Ideas to boost profit.......

[SLC_Brande]

Hello grumblers!
I work at an awesome little frame shop/gallery in Salt Lake City Utah. We don't do a huge volume, but we stay fairly steady. It's just the owner and myself doing the work. We went to the Las Vegas trade show in Jan. at which time we made the decision to lease a CMC and also purchased POS software and a V-Nailer. The shop owner has been feeling the need to keep up with the ever changing aspects of industry etc....Of course now that we have all the right tools, business is slowing down quite a bit. Here's where we need some help from all of you: we're looking for input as to how we can bring in some $ by selling retail items, such as; selling prints, and framed mirrors, and using the wizard to cut standard sized mats to sell for photos etc... These are things that we haven't done in the past, have you done this, and has it worked for you? Any other suggestions would be very helpful! We are very limited on space so that's also a bit of a concern when thinking about bringing in more inventory. Thanks everyone for your time!
graemlins/thumbsup.gif Brande

[Baer Charlton]

Many think that "Pro-active framing" is opening your door 5 minutes early.

Try being open 12-9pm instead. or closed M&Tu. Open 12-9pm W-Sun.

I heard of a dentist that is open 3-9 T-F & can't take any new customers untill he can find a 4th dentist to cover S&S. They are now in their 3rd yr.

Going out and clubing business over the head and dragging it back in has worked for us. We do a huge business with ColorPlak because it impacts our back room zero but bottom line nicely.

Bob should be along Monday to put in his 7 cents worth. (Which is worth about a buck or six:D)

[elsa]

Making your own "ready-made" mats is so cool with a CMC!--We do it!
I made 72 8X10 yesturday!!
This is a great way to use up your scraps. Don't forget to be a little creative with a CMC you can create mats that are just a little extra unique that people will enjoy. Just make a few to see how they sell in your store-One of our best sellers is a multi mat for two 5X7's one vertical one horizontal--you just can't buy one anywhere else!!
I think one of the most important things here is your color choices....don't get fancy! stay fairly nutral. Two reasons for this, they sell better and it dosn't infringe on your custom work. If they want something fancy why give it to them "ready-made" when you can make more on custom!
Good luck and Happy Framing
Elsa

[Angie Pearson, CPF]

we have the leiberman's print source catalog. It allows the customer to browse through the computer system with out the shop having to have the actual prints on hand. Can be expensive to start up though... you have to have another computer and pay leiberman's something to have it.

[DTWDSM]

How about increasing your prices by a buck or two? Will people really walk if their quote is $2 more than what it is right now?

[Baer Charlton]

Does that still work Tim? graemlins/party.gif

[Kevin Colbert]

Tim,

I love that comment. Controlling each sale so you get that extra $2 is great advice!

Another idea like yours is to use the corner pricing feature on your POS to charge for the mat cuts you sell. (I am not honestly sure about other software packages, but LifeSaver allows you to charge based on the corner selected to be cut on the mats.) This is part of the CMC interface but can be used just for pricing even if you don’t have the CMC.

The best part about this kind of pricing is that it is all bottom line impact that adds up to big bucks but spread out over every customer in very small amounts.

[DTWDSM]

Baer,

Let's talk about that HP printer you talked about in a differnt thread.

Lets say Office Depot has that printer for 499, the salesperson answered all of your questions, they have the printer in stock, you are hapy with what you have seen. Office Max might have the same printer for $2 less, do you get in your car and take another 15-30 minutes to possibly save 2 bucks?

Neither do most other people. You want more profit, raise prices a little and you will get it. Also no inventory. Selling other items can get you more profit but beware that your profit margins may not be the same as framing and it ties up your cash as it sits in your store.

[Harry]

Brande,
It sounds as if you have had a drop in business that needs to be recovered before you can try squeezing more proffit. Remember, proffit is simply what is left after you pay all of your expenses, but that doen't mean a whoot if you don't make a sale in the first place. My advice would be to use some of your new toys to create a new marketing strategy. Find a new way to get people interested. You got new toys. Use'em. For example. With a v-nailer, joining quantities of frames just got a whole lot easier. Go find some large quantitiy jobs. The CMC, gives you an advantage to market creative mat designs at lower prices, faster turnaround, quantitiy orders, or which ever angle you wish. Do your competitors have a CMC? Can you offer to cut mats for them?

In short, FIND THE SALES, control your pricing and your costs and the proffits will com.

Good luck,
Harry

[Marjorie]

Besides original art, limited edition, & some open edition prints, we are also carrying upscale pottery, handcrafted jewelry, cards made by some of our artists, and some upscale stained glass lamps, panels. The limited edition/open edition prints are part of our inventory. Everything else is on consignment. Our custom framing is the real money maker; however, the pottery and jewelry especially are very popular and help in the long run. People who come in have additional things to look at (at reasonable prices).

Marjorie

[Baer Charlton]

Tim, I was poking fun, but you're right. It is the most effective way to add $20-50 to your daily inflow that has nothing to do with COG or labor.

With FerrenSoft we can chose the mark-up in 100ths. And you would be amazed the difference it can make.

Just look at gasoline, $2.49 and 9/10s. That 9/10s can add a $100 bill to the days totals... which pays one employees salery or even two depending on the state.

