday season against the next. This one held some surprises that made it clear at least a few of the big boys saw a soft fourth quarter coming, and have adjusted accordingly...much to the dismay of hopeful shoppers.

Many stores--and by "many" I mean "a whole heckofalot"--are carrying far less inventory than usual, holiday and otherwise. For instance, the huge Department 56 store just outside of Nordstrom is normally jammed full of gift items by the third week in October, the front portion of the store so crowded with decorated trees, enormous baskets of trimmings, loads of little gifty items, and other non-Village products that it's almost impossible to turn around without bumping into a nearby display.

This year? Big, wide open spaces. Two of the Villages have been moved to share a small display in that area (Christmas in the City and Dickens, for those of you who know the line), which doesn't eat up a lot of room. Hardly any of the gifty pick-up stuff is there, and next to nothing is shown for decorated trees. Looking at that section of the store, I'd venture a guess they're stocking about 20-25% less than what's normally offered. The employee I spoke to said all their holiday is in, so...looks like this is it.

Mom also noticed the enormous amount of Halloween being shown by comparrison--which seemed disproportionately high, measured against past years. Nearly all of it was marked 50% off.

Another store that stuck out like a sore thumb was Crabtree and Evelyn. By the third week in October, this location is typically filled to the gills with holiday items and extra year 'round inventory. Like Department 56, it's show floor usually requires a shopper to be mindful of nearby displays while navigating the many options available for purchase. This year? The new India Hicks product has been given a big, airy display table, with loads of empty space all around. None of the familiar gift items are on the counter...the many show floor product displays are missing, along with the robes and matching accoutrements...and the entire children's line has disappeared, according to an employee we spoke to. At least 1/3 of the normal inventory level has dropped from sight.

These weren't two exceptions to the rule; they were examples of the rule, and that rule appeared in store after store after store, regardless of target market.

This seems to prove two things: Halloween isn't moving, to no one's surprise, given the economy. By the time "the powers that be" recognized a problem, it was too late to back down factory orders on ghouls and goblins, so pushing it out the door at half price is the only alternative.

Christmas production, on the other hand, could still be cut back, given the later delivery dates. Judging by their displays and space allotment, Department 56 doesn't seem to be banking on much beyond returning Snow Village customers.

This bodes well for independent retailers, folks. If the big boxes provide less merchandise and less selection, odds improve that customers will seek options in their neighborhood stores and boutiques. If you haven’t set up your holiday displays yet, do. True, I’m not a fan of Christmas before Halloween, but given the holes I saw this weekend, my guess is 2008’s the year to break that tradition.

Can we please stop with the P word???

Panic. Panic.

Panic-panic-panic.

Enough already.

I know we’re in uncharted territory, but if I hear “the P word” one more time on the national news regarding retail and the upcoming holiday season, I’m going to lose it. Yes, consumers know things are tight, and yes, retailers are also abundantly aware of the fact. But c’mon....panic? That’s people sobbing in the streets and screaming through hallways. Haven’t seen that-—at least not around here.

Last week, WalMart launched a $10 toy sale, spurring price wars with their competitors. Somehow, the national media has tied that to the fact these same big boxes are putting out the first of their holiday offerings, claiming the juxtaposition of the two is proof positive retailers are in a panic, pushing holiday extra early.

Well, color me silly, but since when is it unusual to see big box behemoths put out Christmas wares before Halloween? Truth be told, if they’re just now unpacking the first boxes, they’re running behind their typical jump-the-gun schedule. Skelator and Santa side by side in aisle 12? Hardly a news flash. And hardly a sign of panic.

C’mon guys. Things are tough enough. Can we please stop with the P word?

End of rant. Thanks for playing.

Coupon clipping

A lot of special offers and dealer benefits land in my email box. Rather than horde, I’ll periodically post them here for your use.*

The grand plan was to save them up for a simple end-of-the-week list. Imagine my surprise this morning when, upon reading the fine print, I found that four of them-—four-—were only valid for 48 hours. A gnat’s lifespan is longer than that. Sheesh.

