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 Monday, March 31, 2008
Advice for Getting Emails Read
Posted by Beth

Check out this excellent article from David Baker, vice president of Media solutions at Avenue a/Razorfish.  It highlights some how-tos for making email communications more compelling so that people A) open them and B) respond.What a great way to start a morning- with some food for thought!

Advertising is a key marketing function that needs to be reviewed frequently. If you haven't updated your print and online ad materials lately, you may want to make a point of taking a look.

Email seems so easy, flexible and "free" that we can get caught in the trap of not focusing on it enougth to ensure our message is heard and acted upon. The idea that print has more longevity really makes us stop and pause to proofread newspaper and magazine ads to determine if the message is spot on.

Some things to consider as you review your ad materials.

1. Is it time to hire a professional graphic designer to create your ads? I guarantee it is not as expensive as you think and the quality will elevate the presentation immensely.

2. Is your house ad looking a little tired? Even if you are only promoting your store and the basic items you sell, it's a good idea to refresh your ad materials. Not change them entirely... just refresh it just as you update your key store displays.

3. Are the fonts you are using updated? Type fonts also follow trends. Your ad could have a whole new look  just by updating the font.

4. When you send store emails do they have a compelling subject line. Or does it always say.... a message from Beth's Scrapbooks? If the body of the email holds news about a sale or new product, that should be teased in the headline.

5. Are you measuring the response rates to your emails? You should. That will help you identify what topics customers are most likely to respond to.

Email is a tremendously effective marketing tool. But just as you research and measure other advertising tools, you should approach your email campaign with objectives in mind. ---Beth



3/31/2008 9:13:07 AM (Eastern Daylight Time, UTC-04:00)  #  
 Tuesday, March 25, 2008
How are you at Haggling?
Posted by Beth

Very very interesting article in The New York Times about how big box stores may be open to some haggling over prices of high ticket merchandise.

In the old days of retail you would go to a big box store to get the best price. The haggling was left for independent stores... the old "if I take this refrigerator, stove and washer & dryer can you do better on the price?" sort of thing.It was one of our little competitive secrets.

So now big box stores are going to give their employees latitude to negotiate price with customers. I'll be interested to see how stores will empower $8/hour employees to negotiate $100s of dollars of potential profit for the store. If you're a retailer who plans to do this, I hope you have a great relationship with your employees and very strict procedure to follow. Otherwise, a lot of dollars are going to go out the door.

Maybe that is ok if you are going to do volume sales as these large stores do. But is this a slippery slope?

The article was very good about pointing out how savvy customers are getting- how informed they are about prices and products. The uber-hagglers are doing research online then haggling prices at one retailer, then leveraging that price with another. Three retailers later, the consumer gets the rock-bottom price.

Ouch. Now the chain retailers will get a sense of what independents have endured for years. The old- I'll take you up on the training and information and then buy the product at a discount elsewhere- thing.

Many large retailers have been giving their employees the option to negotiate price for years, it just wasn't widely known. Ever buy a bed? That's where I learned that I don't have the energy or TIME for haggling. Three hours later I got the bed for half the ticketed price (as a favor to me of course- the ONE time the sales associate could do that this month). However, my whole Saturday was shot.

Consumers are already wary about what products really cost. There is a sense that big box stores mark stuff up tremendously in order to draw customers in with a 40% markdown.

Consumers have a pre-conceived idea of what things are worth. Right or wrong, they bring that with them when they shop your store. A successful salesperson will make the sale if they prove the value of that item beyond those preconceptions. Why is this product worth $20? Your answer: It will save you time, make the crafting process easier, it's fun to use, it's the hottest thing with designers, etc etc. It's not really about the quality of the item but the intangibles- the stuff you can't really put a price on.

A customer can pay a few dollars less at another store but at almost $4 a gallon for gas is it worth a second trip? Here's where you have the in. Rather than haggle on price, what added value can you offer that doesn't cost you a lot? This could be a training session, a discounted crop ticket, a few extra sheets of paper, a free refill, etc.

