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Budgeting for Inventory

inventory budgeting

Are you spending money you don’t have for inventory? Continue reading to learn how to avoid this financial situation.

Budgeting

To avoid overspending set aside a portion of every sale in a separate account to be used specifically for inventory. If the account is empty, do not order inventory (even if a calendar reminder is telling you to do so). Once the account has money in it, the first thing to cover are orders placed but not yet paid.

To determine how much of each sale to set aside, check last year’s cost of physical goods. Then compare that as a percentage of your total sales. If you can’t find this information, anywhere from 40% to 45% is a good place to start.

Note, this account is for inventory only, not classes. As you use this system ensure the account has enough funds for basic products, as they are the backbone of your inventory.

Inventory Scheduling

Another piece of inventory is when the product arrives. The first thing to avoid is feast or famine, meaning you don’t want all of your product to arrive the same day. That means you won’t have anything new to stock your shelves with for the next three months.

To avoid this, inventory tracking is essential. Once you know how long it takes a product to ship, you have the option to contact the vendor to deliver when you need it. Most vendors are flexible on delivery dates after payment, as the sale is what matters most to them.

The other option is to cut your order. If you know the order isn’t arriving for two more months, take a look at the list and determine what you can do without.

Inspiration for this post came from The Not-So-Obvious Basics of Buying by Gwen Bortner published in the October 2022 issue of Creative Quilt Retailer.

If you’re looking for more information to guide you in owning a retail business, subscribe to Creative Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Pandemic Profits

pandemic

It’s been 30 months since the pandemic began. How does your business stack up? If your business benefitted from the side-effects of stay-at-home mandates, know that an increase of sales doesn’t equate to an increase of profits. Read on to determine if your increase in sales actually equated to a better business operation.

Gross margin percentage

The first place to start is your gross margin. The gross margin is listed as a percentage on your income statement. Look back for every year back to 2018. How has it changed?

To determine why these changes occurred, go to profitsplus.org and use the free “logical profit and loss statement” calculator. Expenses are grouped by category including advertising, payroll, operating expenses, etc. Compare these expenses to your percentage of sales.

If the past 30 months really has made you a better business operator, your gross margin percentage should have remained the same or even increased since pre-pandemic years. Business owners who equate in increase in sales to an increase in profits aren’t seeing the full picture.

Pandemic prices

Another thing to keep in mind is the increase in product price. Do you increase price on the sales floor when new product comes in at a higher price? If you’re selling inventory based on what you paid, you might want to reconsider. Remember, your cost of operating has increased just as the cost of inventory has increased also.

Inspiration for this post came from “Growing Beyond the Pandemic” by Tom Shay published in the August 2022 issues of American Quilt Retailer.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Retail Merchandising

merchandising

Psychology plays a huge role in retail merchandising. Read on for ways to display your merchandise to turn inventory faster.

Simple tricks

There are many ways to arrange your merchandise to increase sales, but let’s start with the 2-finger rule. Simply put, there should be a two finger space in between your product and the top of the shelf. This both maximizes your shelf space as well as presents the product logically to customers.

Speaking of shelves, most people scan shelves in a Z when looking. Customers also compare products horizontally.

It goes without saying, but try not to place heavy products on higher shelves. 15% of people didn’t buy an item because it was too heavy when moving it.

Finally, consider rotating products. Moving an item from the bottom shelf to eye-level increased sales by 87 percent.

Color merchandising

Color obviously plays a role too. Check out the list below to encourage different feelings:

  • Blue: Promotes peace and tranquility
  • Green: Encourages freshness and nature
  • Purple: Equates to spirituality
  • Yellow: Spreads energy and happiness
  • Pink: Makes people romantic
  • White: Creates a simple and clean atmosphere

There are hundreds of tips that I’m sure we didn’t cover. What have you learned in your career you can share with the quilt retailer community? Comment on this blog for merchandising tips that have worked for you.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Make the Most of Mannequins

mannequins

Did you know customers are more likely to notice mannequins than any other fixture in your store or window display? This is simply because mannequins look like them. Read on for six ways to dress a form to add to your store’s environment.

