"I really do think that any deep crisis is an opportunity to make your life extraordinary in some way."

-- Martha Beck, Author 

by Jami Petersen

The industry seems to be bombarded with word of new store closings on a weekly basis. In fact, knowing what to do when a neighboring store closes became a topic of discussion here in our office when we heard from a store facing that dilemma. Perhaps you fear for the future of your own business, or maybe you are facing this same scenario. Either way, you'll want to read this week's feature article from Dennis Conforto. 

Jami Petersen
newsletters@a-z.com

Sakura of America

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Press Releases

News you can use about the latest media coverage of hot trends, noteworthy events and dynamic industry leaders. Learn more about the current headlines in arts and crafts by clicking on the title of each article segment.

Small-Business Owners Lobby to Cut Credit Card Fees. Small business owners are lobbying for new legislation in hopes to cut mandatory fees owed to banks each time a consumer uses a credit or debit card, reports The New York Times. The legislation would urge banks to negotiate fees with merchants. Some business owners are seeking class-action status for litigation claiming antitrust violations by banks and the MasterCard and Visa card networks, says the article.

Digital Scrapbooking magazine ends print run. Lin Sorenson, VP/Editorial Director of CK Media, announced that Digital Scrapbooking is the latest print magazine to cease publication due to economic and publication hardships. Subscriptions will be fulfilled with other CK Media products and more information will be available in December.

Kids getting into scrapbooking. Kids have a need to express themselves creatively. Why not get them into scrapbooking? Sponsor a scrapbooking club for kids or hold special classes for them.  

Adhesives

Occasionally Scrapbooking.com Magazine would like your opinions on different topics that are relevant to the craft industry. Take this survey to provide valuable feedback about adhesives:

Click here to participate. . .
 

by Dennis A. Conforto, A-Z Media Group, Inc.

What should you do when another scrapbooking retailer fails within your marketplace? The answers may surprise you. First, don’t be happy. It’s not a victory but a failure for the whole industry. Why do I say that? Well, if it were just one retailer going out of business it would be one thing; but thousands of retailers have failed in recent days. Those failures affect the consumer confidence rate in the overall category. So, when one retailer fails we all fail, and that is the problem.

Think about the scrapbooking consumer who watches scrapbooking retailers continually fail. What message does that send about our industry to them? That we are poor businesspeople? That our products are no longer en vogue? These failures don’t even help the big-box national chains that sell scrapbooking products. Help your store succeed when a nearby store fails with these five tips.

1. Contact the former owner of the business who is closing and see if you can buy their remaining inventory at 10 to 20 cents on the dollar.
2. Take older merchandise and blow it out at 50% off list as a special purchase sale. Fold the current inventory into your standard merchandise mix.
3. As part of the buyout deal of the inventory, gain access to the former owner’s consumer home and email addresses
4. Combine the home and email addresses with your current database and clean up the duplicates.
5. Send invitations for your most current sales event to the new consumers not found in your database and honor any outstanding coupons or certificates of the failed store.
It’s important to take care of the local scrapbookers in your market who may have been adversely affected by a fellow retailer who has failed.

When one of us fails, we have all failed. Each time a retailer fails, the industry should pause and ask itself, “What should we be doing differently? How can we change the tide that is going against our industry?”
Unfortunately, most people in business want one simple, quick-fix for all of their problems, or they are only willing to commit to a single change. However, there is no one fix. There are a host of changes that need to be made to ensure the success of an independent retailer and in turn change the industry for everyone. We have talked about them many times within the last year. Most of the solutions are simple and inexpensive. They can save many retailers and help many manufacturers who are feeling the pain of others’ failures. All of the suggestions are common standards that have served other industries well.


Now that you have taken care of your new customers, here are ten keys to prevent your own store failure.

1. Reduce the number of vendors you do business with to no more than 50.
2. Make sure your displays feature the power brands you bring into your store.
3. Increase your turn rate to at least a four-time turn, which means nothing stays in your inventory more than 90 days.
4. Make sure you are spending 5% on advertising and that half of it is paid by your vendors to assist in your efforts to sell their products.
5. Make sure that 80% of your advertising dollars are spent on finding new consumers and the other 20% is spent on your current client base.
6. Make sure you have two solid promotions every single month.
7. Team up with other local scrapbooking retailers to promote the category.
8. Train your staff to know your vendors, know the products and know your consumers.
9. Understand why scrapbookers scrapbook, then make sure your store reflects your customers’ values.
10. Know how much volume you have to do monthly to ensure that you make 15% pre-tax profits and work hard to achieve it every month with the support of your staff.

If you can implement these ten keys, you will have a great business. It will be a growing, profitable business. Over time, instead of paying for your inventory with credit cards you will be offered terms by your vendors who will look at you as a solid partner and a good retailer. That is what being business SMART is all about.
 

If you would like to comment directly to Dennis about this article or have him address a subject matter in future articles feel free to email him directly at dconforto@a-z.com.

PSRO 

Dedicated to those helping consumers preserve treasured memories.

The Professional Scrapbook Retailers Organization™ (PSRO™) bridges together retailers and suppliers for insight into the memories market.

Through educational programs, business services, industry research, networking, and events, PSRO leads its members to discover, understand, and act on new business opportunities.

For more information, or to join PSRO, visit www.psro.org or contact our member service department at 517-788-8100.

Tiny brads are small and easy to use

Bazzill's 3mm Brads are unbelievably tiny. . . about the size of a grain of rice! This itty-bitty brad looks cute in the center of a paper flower and is much easier to use than the flower centers with the wire stem. Each collection includes three shades of the most popular colors. 90 brads per pack, 30 of each color. Neutral includes 30 of black and white, with 15 each of silver and gold.

Pink collection: Berry Sensation, Watermelon Sensation, and Guava Sensation

Red collection: Ruby Slipper, Grenadine, and Fire Hearts

Yellow collection: Mexican Poppy, Lima, and Hong Kong

Green collection: Ivy, Parakeet, and Patch

Blue collection: Admiral, Sydney, and Ocean Blue

Brown collection: Walnut Cream, Geneva, and Walnut

Neutral collection: Black, White, Silver, and Gold