January.

For retailers, it’s cold not just outside, but indoors when it comes to moving the stock off the shelves. After the Christmas-buying sprees, most shoppers are back at home cooling their heels while retailers try to entice them back out to buy. The one stand-by many local store owners turn to is holding big sales, and they’re finding that in a tough economy it’s necessary to offer deeper and deeper discounts to get folks back and willing to buy. It’s great to have warm bodies in your store again, but it’s not great if your sale ends up making you no profit due to all that deep discounting.

So what’s the method of success that allows you to get the customers back and still make a profit? Is there a way to get both?

There are several methods you can employ to attract business and still maintain a profit margin. See which one of these (or more than one) will work best in your restaurant, retail store, or service-based business and give it a go.

Know Your Bottom Line, and Sell Just Above

This is the method to use with that inventory that needs to move out the door, not with that great new batch of products that just came in for Spring. Calculate your bottom dollar on these items: how low can you go and still make something, even if it’s a small something? Then make your strategy to sell many of these items, each bringing in that small amount of profit, and you’ll end up with a good amount of profit when all is said and done. Plus you’ll have cleared your store of excess, aging inventory.

Create a Loss-Leader

Grocery stores use the loss-leader method just about every week; their circulars advertise a deal that’s “too good to pass up” for their shoppers. In many cases, the grocery stores are taking a loss on this item, but they know that just getting the customers in the store is worth that small loss. How many times have you gone to the grocery store and bought just one item? Most of us don’t shop for groceries that way, and why not? Because in the process of locating and purchasing the loss-leader item, we’re unable to ignore the displays of other great merchandise – some also discounted, some not – that we have to walk past and around to find our goal. Use the same strategy in your store; advertise a huge discount on a popular item, set up a great display for it, and put it smack in the middle of many other great displays with enticing offers of their own.

Offer Package Deals

Another angle on the loss-leader strategy is to offer package deals and discounts; this method allows you to package your items of choice together, being sure that one of them is a cheaper item for you to purchase, which gives you greater wiggle room for a discount. You can offer a greater discount on a combined package, knowing that your combined investment in all the package items is still well below the discounted package price. You might even use a “buy one of these, get one of these other things” free method to sell a costlier item without a discount while taking the “loss” on your cheaper, freebie item. It’s the same method beauty product companies’ use when they offer a “special gift” with a purchase.

Add Value that Doesn’t Cost You Cash

What can you offer your customers that doesn’t come with any cash cost to you? Look beyond the basic inventory, and think about subscriptions, memberships, special discount or dining clubs, consultations, or other perks that offer a huge incentive for customers thinking about a purchase. The value is still there for the customer, who would otherwise have to pay to get the subscription or membership or consultation; but the value-added item isn’t costing you cash that you can’t afford to lose. Use these value-added items to upsell; offer them as freebies or part of a package, which allows you to give your customers an increased value for the same cost without decreasing your profit margin.

What method sounds best for your business?

Image by Alan Cleaver2000.

A client of mine sent me this magazine clipping from a recent edition of Lucky Magazine a few of days ago. He loved the layout and educational nature of this photo editorial. Lately, we’ve been spotting more and more of these types of presentations in off-line magazines and retail web sites lately.

But did you know that you can make your retail photographs look like Lucky Magazine?

The concept isn’t that difficult to pull off for your own retail business if you set it up correctly.

I consulted with Haley Montgomery over at Small Pond Graphics, and she gave us some great tips for pulling off this look without hiring a professional photographer.

What you’ll need:

1. A ladder or a position that will allow you to photograph from above.

Haley said, “Clothes don’t look good with the sharp perspective of taking this shot from standing in front of it. [The photograph] needs to be from overhead so it’s straight on.”

2. Additional lighting.

I found this great tip on lighting:

Professional light kits can cost from several hundred to several thousand dollars, so a good cheap option for lighting equipment is to purchase some metal shop lights from your local hardware store.

