Exposed

Here is the latest in something that has been brewing at the shop for the last five months.

Read on.

Trade Show 101

In 2007 Curious Sofa participated in a Holiday Mart Show at the local convention center. Sponsored by the Junior League of Kansas City, 230 vendors displayed their goods over four days to a crowd of 20,000 people and many lessons were learned. Although this was technically not a true trade show as it was open to the public, the set up, rules and logistics are very similar. Keep in mind as I write about my experience, this was a large, well attended show. You may be considering doing something on a smaller (or larger) sale. If the event you are doing is for only one day with small attendance, much of this advice will be unnecessary. However, I feel an event of this capacity is more crucial to our business than smaller venues. But more on that later.

In January of '07 the staff and I met for a State of the Sofa meeting. We voted that because of lackluster sales, the economy and the size of our store we needed to get our name out there. We chose to do three events that year: DIFFA, Symphony Showhouse and Junior League.
(see my other blog entries about those events). Each and every one very different but none with the probable financially success as Junior League. The mere numbers of attendance speaks for itself.

You should know, I was not one for participating in anything like this. I had always wanted to stay secure behind my little counter downtown, or just hide in an antique mall buying my goodies, minding my own business. But when you see that you 'have to do what you have to do' to stay in business, the writing was on the wall. I gave in.

First off: Why do these shows?
#1 reason: EXPOSURE.
Print advertising doesn't always do it. It is rarely memorable, very expensive and fleeting. For the most part, turn the page, a quick look, then on a table to never be opened again. But to do something with an audience that can look, touch, feel, smell and experience your store- and hear you explain it, this is another thing all together.

#2 reason- MONEY.
If done right, sales can soar at a time when desperately needed. I would have given anything for this show to have been in April or June as sales are slow, the shop needs a kick in the pants to get motivated and the timing is perfect. But then it wouldn't be a Holiday Mart. My only dread was it was 10 days before our Christmas redo so the staff and I are beat. But- it is also fresh in our minds and a great dress rehearsal for making our open House come together effortlessly. (well, easier anyway).

#3 reason- ROUTINE.
Do ever feel like Bill Murray in Ground Hogs Day? Same hours, same parking spot, same lunch, same phone calls, same customers, same dialogue? Any event (outside the shop) helps to stir the pot for you and your staff. When owning a retail store you begin to think, 'How many ways can I do Spring? or Fall? or Christmas? What theme, or color, or product can entice this year?' When you stare at the four walls of your store, day after day after day, month after month- these events really help. It's like taking a working vacation (although there is nothing relaxing about it) and it helps your mind focus on something else. It feeds the retail buzz we got in this business for in the first place and educates your mind. If you like the business side as much as I do- there is so much to learn.

So before you think Curious Sofa rolled in the dough, be warned: this was our first time doing anything like this and many products worked, some did not and many ideas were expensive and did not pay off either. So, without exposing a spreadsheet to you right here, I would say we broke a little above even after all the lessons we're learned but we gained a significant amount of new customers for the rest of the year. So the longer we do this, the more financially successful it will become by the shear fact of experience. Many people make their living doing these shows and my eyes were wide open learning how they manage this momentary chaos. It was fascinating! The trucks, the gear, the displays, the condensing, the storage...

I am interviewed now and then by people in the trade and often they ask , "How do you keep customers interested in this economy?" I find myself saying the same thing, 'Take your show on the road." It is needed now more than ever.
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The Article

Someone has taken me under their wing. This is what I have been up to:

The first story.
The second.
And watch for continue stories beginning June 16th for the New York Times Online!!!

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Eating Crow

For about 2 weeks now I have felt enormous guilt over having a shop owner blog and giving or posting random thoughts or advice on being a boutique owner. The reason? The current state of the union. I need to rethink every aspect of my business right now which makes me feel as though I haven't a clue where to start. It's different than when I opened for the first time because at least then, ignorance was bliss. Now, I should know better, do better and be better. But currently, I am not. I was not prepared for the state of the union or the customer or whatever state anyone else is in. I know many of you are feeling this too.

Today, I had a number of emails from a retail financial consultant (Jay Goltz) that stumbled upon me through a mutual friend. I jumped at the chance for this man to teach me something. After reviewing my business, he basically told me, "I am full of s..t", "Feeling sorry for myself" and "I don't get it"!!! A lot to handle on Valentines Day. I had such a knot in my stomach all afternoon, my head was spinning with his observations and finally went home thinking I am a horrible fraud.

After I calm down I am going to pick myself up and use this man for all he's worth.
-I need to learn how to think like an accountant instead of an artist.
-I need to tighten the wallet and work from a real budget instead of spending just because we have it.
-I need to seriously evaluate down to the letter what sells, the markups, the turnovers and the square footage that each item is taking.
-I need to look at every shop expense and if it's worth it or fluff.
-I need to know the hard facts of what type of advertising has really paid off.

