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.

In last week’s Promo Ideas e-letter, I made a garden analogy when talking about bad habits that sneak into our business… I correlated those bad habits with weeds in our garden. Spring is wonderful in a lot of ways, but one of it’s shortcomings is the emergence of a fresh crop of weeds in the garden and flowerbeds. In order for our gardens to produce at peak, those weeds must go. And the same holds true in business.

I challenged my readers to identify those weeds in their own business, and here I’d like to walk through some of the ways that I’ve found work for me when I need to banish bad habits from my business life. You’ll have others I imagine, and I hope you’ll share them in the comments section.

1. Focus on cultivating healthy habits.

I’m a farmer’s daughter, so I’ve learned a few life lessons that way growing up. One is that bad weeds have a hard time flourishing in the midst of a lot of other healthy plants. Now, some will, and they will need to purposefully be eliminated. However, at the same time that you are removing weeds, you must replace them with healthy plants. Or the weeds just grow back.

The same is true in business. At the same time that you purpose to quit doing things wrong; you have to start doing things right. You need to determine what the correct and healthy habit is—then start doing that—and stop doing the bad one. Focus on how consistent you are with doing the right thing—and celebrate your wins—rather than focusing on not doing a bad thing and beating yourself up over missteps.

2. Write down your plan, goals or resolve.

Decide what needs to change – then write it down. Maybe you write it on a napkin or a post-it note. Maybe you e-mail it to yourself or set an alarm on your phone to remind you every day. It doesn’t matter how low-tech or high-tech… stats show that when you write something down, it has an exponentially greater chance of actually happening. That chance gets better and better as you refer to your plan daily and challenge yourself daily as you develop those new habits.

3. Attack the process in bite-sized pieces.

You didn’t develop those bad habits overnight, and they won’t quit happening overnight. When I gain a little weight, it takes time and a lot of bad eating habits to put on the pounds. And as such, I can’t lose that weight overnight, no matter how much I wish I could. Instead, divide up your goals into smaller, even daily, incremental steps. Then attack those bite-sized pieces one bite at a time.

4. Each day is a new day.

Without a doubt, none of us are perfect. As such, our path to better habits and achieving our goals will be riddled with backsliding or missteps or just not getting things done. Free yourself from the slavery of perfection and clean the slate everyday when you end your day. Wake up refreshed and re-energized to pick up on the right track wherever you left off. Every day is a new day, and there is no sense in beating yourself up over what you did or did not accomplish the day before. If you’re always looking backwards, you’ll never go forward. Purpose each day to start fresh no matter what successes or failures happened yesterday. The success of yesterday doesn’t guarantee success today, and just as much, the failures of yesterday don’t mean you’ll fail today. Chin up. Feel free to succeed. Review your written goals. Go do something good. Even revolutionary!

Photo Credit: kusine

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.

Collecting customer information is one of the best forms of marketing you have. It gives you the ability to get in touch with people who have already been to your brick-and-mortar store, who have experienced your services or products, who have, essentially, already begun building a relationship with you. And best of all? It’s free. You may pay out a little bit if you send postcards or a paper newsletter or flyer, but the cost is minimal compared to paying for a radio or newspaper ad. And if you start moving your customer interactions online, you can use this customer information to stay in contact with your customers and prospect list via email without any postage or printing cost. (More on e-mail marketing ideas.)

So what stops local business owners from regularly collecting customer information?

• They don’t think about it.
• They don’t want to be pushy.
• They don’t know how.

Start Thinking About It
If I offered you a way to get targeted marketing messages to your best customers for free, wouldn’t you be interested? That’s what collecting customer information is all about it. “Not thinking about it” is just a poor excuse, so here’s your free reminder to start thinking about and take advantage of a great marketing strategy. You don’t have to be pushy to ask if people want to be on your Preferred Customer List. You just ask, politely, and give them a quick and easy way to sign up. If you get a “No” in response, you don’t have to push it.

How to Collect the Information

• Step 1: Make it quick and easy.

Have a simple form handy, make lots and lots of copies, and leave it out in your retail space. Don’t make the form long; in fact, the shorter the better. Ask for the customer’s name, email address, and (perhaps) phone number or mailing address. The name and email address are the essentials, and you can just stick with those and get great results.

• Step 2: Make it beneficial for the customer.

Give your list a name – the Preferred Customer List or something along those lines – and give customers a clear, concise reason why they should join it. “For exclusive offers.” “For special discounts.” “For members-only events.”

• Step 3: Train your employees.

Create a short script and train every single employee to go through that script. It can be very short, and very simple: “Sir or Ma’am, would you like to sign up for our Preferred Customer List? We just need your email address, and you’ll get access to exclusive offers just for our Preferred Customers.” Teach your employees to have the form and a pen ready, and hold it out to the customer while they are asking the question. This small physical gesture makes it almost instinctive for the customer to reach forward. And no, employees shouldn’t be pushy either. If a customer declines, all that is needed is a polite response: “Well, maybe next time! Thanks for shopping with us!”

• Step 4: Be an Example.