The “Don’t blink or you’ll miss it” approach is a sign of nervous vendors who don’t want to give anything away. Well, get over it. We’re all going to have give something away if we want to make it to January. Retailers aren’t going to jump at impulse purchases while counting the change under their desk to make payroll. You’ve got to give them time to process the idea, then fit it into their budget.

That said, only two offers extended beyond the 48-hour window:

Marsupial Press
Tel: 425.251.8558
Fax: 425.251.8998
marsupialpapers.com/holiday.htm
Offer: Through Oct. 31st, buy any holiday product or custom holiday invite and receive 15% off the total. Must fax in a copy of the email (contact me and I’ll forward it to you). As long as you’re at it, give ‘em a poke about the typo (“i before e,” except in a promo?).

The online Epson Store
Last “stock up on supplies” special of the year-—10% off ink and paper. Use code 8ZTCASE to get the deal. True, it’s not big, but every penny counts, especially if you’re a stationer heavy into in-house printing. Their ink carts have a pretty long life span, unlike HP carts. To go straight to the ink carts page, click here. Offer ends 10/15/08.

If there are other vendors out there who’d like me to spread the word, drop me a line with the offer included. I’ll do my best to help you out.

*Obviously, many of these are limited to current dealers. If you don’t carry the lines, take a look anyway. Might be a good time to add fresh product to your lineup.

Cranes...office furnishings?

A friend emailed an article about Crane & Co. that appeared in this month’s issue of Inc. Magazine. Pretty interesting read. Makes that rumor about Taylor Corp wanting to buy Crane’s social paper division seem a whole lot more credible, which scares the willies out of most retailers (to put it mildly...and politely). To download the 2-page pdf, click here.

You can also read the article online, although it’s a bit hard on the eyes due to some bizarre formatting snafu on the Inc. site.

Thanks to Gregg at VendorTech for sending this over.

Editor’s note: Just got a call from Cliff Allen, Director of Sales at Crane & Co.

According to him, the rumor about Crane’s and Taylor Corp are “...not true. Crane’s could have sold this division a couple of times to fund [upcoming technology] for the currency division. Instead, [they] opted to work with capital investment groups,” keeping the company in tact. “The Crane family has a firm commitment to this industry,” added Allen. Bodes well for you stationery retailers out there.

Thanks for the follow-up, Cliff. Much appreciated. -— CB

Get in their heads

A friend of mine doing some reconnaissance work (aka: trolling the big boxes to see what they’re up to) commented about how poorly small retailers seem to be doing when it comes to making the customer feel appreciated. On her visits to discount chains, she’s welcomed with open arms. On visits to independent retailers, however, she gets next to no welcome, and very little warmth. In her words, “They’ve gotten lazy.”

My take? It’s more than lazy employees. More than having the right employees. It’s about fear...theirs.

In a big box or chain, there are several degrees of separation between the CEO and the part timer on Elm Street. Those employees don’t see the bottles of Advil and Pepcid AC lining an owner’s desk. They don’t see concern in the eyes of the person who actually owns the place. They don’t see a personal degree of risk as only one of 127 employees on the 20-hours-per-week schedule.

In an independent retail store, however, there’s typically no degree of separation between the staff and the person whose life teeters on the success-—or failure-—of the business. Employees know there aren’t multi-million dollar accounts spreading cross country to offset one location’s losses. They know the odds they’ll be the one “let go” are pretty high if there are only four others on the schedule. And they know that getting another 20-hour-per-week job in retail is gonna be kind of tough right now.

They’re as scared as you look.

So how do you fix this?

1. Explain to them that yes, this is a nerve wracking time, but that you have a plan. Walk them through the plan assuming they’re smart enough to understand it.

2. Explain how much pain your business can endure. In their eyes, you may be 98% of the way through the “buffer zone,” nearing life support when the reality might be that you’re only 10% of the way into the pool.