Three of these lights with bulbs will cost you under $20, and they’ll give you a huge increase in the amount of control you have while you film. You can bounce lights off of walls, mirrors, or any other flat, lightly colored surface to provide more ambient “fill” light.

 

3. Mock green screen.

It doesn’t have to be green, but you should create a flat solid surface of a color that is distinctly different from the color of the items you are photographing. Haley recommended using a big piece of solid colored cloth – something in an odd color that separates itself from the color in the subjects to be photographed. She said that this allows a graphic artist or in-house Photoshop-user to easily select, delete and/or replace that background color.

My quick tips for a successful recreation of this sort of look for your own retail store’s marketing:

1. Assemble items to be photographed.

Gather your pieces and your props all together in one place. Practice laying them out in such a way that you can easily see everything and so that it all makes sense to the reader. Edit out a few things… don’t try to include every possibility in one photo. Put the look together – then simplify.

2. Setup the shot.

Spread the “mock green screen” on the floor or a large table surface. One client of mine actually uses the surface of a pool table as the flat surface AND the green screen for smaller items!

Layout the items to be photographed as desired and in a clear and simple manner on this flat surface.

Position the lighting so that there are no shadows and also no harsh direct light on the subjects.

3. Take the shot.

Position your ladder as closely as possible to the items. Alternately, balconies and stair banister areas sometimes provide other good elevated opportunities for photographing straight down onto something if you’re not a professional. Get as close to “straight down” as possible and snap quite a few shots with different settings on your camera. Try to get clear, steady shots so the items are crisp in the final photos. If your camera allows to adjust the “white balance” based on the environment, I recommend doing that. My cell phone camera even allows this, and this simple step makes a huge difference in the outcome (and color accuracy) of your photographs.

4. Edit the shot.

Move the photos to the computer and identify the photos that are most clear and show the most real representation of the colors and textures of the objects.

Using Photoshop or a similar photo editing program (free or low-priced options are available online), select the background “green screen” and delete it.

In one example that we saw, a corkboard look was used as the new background. To accomplish a “new background” after eliminating the green screen, layering stock imagery or even a separate photo of fabric or texture with the retail shot you just edited. In essence layering two images together to get the end product.

Voila!

Moneymaker Notes

This is a great look – and it can be realized in many variations with standard desktop tools and a decent camera. It is definitely possible to do it your self.

However, I must caution you: my recommendation at the end of the day is that it’s a great idea to know HOW to do something like this, so that you can more intelligently discuss projects and marketing concepts. But when the rubber meets the road, the best investment a small business owner can make is to hire professionals to help create investment marketing pieces for their business. Outsourcing frees up our time – and it makes us money by leveraging our time and resources. Professional commercial photographers and graphic designers are worth their weight in gold when you utilize their services in an educated way. But know how they work allows you to keep them reigned in appropriately when it comes to their time and your budget.

Photo Credit: Cell phone photo of a spread from a recent Lucky Magazine. To learn more or subscribe to this creative fashion mag, visit www.luckymag.com.

As we explained in a previous article , the key to locally owned businesses surviving and thriving in a competitive, online marketplace and tight economy is to find and dominate a niche of their own.

Small businesses can’t compete with the advertising dollars and inventory numbers of huge national chains; they can establish themselves by finding a specialty and being the best in it.

You Can’t Please All the People

The toughest part of becoming a successful niche business is realizing that you simply won’t be able to make everybody happy. If you choose to specialize your small business in science fiction, for example, then you won’t gain a following of classic literature lovers. But you will gain science fiction fans. If you choose to specialize your locally owned restaurant in a specific type of cuisine, perhaps Italian, then you’ll lose the people who don’t like pasta. But you’ll have fervent and loyal customers in the pasta lovers.