Let your employees see you going through that script whenever you ring out a customer, answer a question, or call a customer about a special order. The script can easily be followed over the phone; you or your employee will just need to take the information verbally and write it down.

• Step 5: Be True to Your Word

If you’ve offered exclusive deals or special events, follow through. A weekly email is best, but at the least follow up with a monthly email offering a special deal, coupon, or event. Make sure the folks on your mailing list understand that it’s exclusive; that’s the value for them.

• Step 6: Get Feedback

Over time, your list will grow and you’ll have customers you get to know well. Use your list to get feedback on everything from your products to your store appearance to the kind of deals or events they would really like to see. Your customer list can quickly become a very valuable, informal method of market research; and the market is your ideal customer, so you know the information is good. (Here is a cool idea on WHAT to send to your e-mail list once you create it.)

The holidays are the perfect time to start collecting customer information, so get to it. Create that form and start asking. You’ll have a great way to follow up with all those new customers you get shopping for holiday specials.

Image by bulliver.

For some reason, August is always like my second chance every year to course correct and get back on track with those New Year’s resolutions that fell to the wayside or to get my business’ marketing plan back on track after the lazy days of summer. It’s back to school – and with that fresh start for my kids seems to come a fresh start for me. And I know I’m not alone, because the phone is ringing off the hook with others just like me seeking help with their own fresh start.

This year has been an especially poignant one for me in the area of discipline, goal setting and goal achieving. I’ve always been a planner (I’m a recovering plan-a-holic). But this year, I’ve been learning a few things about achieving goals that I wanted to share with you:

It’s best to go towards a goal than to run away from a problem.

This year, I started running for the first time in my life. The problem was that I had gained some extra weight and had lost my father too young to a heart attack. The problem was that I was scared. But if I looked forward I could see a healthy me with lots of energy to do almost anything with my kids and who was able to live a long, happy, effective life. My goal is to live well and finish well. From a physical health perspective that meant not just losing some weight, but becoming more physically healthy. Andy and I started training for a marathon, and I’ve never run in my life. Now, that’s running towards a goal instead of away from a problem.

What about your small business? It’s probably easy to list all the problems, challenges and discouragements that you face each day. Your fears and anxieties can easily overshadow everything else, especially when it comes to the daily grind of owning a local business. But when you look into the future longingly – what do you want it to look like? Define the future – and then run towards it.

There is no time like the present to start making changes.

If you want to win, you can’t wait until next Monday to get started. Change doesn’t start next month or next year – it starts today. When you realize you aren’t doing what you should be doing, you need to set your sights on the future goal and run towards it – TODAY. It doesn’t matter how slow the pace or how short the stride – it just matters that you don’t wait – that you do something TODAY that moves you closer to your goals, whether it be in small business ownership or in life.

When you fail, focus that frustration on being better again. Not on guilt.

Here is where I confess my failures. We started training for a marathon. I could run five solid miles, and I spent Spring Break this year riding bikes and kayaking with my kids. Then we moved to a new home.

Andy and I have exercised (either swim or walk) no more than two days a week since April. We have eaten too many desserts, and I’ve been drinking soft drinks way too much. We quit spending time stretching everyday. We’ve put on a few pounds and our bodies ache again. We miss the health, and we’re going to get it back. We woke up yesterday disgusted with ourselves for letting this happen. And yesterday we started doing something about it. Soft drinks are out and healthy, life giving water is in. I stretched this morning and am looking forward to an evening walk with my hubby. We’re turning our disgust into positive, life-changing, goal-achieving energy. I’m not going to sit around and mope about my failure. I’m going to do something to make it better again.

How about your business? Have you been complacent about your marketing, customer service, store displays, community involvement, social media messages, employee training, e-mail campaigns, or web site updates? Have you let bad habits creep into your business life? Have you let your passion slide? Have you taken your eyes off of your sales goals, marketing goals, business goals, life goals? Don’t focus on the pain and consequences of your complacency and bad habits – instead focus all of your energy on achieving your goals, sharing your passion, and finding your future success.

The cliché is true: you really do eat an elephant one bite at a time.

I know what you’re thinking. You’re thinking that this all sounds well and good but your circumstance is WAY more complicated than this. You’ve got layers and layers of problems and failures and scary obstacles to overcome. I wish I could tell you but I can’t – but my health is the least of my worries. But I can also promise you this: doing nothing but throwing a pity party will not get you any closer to freedom. Don’t be overwhelmed by the big picture. It is what it is, and there’s nothing you can do to change the past. But you can change your future. You make choices every moment about how to spend your time – and what you do next will affect your future one way or another. So, with your eyes on the goals ahead, find a tiny little bite-sized piece of a task that you can do right now that will move you one tiny step closer to your goal, to your full potential for success. As you train, you’ll be able to take bigger bites and the momentum will grow and you’ll get more accomplished and the race will get easier. But today, just take a small bite. That’s all you have to do. And tomorrow, take another small bite. Keep taking bites. Until you eat the entire elephant – or achieve your small business goals…

Want some encouragement along the way? What are your goals? Share them, and we’ll stay in touch as you walk towards the future.

Photo Credit: One-Fat-Man