This new education is painful. It just goes to show that there is always something to learn in business. This retail stuff is never completely figured out and as I have focused my energy on finding great stuff, making the store dramatic, preparing and getting great press- I have ignored the big picture: building a solid financial foundation to get through tough times (and there will always be tough times in retail). I think every few years, despite the economy all of us need to rework the business. Most of us are in the habit of reworking what the customer sees, now it's time to work on what they don't.

I am fortunate to have a lot of cheerleaders for Curious Sofa but especially my staff who care that we stay successful, do the smartest things during this time and help take some pressure off of me. I have been down right humbled at their concern and willingness to help.

In the meantime, let's all get back to business- as well as we can.
xxoo,
Deb

Calendar Girl

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I decided to share a December sales idea after receiving a few emails from several retailers asking what I do about Christmas markdowns. It's hard for all of us to compete when every big box store is offering massive discounts already but a fun gimmick is always good.

I started this idea last year and it was a hit with customers so we are doing it again. Beginning December 12 Curious Sofa begins their 12 Days of Christmas Sale. The discounts start at 12% off on all Christmas merchandise and continues from 13% to 24% on the appropriate date thru Xmas eve. Then the day after Xmas we start our 50% off Christmas sale.

On December 26th we also begin our Winter Clearance Sale marking a lot of winter items, gifts and decor down 20-75% off (basically stuff we're all tired of looking at and has not moved fast enough). I used to have this sale until January 31 but by Jan. 15 the store looked pathetic and customers were ready for something new so now we end it in three weeks, which is plenty of time. I have also started to order new merch to keep the inventory level up but I am focusing more on larger furniture pieces (lamps, mirrors, art, chairs) than a ton of smalls. I am however, keeping the jewelry, winter scarves and candles stocked because it is still cold out there and those smaller items are good impulse purchases no matter what time of year.

Pass on any sale ideas you might have and get your calendar year ready for your staff. The momentum of Christmas energy needs to keep us going!

Also, Curious Cocktails Sunday, January 13 in Atlanta at the Westin Lobby Lounge, 6:30 p.m.
More later!

Wall Streeet/ Main Street

.I received an email from a retailer yesterday asking me what was I going to do for Christmas this year considering the financial news we have been facing lately. ("Are you pulling back, lightening up, doing less?") As I was writing her back I realized this question deserved a blog post because I am sure most of you are thinking, what the heck do we do now?

First off, I am NOT anyone to offer sound, financial advice- (please consult your local accountant before taking this medication). I can only tell you how I am handling it and what my personal philosophy is on it. Maybe this will help, maybe not. You be the judge as this is fair and balanced blogging -or too much TV.

Know this, I do not have any money, period. I'm a retailer, remember? As I watch the news and hear of Fannie and Freddie (is that a new Broadway dance team?) I am comprehending about 20% of what is being said. Then the story on Lehman Brothers, AIG and as I write this I am watching a news conference hearing our taxes (almost a half a trillion dollars) are going to be used as a Band-Aid to keep this mess from "getting worse". Are you kidding me? How can Sally's Happy Corner Gift Store get her head around this? What the heck do we do? The country is broke which means mom and pop are too.

So how do we manage our retail businesses with this latest financial news? I am traveling to Sanibel, Florida in November to speak on this issue for the GHTA. I am still perplexed how to approach it so I am waiting for the results of my Christmas sales to help choose the direction of my speech. When the economy became more of my business this year, I had to review a few things.

#1: Who is my customer?
I think we need to come up with an average customer profile and not say, "Well some are wealthy and some are not, some have big homes, and some have cottages, some like pink and some like green so I need to buy for everyone. It's time to choose an average. An average of price point, an average of product choices and an average of inventory volume.

#2: Know what items you sell- all the time, with a great profit.
Study your sales and come up with best selling items and concentrate on them. Since I spend 90% of my time in my office working ON the business and not IN the business I always need to study the books to see what is moving and what is not. I took a list of my top sellers in each department to market.

I chose my Christmas theme back in January and bought for it accordingly. January is when I order the bulk of my decorating items and at the summer market I go back and concentrate on gifts.

This Christmas I feel my purchases were more narrow but still focused. My theme is The Big Chill so I was buying lots of white, icicles and snow. Having a theme always helps me buy style but what I did differently this summer was look at price tags- really look and study and calculate. I did not buy things because they were fabulous or would make a statement or to show off- I bought to sell. Now you may laugh at this because this should be our #1 priority to stay in business but my style of buying has always been my brand first, then price. Now, I need to challenge myself to find the great price and not just the unusual item. In other words, I need to stay in business.