For me haggling is a hassle I prefer not to endure. For the high ticket items?Yes I will do the homework on televisions, appliances and furniture but for a $40 craft item. Just tell me what it can do for me and ring me up!--Beth



3/25/2008 8:58:15 AM (Eastern Daylight Time, UTC-04:00)  #  
 Monday, March 24, 2008
Are Jo-Ann's Web Sales a Threat?
Posted by Beth

There was a short but interesting item regarding Joanns.com in Internet Retailer.

It said that online sales only account for 2% of the store's product sales. I would have expected that to be higher. The company says that Web sales are not expected to match the margin on in-store sales.

I remember the days when Idea Forest (the creator of the JoAnn's site) and a handful of other online craft mega retail sites were going to put every independent retailer out of business. During the dot.com boom there was an awful lot of trash talking about how e-commerce would take over craft retail. You know, I don't see alot of those folks at shows any more.

The good news is that for the most part, the best online retailers co-exist with independent stores. I don't hear that same bluster about causing the demise of brick and mortar stores. Online retailers need traditional stores.

Certainly online retail poses competition to brick and mortar store. But it is one of many competitors. The key is to put that competition in perspective. People shop online for convenience. My belief is that crafters enjoy shopping in stores for inspiration and turn to online retailers to buy products they can't find in local stores.  They may also go online to get discounts. But when you factor in shipping costs, the discounts are diminished.

Short of staying open 24/7, it's near impossible for  brick and mortar stores to compete with an online retailer in terms of convenience. You'll never be able to carry every sku of every line out there.

The answer is don't try to compete on something that is impossible. (That's the advice speakers always say about competing with Wal-Mart on price.) Compete on something you can do that e-retailers can't:

  • You can demonstrate a tool and show many ways to use it.
  • You can upsell other items that work well with a product. Websites don't "think" in the same way.
  • You can conduct classes and clubs that engage consumers and provide entertainment.
  • You can be the one to give a customer a hug when she tells you she is making a memorial scrapbook for a friend or family member.
There are all kinds of things a brick and mortar retailer can do because you get valuable "face time" with the consumer. So the next time you get into a worry cycle about how to compete with (fill in the competitor's name here) focus instead on things you CAN do. It will put you on the track of solutions and that is a much more productive use of your time!-- Beth



3/24/2008 1:21:05 PM (Eastern Daylight Time, UTC-04:00)  #  
 Thursday, March 20, 2008
Michael's Cutting Back on Classes
Posted by Beth

Michael's is cutting back on classes in its 900+ stores. The surviving classes will be the Wilton (cake and candy decorating) classes.  This is one of those bad news good news stories depending on what side of the distribution channel you are on.

The thing that separates crafts from other hobbies is that we don't have a good education structure set up outside our stores. Children learn sports and can take music lessons in school. They can participate in theatre and choir and auto or wood shop in school. But crafts, outside the minimal introduction to paint, crayons and sculpture in art classes are mostly taught by family members and occasionally a scout group leader.


Simply put, we (meaning members of the industry) have to teach people to craft.

That is why store-sponsored education is so vital to the health and future growth of our industry.

Now, in a chain store's case, managing in-store education is a nightmare, their business depends on things that can be scaled. Unfortunately, you can't scale great people to teach classes. Each store location will have different  ternds and product category strengths. Wilton will continue at Michaels because they have one of the best systems for getting well-trained teachers in store. It probably doesn't require a lot of coordination on the store's part.

So the good news. Independent retailers- here's where you can compete with Chains- through education.

Classes and Clubs... the most successful stores all have them.

Build your classes correctly and you will generate revenue from the class and the product sales. You'll probably need to bring in some outside teachers, invest in some promotion and some class space if you don't have a place in your store.

But just as you invest in advertising, fixuring and product- this is an investment in future profit. Classes and clubs generate store traffic and bring in new customers. They teach customers how to use tools and products. They bond customers to your store.

