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Candace D'Agnolo

Inventory is Both Your Biggest Asset and Greatest Liability

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Which one of these three categories do you fall into? A) Jam-packed store … shelves overflowing, baskets filled on the ground, stockroom shelves stuffed to the ceiling. Maybe your store is the opposite? B) Shelves are sparse, some pegs are missing merchandise; you’re just waiting for your next shipment to arrive … whenever that is. Or perhaps you’re C) A well-stocked store with merchandise that has arrived in the last 30 days, but some goods have been there six months or even years!

I’m not going to lie. I’ve been A, B and C in my career as a pet store retailer. I struggled in every scenario. Why? Because the inventory wasn’t being managed properly.

To be a healthy and profitable retailer, you must understand that turning your inventory is everything. Inventory is your biggest asset and greatest liability. But how do you find that right balance?

Without monitoring your inventory regularly, you can often be left with too much stuff, eating up all your cash (as in A). You could be missing opportunities to make more money if you don’t have enough goods for sale (as in B). Or you could be losing money because you’re sitting on old inventory that’s depreciating, getting older and making you look more like a museum than an exciting place to shop (as in C).

Consider each of these approaches to be the boss of your inventory:

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1

Stock what sells. Keep your best-sellers in stock, always, always, always! Even being one day of out of stock means potentially missing a sale and disappointing customers. Know your 25 best-selling items. Keep them in stock always. Have 1½ months’ worth of inventory in stock to meet the demand and replenish regularly.

2

Get rid of dead stock. Uncover any items older than six months, and put them all on sale. If your customers weren’t interested in buying it within the last six months at full price, they aren’t going to do it anytime soon. What you make by selling it will give you the cash to invest in something new and exciting.

3

Leave impulse shopping for the customer. Before you bring in something new, think about what it’s going to replace. It’s tempting when a manufacturer you love comes out with a new product, but will it be a new solution for your customers, or will it compete with something else on your shelves? Pay attention to your assortment to ensure you don’t have too many similar things.

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4

Consider selling by volume. Look for opportunities to sell in bulk, case quantity or even by the dozen. Whether you provide your own packaging or include a case price on your signage, getting the customer to buy more of something increases sales.

5

Invest in a good POS. A modern point-of-sale system will help you track not just your inventory on hand, but sales and customer reports. Tracking and interpreting this data is critical to helping you manage your inventory and make good decisions when it comes to markdowns, restocking and promotions … all of which relate to inventory.

As an independent retailer you have the luxury to curate a selection of unique merchandise and make a beautiful presentation while doing it. Fresh new merchandise on a regular basis excites customers to come in more frequently.

Candace D’Agnolo owns successful pet business Dogaholics and offers business consulting at Pet Boss Nation. Get her checklist “10 Ways to Boss Your Business” at petbossnation.com/petsplus. Contact her directly at hello@petbossnation.com

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This article originally appeared in the September 2018 edition of PETS+.    

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Pet Sustainability Coalition

Pet Sustainability Coalition Presents: Critical Sustainability Strategies for Retailers

This webinar, held on November 7, 2019, is the second in a series from PSC discussing how retailers can establish sustainable practices in their business. Moderated by PSC’s Andrea Czobor, the webinar unveils data behind the increasing consumer demand for sustainable products, what retailers have to gain from connecting with these purpose driven consumers, and a new PSC program that makes finding these products easier for retailers.

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Candace D'Agnolo

Boost Staff Morale with These 3 Holiday Sales Games

It’s important to first identify what your goal is.

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WHEN I WAS running my own pet retail boutique, I found that as the busy days of December rolled on, our team would become more and more run down. Every day gets longer and longer. It becomes harder and harder to keep the team motivated. I needed to find a solution, and I discovered that one of the best ways to perk up everyone was to play games.

Using “gamification” in your business is a really hot trend right now because it creates engagement, connection and results.

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When it comes to using games as a tool in business, it’s important to first identify what your goal is. Perhaps it’s to move out your holiday-specific merchandise. Maybe it’s to ensure that all the new customers coming in are being added to your database. Or you want to get the team to add on one more item over $10 to each sale. Whatever it is, make sure you pick a specific purpose for your game. Play the game only for up to one week. Games that last longer tend to lose their magic. You can play multiple games throughout the month, too. At my store, we had a different four-day game that would run every Thursday through Sunday. Each game’s tactics were different, and each game’s purpose was different.

Here are a few of my favorite games to play to help you sell more stuff, motivate the team and keep that register ringing to make the most of December.

The Dollar Tree

Tape fake dollar bills on a wall in the shape of a Christmas tree. Encourage your team to ask each customer: “Does your pet have a present under the tree this year?” If the customer says, “No” (or even yes) and that question leads them to purchase a toy, then that team member gets to pull a fake dollar from the tree. At the end of your game, they get to turn their fake dollars into you for real dollars.

Staff Santa Sack

Every time you beat your daily sales goal, each person who worked the floor gets to pull a card from the Staff Santa Sack. The sack can be filled with notecards or something similar, each with a reward, gift or surprise written on it. They can turn their cards into you whenever they want during the months of January or February. The rewards could have ideas like, “Skip my turn to clean the bathroom,” “Go to Lunch with the Boss,” “Pick one item from the store under $20,” “Get a 30-minute paid break.”

Staff Bingo

Play Bingo! Make your own bingo board by filling in the boxes with product names, tasks or questions instead of the typical bingo number. Keep them all the same or make a variety of boards. Hand them out to your team and have them try to get bingo in order to move toward your objective. When they have a completed board, they get a prize.

