Specialty shop retailing: everything you need to know to run your own store

428 Pages·2007·16.99 MB·English

by  Schroeder, Carol L

SPECIALTY SHOP
RETAILING
SPECIALTY SHOP
RETAILING
EVERYTHING YOU NEED
TO KNOW TO RUN YOUR
OW N STORE
3RD EDITION
CAROL L. SCHROEDER
John Wiley & Sons, Inc.
Copyright © 2007 by Carol Schroeder. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
Wiley Bicentennial Logo: Richard J. Pacifi co
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Library of Congress Cataloging-i n-Publication Data
Schroeder, Carol L.
Specialty shop retailing : everything you need to run your own store / Carol Schroeder. — 3rd ed.
p. cm.
Includes index.
ISBN 978-0-470-10741-6 (cloth)
1. Retail trade—Management. 2. Specialty stores—Management. I. Title.
HF5429.S35565 2007
658.8(cid:2)7—dc22
Printed in the United States of America.
10 9 8 7 6 5 4 3 2 1
CONTENTS
1 Getting Started 1
Finding Your Customers: Market Research 2
Are You Ready for Retailing? 5
Franchise Opportunities 10
Buying an Existing Business 12
Starting Small or Staying Small 14
Writing a Successful Business Plan 16
Selecting Your Legal Format 18
Financing Your Business 21
Getting the Necessary Permits and Licenses 25
Finding the Perfect Location 25
Naming Your Store 30
Developing a Logo 31
Where to Get Help 32
Ready, Set, Go! 34
v
vi Contents
2 Managing Your Store’s Finances 36
Setting Up Your Sales System 37
Bookkeeping 101 43
Understanding Financial Reports 47
Working with an Accountant 48
Creating Budgets and Future Planning 49
Tips for Taking Inventory 50
Business Offi ce Essentials 51
The Bottom Line 53
3 Successful Store Design 54
Establishing a Design Budget 55
Updating Your Look by Remodeling 56
The Perfect Design Concept 57
Welcome: The Storefront and Entranceway 58
Effi cient Layout Plans 61
Well Grounded: Flooring Materials 63
The Backdrop: Wall Treatments 64
Lighting for Effect 64
A Different Kind of Overhead: Ceilings 66
Selling on Several Levels 67
Maximizing Merchandise Fixtures 68
Interior Signage that Sells 71
Checking Out the Cash Wrap Area 75
Store Security Concerns 77
Background Music for Shopping Pleasure 78
Creating an Aromatic Environment 79
Restrooms, Offi ces, and Other Backstage Needs 81
4 Gathering the Goods: Merchandise Buying 82
Targeting Your Typical Customer 83
Establishing a Buying Budget 84
Where to Look for Great Merchandise 86
Knowing What to Order 87
Determining the Quantity 89
Stretching Your Budget by Consignment 90
Developing Original, Exclusive Products 91
Contents vii
Higher Margins through Direct Importing 94
Keeping Inventory under Control 95
Tracking Sales for Reorders 97
Seasonal Planning Tips 99
Buying for Displays and Promotion 102
Benefi ting from Working with Sales Reps 102
Buying Trip Tools 104
Establishing Your Store’s Financial Credibility 110
Using Purchase Order Forms Effi ciently 113
Professional Ordering Procedures 113
Specifying Shipping Preferences 117
Setting Retail Prices 118
Developing Benefi cial Vendor Relations 121
5 Visual Merchandising: Displays that Sell 124
Check-in Time for New Arrivals 125
Coping with Problem Shipments 127
Pricing the Merchandise 131
Getting the Goods on Display 135
Maintaining Merchandising Excellence 138
Using Store Windows Effectively 139
Visual Merchandising in the Future 149
6 Finding and Keeping Great Employees 150
Do You Need Employees? 150
Enlightened Leadership: Participative Democracy 151
Hiring for Special Job Functions 153
Appealing to a Shrinking Workforce 155
Where to Look for Good Employees 156
The “How to Hire” Guide 158
Government Forms for New Employees 165
The Employment Agreement 167
Staff Training on Store Procedures 170
Your Store’s Employee Handbook 171
The Importance of Flexible Scheduling 173
Compensating Your Staff 176
Attractive Benefi ts and Perks 180
Using Open-B ook Management 186
viii Contents
The Importance of Employee Evaluations 187
Correcting Performance Problems 190
Saying Goodbye: The Exit Interview 193
Creating Team Spirit 194
7 Customer Service Essentials 199
Motivating Employees to Give Great Service 201
Time to Shop: Setting Store Hours 205
Setting a Customer-F riendly Return Policy 206
For Customer Convenience and Comfort 213
Services that Exceed Customers’ Expectations 217
Added Sales through Wedding and Gift Registries 225
Hot Trend: Gift Cards and Gift Certifi cates 227
Special Service: Customer Orders and Holds 229
Evaluating Customer Service 232