It's tough to compete against that  weekly 40% off coupon but there are so many products YOU can sell that chains never will. Those are the products you can build classes and clubs around. There's no need to train consumers how to use a tool that they will leave your class and buy elsewhere at a deep discount. But if they do buy it elsewhere you can still generate revenue from teaching the customer how to use a product they bought at a Chain store.

We hope to be presenting a clubs and classes seminar at CHA Summer. In the meantime, classes and clubs are a priority in our magazine content. We welcome your comments and contributions to this topic.

Wishing you a happy first day of spring and for those of you who celebrate it- a joyous Easter. See you Monday-- Beth


3/20/2008 9:33:03 AM (Eastern Daylight Time, UTC-04:00)  #  
 Tuesday, March 18, 2008
Doesn't Anyone Send Easter Cards?
Posted by Beth

I was a frustrated photo consumer yesterday.

I endeavored to take the cute picture of my son (riding the Easter hayride to the easter egg field with Mr. E. Bunny)to create a photo card for all the long distance friends and relatives.

I went to four photo outlets. Apparently I am the only person who wants to send Easter/Spring greetings in the form of photo cards.

Now I could go on one of those online photo services. I have used them occasionally but I like brick and mortar stores. Plus, I don't want to pay extra to overnight the cards. So plan b, purchased cards that will be dolled up with embellishments and glitter glue with a 4 X 6 print inside. The recipients won't care either way but I wanted those photo cards enough to go to 4 stores. (Not enough to plan ahead though!)I can't be the only person who has a good intentions and finds herself running around at the last minute. FEdex was invented for people like me!

Kudos to the teenager with the mohawk and eye makeup (at the local pharmacy) for trying to come up with a solution. He is a natural born retailer. A Bronx cheer to the two buttoned down, white jacketed  adults at the photo stores who looked at me over their reading glasses and snorted when I suggested that other people might want to send Springtime greetings.

Just goes to show you can't judge a great retail clerk by the cover.

The trend in sending cards and other greetings is to create every day holidays. Isn't it a nice surprise to get a card in the mail when you don't normally expect one?

Consider creating some samples  or kits of Spring greeting cards showing kids in Easter finery, Purim costumes or just happy smiling faces and inspire your customers to make every day a card sending holiday! You get the sale and someone else gets a smile.--Beth



3/18/2008 3:15:06 PM (Eastern Daylight Time, UTC-04:00)  #  
 Monday, March 17, 2008
Is Scrapbooking Recession- Proof?
Posted by Beth

There is this conventional wisdom that when the economy turns down, crafting activity ticks up. That stands to reason- less time to spend on leisure activities means more time at home and more opportunity to do activities with your children.

Whether increased crafting activity translates into increased sales will depend on how proactive a retailer is about getting customers into the store. Most crafters I know have big stashes of supplies bought with good intentions or just because "I love this and I'll use it somehow." So true blue crafters won't necessarily be running into your store when pennies get pinched.

Who may be coming in your door is the mom looking for creative activities for her children as an alternative to too much TV and video games. It may be the party planner who wants a cost effective alternative to expensive custom invitations and table top decor. It often will be a person who wants to turn that box of photos into some kind of organized memory book.

If you don't already have programs in place to reach out to the casual crafter here's why I think it is worth it....

1. Opportunity to sell tools. The casual crafter needs to outfit her craft closet.
2. Non-traditional crafters have less price sensitivity- they have no pre-conconceived ideas about what crafting costs.
3. Casual crafters can be encouraged to bring in friends- all the better to increase sales.

Just like most consumer magazines, scrapbook stores cater to the advanced beginner/intermediate customer. Those folks are the mainstay of your business and merit a lot of focus and attention. But as you are servicing those folks, be sure you are doing the developmental work needed to ensure financial health.

Let me give you a real world analogy. A friend was refinancing his mortgage. The advisor urged my friend to open a line of credit when he refinanced the mortgage- even if he didn't need it. Why? Because if he did need suddenly need a line of credit due to an accident or loss of job he probably wouldn't be eligible for one.