The Trade Off

For a business to succeed in a specialty or niche, it has to make a trade-off. You trade the complacent, so-so, average customers for the fervent, dedicated, enthusiastic ones. Sounds like a good trade, right? It is, because a few enthusiastic customers will give you more in lifetime value and passionate referrals to their peers than many average customers.

Finding Your Enthusiastic Fans

The first step to identifying those customers you want to find and keep for the life of your business is to clearly define your specialty. What are you offering that’s different, better, or more unique than your competitors? Once you’ve identified your own niche – your special offering – you’re in the right position to find the people who will be interested in what you have to offer.

The second step is just a bit of simple brainstorming: who is going to be the most interested and the most enthusiastic about your specialty, your niche? Don’t focus on the people who might be interested. Focus on the people who will love what you offer. If you’re selling science fiction books, you need to be at the sci-fi gatherings, clubs, and conferences, and partnering up with the local theater when the next sci-fi movie opens. Market yourself to the most passionate people in the particular niche; they, in turn, will market you to the people they know. When you find and convert enthusiastic customers, they do the advertising for you.

Places to Look for your Niche Customers

• Specialized online communities and groups
• Local clubs and meetings
• Conferences
• Meet-up groups
• Fan clubs
• Organizations and associations
• Trade shows

Note: If your “niche” is too big to define and go find in groups like these… then your “niche” isn’t a niche at all – and you need to work harder to find your small business’ niche – a truly narrow scope or specialty that will create a winning formula for your business in a difficult economic time.

Where would your ideal customers hang out? Where do they gather? That’s where you need to be.

Image by Rachel Voorhees.

The good news for retailers this Valentine’s Day is that consumer spending is on the rise. An annual Valentine’s Day survey, conducted by the National Retail Federation, suggests an 11% increase in spending on Valentine’s Day purchases. The expected total spending on all the romance is in the neighborhood of $15 billion dollars.

If you’re a retail store or restaurant owner, you should definitely be reaping some of those benefits from increased consumer spending.

And if you’re a retail store or restaurant owner, you should definitely be planning how you will attract those sales. Throwing a few paper hearts in the window is great, but come on: you can do better than that.

Even though we are less than one week to V-Day, you can still make the time count.

10 Last-Minute V-Day Marketing Ideas

1. Market to the ladies! Though men traditionally spend more on their Valentines than the other way around, women still comprise a large chunk of Valentine’s change, with the average female consumer expecting to spend around $80 on Valentine’s purchases this year. So clear out some of that lacey, heart-shaped stuff and put together some gift packages and product promotions that any red-blooded male would be happy to receive as a gift.

2. Put together a last-minute shopper’s package. Or several. There will be many who delay shopping until the last minute, and if you can present options that are thoughtful, creative, beautifully packaged, and good for several price points, you can get their business.

3. Hold extended hours on the weekend before Valentine’s Day. If you’re not usually open on the weekend, make an exception. Stay open late on Saturday night. Open up for a few hours on Sunday afternoon. Advertise your additional hours, of course, as a special time for Valentine’s shoppers.

4. Offer Early Bird Specials on V-Day itself. This year Valentine’s Day falls on a Monday; open up a couple of hours early for those wanting to grab a gift on their way to work. Put together a special discount for the Early Bird Shoppers. Have some piping hot coffee available, too. Donuts wouldn’t hurt.

5. Offer free delivery. Of course, not every business is set up for this, but if you are, then capitalize on it. Restaurants could offer pre-made romantic dinners to be delivered the day of (or a day ahead) with instructions on cooking or reheating as needed. Retail shops (beyond florists!) could offer beautiful wrapping and timely delivery of any Valentine’s gift purchased. It doesn’t have to be free, either.

6. Offer a custom shopping service. If you have some talented sales staff, offer to assist shoppers; uncertain or time-crunched spouses can call in with a price point, a few details about their significant other’s tastes, and then have you pick out, wrap (and deliver?) and charge them for a great, custom-selected gift.