8 Getting the Word Out: Advertising Your Shop 235
Establishing an Advertising Budget 236
Tools for Targeting Your Market 238
Choosing the Best Media for the Money 238
Should You Use an Ad Agency? 239
Using Co- op to Stretch Your Budget 240
Welcome to the World of Print Advertising 242
Effective In-S tore Advertising 247
Direct Mail: Making the Best Use of Your List 250
Broadcast Media: Radio and Television 256
Retailing Online: The Next Wave 259
Evaluating Your Advertising’s Effectiveness 260
Advertising When Sales Are Down 261
9 Using the Internet to Promote and Prosper 262
Establishing Your Home on the Web 263
Advertising Online: Web Site Essentials 263
Using E-mail for Customer Contact 265
Permission Marketing via E-mail 266
Keeping in Touch with Staff: Internal E-mail 268
Contents ix
Bricks to Clicks: Selling Online 268
Choosing Your Approach to Online Sales 270
Shopping Basket Security Issues 271
Better Service via the Web for In- store Customers 272
Filling Internet Orders Effi ciently 273
How to Draw Customers to Your Web Site 274
10 Creative Promotion and Publicity 276
Sales, Sales, Sales 277
Alternative Ideas for Promotions 280
Rewarding Customer Loyalty 283
Catering to Consumers through Collectors’ Clubs 285
Special Events to Attract Shoppers 286
Taking It On the Road: Events Outside the Store 293
Garnering Publicity and Good PR 294
11 Beating the Big-B ox Stores 299
Finding Your Special Niche 300
Offering Stellar Customer Service 300
The “Buy Local” Call to Action 301
Independents’ Day Is Here 303
Turning the Tide on Big-B ox Development 304
What to Do When Wal-M art Comes to Town 305
12 Good Works Are Good Business 307
Charitable Donations: What and Where to Give 307
Hosting Fund-R aisers and Benefi ts 311
Selling Goods That Do Good 312
Museum and Hospital Shops: Retailers Who Serve 314
Environmentally Sound Retailing 315
Giving Something Back to the Community 322
Providing Community Leadership 325
Volunteering Your Time 327
The Rewards of Giving 328
x Contents
13 Managing during Tough Times 329
Insuring Against Crime, Disasters, and Other Crises 330
Curtailing Shoplifting and Employee Theft 331
Preventing Burglaries and Holdups 335
Fires, Storms, and Natural Catastrophes 336
What to Do When Disaster Strikes 338
When You Lose Your Lease 338
Customers Can Be Trouble 339
Coping with Vandalism and Graffi ti 340
Surviving Personnel Problems 340
When You’re in Financial Trouble 342
Responding to Bad Publicity 346
Keeping an Upbeat Attitude 346
14 Improving Sales and Profi tability 348
Boosting Your Sales Income 349
Growing Sales through Relationship Marketing 350
Targeting Luxury Shoppers and Corporate Sales 351
Markup Can Make Up Your Margins 354
Expenses Down = Profi ts Up 354
The Dangers of Too Much Inventory 356
Plugging the Holes 357
Staying Alert to Changes 357
15 Looking to the Future 358
Riding the Wave of Success 359
Small Can Be Beautiful 359
If You Decide to Grow Your Business 360
Moving On: Selling or Closing Your Store 365
Life Planning Issues for Shopkeepers 370
Running the Mature Business 372
The Outlook for Retailing Is Bright 373
Glossary 375
Resource Guide 391
Index 399
PREFACE
Thirty- fi ve years ago, I spent my junior year abroad studying Danish
and English literature at the University of Copenhagen. During the long,
dusky Danish winter days, the lights of Copenhagen’s specialty shops cast
an inviting glow out over the dim sidewalks. With idle hours to fi ll be-
tween university classes, I often succumbed to the lure of fi ne design and
friendly European service, wandering from shop to shop along Copenha-
gen’s winding pedestrian streets. As I browsed through displays of color-
ful handcrafts, candles, fl owers, and furniture, I imagined someday creat-
ing a welcoming haven full of well-d esigned products back in America.
I never envisioned rivaling Sears or Wal-M art. Their bottom-l ine ori-
ented style of retailing held no appeal for me. Nor was it my dream to be
at the helm of a fl eet of 25 stores, with employees I’d never met and man-
agers who reported to the home offi ce via computer.
My vision was much simpler: to create a shop that would sell mer-
chandise to enrich people’s lives, through form, function, tradition, or
amusement. I wanted to market this merchandise in an environment that
would be pleasurable for customers and staff alike—a shop I would look
forward to going to every morning at 10:00 a.m. (The fact that retailers
xi