thinking like a retailer

[joe]

I was one of the many who took this seminar by Bob Carter in Atlanta. So yesterday I decided to see what my cost of goods really looked like. They appear to be generally running from 26% to 29% depending on the job. In July I raised prices after realizing I was grossly under priced. I intend to watch every job through October. If adjustments in prices are needed I will make them before the Christmas season. Whatever happens to my business I don't intend to go out because I was too low.

One other interesting figure is that 40% of my sales are coming from gift items. I intend to advertise to draw more framing jobs.

Thanks to Bob Carter for a great presentation.

[Bob Carter]

Hi Joe-Thanks for the kind words. But, as a help to those unable to attend, what did you take away that allowed you to make the comparison? I know I threw a bunch of stuff out in the two hours.

What was the thing you learned that most helped you point out your areas that needed improvement?

We might make you an on-line test case to help those unable to attend.

[Lance E]

I love the title of your class Bob. The behaviour of businesses needs to sway towards this and your assistance would be very handy!

When is your next turn on stage? I might just have to make the trip over...

[Bob Carter]

Hi Lance-I'm scheduled for WCAF in Vegas in Jan and PPFA in Feb.

Or, you could save yourself a trip and send two round trip tickets and I'll meet you.

Or, we could do a little distance learning by using some real world examples and we can break them down here on The G. I hope Joe shares some of his revelations openly. It could be a fun way to look at some actual applications and we can all learn something

[wpfay]

Hi Bob, I too enjoyed your class, and as I said earlier, something I learned worked to my advantage almost immediately. I was going to place a length order with a vendor anyway (3 boxes and some misc footage), and remembered to ask for terms. I got that and a prompt pay discount at 30-60-90. I was running short on time and asked one vendor if I could meet with their rep at my shop this week and still take advantage of their generous show special discounts. They agreed to that and when placing the order, I was able to get extended terms and use the AMEXCO card for rewards to boot.
Your procedure for establishing pricing on mouldings was quite an education, and I have started the process of culling my displays (way too many options) and revisiting my pricing with a view to the "retailers" methodology.
From what I am now capable of doing with my POS in checking cost of materials,and incorporating your ideas of retailing, I feel much more confidant that I will be able to increase the profitability of the business.

[joe]

There are several things that have stuck with me. The cost of goods; the small economies in materials can really pay off and keep the cog down. Another thing is the "turning " of the merchandise and how that can improve the cash flow over a period of time.

The perception the customer has of your prices. Do they think you are expensive when you really aren't?
Or do they think you are inexpensive when you are really very competitive in your market. To this point I went to my humble website and changed my slogan from "Premium framing and remarkable gifts" to "Affordable framing and remarkable gifts".

Another point is doing the market research to determine where your prices stand against the competetion. I plan on working on that this week.

I'm working on the figures to see if I can offer select metal frames at 50% off. I am willing to give up some margin to get people in my store. That is the critical factor right now; I don't have any traffic. I have started print advertising this week and will check the rates for radio next week.

Taking the class has given me the confidence to face the numbers, the confidence to offer a sale on framing and deep discounts on my doggey posters and prints. With my COG at 25-26% (and closely monitored) and a successfull ad campaign to bring people into the store I hope to have a bright future in retailing as a framing/gift store.

[Sharonx]

Joe: I have used "Quality framing at affordable prices" on all my advertising and I think it works well for me. Sharon

[Lance E]

Originally posted by Bob Carter:
Or, you could save yourself a trip and send two round trip tickets and I'll meet you.Darn it!

Here I was thinking you might send me some tickets so as I could hand out the note pads and pens...