These are just a few examples of games you could play with your team to keep things interesting and to increase your sales at the same time. If you give one a try, make sure to share your results with PETS+.

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Candace D'Agnolo

Purposeful Outreach: How to Segment Your Customer List and Communicate with a Purpose

The best emails, text messages, direct mailers and thank-you cards are relevant to the recipient and timely.

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MY LAST TWO COLUMNS covered why collecting customer information was so important, what you should collect and then ways in which you could encourage your customers to give their information to you. Now that you have your list, it’s time to communicate with them in a purposeful way that adds value. The best emails, text messages, direct mailers, thank-you cards are relevant to the recipient and timely. So how do you do that?

The first step is ensuring that your list is segmented, meaning that all your contacts are in the appropriate categories/lists. You can mark your customers with “tags” or custom fields inside your software (based on recommendations I covered previously — check out past columns here: petsplusmag.com/dagnolo).

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Segmenting will allow you to send relevant information to customers. Wouldn’t it be better for a cat customer to get a cat-related email from your business instead of hearing about a dog mom event? If the cat customer hears only about dogs, they will stop opening your emails or paying attention to your marketing.

Segmenting takes effort on your part, but once you get a system down, it will become easy for you to send the right message to your customers.

Now that you have them segmented to send relevant information, it’s important to send consistent and timely communication.

Here are a bunch of reasons to communicate with your customers:

  • Newsletter (monthly, weekly, bi-weekly)
  • Welcome to “Business Name Family”/Story behind business
  • New client/onboarding
  • Reminders
  • Promotions
  • Re-engagement for customers you haven’t seen in a while
  • Abandoned carts for online stores
  • Milestone emails
  • Special offers
  • Surveys or other request

And here’s a list of things you could share in those communications:

  • Celebrations
  • Announcements
  • Customer and team highlights
  • New products and benefits of others
  • Breaking news/recalls
  • Vendor stories
  • Your stories
  • Events
  • Frequently asked questions
  • Do’s and Don’ts

So, now you’re building your list. You know why you should be communicating with customers and what to talk about. Now it’s about being consistent in your communication. Come up with a plan to communicate at least weekly with your customers — whether it’s to the whole group or targeted segments of your list.

Sending relevant info is key. The right message must reach the right people. The most important thing about your communication is to communicate with purpose. The purpose of your communication will allow you to ensure you’re driving important and interesting communication that still supports your business.

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Candace D'Agnolo

8 Ways to Collect New and Existing Customer Information

Incentivize new and existing customers to give you more of their information.

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LAST MONTH, I SHARED with you why collecting customer information is critical to your success. Now that you know what you want to collect from your customers, I’m focusing here on how you can incentivize new and existing customers to give you more of their information. In this three-part series, I’ll help you move from sending a random monthly mass email newsletter to truly building an engaged and active customer base. This not only means having your customers’ information, but collecting information as much as possible so you can keep growing your business!

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The most obvious example of where/when to collect their information is at the register and/or the time of purchase. (P.S. This should be a non-negotiable standard for your team when ringing people up). Here are eight alternatives to getting oh so much more information:

1. Require people to register in advance for your events. Google Forms is free and provides a link for you to share on social media or in emails for easy online signup. Eventbrite is also a fabulous tool since you can charge for the event, allow people to attend for free, and you can even ask for a donation! Some of the CRM platforms from July/August 2019 issue will allow you to build landing pages that integrate with their software, as well.

2. Do a raffle. Make sure you have each participant’s cellphone, email and address. An idea for this would be to do an online “getting to know your customers” contest on social media. Have them fill out a survey (all their info), and they get entered to win a gift card for the store.

3. Create an “opt-in” to use in a variety of places. Share it on your business cards, social media, website, emails, videos. An opt-in is when you give something away of value in exchange for your customers’ information. This can be a 10 best tips PDF, an educational video, a gift certificate — the options are endless!

4. Implement a texting service. A texting platform will help you automate the opt-in process in a wide range of places. Use your short text in keyword to get people to join a VIP Club, use it events for easy signup, add it to signage in your store and call it out on Facebook Live videos.

5. Utilize surveys, contests, polls and competitions. Outgrow.co, Survey Monkey, Google Forms, Rafflecopter and Poll-maker are among a few websites that allow you to create these for distribution as well as capturing the data you want.

6. Do a pop-up ad on your website that asks anyone visiting to fill out a brief survey for an instant 10 percent off sent to their email upon completion.

7. Offer a “whatever you can fit in [this box] in 5 minutes is yours” shopping spree giveaway on a Facebook Live video. Or if that’s too much of an expense, do a surprise grab-bag giveaway. Fill a box with whatever you want, cover/wrap it up and tell people it can be all theirs if they enter! Really talk up the goodies in there, saying they can have enough gifts and goodies for the next six months! Include a link where they can register to win.

8. Offer a coupon on their next purchase if they leave an online review of their experience. Platforms like Nextpaw + Broadly can help make this easier.

Last month, you learned why it’s important to collect customer info and what you should collect and track (petsplusmag.com/9191). And now, you have ideas to incentivize new people and current customers to opt-in. I’ll share with you ways to best communicate on a regular basis in the last installment of this three-part series in the October issue. Because aside from sending regular newsletter emails, there are lots of strategies to building raving fans who support your business!

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