The goWholesale Blog

Back to School Special - Seasonal Trending

July 30th, 2008

In order to maximize your profitability during seasonal changes, specifically with the back-to-school season, you need to remove the guesswork. You need to know exactly how the market is going to behave to make the most money.

Predicting the Future
How can you know when the peak sales are going to drop off? You can’t predict the future can you? Of course we can’t predict the future, but we can learn from our past.

Retailers keep track of what happened previous years to know how to effectively sell this year. Managers order enough calculators not only to get them through the back-to-school sale, but also the first few weeks of school. They know how to plan for this because of what happened last year.

The same is true with eBay. If you could see what happened last year with calculator sales, you could know when sales are going to start to drop-off.

With a market research tool like HammerTap, you can know what happened last year. With information like that, you can in a sense predict the future.

I used HammerTap to research calculator sales last year. I researched calculator sales for four weeks starting on August 23, 2006.

Below are the results by-week. Pay attention to how the Listing Success Rate (LSR) and Average Sales Price (ASP) change during the four weeks of sales.

The Dropping-Off Point
So when do sales drop off? Sales during Week 2, August 31 thru September 6 were the highest in both LSR and ASP. During this week, you can sell the most calculators for the highest price possible.

After September 6, the Average Sales Price drops rapidly. In one week you go from $66.85 to $53.95, a difference of $12.90. This is a huge drop in profit. While sales are steady at 77%, you are not making nearly as much per calculator.

Depending on your cost of the product, September 6 is your drop-off point. Even though sales are still high (that’s your Listing Success Rate) you may not be making enough money on each sale to cover your costs.

What’s your strategy then? Try to sell all of your calculators during Week 2 above to increase both your success rate and selling price. Selling during this week is going to maximize your profits for this product during the back-to-school season.

However, each product is different, and this is just one example. In order to maximize the sales of your products during seasonal and holiday trends like this one, you really have two options: 1) Try and guess when the optimal time to sell is or 2) Use a research tool like HammerTap.

Posted in Generating More Sales | No Comments »

Make Sure You Recharge Your Batteries This Summer

July 16th, 2008

Summer is halfway over and if you haven’t taken a vacation yet, you better get going! As one of our expert contributers, Steve Strauss, highlights below, it’s a must for any entrepreneur.

Q: Steve – I would like to get away with my family this summer, but I just don’t see how I can do it. I own a one-man business and when I don’t work, I don’t get paid. What can I do if I can’t afford to get away?

Tony

A: Amigo, I hate to sound like a cliché, but you can’t afford not to get away.

If you are like most of us, you went into business for yourself because

You wanted more freedom, or
You wanted a better boss or work situation, or
You wanted more creativity at work, or
All of the above

I once worked for a law firm that, I thought originally, was quite generous with their time-off policy: Three paid weeks a year. Woo-hoo! But it was only after I started that I “got” the fine print. I was allowed the time off, sure, but only if I still billed my requisite 90 hours for the time I was gone. I got three weeks of, but only if I worked an extra three weeks later in the year.

Man, I hated that job.

So, if you are the boss now, be a good one. Give yourself a break. Even better, give yourself a long break. You deserve it. And you are not alone, according a recent American Express Open survey, almost 2/3 of all small business owners are going to take a week off this summer.

Here’s how the solopreneur can do it too:

Plan ahead: This can mean many things:

Saving up enough money so you can get away without it being stressful
Telling clients and customers that you will be gone
Making a list of essential things that you normally do that must be done while you are gone, and then

Hiring a temp or virtual assistant: If in fact you cannot get away without closing the office or shop, then consider hiring part-time help, a temp, or a virtual assistant who can man the essential functions while you are gone.

No, they cannot do everything you do, but you just might be surprised how much they can do. The key is proper training, and good communication. Consider having a pow-wow every few days over the phone. In the meantime,

Turn the Blackberry off : It’s a blasphemous thought, I know. But the point of getting away is to get away. Constantly checking emails and making calls not only defeats the purpose, it ticks off people who you are supposed to be relaxing with.

Call and check in a bit, sure, but there is no need to do it constantly. That same AmEx survey found that 81% of small business owners intend to check in with their business either by phone or email while on vacation. (Note:19% will not check in at all!)

Get more done early : Get extra work done before you go. By getting ahead, you make getting away much more doable.

Schedule extra time when you get back: Don’t tell everyone you will be back in the office Tuesday, tell them Thursday. Then, when you get back in Tuesday you can have a few days of uninterrupted time to catch up.

Combine business and pleasure: If getting away from it all still seems too difficult, consider making a business trip a family trip. It will save you money, allow you to still work a bit, but also have some needed R&R.

Have more 3 days weekends: Finally, if a week away is not your thing, for whatever reason, then this is the time of year to have more long weekends. You will rejuvenate your batteries, yet still get work done.

Today’s Tip : If business with your traditional customers is slowing down, then guess what? It may be time to investigate areas and customers that can be more productive and profitable, and begin to target those.

