Great Deals 205: The Opening and Operations of a Retail Store
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From the Get-Go!
Getting started with a retail store, is fun and exciting! You are your own boss! You set your hours! There is a lot to do so, let's get started! Sit down and make a list of things to do
You will want to check your credit score to see how much of a building that you can afford. I would prefer one level and a back stockroom and an office area (or just a place to put a desk).
The first thing is a location. You want to have a good location with lots of traffic flow. This can equal lots of potential customers. Which means an increase in sales.
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Correct Signage is Important
Stocking and Signage
It is important to start out not only with a great location but, also have a great sign for your store. A light sign that you can cut on at night, would be preferable.
On the clothing, you will want to use price points. Price points such as if the item is $10, put the signage as 2 for $20. This is trying your best to increase sales and it has been proven to work.
Stocking the store
All of your shelves should be full at all time. You constantly have to look at the inventory and make sure that nothing is missing and needs to be replenished/restocked. Get the merchandise out of the backroom and onto the floor as soon as possible. The merchandise can not sale in the stockroom. Even if you have to run back and forth between helping a customer and stocking the store, you must get the items out.
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Keep the floor clear of debris and get whatever has spilled up as soon as possible. If you are fortunate enough to have a glass store front, it is nice to keep them looking clean and spotless.
Always keep the garbage cans clean and smelling nice. Always keep all fire exits unblocked at all times for safety and to avoid large fines.
It is a good idea to cross merchandise your product. An example of this would be, hanging a strip of shoestrings down the side of the shelf full of shoes.
Customers will remember you if you treat them with respect and kindness. Word of mouth is the best advertisement or it can be the worst advertisement at the same time. Usually if you have a bad experience, it tends to out way the good.
Only New Profitable Product
It is a retail store, not a thrift store. We sale new items not, used ones. No offense. We are trying to be more than just a thrift store. It stands to reason that the nicer the items, and the quantity of items you sale, will make you more money.
If you have an item that sells well, restock that item by buying it in bulk. This way your cost is lower and your profit margin is higher.
Have the check out counter full of impulse items such as candy, gum or friendship bracelets. You can also appeal to the occasion. If it is raining outside, you could put umbrellas at the counter. For Valentine's Day put some pencils with hearts on them or a teddy bear with a heart.
Retail Store Management Lessons (Video)
P & L statements
Monthly Inventory/Profit and Loss
Profit and Loss Profit and loss statements have controllable and uncontrollable expenses. Below are the controllable expenses in which you can control the outcome.
1. Payroll This is the money that you will need to pay your associates. Make sure you schedule employees for only the peak hours of operation.
2. Shrink Loss of inventory. This can happen from items being broken by accident by an associate or customer. It might even arrive on the truck broken. When an item arrives to the store and it is broken, this will always be credited to the account from the vendor who brought the item.
3. Cutting Costs Always search for areas that you can cut the cost in. The easiest way to cut costs is to not let any associate get overtime. Also, send associates home early if the store is having a slow time. Do not over order. If you only need one case of toilet paper don't order three. While you don't want to run out of supplies, you don't want to over order. A bad stock room is a bad sales floor.
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Links to the Business World
- How to Advertise in an Economic Recession
This hub describes some of the ways you can advertise during a money crunch. Pictures, polls, video clips and commentary are listed in this article as well as other ways to advertise.
- Setting Up and Running a Retail Store
This business hub describes how to start and maintain a retail store. Cross-merchandising, impulse buying and presentation are featured in this blog along with pictures and commentary.
- Pros and Cons of Running A Business
One of the pros about running your own business is that you get to be your own boss and set your own hours. A con is that you incur a lot of expenses when owning your own business.
- The Role of Social Media in The Business World
The internet has been a major boost for businesses whether it is a franchise or a home based business. Social media sites are a great tool to use when promoting your business. Photos are in this hub.
- How to Make a Highly Targeted Prospect List for Sales
This hub documents how to increase profits to your company by increasing sales. Making lists of potential clients is important. Depending on what your company is will of course be vital.
- Tips For a Successful Small Business
this article documents some of the ways to help make your business grow. Pictures, you tube videoes, polls, maps and commentary are listed in this hub. Business cards and the internet are helpful.
Location is the Key
Of course, the location of the store that is picked, will determine the success of the business. Below are 3 of the most important tips for finding a location.
1. Right off the interstate. This is for the purpose of high traffic whether people are pulling off to get gas, getting something to eat or something else, these are people are driving by as potential customers.
2. Upper class area/Rich city
3. Large shopping center with big box store such as Wal-Mart or Target. This will once again allow lots of patrons that will likely drift over from the bigger stores. There are people who still love to shop at the locally owned stores.
Management Lecture (Video)
Daily Bank Deposits
Store Closing Procedures
Before you leave every night. Make sure the store is mopped and swept. Be sure all of the items are put back and has a nice presentation for the next day's opening unless, your store is an overnight store.
Take your cash deposit to the bank once a day. Have an associate walk out with you to your car.
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© 2017 Buster Johnson