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.

Here’s a marketing strategy to save for next year – or maybe just for two weeks until you put out the Valentine’s Day merchandise… Hopefully, you change your retail stock with the seasons, or perhaps you have special services that change with the time of year. But how do you market for the holidays if your products or services aren’t seasonal? Here is an easy three-step process for your idea file:

1. Create a Holiday Environment

What’s your brick-and-mortar store like? It may be plain Jane for much of the year, but spend some time and money on decorating for the Christmas season (or any other holiday, for that matter). Remember, this is the biggest shopping season of the year; even if your products and services don’t appear on many wish lists, you can participate in the season by being festive in-house.

2. Create Holiday Specials

So perhaps you offer a professional service: CPA, lawyer, electrician, marketer, house cleaner, anyone? Those aren’t services necessarily oriented with the holidays, but you can still offer a holiday package and promote holiday specials. Your services may not be changing with the seasons, but the packages you offer and prices can shift to reflect seasonal deals.

3. Promote Your Heart Out

With your store decked out and your holiday specials created, all that remains is to promote your specials as part of the holiday shopping season. Go ahead and advertise in the local paper, put up a sign in the window detailing your holiday deals, promote via social media and update your web site. Participate in community holiday events such as open houses and festivals and promote to your e-mail marketing list.

Remember that holiday shopping is often just as much about the experience as it is about the product. If you’re offering a great service, a fabulous product, but they aren’t associated with Christmas gift-giving, start working to change that status quo.

Image by WTL Photos.

Improve Your Holiday Sales by Promoting your Holiday Sales Online

In this day of increasing e-commerce importance, Black Friday is now only half of the post-Thanksgiving shopping megathon. Cyber Monday is the other half, just one more (strong) indication that the masses aren’t just shopping in-store anymore. They are, most definitely, shopping online. As we near the Christmas deadline, the shopping averse, busy mommy in me has once again found myself leaning on e-commerce… With that in mind, I send my annual encouragement to make this the year that you enjoy the increased profits possible from delving into the online world of e-commerce sales…

It’s easier than ever before: You can attract the online shopping crowd even if you’re not selling online by promoting your holiday specials via your website, blog, Facebook page, and/or Twitter account. Any presence you have online is a great opportunity to let the crowds – local and beyond – about your holiday specials.

Do a Little Decorating

Customize your website, blog, or Facebook page with a little Christmas décor. Add a graphic or two, or simply put a big “Happy Holidays” or other seasonal greeting front and center where all the visitors will see it.

Tell Them Where to Go

Put up a graphic, tab, or link on the navigation bar to direct your online visitors to your holiday specials. If you’re using Facebook, you can add a special tab designated as “Holiday Deals” or anything along that line. You can even make that tab the default-landing page for the holiday shopping season.

Talk About It

Have a blog? Put up a post each day describing one of your holiday specials, your great product, your discounts, and why what you’re offering will be the perfect gift. Get customer testimonials and put them on your blog, website, and Facebook page.

Use Twitter

Be sure to promote your holiday specials with your Twitter account. Use Twitter hash tags like #holidayshopping, #holidaydeals, #cyberweek, #shopping, and #deals. Offer good deals and great products, and make sure people know about them.

Take notes and don’t let another year go by without having online shopping options for your business. These same ideas translate nicely to Valentine’s Day, Easter, Mother’s & Father’s Day, etc. – so get out there and grow your business with online sales options!

Image by Medmoiselle T.

The busiest time of the year for most retail businesses starts with the dawn of November. As you reflect on 2010′s holiday season, there’s never a better time to plan for next year.

Next year, when the official busy season rolls around again, you’ll be ready. There’s a lot you can do to boost your retail sales beyond playing Christmas music and hanging a few lights in the windows. While creating a festive atmosphere is always a smart move, creating holiday specials, which keep customers coming back, is an even smarter move. (For other holiday marketing ideas, check out these posts.)

Holiday specials are not a new idea. Local business owners have been creating seasonal menus, gift baskets, packages, and holding special sales and getting good results from these seasonal strategies. But incorporating a few new ideas into your holiday specials this year could help you boost your sales even in a slow economy. Remember that people are still going to be shopping for gifts; they’re just going to be a little choosier than usual with tighter budgets. That’s where your holiday specials come into the picture.