Steven D. Strauss is one of the world’s leading small business experts. His latest book is the Small Business Bible . A lawyer, author , and public speaker, Steve has spoken around the world about entrepreneurship, including at the United Nations, and he has been on CNN, CNBC, MSNBC, The O’Reilly Factor, and many other television and radio shows. If you would like Steve to speak to your group, help your business grow, or if you would like to sign up for his free newsletter , “Small Business Success Secrets! ” please visit his website – www.MrAllBiz.com .

Posted in Starting a Business | No Comments »

Boosting Your Sales With Creative Retail Displays

July 14th, 2008

Having an interesting and wide variety of products in your store is important, but without a creative way to display them, you could be missing out on a ton of sales! Think of your store’s display space as part of product marketing and promotion. You are trying to draw customers into your retail space and get them intrigued about your products. Now, what better way to do this than by creating a warm and cozy atmosphere that is logically laid out and with products creatively and attractively displayed? Once your store’s retail space is being used to its full advantage, there’s no doubt you’ll notice a boost in sales and in repeat customers!

There are several ways to get your store’s space working for you. The first is your store’s actual building or room. Think of what you can do to make your store’s inner shell more inviting. For instance, if the walls are white and your lighting consists solely of florescent bulbs, then think of using some warm-colored paint along with bulbs that are less stark. The less your store looks like a warehouse, the better! And, use the theme of your products to your advantage. If you sell toys , then get whimsical in your decorations - maybe a blue ceiling with painted clouds, big, framed pictures of close-up toy pictures on the walls, etc. Get creative in your surroundings - they are meant to delight your customers!

Next, it’s important to group your products logically and display them together. If you sell both inflatable boats and electric pumps, then they should be displayed near each other - otherwise you could be missing out on an obvious up-sell sale.

Once you have your product groupings figured out, it’s time to display them using tables, shelves, furniture, etc. The key is to get as many of your most intriguing items between waist to eye level. Even the most charming of products will go unnoticed if they’re sitting on a bottom shelf - save that space for additional stock. First, lay out your display furniture (you may want to use paper cut-outs until you get the arrangement figured out) to get just the right flow - making sure that aisles are wide and that the arrangement gives customers a natural walking path through your store. Now it’s time to arrange your products. Newest arrivals should always be in the most eye-catching of spaces - that way repeat customers will see that your store is always changing. The way your products are displayed will depend on the type of store you have. If you sell decorations for the home, you might want your displays to mimic rooms of a house. If you sell children’s products, you may want to have products both in and out of the box, as parents typically like to read all the product information that the manufacturer prints on the retail packaging as well as see and test the product up close.

Another important point to remember is that whether or not you’re continually getting in new merchandise, it’s always good to change things up once in a while. Move products around, change displays, etc. Give customers a reason to keep coming back - changing the inside scenery gives the impression that new products are always coming in and that there’s always something new to see. Some examples to consider:

* Seasonal or holiday-themed displays
* Displays for upcoming special events (i.e. the Super Bowl, the Oscars, or even local events)
* New product lines, brands, or designers

Creativity and attractiveness are the keys when designing your retail displays . If you have an artistic flair, then this is your time to have fun and boost your sales at the same time!

Posted in Generating More Sales | 1 Comment »

Humanizing Your Website

July 9th, 2008

One of the biggest problems online marketers face is grabbing the attention of surfers. The second is building instant trust between the surfer and the website. The latter sounds practically impossible but new technology has once again prevailed and brought us one step closer to the goal.

Perhaps you’ve seen it and perhaps you haven’t. Regardless, it’s making a splash in the online advertising/marketing community. What is it? (drum roll please…)

Moving media.

The principle is to place a "live host" on your website that will greet your customers and personally introduce your site and company. The humanized video makes for a far more personalized feel to your site and establishes a sense of trust worthiness and credibility. Many large companies are jumping on the bandwagon and from everything I’ve heard, people seem to think it’s a pretty cool thing.

Two companies appear to have the market cornered on creating and delivering this service. Rovion and Webouts offer the same things essentially however, Webouts appears to be different in that their video person can enter from any direction on your website while Rovion’s are apparently stationary.

The companies allow you to produce your own creative but also have their own teams that can work with you to produce the desired result. The clips can be up to 30 seconds long and Rovion’s starting price for a small campaign is $2,500.

Check out Rovion and Webouts for examples and more information.

Posted in E-Commerce and E-Business, Marketing Your Business | No Comments »

What to do if your supplier goes out of business

July 8th, 2008

Well hopefully you don’t have one single supplier! If one of your major suppliers does in fact notify you that they are closing their doors, there’s no need to panic. Simply contact your other supplier(s) and speak with them about the possibility of you moving more business their way. Determine if they can handle the new demand and talk about pricing options with them (as they may offer a discount for more business). Also remember to contact the supplier that is going out of business and ask if they have any products that they can still supply you. If they do, you might be able to get a "going out of business" price on the items.