How to Dress Mannequins

  • Be dramatic: Think of items you can style on your form. The goal is to spark interest to products customer wouldn’t have otherwise thought of to increase sales. Pro tip: use items that are experiencing a sales slump!
  • Add-on: Consider adding surprise items, such as a button necklace, to your mannequin. This might entice shoppers to head to your lightly visited button area in the corner of your store.
  • Tell a story: Use your mannequin to tell a story about the product. It’s a much more effective way of connecting with customers compared to showing a slew of choices in a strewn-out manner.
  • Think light: Less is more. Try not to overdue props or supplies as the product should stand for itself.
  • Try marketing: Use your mannequin in social media. Consider adding a competition for followers to name the mannequin (where the winner gets a prize)!
  • Be intentional with color: Colors that highlight current trends (think Pantone’s Color of the Year) are a great way to show your signature style.

Inspiration for this post came from “Dress Them Up” by Anna Woodward published in the August 2022 issue of American Quilt Retailer.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Onboarding New Hires

New hires

Congratulations, you have a new employee! Now it’s time to onboard them so they feel a part of the team. Read on for the four things to keep in mind to ensure you both are on a path to succeed.

Responsibilities

Employees should know the duties that fit their job description. Set clear expectations and help new hires understand what those expectations look like. This can be completing a piece of a project, meeting sales quotas, and more.

Every time you have a discussion about employee expectations, be sure to follow up with an email. It’s okay to check with your employee to gauge their understanding of the expectations you’ve outlined.

Acceptance

There’s nothing worse than being new to a team and having to introduce yourself. To make your new hire feel accepted, introduce them early on their first day during a team round up.

Another great method is to pair the new hire with a mentor. The mentor shouldn’t be someone in a management position, but rather a peer. This will go a long way in saving you time answering questions about the day-to-day.

Training New Hires

Thorough training sets your employees up to succeed. Invest the time required to ensure the new hire is an expert in their position. Slow down or speed up as needed, but be sure to provide feedback as early as possible. Let your new hire know if they’re exceeding expectations and encourage them to provide feedback also.

Career

You have a vision of the company, and your new hire has a vision of their career. Set up your new hire on a path to succeed and not only will they buy into your vision but they’ll fit into the company’s culture in no time.

Inspiration for this post came from “Create a Winning Team” by Melisa Morrison published in the August 2022 issue of American Quilt Retailer. Morrison is the Director for Human Resources at the Latex Construction Company and is a former quilt shop owner.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Creating Company Culture

company culture

Every business has company culture, whether they realize it or not. Creating a strong culture within your work environment is essential to your company’s success. Read on for the four components that create great culture.

Vision

The daily grind is difficult to get through but one thing always shines through—vision.

Creating and sharing the company’s purpose to your staff can help them share in that vision. Consider asking your employees how they can support the company’s vision and one thing they can do differently to achieve it.

Values

It’s important your company values align with your employee’s values. If your company doesn’t have values, here is an easy way to create them.

During your next all-hands meeting, set aside 15-30 minutes to brainstorm what values matter in the workplace. Write every value you hear down. Once you’ve exhausted options, have your employees write down their top 3-5 of the values. Tally the results on your own time, then share the values voted on by you and your employees during your next all-hands meeting!

(Note, some values may emerge in overarching themes. For example, teamwork could also be described as collaboration, unity, combined effort, and more.)

Practices

Establish sound practices and rid your business of inconsistencies. Keep the door open with your employees to share inconsistencies, and be prepared to determine better workflows.

People

Leverage your employees strengths to increase company culture. When your employees are happy, productivity increases, and is a win-win for both parties.

Inspiration for this post came from “Create a Winning Team” by Melisa Morrison published in the August 2022 issue of American Quilt Retailer. Morrison has over 30 years of experience in Human Resources and is a former quilt shop owner. Stay tuned next week on ways to communicate employee expectations.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Exclusive Products

product

One of the best parts about being a quilt retailer is providing exclusive products consumers won’t find at big box stores. Read on for display ideas to show customers the difference.

Exclusive for a reason

It’s hard to keep up with Amazon and other big box retailers. But displaying the difference is not only motivation for you but a good reminder for customers as well. Below are some ideas to get you started.

  • Display product after multiple washings
  • Benefits of using your store’s tear-away for decorative stitches compared to the competitor

Your display should show the customers the difference, which goes much further than telling them. Every crafter has created a project that didn’t meet their standards due to product defect. As the product expert, help establish trust with your customers by helping them to avoid the same pitfall.

Inspiration for this post came from “Stable Foundations” by Kay Brooks published in the August 2022 issue of American Quilt Retailer.

AQR Academy LIVE Discount Code

Regret missing the first ever AQR Academy LIVE event this past April? You can save $50 by registering now for the next AQR Academy LIVE event by entering code LIVE50 at checkout.

