i can remember it as clearly as yesterday.  it was a black Lycra long sleeved mini dress covered in hundreds of tiny satin bows.  it was by Betsy Johnson and way, way out of my price range.  after all, i was a college student living on $500 a month (and that included rent!).  how could i possibly afford a $120 dress?  all i can say is:  Layaway.  i had to have the dress and paying for it in small chunks helped me attain it (slowly, but surely).

now i know Layaway has been out of vogue for some time – given the availability and influx of credit cards – but let’s consider our current economic situation.  credit card companies are charging interest up the ya-hoo and it’s becoming more difficult to obtain – especially for those who have hit hard times.  Layaway can help those who can’t or don’t want to use credit cards obtain the items they want – without paying interest.  sounds pretty good, right?

i used to offer Layaway at ooma – and though very few clients used it – there were a few who regularly (and very happily) used this plan.  these were my clients who were tight on budgets, but long on indie style.  they wanted the one-of-a-kind and limited-edition piece – but couldn’t always afford it.  so Layaway was the perfect answer to ensure it wasn’t snatched up my some other credit or cash wielding gal.

You can create you own policy – there are no set rules – but i like the following and i think it’s a policy many are familiar with:

• at least 30% down
• the remainder paid off within 60 days

(the thought is they’ll pay a third the second month and make a final payment after the 2nd).  but you could do a quickie 30-day policy too, if you prefer.

the other nice thing about Layaway – is that it’s easy for independent boutiques to implement (and market) right away.  this will give you yet another advantage over large retailers.

one tipsy:  make sure you have their phone number and email on file in case they forget (as people sometimes do).  they’ll appreciate the reminder.

i was consistently inspired by my merchandise when i owned ooma.  i’d delight in the arrival of new boxes from the UPS man (seriously – it never got old) and would immediately have visions of what activities the ladies may partake in while wearing these new items.

perhaps they’d sip mimosas on a poolside deck while wearing a seersucker sundress?  perhaps they’d wear their tallest, sexiest boots while devastating a man with a mere glance in this slinky sweater dress.  it seems that any gal wearing this top is inviting a kiss from a stranger….

you get the drift.  i would immediately conjure up scenarios of what would happen if someone was wearing this (and it’s always been how i get dressed!).

so i decided to create name tags for my wall racks.  i’d make small, simple signs that indicated what i thought about the clothes hanging below.  clients just adored them!  they’d always comment on what they read – some were kitschy, some were flirty and some were just fun.  they always told a story in just a few words and usually generated a conversation.

signs are also great for suggestions (how to wear/use an item), telling stories (short bio on a designer),  and creating categories that make it easier for people to shop (casual, seasonal, etc).

it’s as simple as printing out words (i’d use a design or colored paper) and placing them strategically.  frame them, tape them, pin them, hang them  - whatever works for you.

Today i’m happy to introduce Margo Kopman, owner of Insight Retail Solutions.  Margo works with retail businesses to help provide tools and strategies to grow your business by helping you tackle your inventory.   For those of us who opened a shop because we have a passion for what we sell – but don’t necessarily have retail training – this could be a huge help in creating greater profits.

 Without further ado – here is Margo’s story and “pitch”…..

 Most of us (I would say all, but that wouldn’t be fair) retailers sprint in to the business because of passion, creativity and desire to share our vision with the world around us.  The art of retailing isn’t hard work because it is what we love to do – buy and sell.  It’s not a “job” really, but a lifestyle.

 As I approached my 4th year in business, I hit a brick wall.  Taking the business to the next level was what I wanted to do, but just how in the world was I going to do that?  My “budget” was right on, my expenses in line.  I had an amazing mailing list and devout following, national and local press galore, what else did I need?  

 It is funny to look back and remember the times when I was so afraid to talk to other retailers in my area because I didn’t want them to know the good, bad and the ugly.  Once I opened up and started yapping, this bright light came in and my life has never been the same. 

 “Do you not use a consultant to help you with your open-to-buy?” she asked.  Um, no –  what in the heck is that and where would I find a retail consultant?  And, how in the world could I have been winging this for so long? 

 Quickly, I learned that there was not enough time in a day to do all of the things that I needed to do to analyze what was making the most profit in my business and how to move forward (meaning, buy more of what is selling at a maintained mark-up above my breakeven point) based on the demand from customers and overall trend information in the industry.  A little thing we like to call in the retail business – balance and flow.  Mine was out of whack.  What was my markdown strategy?  When I need cash – have a sale.  Wrong answer.  What were the profit centers inside my 900 square foot shop?  Well, jackets for the season were generating the most sales – so jackets.  Wrong, again.  Apparently, there is a science to this thing we call retail – who knew!?!?!

 Fast forward two years and voila – a well oiled, fine-tuned machine.  All I could think about was, why don’t people in the industry that know about these consultants and planners, share the good news with the independent retailers in this world? 

