| In today's economy businesses are suffering as well | | | | The items you place here may be hairbrushes, nail |
| as consumers. People are cutting back on what they | | | | polish, shoe strings, decks of cards, gardening gloves |
| buy so this in turn affects retailers. When supply and | | | | or bandanas. Normally these are items that only sell for |
| demand slows down this affects the economy which | | | | a dollar or two. The objective is to get the customer to |
| affects everything so in reality it is all a vicious circle. | | | | look at something while standing in line and say, "Oh, |
| Some businesses will fare better than others. The | | | | I've been meaning to buy this." |
| high-end stores are not selling nearly as much as | | | | Loss Leaders |
| discount and wholesale stores. This is because when | | | | If you run promotions and purchase a large amount of |
| the economy tightens shoppers begin to look for | | | | what is called a loss leader, you will make more sales. |
| bargains. They comparison shop and find items that | | | | One example, a retail outlet purchased a large quantity |
| are less expensive by looking for the best price on the | | | | of baby tees which had a famous bear on the front. |
| items they need. | | | | They were available in three or four colors, blue and |
| Cutting Your Losses | | | | pink naturally. |
| One of the main things retailers will want to do is look | | | | When placing the tees on a rack with the advertised |
| through the inventory they have on hand. How long | | | | price of $1 on them, close by were the most adorable |
| has some of it been on the shelves? If you have | | | | spring outfits for babies including a little hat. They were |
| merchandise that has been doing nothing but taking up | | | | priced at $10. When the shoppers chose the tees they |
| shelf space, it is time to cut your losses. Mark the | | | | wanted naturally they were drawn to the spring outfits. |
| merchandise down to get rid of it. The amount you | | | | Who can resist such cute baby clothes? By |
| make will be better than nothing and it is certainly | | | | advertising the tees and getting the people in your |
| better than using it for a space saver. | | | | store to purchase them, they were drawn to |
| A bit of advice for items that have been in inventory | | | | something they really did not need at the time but |
| for a couple of seasons - these items did not sell for | | | | purchased anyway. |
| the regular price when they were new so they are not | | | | When trying to make it in today's retail business it is |
| going to sell for the regular price now. They should be | | | | essential that you run advertisements and promotions |
| marked for clearance and if they are on clearance | | | | so customers will know what you have on sale. They |
| mark them down again. | | | | will be more apt to shop at your store if there are |
| Impulse Sales | | | | good buys being advertised than running all over town |
| Adding impulse sales to your inventory is one of the | | | | looking for bargains. After all, it costs to run to four or |
| best ways to make money. There are very few | | | | five different stores when they are all in a different |
| people who go to the store and only buy what they | | | | part of town. |
| went after in the first place. They are usually carrying | | | | Using one or two of these tactics will help your |
| at least one item and possibly more than they intended | | | | business tremendously because your competition will |
| to buy. This is impulse buying and is usually done by | | | | not be. Happy Sales. |
| placing items close to where customers check out. | | | | |