3. Explain the reason you’re ordering in smaller batches and not loading up on show specials (assuming you’re following my advice here and here) is because it strengthens the store’s cash flow. Your ability to be proactive is what protects the store from financial risk.

4. Explain the reasoning behind any other overt change in the way you operate the business right now. What employees interpret as crash-n-burn damage control might actually be a brainstorm you came up with six months ago.

You need to get that deer in the headlights expression off their faces so they’re more likely to look customers in the eye, smile, and welcome them to your store with sincerity. They need to engage with the customer, not cower from them, and make everyone feel welcome.

They need to behave as though they can breathe rather than be constantly holding their breath.

You comfort them. They comfort your customers. That’s what we retail types call a win/win.

Remember Forgotten

I’m on a roll...or at least have some good karma rolling my direction. Already, I have another terrific vendor to write nice things about (gotta love that).

Forgotten Shanghai is a line of Asian-inspired home accessories, gifts, bags, and other sophisticated items, many constructed from exquisite imported silk. A year ago, I might have strolled past them without pause, but since my trip to China this spring, all things Asian tend to catch my eye.

Thank goodness this one did. Forgotten Shanghai is terrific. Terrific worksmanship. Terrific colors and fabrics. Terrifically fasionable pieces that elevate a home, office, or one’s personal style.

During a visit to their booth at NYIGF in August, a couple of us got into a conversation about smoothies being sold upstairs at the Javitz. On a dash to grab one, I snagged a few extras to take to their booth, as thanks for the warm welcome they’d extended me.

Imagine my surprise when now, a few weeks later, a lovely handwritten thank you note appears in my mailbox, along with a couple of lovely silk treasures in the package. The first thought that crossed my mind was “They didn’t have to do this,” immediately followed by “but I’ll remember them forever because of it.”

And this, dear readers, is the lesson we all should learn. I was already impressed by the line. Everyone in their booth was beyond gracious. The product is stunning, the quality is dead on. I didn’t need to be sold; they already had me.

Still, they took things a step beyond the expected, and sent a handwritten thank you note. This seemingly small gesture assured that Forgotten Shanghai will absolutely never be forgotten in my mind. They nailed it.

To Shannon and Margaret: You rock.

And yes, I love the treasures...will be showing them off at dinner on Friday night. Thank you.

Classic Move

There are vendors who read the tea leaves and discuss them. And there are vendors who read the tea leaves, then do something about them. I’m happy to report at least one vendor who falls squarely in the second category.

Classic Impressions is an embossed stationery line many of us recognize as “those nice guys who left that other big, frustrating company” (you know who you are). Steve and his crew decided to strike out on their own years ago, determined to create a business built on positive retailer relationships, quick turn around times, and great product. Suffice it to say they succeeded, on all counts.

Times are tough, and they know it. In spite of producing a line that doesn’t have huge margins, and in spite of rising fuel costs, they just lowered their shipping charges.

Yes, you read that right. Lowered. As in less money. And that’s in addition to their normal “no drop ship fees” policy.

If you’re a Classic Impressions account who hasn’t received the updated shipping chart, call them. If you’re not a Classic Impressions account, check them out. These are the good guys, folks. You’re missing the boat if you don’t carry them-—especially during a holiday season that’s bound to be as price conscious as this one.

Pick your poison...then cash in

Some of the best advice I’ve ever received came from my friend Al Fahden several years ago, as I was bemoaning the fact a (smarmy) discounter had relocated to a store across the street from mine. He reminded me that retailers make a choice to be one-—at most, two-—of three things: a price leader, a product leader, or a service leader. You can’t be all three at once. Just isn’t possible.

He was right. I opted for product and service, then kicked butt against the price princess less than 250 feet away. Sweet.

I’m reminded of that often, as retailers struggle with how to approach the flagging economy. Al’s advice stands true today-—pick one or two and go for it. Apparently, Virgin Atlantic’s CEO, Steve Ridgeway, is of the same ilk, believing that if you offer quality product and great service, customers will come.