7. Appeal to the rebels and creatives. Break out of the traditional Valentine’s Day flowers-candy-chocolates-dining gift list. What do you have that is quirky, funny, creative, off the cuff, special in a non-sappy way? There are plenty of people who are tired of the same old options. Give them something refreshing for a change.

8. Go with a red-and-white color theme. Help yourself think out of the box by promoting anything that fits into your red-and-white criteria as potential Valentine’s material. You could even offer a discount on any red or white items purchased between now and February 14th.

9. Offer an incentive with a future deal. Give a coupon towards 20% off future purchases with any purchase made for Valentine’s Day. Designate amounts if you want. Or make it for a specific product or service.

10. Extend your great offers through “Valentine’s Week.” Offer deals for the dudes in the doghouse (“Forgot Valentine’s Day? We can help!”) or the gals who didn’t get what they wanted (“Not loving your Valentine’s gift? Come pick out your own!”). Hey, when love is in the air, don’t just leave it hanging!

Image: Samantha Marx.

Why a Valentine’s Day Special?

Once we make it beyond the great buying and gifting extravaganza that is the Christmas season, local retail stores tend to hit a low point in retail sales. It can be a very low point, and even if you’ve pulled in a great amount of business over the holidays, you still have to keep paying bills and, well, making money. So, local business owners, don’t forget that the other holidays coming up on the calendar – even the minor ones – can be an excellent way to promote sales and increase slow winter business.

Options for a Valentine’s Day Special

1. Get a partner.
Valentine’s Day is all about romance, remember? So emulate the love by starting up a business partnership with another local business. Business affiliation for particular events and special deals can help you pull in a new crowd of customers, and give your current customers another reminder of why they want to give you more business. Contact local business managers and owners and start a conversation about promoting a Valentine’s Day event together, putting together a special Valentine’s Day package, or promoting each other’s businesses in some other way revolving around the Valentine’s Day holiday. If things go well, you can extend and work that partnership for other events and specials.

2. Promote what you need to sell in a Valentine’s package or deal.
Unwrap and repackage that older inventory you need to move by including it in part of a Valentine’s special deal or package offer. Not everything sold as part of a Valentine’s Day special has to be heart-shaped. And if you need to move inventory, you can use it to add value to the specials you do offer for this heart-shaped holiday.

3. Host or participate in a Valentine’s Day event.
This option is perfect for local restaurant and retail shop owners. These type of brick-and-mortar small businesses lend themselves readily to a Valentine’s Day theme. Restaurant owners can host a special Valentine’s banquet, offer special meals, desserts, and wine tastings. Retail shop owners can showcase their Valentine’s merchandise, have special shopping hours, and offer gift wrapping and delivery. Don’t forget the option of partnering with another business for a Valentine’s event, as well.

4. Offer 2-for-1 Deals and Couple’s Packages.
Play up the romance of Valentine’s Day by offering tailor-made discounts and packages for the holiday, and the days leading up to it. Restaurants, event venues, specialty shops: come up with 2-for-1 offers (2 appetizers for the price of 1, 2 tickets for the price of 1, or buy one item, get one free..) and packages for couples along the same lines. Make them exclusive, time-limited offers and promote them with all your online and offline advertising options.

Put your heart into it, and you’ll be able to see a boost in those slow winter sales.

Image by clevercupcakes.

I subscribe to lots of online, big box and chain restaurant e-mail newsletters. Why? Because it helps me keep a pulse on the offers and strategies that you local folks are competing with, so I can help you stay on the cutting edge and out maneuver those slow turning big box battleships.

Today I want to use an example from a Boden e-mail newsletter – a company that I think does a very nice job with strategy, offer composition and color psychology in their e-mail marketing efforts.