Developing new customers while times are good is a way retailers can build their own "line of credit." If you bring in new customers all along, when times get choppy you have a broader customer base. So if people move, give up scrapbooking or for some other reason stop patronizing your store, you do not have a business-altering drop in customers.

 I think scrapbooking and crafts in general do not have to be as adversely impacted in tough economic times. If you always make an effort to bring in new customers, you'll never need that line of credit.

Here's t'hoping the wind is at your back on St. Patrick's Day and always. And may there be a pot of gold at the end of your rainbow. Slainte!-- Beth



3/17/2008 3:43:35 PM (Eastern Daylight Time, UTC-04:00)  #  
 Friday, March 14, 2008
St Patty's day AND Easter in one Week!
Posted by Beth

Oof.

I was at a local mall last night performing the seasonal ritual of purchasing my son's Easter outfit. I'm not sure if it is creeping prices or malaise about an early holiday (we could have freezing rain on Easter) but an empty mall told a chilling story.

It was empty. And I mean 80% of the people there were in the food court. Now it could be that most people were waiting until next week to see if the prices come down or after the March 15th pay day. But even so, there should have been a line for the Easter bunny or the stores selling candy.

Looks like retailers will have to go the extra mile to make sure they squeeze out some extra Easter sales. Find some last minute promo ideas on our Website.

Don't forget that Easter is part of the Spring celebration which lasts far beyond a single Sunday and crosses ethnic and religious boundaries. Consider creating some Spring- themed cards and layouts in addition to the holiday ones.

As for my house, we'll be exploring new ways to embellish easter eggs after the great purple dye debacle of 2007. Egg dye and squirmy pre-schoolers are a recipe for disaster. I  am thinking stickers are sounding good right about now.

In fact, I think I'll go on a clear sticker hunt this weekend and see what I can come up with to decorate eggs and also just jars that I will be using as gifts for my family. And glitter glue that is my son's favorite. We're also doing an egg tree for my son's room. He like idea of a Christmas tree so much, that thing will never go in the attic!

Inspire last minute Annies like me with some quick and easy ideas for decorating or gifting for Spring. Give your staff a challenge. Hand them a basket, a bottle, a flower pot or any kind of container and see what kind of project or gift package they come up with!

Have a good one-- Beth



3/14/2008 8:42:02 AM (Eastern Daylight Time, UTC-04:00)  #  
 Wednesday, March 12, 2008
Are YOU blogging?
Posted by Beth

Feedback from retailers at the CHA Show tells me there is a lot of interest in learning how to use online media to market a business. I agree, so we will continue with our articles on that topic.

To that end, I am wiggling the typing figures and "writing" an article on blogging for our June/July issue. (Yes yes the real deadline passed ages ago but I can't resist squeezing this in)  I've done some web searches on scrapbooking blogs and clearly the tone of the blogs is as unique as the person drafting them.

Being a fairly private person I feel it's brave to share all your "stuff" out in a public forum. I am much more guarded although there are plenty of times I am dying to tell my audience about the exceedingly cute thing my 5 year old did that day. Maybe I need two blogs- a personal and work one. The idea brings up some very interesting issues when it comes the separation of business and private lives.

I don't mean to tease but we have some good content on that coming up!

In the meantime... if you are a scrapbook professional who posts a blog, would you please contribute to my article by telling me:

Why do you blog?
What does it do for your business?
Were there any surprises that arose from the blogging process? Weird feedback? Unexpected results?

I'd really love to hear from you because it will provide industry perspective to the article. Please email me directly at Beth.Mauro@fwpubs.com.

Looking forward to hearing from you!--Beth



3/12/2008 9:20:08 AM (Eastern Daylight Time, UTC-04:00)  #  
 Monday, March 10, 2008
Tax Time= Store Promo
Posted by Beth

USA Today reports that a number of businesses are building promotions around April 13-15. These aren't your typical "spend your refund here!" promos but a way to link in to the widespread angst of tax season to connect with customers.

