How to Handle a Bad Review

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Betty was a brand-new server at the “Cake and Shake Shack.” She was bubbly, efficient and really quick on her rollerblades, especially when taking big trays of cakes and shakes to the cars who ordered them. One day, Betty ran a cake and shake out to Mr. Keyboard Warrior and his girlfriend. She smiled, flirted just a tiny bit with Mr. Warrior, and gave a wink to his girlfriend when she handed over her soy-kale-smoothie. When she rolled back inside, after pocketing the tiny tip she received, she went on to her next car delivery. Everything seemed fine. Mr. Warrior and the girlfriend drove away, eating cake and sipping shake.  Two days later, after an intense fight and subsequent break up with his girlfriend, Mr. Keyboard Warrior took to his computer to complain about Betty, her attitude, and the outrageous and inappropriate flirting she did, causing the untimely breakup between he and his girlfriend. He said the cake was dry, the shake had spinach, not kale…and he would NEVER return to the Cake and Shake Shack. One Star.

As ridiculous as that sounds, stranger things have occurred to prompt a one-star review of a small business.  In this blog, we’ll talk about how to handle a bad online review, and how to improve your overall star-ranking on Google and Yelp.

 

You got a bad review, now what?

 

How to respond to a bad review:

Maybe you discovered that Betty not only winked at Mr. Warrior’s girlfriend, maybe she slipped Mr. Warrior her phone number and said: “Call me, maybe?” On the other hand, maybe Mr. Warrior’s girlfriend is simply insecure and there was no actual flirtation. The bottom line? You need to do something about that one-star review and you should start by replying to the review online.

  • Lead with an apology

    • Simply say “I’m sorry” but be careful not to admit any wrongdoing. Something as simple as: “I’m sorry you had a bad experience.” You don’t have to admit that Ed, in the shake department, needs additional training on the difference between kale and spinach. Keep it simple.
    • Even if the customer was incredibly rude, and you don’t owe them an apology, still apologize – it will make you and your business look better. Always take the high road.

  • Offer a contact person to talk to

    • Sometimes people just want to vent – give them the main number and a person (maybe you) to talk to about the issue.
    • In actuality, only about 5% of the people who are given a person to talk to will make the call.

  • Talk about how you’ll make it right or do better next time

    • We do not suggest a free meal or a refund in your response online – it may spur more bad reviews from people who are looking for discount or free product.
    • A simple statement about how you are working to improve customer service, or the experience for your customers goes a long way in saving your image from a negative review.

  • Be professional

    • It’s very tempting at times to slap back, or to point out the reviewer’s faults – like Mr. Warrior was horribly rude and barely tipped Betty. Refrain. Remain positive and professional, keeping in mind that others will read your response and you want to be viewed as a complete professional, worthy of their business.

 

How to fix a bad review you didn’t deserve:

Not every review is legitimate. Sometimes you’ll get a review that isn’t from one of your customers, or you’ll get a bad review from a disgruntled employee. Here are a few suggestions for what you can do if you received a bad review you did not deserve:

  • Contact Google or Yelp

    • Ask to have the negative review removed and tell them why.

  • Contact the customer

    • Ask the customer to remove their poor rating…if you have access to their contact information.
      • Make sure you remain polite and never threaten a customer.
    • Listen to the customer, maybe they were having a bad day, maybe they were confused at where they ate. Sometimes simply explaining to them (politely and professionally) will be enough to get them to remove their review.

 

What if Google or Yelp won’t remove a bad review you didn’t deserve:

If you’ve tried everything and can’t get rid of that one-star review, all you can do is respond to the review professionally. For instance, if Mr. Warrior’s comment included something about how bad the pizza was – you can respond that you don’t sell pizza, just delicious cakes and shakes and you would be more than happy to have him come check out your full menu.

Keep in mind that anyone looking at your listing on Google, will read the replies.  Most customers ignore a low review if they can see that you have tried to please the customer, or that the review was posted in error.

 

How to get a higher star-rating on Google and Yelp:

Okay, you’ve gotten a bad review, rather you deserved it or not. You have responded appropriately – now how do you get a higher star-rating? You guessed it!  You’ll need to ask for good reviews. 70% of customers who have had a positive experience will post a review when asked. Here are some other tips to increase your ratings:

 

  • Ask for reviews from happy customers

  • Head off complaints before they complain online

    • Stay aware and if Betty accidently spills cake all over Mr. Potter – apologize and try to make it right by replacing the cake. Try to make the customer happy.
    • Ask them about their experience: were they pleased with their shake? Did you have the cake flavors they were looking for? Try to problem-solve while your customer is still at your place of business.

  • Caution:

    • Don’t ever offer freebies, discounts, or payment in exchange for reviews – it may be illegal in some cases, and both Google and Yelp will flag that type of activity.