 That’s when I decided to share the wealth and go through training with the company that holds the key to more profits and cash – Management One®.  I was going to do both, be the shopkeeper and the voice of reason for other shopkeepers but, the passion I had for retail completely shifted – I started to LOVE the numbers – the science, if you will.  A big decision had to be made.  The shop went up for sale and 4 months later, I gave the key to the eager young buyer and said good-bye to my baby.

 In a time like today where business is tough for everyone, we hear the word consultant and think, if my business is doing ok and I can pay the bills and get new inventory, then I don’t need one.  I say, wouldn’t it be fabulous to GROW the business?  And for those who are having a tough time paying bills on time, and getting new inventory, they “can’t afford it.”  Let me assure you, you can’t afford NOT to know how to prioritize every single penny you spend on inventory and expenses. 

 The ability to take a boutique owners passion for the buying and the selling and turning that knowledge into profits and cash is undeniably the most rewarding part of what I do every day. 

 Ask yourself – as a retailer, do you have the ability to:

•  Predict the sales in each classification (most months with greater than 94% accuracy.)?
•  Establish the right inventory level in each classification?
• Create specialized reporting for multiple and chain store use?
• Create a dynamic cash flow management tool?
• Diagnose the data and predict suitable actions to take including markdowns, transfers etc?
• Create new marketing strategies and promotional ideas?
• Analyze expenses and make changes that will HELP cash flow, not hurt it?

 We can no longer fly by the seat of our pants.  The science of retail is a crucial part to the business, and one that often gets overlooked.  I do not replace a POS system or your accountant – but I work with both to get the information needed to generate an OTB budget and action plan each and every month. 

One of my clients has been in business for almost 7 years.  Her business (sales) is down 25% from her biggest year – but get this, her PROFITS are greater than ever.  Yup, that’s right, she’s making more money now than she ever has which is allowing her to open her second location in mid-October.

Margo Kopman works with independent retailers of all different sizes and types all over the country.  For a free business analysis consultation please contact her at margo@insightretailsolutions.com or 314.503.2607. 

this tipsy is crazy simple:  use stickers for your price tags.  whether you’re high-tech and use bar code scanners and UPCs or if you’re a hand-written sort of person – it is smart to print the price info on a sticker – which is then applied to either the item you’re selling or a hang tag (i personally like branded hang-tags for your store).

some stores write the price directly onto the item or hang-tag – and then if the item is a gift, it’s all about ripping it in half, tearing it off, or attempting to “sharpie” out the price.  it’s much more elegant to remove a sticker and leave your branded hang-tag in tact.

two other reasons this is the way to go:

1.  you can continuously re-use your hang-tags (i used to pin mine at ooma – then when i’d sell an item, i’d remove the tag, remove the sticker and re-use it!).  some stores like to leave the tag on – which is fine – but this is a nice eco-friendly option.

2.  when you use a sticker – you can change the price without putting the item on sale. sometimes – i’m not ready to move an item to a sale rack – but i think the price may be too high.  in this case – i’d simply adjust the price and put it back in the sales floor.  sometimes it’s gratifying to see prices slashed – but sometimes that isn’t the best strategy to move an item.

for sale items – i’d also use tiny color-codes stickers, rather than slashing the price on the tag.  this looked cleaner – and allowed me to easily change my sales strategy when need be.

i was always a fan of Avery stickers on hang-tags which i had professionally printed (i’d gang them up with my business cards – economical too!).

and while we’re on the subject…any ideas for great hang-tags out there?

i’ve always had a curiosity for the art of Feng Shui.  i remember when i was desperate to meet the love of my life  – i used techniques to tap into my heart powers.  i just read an interesting article in California Apparel News about Feng Shui in showrooms.  Kartar Diamond worked her magic for several of the New Mart, Cooper Building and California Mart showrooms who reported sharp increases in sales.

that piqued my interest.  it makes perfect sense to apply the rules of Feng Shui to a retail establishment as well.  if you do your own research, i’m sure the cost would be minimal and the reward could be great. 

Resident feng shui expert on About.com, Rodika Tchi, encourages retailers to place their cash register in a location which is situated diagonally from the main door with good backing and a clear view of the door.   She warns against placing the cash wrap too close to the door – nor in direct line with it.  all the better if your cash register is in your “money/abundance” area (SE corner).  but really, it’s all about creating vibrant energy – that makes people excited to be in your store  - which encourages them to buy (and return).  check out these great tips to apply feng shui in your boutique.

i also found this cool article from Deborah Burnett regarding feng shui and retail success.  it’s funny to read this because though i never did this research with ooma – a lot of the things she speaks of were on my mind instinctively.  for example – if i made a bad buy at market – and i began feeling distaste for the item – it seemed like it just had some bad joo joo.  that’s when i’d ship it off to My Roommates Closet, the sale rack, or anywhere other than my main sales floor.  i’d feel better getting rid of the “bad energy” and life would resume as normal.

here’s another interesting tip:  place a round mirror (facing up) under your register (or computer, as the case may be!) which purports to “double the money“.  sounds like that one is worth a try!

has anyone realized any noticable changes after applying Feng Shui?  we’d love to hear about it.