In the event that you have paid for items that have yet to be shipped when the notification of the closing comes, DEFINITELY contact the supplier to figure out if you will be receiving the products you paid for. If not, ask about taking other products up to the equivalent value you’ve already paid. You may have to enter into court proceedings but this of course is highly undesirable as it will likely cost you more to hire a lawyer and pay court fees. Try to work something out directly with the supplier but if this does not work, make sure you consult a lawyer for further action.

The best way to avoid any of this is to pay attention to clues that might indicate the supplier is in trouble. Some of these include:

*Difficulty in reaching the supplier by phone or email.

*Repeated lag in shipping timeliness and lack of product.

*Employees begin to quit and/or ask if your company is hiring.

The best plan is to always have back up suppliers. This will save you a fortune in time and money in the event that one of your major suppliers does indeed go out of business.

Posted in Product Sourcing, Starting a Business | No Comments »

Viral Marketing Gone Right…on accident…sort of.

July 7th, 2008

This video has had 3.5 million+ hits in the past month.

http://www.youtube.com/watch?v=4SqJz0NgnnE

The ad was designed to be a part of a viral marketing campaign for Gatorade. The ad was pulled however when Gatorade decided it wanted to pursue a different direction with it’s marketing campaign but somehow the video still leaked out and to Gatorade’s great fortune, they got to see just how successful the campaign might have been.

Granted, Gatorade has millions of dollars it can spend on stunt girls and fancy video editing but no amount of money can buy the phenomenal reach their video has had online. It goes to show that if your video is worth watching, people will watch it and spread it around whether they know what it’s for or not. This is the "word of mouth " marketer’s dream come true. I bet the folks at Gatorade are kicking themselves now for not attaching a bigger logo to the end of the clip!

Posted in E-Commerce and E-Business, Marketing Your Business | No Comments »

Happy 4th of July

July 3rd, 2008

HAVE A SAFE AND HAPPY FOURTH OF JULY!

Posted in General Discussion | No Comments »

Sta.rtUp.Biz: A Promising New Social Network

July 3rd, 2008

Move over Facebook. Watch out MySpace. There’s a new kid in town.

Aside from the less than convenient domain name, Sta.rtUp.Biz appears to be a social network above the rest (as far as small businesses should be concerned). With a slick and stylized presentation this social network seems to have it all. From creating your own profile and connecting with other business owners to an impressive resource offering, this site is bound to give it’s members everything they could possibly want all in one place. Their articles section traverses the top business magazines online including Fortune, BusinessWeek, and Entreprenuer. They’ve got forums, blogs and videos as well as free business tools and free advice from experts.

Check it out. And if you are a member please let us know what you think about it. Does it live up to it’s flashy presentation?

Posted in E-Commerce and E-Business, Starting a Business | 1 Comment »

Avoid these 7 mistakes when rebranding your company

July 1st, 2008

The one thing that enduring companies have in common is that they change. Not only can their products vary but also the image they project as well. Rebranding is common in the business world and quite often vital in order to succeed. Take McDonalds for example. You wouldn’t have thought that this global company would have to work too hard to sell any hamburgers but take a look at this commercial from 1985:

Now check out this one from 2003:

So as you can see, McDonalds has changed their approach from a more childlike appeal in the first commercial to actually trying to appeal to many different types of people and lifestyles. This certainly reflects the size of the company at each moment in time as well as the different markets they are trying to reach.

If you are considering rebranding here are the top mistakes marketers make according to Jessica Seid of CNNMoney.com :

1. Clinging to history. Successful rebranding means staying relevant. Remember that assumptions made when the brand was established may no longer hold true. Explore various opportunities for brand expansion, such as online advertising.

2. Thinking the brand is limited to the logo, stationery and corporate colors. Brands encompass everything from customer perception and experience to quality, look and feel, customer care, retail and web environments, the tone and voice of communications, and more.

3. Navigating without a plan. Effective rebrands rely on a creative brief to keep everyone focused as the project progresses. Include sections for an analysis, objectives, target markets, budget, timeframe, point person and methods for assessing results.

4. Not leveraging existing brand equity and goodwill. Dismissing brand equity when rebranding alienates established customers, while unnecessary overhauls can irreparably damage a brand’s perception. Consider the needs and mindset of the target market carefully before diving into the process.

5. Not walking in your customer’s shoes. Simply calling your own 800-number or receptionist may reveal challenges customers face and inform your rebranding strategy. Take the time to navigate your own website, buy your products and return something. Better yet, ask a friend or family member to do so and learn from their experiences.

6. Believing rebranding costs too much. Good thinking doesn’t have to come with a multi-million dollar payout. You can get good thinking and solid strategy from small and talented branding agencies, consultants and in-house talent. Consider university students or small firms for cost-effective results.

7. Bypassing the basics. The value of perfecting your physical environment, marketing materials, website, etc., is decreased if your customers languish on hold for inordinate amounts of time. If your invoices and contracts are written in seven-point legal jargon, the brand experience declines. Keep all customer touchpoints in mind when rebranding.

Posted in Marketing Your Business | No Comments »