"Make everything as simple as possible, but not simpler."

-- Albert Einstein

by Jami Petersen

In a recent newsletter, Dennis Conforto wrote about the importance of the retailer-manufacturer partnership in these economically unsound times. Co-op advertising is one element of this relationship. The idea has raised questions from retailers concerned about how to approach their favorite manufacturers. Dennis offers his response, and includes newsfrom a retailer who has been successful in partnering with manufacturers. Specific answers to specific questions in this week's SMART article. 

Jami Petersen
newsletters@a-z.com

Memory Mixer 

Bring in a NEW crowd! Broaden your customer base with MemoryMixer.

Digital Scrapbooking is the latest trend. Make sure you have what people are looking for.

+ Easy to use software
+ Additional digital content
+ CD labels and mailers

Create a digital community in your store today! Call today to see how you can benefit from our DigiRewards Program!

memorymixer.com

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.

Dear Dennis,
I really enjoy your articles in the Scrapbooking.com Business Newsletter. I wanted to inquire about the co-op advertising being paid by vendors. I have made a real effort at this the last 6 months & so far I’m 0 for 10. With vendors I deal with most often, they are unwilling to share any of the advertising cost or provide any discounts to cover the cost of advertising. Do you have any tips for how to be successful at this?

I am MOST interested in advertising mainstream to get NEW people into scrapbooking. There are so many people taking photos out there, how do we convert them from computer viewers to scrapbookers? -Tammy

Dear Tammy,
Thanks for taking the time to write to me. The best time to get co-op funds is when you are at a trade show with the suppliers. You need to have a clearly stated plan and objective. Remember, you’re asking for a percentage of sales you make for them to go towards co-op funds. So you first must cut your best deal on pricing, then you ask for an additional 5% to go towards advertising. The funds from the manufacturers are then used to pay for 50% of the ads.

If I were going to a show I would carry a notebook (my retail trade show book) that would be divided into three sections. The first section would have an overview of my store with pictures, facts, sales history and competitive history. The second section would be my detailed sales history and Open to Buy report that had forced me to maintain at least a 4 time turn rate. I would know which items were being dropped by either me or the manufacturers. I would know what areas I would need to fill in and I wouldn’t buy more than 90 days worth of inventory, providing that was even in my Open to Buy plan. The third section would have my co-op advertising plan for the year with details of each month’s promotion.

Frankly, to get the manufacturers to invest in your store you must invest time into your retail trade show book. If you have a good plan you will have good results. Manufacturers want to deal with great retailers and the sign of a great retailer is found within their own copy of their store’s retail trade show book. Consider providing manufacturers with a short one-page, two-sided overview of your co-op plan.

When they see your time and effort to plan sales around their products, when they see that you understand the need for more new customers for your business and their business, when they see a true retail professional, you will find that manufacturers will invest into you as much as you invest into your planning.

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.

Thoughts from a Retailer:

Dear Tammy,
The vendors do have to treat the trade show as their main negotiating time...after that they figure the money is in the bank (the order is placed) so they don't need to do more.

Last year I managed to get all of my key manufacturers to agree to co-op ad dollars. Their objections had been the task of measuring and allocating co-op dollars. I convinced them that I would be a great test for them and I could just send in my year-to-date buy with my request for credit. They agreed to this but you can quickly figure-out that this process would not work if they needed to handle several retailers; they would need to set a "use it or lose it" deadline.

I would love to give you any feedback you want on how you intend to approach the manufacturers; I will share the 5 point plan I used with you too. My best recommendation is to be a member of the SMART Group and get continuous education. - Lisa Fedele
 

If you would like to comment directly to Lisa about this article, feel free to email her directly at lfedele@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.

Files Pre-Packaged Plan of Reorganization

The Antioch Company, parent company of Creative Memories, a leader in the memory celebration industry for more than 20 years, announced today that it has reached an agreement with its lenders to restructure its debt.

To facilitate this agreement, The Antioch Company and six of its subsidiaries today filed voluntary petitions for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of Ohio. The Antioch Company has elected to seek bankruptcy protection in order to restructure its debt while continuing to maintain normal business operations without interruption. The debt restructuring is embodied in the prepackaged plan of reorganization also filed today. Under the plan, which has the full support of the Company's lenders, the process is expected to be completed by the end of this calendar year.

"After completing a comprehensive strategic review of the business, The Antioch Company, with the guidance of industry experts and turnaround specialists, determined that a pre-packaged filing was in the best interest of the future of Creative Memories," said Asha Morgan Moran, global president of Creative Memories. "We are confident that the restructuring will provide strong opportunities for the company's consultants, employees, and customers.

"This process demonstrates our commitment to the future of Creative Memories," Morgan Moran said. "We will ensure that product development remains a top priority so that the company and our 55,000-plus global sales consultants will continue to benefit from our respected position in the traditional scrapbooking industry. At the same time, new product development will assist us in expanding our role into the digital market."

"The financial restructuring of The Antioch Company will allow Creative Memories to pursue its mission of preserving the past, enriching the present, and inspiring hope for the future," added Creative Memories Co-Founder Rhonda Anderson. "We are focused on our bright future as we further expand our offerings into digital scrapbooking and other innovative memory celebration options while continuing to serve our traditional scrapbook market."

The company does not anticipate any reduction in employee headcount or changes in operating facility locations and the company anticipates continuing day-to-day operations. In addition, The Antioch Company announced that it has filed a motion for authority to enter into a credit agreement with its lending group, which will provide up to $4 million in additional liquidity for restructuring and future investments.

About Creative Memories
As a leader in the memory celebration industry for more than 21 years, Creative Memories specializes in selling premium-quality, photo-safe albums, scrapbooking materials, digital photo books, and photo organization software. Based in St. Cloud, Minn., Creative Memories markets its products at in-home get-togethers through more than 55,000 independent global sales consultants in eight countries around the world.