  • Thank those who post a good review

    • Always respond to every review. If the review is positive, thank the person sincerely.

 

EXTRA – EXTRA!!

Tomorrow we are offering a class on How to Deal with Difficult Customers!

It’s FREE to attend!  Here’s how to sign up:

TOMORROW’S FREE CLASS

 

 

 

The Review Rabbit Hole:

If you are on your lunch break – or at home, trying to relax, here is a hilarious look at some responses to negative online reviews. We DO NOT suggest you use any of these responses in your own reviews (remember the part about being professional?) …But there are others, like you, who have survived (and maybe even laughed) at a bad review.  Here are some examples – strictly for entertainment purposes.

 

 

For additional information on how to handle a bad review, or for some good ideas on how to increase your star-rating online, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

Small Business Saturday | Ho, Ho, Holidays!

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It’s the Hap, Happiest time of the year!  It can also be the craziest time of the year for small business.  Are you ready?  Do you have a plan to capitalize on the “Small Business Saturday” shopping initiative?  In today’s blog, we’ll give you some fun, inexpensive and quick-to-implement things you can do to gear up for Small Business Saturday.

 

What is Small Business Saturday, you ask?

Or maybe you didn’t ask, because you are well aware that Small Business Saturday is every retail, local, small business’s opportunity to boost sales and to profit from the spending spree we hope everyone will be on. Black Friday sales started early this year, priming everyone to spend money buying holiday gifts.  Whether you realize it or not, all the advertising by the big chain stores is helping you, the small business owner. You can capitalize on the “spend early” frenzy and ask people to “Shop Local.”

Add your business to the Shop Local map with AMEX  or download the posters 

Downtown Paris to host Small Business Saturday   Get more info by visiting the Downtown Paris Association

 

How to kick this thing off:

Advertising:

It’s okay if you don’t have a big advertising budget – you can use local and free advertising.

  • Consider making flyers, highlighting the specials you will offer on Small Business Saturday.
  • Use the internet! Start now posting on Facebook, Twitter and the other platforms you are (hopefully) using to build interest in your products and business.
  • Email, or snail mail – get the word out that you are open for the holidays and are ready to sell, sell, sell!

 

Know Your Holidays:

Christmas shopping isn’t the only holiday people are gearing up for right now. Do you know your holidays and what to advertise for?  Here’s a short list to spur your imagination for holiday hullabaloo:

  • November:
    • Thanksgiving
    • Diwali
    • Black Friday
    • Small Business Saturday
    • Hanukkah
  • December:
    • US National Guard Birthday
    • National Free Shipping Day
    • Winter Solstice
    • Christmas
    • Kwanza
    • Boxing Day
    • New Year’s Eve
  • January:
    • New Years Day
    • National Hangover Day (Yes, that’s an actual day…On Jan 1st, of course)
    • Walk your dog month
    • National soup month
    • Epiphany
    • Orthodox Christmas Day
    • Martin Luther King Day

In fact, if you are looking for some holidays or other days to promote and celebrate (and sell products during) you don’t need to look far to find something you can capitalize on as a small business. For instance, you could offer hot chocolate on “National Hot Chocolate Day” or a discount for those savy enough to know to wear brown shoes on “Wear Brown Shoes Day” (It’s December 4th, in case you were curious.)

Here’s where to find a list of all kinds of “special days” to keep you selling and to keep you motivated:  National Holidays

 

Blue and Silver Ribbons:

Collaborating with your fellow small businesses is a beautiful thing. One easy way to say to your community: “Hey, we’re all in this together” is to have a quick, visual reference.  Blue and Silver Ribbons, for instance.  Coordinate with your local chamber of commerce, other businesses, and plan to display blue and silver ribbons in your business. Let everyone know that small businesses in your area support each other and everyone is a team. Be aware of what your competitors sell for some “coopetition” refer them as well and support shop local for your community of businesses.

WHY would you want to promote a business other than your own?

Because the more shopping opportunities you give buyers, the more sales occur—for everyone. Not to mention, you are helping to make people feel good about shopping local and shopping from small businesses.  In fact, check out our blog: Retail Holiday Sales Strategies to see why it makes good business sense to partner with your competition for the holidays.

 

Adjust your hours:

Most people are back to work, which means “regular business hours.”  If you run a small business, and want to maximize your holiday sales – you may want to adjust your hours:

  • Open early to capture the “on the way to work” crowd.
  • Plan to say open late – even if it’s a few nights a week to cater to those 9 -to- 5 workers.
  • Be open on Saturdays (yes, that one is a no-brainer).
  • Extend your “Super Saturday” to “Super Sunday” and offer special perks for the customers who missed Small Business Saturday.

 

Capitalize on the Supply Chain Shortage:

If you are local, you probably have inventory you need to move. You can let people know, that as a small, local business, you have plenty of inventory and are ready to “make a deal.”  Assuring your customers that you have items in stock (and are not waiting for a shipping container to make it to shore in California) will help boost sales.