What are you waiting for? Secure your spot now — the event is less than 30 days away!

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Personalizing your Package

package

We’ve all opened a beautifully wrapped package. The extra warmth that attention to detail and a note of sincerity provides is worth shopping with the business again. Read on for package stuffers that do this as well as further your brand and your client relationships.

Package Marketing

To determine what sort of package stuffer to design, first determine your end goal. What do you want the client to do next? Then work backwards to decide what goes in the package.

Next, ask yourself why you want to include the item. The “why” should align with your purpose of including it also. Keep in mind your audience, not everybody will want the same type of marketing.

Stuffer Ideas

When it comes to the number of stuffers you can include, the possibilities are endless. See below for top items.

  • Invitation to purchase again: Provide a discount on an item they can purchase online. Include a QR code with a link to your site or the promotion.
  • Engagement: Looking to add more readers to your newsletter? Encourage shoppers to sign up for 20% off their next purchase.
  • Free item: The options are limitless but some items can be digital. Perhaps a free online pattern?
  • Something unique to you: Have leftover samples? Include them in your package as an add-on.
  • Something unique to them: This is perfect for customers you know well. Creating something you know is just for them.
  • Promotion: This is best for a monthly subscription. Promotions are always going on—let your customer know what’s next.
  • Save the Date: Send a save the date to drive engagement to your next event.
  • Branded invoice: Make numbers less boring by adding a simple thank you note at the bottom of your colorful and personalized receipt.
  • A handwritten note: Need I say more? A handwritten note goes a long way.
  • Next step: This all-encompassing option makes it simple to wrap multiple of these options into one card.

Inspiration for this post came from “Hand It Off” by Amber Griffiths published in the August 2022 issue of American Quilt Retailer.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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State of Hiring

hiring

With talks of a recession imminent, many employers are reviewing hiring. Nobody can predict the future but something else can provide context: Data. Read on for some of HireVue’s insights.

Who is HireVue?

First, you’re probably wondering who HireVue is and why their data matters.

To start, HireVue is a company that connects businesses to candidates by providing video interviewing software, conversational AI, and pre-hire assessments.

Now, about their outlook. There are a lot of really smart people who say a recession is imminent and there are other really smart people who don’t think that’s the case.

CEO of HireVue Anthony Reynolds believes “the economy will continue to be strong, if a little wonky.” Below are the data points Reynolds reviewed to come to this conclusion.

Hiring Statistics: Pros

  • There are 2 job openings for every 1 person unemployed
    • These numbers are global and come from HireVue’s 800+ customers
  • HireVue customers sent 17 million chat and text messages
    • Up 1.4 million from last quarter
  • Government hiring has tripled since 2020
    • More specifically, public sector hiring increased 17% since last quarter
  • Skills assessments are up 700,000 from last quarter
    • Compared to only 50,000 last quarter

Hiring Statistics: Cons

  • Interview volume is down slightly from 2.1 to 1.8 million
  • Hourly positions still have a worker shortage

Conclusion

In summary, this blog post could have a completely different tone in Q3, but only time will tell. The past two years have been difficult for all small businesses and yet you’ve remained resilient. What’s a little more to keep us on our toes?

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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How to Host an Online Workshop

virtual workshop

Work from home pivoted how work is done. One benefit is that meetings can now be done virtually. And this applies to events and workshops too! Read on for details on how to host a virtual workshop.

Before the Workshop

So you have a topic in mind, the time blocked off, and the research completed. Now it’s time to create a registration page. Luckily you can customize the workshop page in Zoom to match your branding.

In the registration description you can include event details, instructions on what attendees need to prepare, or even prompt them with questions to think about and ask during the event.

Next you’ll want to configure Zoom to your preferences. This means including a waiting room, polls, breakout rooms, and more.

Last but not least, be sure to promote the event via your social media channels.

Holding the Workshop

Now it’s time to hold your workshop. To start, provide instructions to attendees about what to do in case their connection drops. It also helps if you have a co-host to allow attendees in who may be running late.

To drive engagement throughout your session, include interactive elements. The best way to do this is to include polls throughout your session. Of course, something as simple as a gif or providing a 5 minute break works as well.

At the end of the workshop, send a feedback form so each event can get better than the last. Of course you can do some of this too by asking yourself what did you do well, what can you do better, what questions you couldn’t answer, etc.

And to follow up, a simple thank you email is sufficient, including any material attendees requested.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.