[OzDave]

Hi to all of you across the seas. This is my first post on the US Grumble and like you I am always looking to boost my profits. Sometimes the hardest thing is to go from the idea to the next stage of doing it. I did find some time ago a couple of links about marketing which may be relative.
http://smallbusiness.ninemsn.com.au/article.aspx?id=25005
http://smallbusiness.ninemsn.com.au/article.aspx?id=19313
I hope you come out with a few ideas.
Please excuse the accent.

Dave

[YooperFramer]

HA! funny OzDave -
when i saw you were in Australia, i read your post I thought i heard a accent in my head.

sorry no input on the topic at large. smile.gif

[Cliff Wilson]

There are two ways to increase profit.

1) increase margin, as suggested by Tim and others

2) increase sales whether with existing products or new products.

Increasing sales of existing products usually means improved marketing, promotion and merchandising.

Adding other products is harder and seems to require a critical mass and much time to educate your customer base. this option requires investment in inventory and a VERY good knowledge and understanding of YOUR customers! It also can mean smaller margins. I would recommend some time and study before jumping on this last "wagon." (Though others have shown this can be VERY nice once in place and functioning!)

Good Luck,

[SLC_Brande]

Thanks to everyone that has replied so far. Many great suggestions, we're still in the thinking process, hopefully we'll start puting some of our plans in to action soon. I like the idea of print catalogs. Also, we do have consignment items for sale in the gallery, however people don't seem to be beating our doors down to buy nice pottery, photos, paintings or handmade cards at the moment. How are the rest of you doing? I'd love to hear some of your personal stories.

Thanks again!
Brande
Again

[Baer Charlton]

Not for you to take this disparaging....

But NOBODY is walking through OUR door to buy "nice pottery, photos, paintings or handmade cards" NOBODY.

But then, we are a neighborhood framer, not a tourist gallery. For some reason, I can see the above in say Park City.... but SLC? But then the store across the street does a bang up business in greeting cards...you may have heard of them Hallmark?

If you go the year and sell nothing but framing, you may be a framer. But on the other hand, if you pushing pots, pics, and cards out the door right and left. . . you may have found your nitch. :D

[SLC_Brande]

Wow Baer, you don't hold back do you?! Thanks for being blunt and honest, I appeciate what you're saying.

Brande graemlins/faintthud.gif

[mona]

Brande I am a brand new shop, but have framed for a bunch o years. Last week I put up a window display with diploma mats featuring local university lettering cut outs, the high school mascots cut out in mats with teams name. Now the cmc don't give free corners, but you can use them year in year out. You have your initial mat cost and corners. So far the display has generated 10 orders. Next window is wedding, their names cut out in mat, multi-openings for announcements and pictures etc. Plant the seeds they will grow, or else they will get that fungal thing and die! Good luck.
Mona

[Marion P]

Mona

what an excellent idea about decorating your windows.

I use fonts in the mat boards, but i can't get them small enough, can I ask what font you use and what CMC you have?

thanks
Marion

[Baer Charlton]

Brande, Sorry for being so blunt before. Have been thinking about your CMC and SLC...

You can buy postcards that are 4x6 for cheap. They are the pretty ones that are more nice photo than "we are here and you're not".

If you face mount (spray glue) very quick onto some colored paper... then have the CMC cut single mat, so the 1/8" of colorpaper shows.... ATG together with a backer scrap and shrink wrap for $9.95.

If you want to get fancy, cut the SLC in the mat for $14.95. The outside should be adjusted to 8x10. It makes a weird, slightly off mat, but if they wanted custom.....

Slap a few of those in the window...

Mormon Tabernacle, Bee house, GSL, just to name a few photos of tourist interest....

[mona]

Marion P
I have a wizard and use the default setting. It comes closest to our local university lettering style. I vaguely remember when I had older software I had to design in one font and to get the size I wanted then change it to the one I really wanted.
Another idea is when businesses get a write up in the paper I frame the article for them with the company name cut out. Not every one but people I know in the community. I give it to them free. I think it generates good business referals. Oh and my favorite tavern has given me quite a few beers on the house!
Mona

[SLC_Brande]

Thanks Mona and Baer!

Great ideas. It's fun to hear what other framers do. I love The Grumble...It's nice to have a place where we can all come together and share our success'-- and frustrations too for that matter.

As for me, I want free beer! Yes, we do have beer in SLC, and even some great clubs and micro-breweries. Only the really cool people hang out there! tongue.gif
Brande

[Baer Charlton]

Yes SLC has a few fine beers.... "why have just one?"
http://news.bbc.co.uk/olmedia/1625000/images/_1627651_polygamy-porter.jpg

Why, it's so good, you should take home some for the wives. graemlins/thumbsup.gif :eek:

[SLC_Brande]

Right you are Baer! The Polygamy here is plentiful...(the beer is good too!) There's another beer called "Provo Girl"....Provo is a Utah town with an extremely high
mormon-population. Meaning, supposedly, that all the girls in Provo are quite "innocent", Whatever!!! Provo is about 40 miles south of Salt Lake, and worlds way from being normal in any sense of the word.
We choose to live here because of the awesome mountains, the sculpted desert landscapes and the many beautiful national parks that are just a short distance from our SLC home. Oh yeah, and the BEER! :D

-Brande

[Baer Charlton]

I tried to post the picture of Provo Girl....but it didn't make it through the porn filter. http://www.getthepictureframing.com/pix/nono.gif :D