Staples is using tax day to showcase its Copy & Print Center services. Filers can make a free copy of their 2007 return up to 20 pages.The Container Store online tax time sale encourages customers to "organize before you itemize."

Other types of service businesses- especially food & spirits folks are going for discounts deals.

Scrapbook retailers have an opportunity to capitalize on the de-stressing benefits of scrapbooking....
  • Create your own Tax Pack kit of business/office supply themed papers and embellishments and offer it at discount-  maybe sell it at last year's price.
  • Sponsor a scrapping marathon on tax day and stay open past midnight ( at least one hour past the post office!). Bring in folks to do short back or foot massages to add to the fun.
  • Create a buy back event, offering .25, .50, 1.00 each for customers' supplies to give them cash to spend in your store that day. (Insist that everything is in saleable condition). Take all the stuff you've bought back and create $1 and $5 grab bags  to resell in store.
The point is to use this holiday that will likely get plenty of tv coverage and use it to your advantage. Encourage other local retailers to do the same kind of promotion and then create a press release together and send to your local newspapers and especially tv stations.

Not only will you provide your customers a service, you may get a little PR mention on the local news broadcast.--Beth



3/10/2008 1:05:27 PM (Eastern Daylight Time, UTC-04:00)  #  
 Friday, March 07, 2008
Can Spring be Your Christmas?
Posted by Beth

A representative from Lowe's was quoted as saying "Spring is our Christmas." in a recent New York Time article. Makes sense right? Don't most of us spend more time in garden centers and hardware stores when we are sprucing up the outdoor space in April, May and June?

Sort of knocks down a commonly held belief that Christmas is King when it comes to selling seasons. Why do we all accept that? It seems that each business has its own seasonality.

Hopefully you are tracking your POS info and you have a good handle on what your best months are in your store. Even better I hope you do this frequently enough to identify if a bump in traffic or sales is due to a specific ad campaign or store display.

It sure is dangerous counting on three months of the year to make or break your business. Unlike boardwalk vendors at the Jersey Shore, most retailers can create other seasonal hotspots to take the edge off the stress of making a great selling season.

So, Spring won't be the same as the cardmaking and paper crafting flurry caused by Christmas but certainly there are some ways you can pump up the sales volume:

1. Promote your products for party planning and table decor. All of the TV shows that focus on party planning include a visit to the craft store.

2. Think about life events and plan displays and promos around them. Graduations are really about memories- consider kits that help folks collect them when there are a few brain cells left.

3. Encourage folks to get family histories down.  You can do that ANY time of hte year. Work with local genealogists to come up with some great programs on tracing genealogy Then you can come up with kits  related to certain elements such as leaving the old country, military service, family trees, favorite family recipes could be really fun.

4. Get some events going around Mother's Day - mother/daughter, grandma/grandaughter or grandson.

5. Reach out to school teachers. Make the connection before they leave for summer vacation so that they think of your store when planning lessons and bulletin boards in August.

There's nothing worse than depending on a specific season for business then losing it  due to circumstances beyound your control. Mother Nature is a tough old bird. Politics change every day.

By creating excitement in the down time, you can take advantage of a more leisurely pace. And- so can your customers. Your busy time is busy for them as well- come up with opportunities to get them in your store when they are not feeling rushed.

Have a great weekend--Beth



3/7/2008 12:18:25 PM (Eastern Standard Time, UTC-05:00)  #  
 Friday, February 29, 2008
Consumer Study Shows Ignorance Can be Bliss
Posted by Beth

Here's something interesting from a press release issued by researchers at the University of Iowa.

In what they term the Blissful Ignorance Effect, researchers at the university's Tippie College of Business found that people who have only a little information about a product are happier with that product than people who have more information.

"We found that once people commit to buying or consuming something, there's a kind of wishful thinking that happens and they want to like what they've bought," said assistant professor of marketing Dhananjay Nayakankuppam. "The less you know about a product, the easier it is to engage in wishful thinking. But the more information you have, the harder it is to kid yourself. This can be contrasted with what happens before taking any action when people are trying to be accurate and would prefer getting more information to less."