Strategy 1: Create Holiday Specials for Every Price Point

Marketing research is showing that shoppers enjoy having options. A lot of options. (Read Chris Anderson’s fascinating book at www.longtail.com, for a discussion of this research.) So give your shoppers plenty of options by creating not just one or two holiday specials or packages, but 5 or 6… or 10… or 12. If you’re a higher-end establishment, go ahead and offer a higher price point selection of holiday specials; but expand into a lower price point and offer options there as well.

Use the same principle if you tend to sell more items at a lower cost; offer several lower cost options, but offer some higher price point selections as well. Create multiple displays throughout your brick and mortar store. You want your customers to be seeing this amazing selection – and the great prices and products you’re offering – several times as they move through your retail space.

Strategy 2: Create Limited Availability Holiday Specials

Have you ever thought about why people love seasonal specials? Because they’re only here for a limited time. Think about candy corn; is it really that great? And if it were available all year ’round, would people ever get very excited about it? But people do, because it’s only around for a short time out of the year. That limited availability makes the product more desirable and more valuable.

Use that limited availability concept with your holiday specials. If you’re a retail establishment, you could create several custom, one-of-a-kind gift baskets; once each one is gone, it’s simply gone. Or offer a great deal on a special product, but only through the next week. Don’t feel like you have to extend your holiday specials all the way through the holiday season. Instead, create value by placing time limits or quantity limits on particular specials.

Strategy 3: Introduce New Specials Through the Holiday Season

This strategy works hand-in-hand with the concept of limited availability specials. As you phase out one holiday special, phase in another. Not only will the limited availability increase the perceived value of each special, but your customers will want to keep coming back to see what’s new this week. Remember: shoppers enjoy options. They also enjoy the feeling that they’re getting an “insider’s” special.

Strategy 4: Collect Customer Information with Each Holiday Sale

Let your customers be insiders by offering to keep them informed about new, exclusive holiday specials as they become available. Collect customer names and contact information with each sale, and make the offer as well to customers who aren’t yet making a purchase. They can still sign up to be on the list and find out about new specials.

If you’re planning to hold a special holiday event (such as an open house or one-day sale), then this list is your first step in the marketing for the event. Send out an exclusive invitation to those folks on your holiday list, inviting them in an hour or two before the general public. They get to enjoy a privileged shopping time, you get to interact and build relationships. It’s fun for everyone.

Strategy 5: Promote Holiday Specials via Website, Facebook, and Twitter

Whatever presence you have online should be part of your holiday marketing. Put up notices about your holiday specials, big and bold, on your website’s front page. Send out an email to all your online subscribers. Send out regular updates via your Facebook and/or Twitter accounts, letting your customers know about new holiday shipments, specials, coupons, events, deals, and so on.

Ask for feedback, too. What kind of holiday specials are your customers looking for? Ask specific questions (“What’s the best Christmas present you ever received?”) and interact with those who respond. Have an online contest or giveaway, with the prize being one of your holiday exclusive specials.

Remember that you have to give shopper a reason to choose your product, your store; over the other options they have available. Using some creativity with your holiday specials can create a powerful appeal, and offer value to both your customers and your business.

Image by Sister72.

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.

‘Tis the season for shopping. For small business owners everywhere, this is usually one of the most profitable times of the year. And even in tough economic times, people will still be out buying presents, putting up decorations, and finding ways to celebrate. Budgets may be a little tighter than we want them to be, but we’re still going to enjoy the holidays and spread the cheer.

For locally owned businesses, the holiday season is the perfect time to build relationships with new customers, because the simple increase in shopping activity means you’re more likely to be getting new faces on your retail showroom or in your restaurant.

The important question you need to be asking is how do you maintain and continue that relationship once the holiday shopping season has ended?

Making a great first impression is the first step; a cheerful greeting, a nicely decorated space, helpful and friendly staff, great products and great service all combine to make an unforgettable first impression.

Then what?

Consider, in the products and services you offer, how you can convert a one-time sale into an ongoing, subscription-based sale. Subscription-based sales work well for both customer and business. The business is assured of ongoing sales, and has an automatic way to continue building the relationship with the customer. And the customer gets to pay for the subscription on a monthly basis (or other ongoing, time or delivery-based basis), which makes the purchase easier on the budget. Think of all those “Coffee of the Month” or “Fruit of the Month” clubs.