When most of us go to market, I think we all get caught up in the shopping experience. Yes, it's hard work and there are a lot of bad items to overlook, but there is some pleasure in it. We are finally away from our store, we can search and design and compare and be around other retailers and vendors. Our design eyes are at work along with our business sense. January is especially satisfying because we hopefully have come off a good Christmas, have a little money and most of our purchases will be dated to pay for much later in the year so the pressure is off a little. But summer market is different. People are more cautious and there is always an uncertainty in the air because late Spring and Summer sales are not always thrilling. Combine this with the economy and election and there you have it. We're running around with our heads cut off not knowing what will work.

I recently had a run-in with my landlord. My a/c went out and $1,059 later, I called to see if they could help me with the bill. Weeks later they said no. Now I love my leasing company, I really do. They did a tremendous build-out on my store when I moved in and I personally like all the people that work there. But this did me in. This was the icing on the cake because lately I was tired of the juggle I continue to do with this shop every day. It is always something: hiring, firing, vendors, customers, merchandise problems, events, planning, buying, returning, sales- and ALWAYS the money, money, money. I had a meltdown when they said no to the a/c bill and I shot off a 'tell it like it is' email to all the powers that be. When they called me in for a meeting three days later I thought I might leave with a little help after all. What did they do? They slapped my hands! I was stunned. They showed no concern at all. Instead they said they were 'hurt' I had gotten so mad when I had praised them in the past. They showed no desire to help me whatsoever! I was stunned. They also used the ammunition that my sales were up 15% this year ("so what was I complaining about?"). I left there and wanted to crawl in a dark bed and sob. If my sales were up 15% why did I take a 20% salary cut three months ago when the rest of my staff got their raises? Why am I searching for 8% credit cards to get me through Xmas? Here I am again, feeling sorry for myself, being alone and struggling, wanting help from someone and no one was there. I was over it! This money thing has me so depressed I am rethinking my entire retail strategy. It may not be long before this retail circus I have created will have to end. No more special events, tons of sku's, wide variety, unusual displays and drama- it just doesn't make me money. It makes me famous, but it doesn't make me money. There is a reason Pottery Barn looks the way it does. Easy, simple, find it, buy it and get out.

I share this personal stuff on this shop owner blog because I know the majority of you reading are retailers. My customers would say, "NO! Debbie, don't sell out! Don't be like every other store!" But I am telling all of you, this is tough. I am not receiving personal satisfaction because of the juggling and pressure of shop owning and I am certainly not receiving financial rewards- so one or the other has got to give.

As I was sitting at my desk, complaining about all of this to a sales rep, I was cutting out some vintage images I had printed to put inside some new picture frames I had just received, I said, "See- look at this. Does anyone else take an hour to make sure the pictures in her frames are better than the ones they were shipped with?" My friend said I am too much of a perfectionist and that nobody would have noticed the original ugly pictures. This made my heart sink because of course I believe they do notice. But her point was this was the kind of thing that was making me crazy. It was another line on the to-do list. She suggested I let this go.

But this attention to detail is what has put my store on the map. But it is not helping make my retail life easier. And now, with the economy and trying to get people to buy something, just being a cute or inspirational store is not enough to keep us going. We have to get smart.

I had mentioned in my entry last July that the few buyers at the Atlanta Market knew times were tough but we had to keep it going. We had to go to market to buy something because just marking down sad old inventory was not going to keep customers coming in, we had to keep working at it.

So although the bulk of my Christmas decor was ordered last January before things started to get so bad, I will continue ordering some holiday throughout November & December. But this time, I do not throw out the discount catalogs or ignore online offers from vendors because ‘it’s not me’. I may not love these items, I may not even be 100% proud of the style in my store, but I have to dig for something to make me money. I have to think of my business, my employees, my rent and not my reputation. Normally, I look through catalogs once and my ‘old self’ marks what I really want, I may even write a purchase order. The new buyer in me writes the P.O. and then I let it sit for 24 hours. I go back and really look at the items and ask myself seriously, “Will this sell?” WILL THIS SELL? Do not say, I hope so. Do not say, I think so. If you have been in business three years or more, you know the answer to this. You really do. You know.

So in these hard times I am telling you what I am doing. I am putting my pride aside because at this point I just need to stay in business and keep the money coming in however I can. I am rethinking every single purchase from merchandise to paper towels. Come January, I will roam the isles in Atlanta completely differently too. It’s time to keep ordering and keep making the store great but I have to think like a consumer now and not a retailer. What would I buy, what do I need, how much will I spend? As retailers, we might have to juggle a few credit cards, take a pay cut or stay in a few dumpy hotels, but if we make it through the next year or two, I think we will come out stronger, wiser and perhaps wealthier. After that we can show off again. Maybe we need to teach these lessons to Wall Street.

Event Idea

From my Accessory Merchandising magazine I found this quote from shop owner Danielle DeBoe in Cleveland. Great idea for any of us.