Well folks, the proof is in the pudding...or the profit, as is the case here. VA’s annual revenue is up a whopping 38% among airline competitors that appear to be racing to the bottom of the pile as fast as they can, slashing everything but the toilet lids along the way (just wait...they’re next).

And to what does the wise Mr. Ridgeway attribute this growth? Instead of trying to make money by cutting out everything but the bare necessities, he reminds us:

...the winners will be those airlines that focus on offering the best customer service. We have ... focused on providing the best product in Upper Class, Premium Economy and Economy....

Granted, it’s not as simple as “If you build it, they will come;” you still have to market the heck out of your product, then provide seriously great service. But pull that off and you’ve got a fighting chance at making some money.

And that, my friends, is true for retailers. Great product is vital, but more than that, service, service, service is the key. Customers are frustrated by the economy. By the election. By the stuff that just pulls them down. Give them a safe haven where they can hang out, laugh a bit, and feel like they’re the most important person in the room, and you’ve got a winner.

A little hospitality never meant more.

Weddings Etc.

If you’re in the Homewood neighborhood of Birmingham, Alabama, pop into Weddings Etc. on 18th Street. Owner Melissa Hill has created a smart, chic, retail boutique built on great product and even greater customer service. She knows her stuff, and is happy to share the wisdom. In my humble opinion, this is a retailer to watch, folks; she’s got big things ahead of her.

After you enjoy the store, take a stroll down to Zoe’s Kitchen for a glass of (addictive) limeaid made from fresh lime juice and cane sugar, with an order of chicken salad. You’ll think you’ve died and gone to heaven...

...until you bite into the requisite chocolate cake, at which you’ll realize heaven is located in Homewood.

You’ll thank me for this. Your bathroom scale, however...well...that’s your problem.

Photo: Melissa and her trusty manager, Meghan Ratliff

REAs tonight

This is it...the big night. The Retailer Excellence Awards are at the Marriott Marquis this evening, during which the GHTA (Gift and Home Trade Association) will accept the coveted Industry Achievement award. As a member of the Board of Directors, my enthusiasm might be just a titsch high on the Bubbling Over scale.

This is the fifth time I’ve attended-—twice as an award recipient, once as an award presenter. Best part is the crowd, comprised of the smartest, most plugged-in folks in the gift industry. It never fails that by night’s end, my mind is wheeling with creative ideas, my pocket is full of new contacts, and my juices are flowing toward ways to further promote my consulting clients. Now tell me, what’s better than that?

Back to the Big Apple

Seems my WorldPerks account is getting a lot of NYC activity lately. Just ten days after being there for the NSA conference, I’m headed back again for the NY International Gift Fair and REA celebration.

Already, there’s lots of shuffling about, with vendors wondering what traffic will be like, and retailers asking themselves if they can squeeze everything into a scant 72 hours. Rest assured to all who attend, although this show will likely be a quiet one, it’s not the end of the world...just means we’re doing things differently this time around.

Vendors, please be patient with the retailers who attend. They’re either at the end of the buying process, or are close to it. If they take notes instead of write orders in the booth, see it as a plus. That’s business rescheduled, not business lost.

Buyers, think carefully before you write. There’s never been a 4Q more unpredictable than this one. Take a peek at my earlier post (“Counting Coins”) about how to navigate the waters with smarts.

Those who think things through carefully-—then plan accordingly-—will come out on top. Those hung up on a glass half empty have already drilled a hole in the bottom for themselves.

Great resource, great offer

PrintMyStuff (aka: Century Marketing) just blasted a free freight special into my email box. Wanted to pass it along, since they’re a good vendor to have at your fingertips.

For years, we sourced a number of products from them, including clear labels printed in gold foil, rolls of stickers for our price guns, etc. They’re easy to work with, are competitive, and know the retail world inside out.

Given what freight’s costing these days, it’s a good time to stock up.