Win from the Start

All those complicated matters aside, note this one liner found at the top of their e-mails:

Apply this Idea Today

You can do this, too. No matter what e-mail marketing software you use, there is a “click here to read this online” or some one liner similar to that as a default setting on your e-mail marketing software – and included in every e-mail you send – whether from Constant Contact, aWeber, MyEmma, Blue Sky Factory or the like…

Instead of the default message, try updating the message every time you send an e-mail to match the content of your message. Many smartphones don’t automatically load images on such e-mails, and many e-mails go to the smartphone first. Try structuring your next e-mail to include a beefier “can’t see this message?” one liner that includes the offer. I also like that the “click here to view online” element of this sentence is earlier in the sentence rather than later. And I also like that the one liner is short enough to just be literally ONE LINE in the visual display of the e-mail on my computer screen.

Keep it simple but make the offer and ask for the sale right away, and watch your click-thru rates and conversions climb.

Happy e-mailing!

Photo credits: Boden USA (http://www.bodenusa.com)

This is a post in the “How to Create a 2011 Local Business Marketing Plan”* series. Some of it will be shared here on [resultsrevolution.com]. The rest will be shared via my free newsletter. Sign up now to get the newsletter so you don’t miss a single tip in the planning series.

As you look forward to 2011, if you’re a local business, here are four tips to help you embrace your inner “local” and to help your small business stand out in a BIG way this next year!

1. Be local.

You’re a local small business with a brick-and-mortar storefront in your town. Maybe you have more than one location. Maybe you’re the oldest business in town, or maybe you’re the newest one. Whether you’re small or big, you’re the only store offering your service or product in the area, or you’re in the midst of many competitors, your local edge is a brand advantage and one you should use wisely.

Don’t try to be something you’re not: a national, faceless, anonymous business. Sure, those big boys have larger budgets and more resources, but they don’t have the local roots and the local connections you do. Put a local spin on what you do. Celebrate being local, Take part in the community. Highlight local products. Promote other local businesses. Advertise in local publications. Get involved with local organizations, charities, and business groups. Meet your neighbors, both personal and business. In short, position your brand as the local business option.

Highlight your strength as a local business and use your knowledge and relationships to offer what the local people want. Embrace your local-ness – love being local and use it to your advantage in marketing and customer retention efforts!

2. Have a specialty.

How do you stand out if you’re a single, locally owned restaurant in a town with five other great local restaurants? Find your niche, your specialty, and play it up. Maybe you’re the King of Cajun Cuisine, or you have a big-city wine list in a small town. Perhaps your dessert is out of this world, or you offer great seasonal specials that highlight the local produce, or you know that customers order your soup just to get those amazing garlic breadsticks on the side. Whatever your specialty is, find it and magnify it. Make it a prominent part of what you offer. Talk about it and market it. It’s not a specialty if no one knows about it.
While we’re on the topic, here’s a great case study on niche positioning and related customer experience that might be helpful to you as you pursue this idea.

3. Give amazing service.

No matter where you are or what your product or service is, giving consistently superb customer service will cause you to stand out amongst your competitors, both local and national. When you treat customers like your friends, that’s what they will become. When problems do arise, as they inevitably will, deal with them promptly and courteously.

A key element of this tip is the word “consistent.” We’ve talked about this before, but it stands repeating. Consistency is critical – especially in customer service.

4. Offer what the box stores can’t.

Big box stores and huge, national chains have advantages over local, small businesses, sure. But local, small businesses have advantages too; as part of a locally owned small business, you can make your own policies, create personal relationships, follow up on a personal basis, set your own hours, take special orders, and do custom work. You may not have the inventory capacity of the big store down the road, but you have the small business capacity to listen to your best customers and adjust the inventory you offer to meet their needs. If you find that your busy times are in the afternoon and evening instead of morning, you can open later and stay open later. Take advantage of the freedom you do have as a small business to relate specifically to your customers.

2011 is the year for local success. Please let us know how YOU benefit from your “local-ness” in your marketing and business efforts – drop us a comment below!

Image by Cameron Cassan.