If you’re a restauranteur, do you sell packaged food products from your restaurant? Why not create a monthly food gift from your offerings? It could be the “Gourmet Food of the Month” club, and it will enable you to keep selling those fabulous packaged foods well past the holiday season. For retail sales, think about your specialty product and how that could become an ongoing, subscription-based offer. It could be seasonal or simply spin off from your most popular items: candle of the month, fragrance of the month, book of the month, movie of the month, and so on.

Be sure to offer various buy-ins and price points so that the subscriptions can appeal to all sorts of shoppers, no matter the budget. You can offer three-month, six-month, and twelve-month subscriptions. You can give customers the option of paying for it all in one lump sum (you might make it discounted that way) or paying with an “as-you-go” plan.

Subscription-based sales not only ensure you’ll have some cash flow in those slower winter months; they also give you a way to keep communicating with those new buyers. With every month’s item, your customers get a reason to remember you. They’re continuing to invest in your product or service, and you’ve got a great way to get feedback from your customers.

What products or services can you turn into subscription-based services?

Image by mmlolek.

Want to add a little holiday cheer to your 2010 holiday marketing? Try these 10 holiday marketing ideas to pump up the sales volume and spread a little holiday cheer all at the same time!

1. Customize your website and/or Facebook page with holiday decorations. It’s fairly easy to make (or find) a holiday graphic that you can customize for your business Facebook page or website, and it creates a festive spirit right there on the Internet, which is where more and more sales are happening (read this article to learn how long it takes for online marketing efforts to “move the needle”). So don’t save the holiday decor just for the brick-and-mortar storefront. Spread the spirit to your online space as well.

2. Have a holiday photo contest. You can theme the contest to fit in with your business, your products, and your services, or you can just keep it generic. Have people submit their photos via your Facebook page and simply “tag” your business page in the photo. You can have a contest for the “Cutest Family Christmas Picture” or “Best Santa Impersonator Photo” or anything holiday-themed. Play it up both in your store and online marketing, and provide a great prize for the winner.

3. Give holiday favors away with every purchase. Think simple and cheap here. A holiday favor can be very inexpensive, something as simple as pen with your logo on it, a holiday pin or sticker, or a individually wrapped chocolate. For the investment of a few pennies per purchase, you get to make a great impression with every customer who makes a purchase.

4. Offer holiday treats throughout the Christmas shopping season. Keep a fresh pot of coffee, a big urn of apple cider, and some holiday cookies out on a table, as a complimentary holiday treat for all your customers. It doesn’t matter if you’re a retail gift shop, an office, or a service-based business; sweet treats are welcome anytime, anywhere. And people who know they can get a cup of hot apple cider on a chilly day will return, and linger while they sip it.

5. Create a “12 Days of Your Product” package. This great marketing idea, from SmallBizTrends.com, gives you an easy, fun, and festive way to introduce customers to more of your products and services. Put together a 12-day package, starting small and building up, and sell it as a holiday special.

6. Send a special holiday e-card to your customer email list. Send it early – well before the actual holiday – and include a special coupon or discount as your way of saying thanks to your loyal customers.

7. Have a tree-trimming day in your brick-and-mortar store. Turn up the Christmas music, hang out signs, invite the public to participate, and have lots of sweet treats handy. Offer special “tree-trimming day only” sales, specials, and discounts.

8. Participate in your community’s holiday events. Is there a parade, a bazaar, a charity fundraiser, a night of carol singing and hot cocoa? Get out there and be part of it. Sponsor something, contribute something, provide some supplies and simply take part in person. Being an active part of your community is one of the best marketing moves you can make anytime of year.

9. Give away your holiday decorations (or some of them). Invest in a big, beautiful holiday wreath or centerpiece; then announce that, at the end of the season, one lucky customer will get to take it home to use in their own decor next year! Offer every customer the chance to enter to win that beautiful decoration; make it easy with slips of paper and a decorated box to put them in. All you need to collect are names and phone numbers (or email addresses). At the end of the season, have a little party, draw and announce the winner, and make even the post-holiday work a reason for celebration.

10. Simplify the holiday gift-buying process for your customers. Offer something like free gift-wrapping, free delivery, or an exceptionally lenient return policy for purchases. Anything you can do to make this time of the year simpler and less stressful for your customers will make it more likely that they spend their money in your store, and remember you when the new year rolls around.

P.S. Here is a post from 2006 on seasonal e-mail marketing ideas that I thought you’d also like.

Image by Howard Dickins.