So translating to scrapbooking, this may be why it is easier to sell a high ticket product to a customer who knows nothing about it, than to a customer who has thoroughly researched the product and the price.

Nayakankuppam said that the Blissful Ignorance Effect demonstrates that people have a need to be happy with their choice, and will often engage in whatever distortion is needed to justify the purchase. That means playing up the positive aspects while downplaying the negatives.

Nayakankuppam said prior research has shown that before people make a buying decision, they generally like to take an objective, clear-headed view of the products they're considering. During this phase, so-called accuracy goals play a larger part of a person's thinking because they want to buy the product that best meets their needs at a reasonable cost. His research, however, shows that once a decision has been made, the Blissful Ignorance Effect takes hold and the buyer makes that emotional commitment to a decision.

He said the data suggests a shift in peoples' motivations. While they have a need to be accurate before taking some action, post-action it is the directional need to justify a conclusion that is more important, he said.

"Once we've committed to something, we want to be happy about the decision and that drives our perceptions about it," said Nayakankuppam. "It's your decision, it's a part of you, and that creates an emotional attachment. It's sort of like your kid and you want to like it no matter what.
"

Back to the high ticket item. It seems to me that if you have clubs and classes that support die-cutting systems or the use of digital scrapbooking software, the time to sell those to the customer is when they purchase the system.it's all part of the justification process. And if they buy the system but not the education, a follow-up a month after the sale may just result in getting that customer back in for education.

Something to think about this weekend!--Beth



2/29/2008 4:07:44 PM (Eastern Standard Time, UTC-05:00)  #  
 Tuesday, February 26, 2008
Starbucks is Closed?
Posted by Beth

Do not panic, this is a training exercise. I repeat, this is a training exercise.

Starbucks' new leader Howard Schultz made the bold move to close all of their company-operated stores this evening for an Espresso Excellence training session. Now this guy is serious. Think of the money lost to close operations for even a few hours. Here's what he said in a message to his employees (posted on the company Web site):

"Tomorrow evening, we will come together in an unprecedented event in our company’s storied history.  We will close all of our U.S. company-operated stores to teach, educate and share our love of coffee, and the art of espresso.  And in doing so, we will begin to elevate the Starbucks Experience for our customers.  We are passionate about our coffee. And we will revisit our standards of quality that are the foundation for the trust that our customers have in our coffee and in all of us."

This guy is closing down his stores to refresh training on how to draw a cup of coffee correctly. He is getting back to the basics, the absolute core of the brand, the thing that made Starbucks a leader before  the company made millions selling music and coffee-related gifts.

I would imagine that in any business where you are repeating the same steps over and over again- no matter how exacting the training and rules- you get a little soft or put your own spin on things. This sounds like a company-wide coffee course meets tent revival meeting.

What impresses me is that he is saying it is SO important for employees to come together for this event that he is willing to lose a few hours of profit.

What is your company known for? A great paper selection? The best classes? Best workshop space? How do you maintain that reputation?

Maybe it's time to look at the consistency of basic business functions- how you answer the phone, how you fill an order, how you greet and assist a customer, how you straighten your displays at the end of the day. Have things gotten a little lax? Have some practices gone by the wayside? Maybe it's time for a refresher course.

Or maybe the refresher is in the latest techniques. When is the last time you sat down with staff members and PLAYED with supplies? This process is really critical for a store that sells creative possibilities. How else do you get reminded that a particular tool can be used five ways? How else do you learn what the new adhesives do on different services?

You could take a cue from Starbucks and close the store down a few hours early for training. Not frequently but once in a while. "Closed for staff training so that we may serve you better."

My colleagues at Memory Makers do this. Not only do they get inspiration from these creative sessions that translates into ideas, blog postings and future articles, they are further inspired when they include other F+W publications staffers in the process. What a great way to connect with customers!

Try it. Then afterwards you can all get together and go out for a coffee from a newly retrained barista.--Beth



2/26/2008 1:13:38 PM (Eastern Standard Time, UTC-05:00)  #