 

Small Business Saturday is in 10 days – – go get your blue and silver ribbons, make up some flyers and LET’S DO THIS! 

 

For additional information on Small Business Saturday and how to capitalize on the holiday shopping season, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

Keeping Paper in a Paperless World

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Keeping Paper in a Paperless World

Even though the personal computer is relatively new, dating back to the mid-1970s, the B.C. (before computers) era seems like ancient history with the wealth of information and tools now available at our fingertips; and so, it would make sense that paper also seems obsolete in this age of modern technology. Yet paper still possesses the ability to transcend time and technological advancements to connect cultures and generations of people across the world.

In today’s more climate-conscious society, however, entrepreneurs are adopting the paperless business model. This can be beneficial in quickly locating certain documents and electronic communications without sifting through hundreds of pages or storage boxes. Still, when a business adopts this model, there are important paper documents that every small business owner should have on hand or stored in a waterproof or fireproof container. This guide references these documents and discusses the importance of paper copies.

 

Head, Shoulders, Knees, and Tax IDs

Similar to a driver’s license number or bank account number, the IRS assigns a taxpayer identification number to individuals and businesses to establish proper administration of tax laws.

EIN

An EIN, or employer identification number, is a type of tax identification number. This nine-digit number identifies business entities rather than individuals. If a business hires employees, withholds taxes, operates as a corporation, or conducts business with a non-profit organization, an EIN must be acquired to ensure tax compliance. An EIN serves as a unique identifier because multiple businesses can operate with the same name. This tax identification number is used by the federal government as well as state and local governments to identify your business. Creditors, vendors, and banks can also identify your business with the EIN.

 

Determination Letter

A determination letter, also known as a tax exemption letter, is issued by the IRS to validate a business’s 501(c)(3) tax-exempt status. This letter provides several key pieces of information that allow tax exemptions and deductions, such as the effective date of tax-exempt status, end of the accounting period, other tax-exempt groups, annual filing requirements, and tax-deductible contributions. This determination letter is subject to public disclosure upon request, so having multiple hard copies is strongly advised.

 

Do You Know The Muffin Man…That Has an Equipment List?

Hard copies of equipment lists are particularly important for businesses that utilize big appliances such as refrigerators or ovens. An accurate equipment list, with model and/or serial numbers, becomes especially important in the event an appliance suddenly becomes non-operational or a part breaks off. A sudden flood, fire or structural damage could make equipment useless and you would need a list for your insurance company.  Restaurants that cater need to have an equipment list handy so items are not left behind and so you can easily note if something isn’t working properly.

A supply list hard copy can also be beneficial in submitting or verifying supply orders, determining need and the condition or amount of supplies needed each month.

 

Red Rover, Red Rover…Bring Your Accounting Books Over

Keeping hard copies of financial statements on hand is valuable in determining business performance at a certain point in time or comparing numbers across multiple reporting periods. At the end of a reporting period, transactional information is reformatted into three documents: income statement, balance sheet, and cash flow statement.

Income Statement

The income statement can be a tool to measure a business’s ability to operate efficiently and draw customers. A net loss or net profit is presented after incurred expenses are subtracted from revenues in the reporting period.

 

Balance Sheet

The balance sheet is useful for establishing a business’s financial position as well as discerning said business’s ability to pay its bills. The assets, liabilities, and difference between the two (equities) are recorded in this document.

 

Cash Flow Statement

The cash flow statement reports the sources and uses of cash during the accounting period. This document is particularly important for businesses that practice accrual accounting, or if the net income on the income statement does not match the change in cash. Revenue that is recorded with the expectation that the transaction will be paid in the future can clarify any discrepancies in a cash flow statement.

 

Don’t forget your Tax records!

Keep a hard-copy of your last tax return, even if you have it on your computer. Tax records are always needed for bank loans, audits and to have a firm grasp of your year-to-year earnings.

 

Business Plan, Stan!

Keep a hard copy of your business plan. You may need it if you go to get a loan, or if your computer crashes and it can’t be retrieved from the cloud.

 

TAG, You’re IT! (You have an auditor at the door!)

Paper copies of items an auditor might ask for are especially important and key personnel will need to know where those paper copies are kept. Depending on your industry, here are some documents that you might need if an auditor or governing body drops by:

MSDS Sheets:

Material Safety Data Sheets required by OSHA. MSDS records are for hazardous materials in your workplace and how to handle them safely and properly. You may be surprised at which items you’ll for which you’ll need an MSDS sheet; even something simple like ink toner or white-out may require an MSDS sheet.

 

FDA Records:

The Food and Drug Administration has a list of records that must be kept readily available and how long to keep them.

 

Health Inspector Report:

Have your latest health inspection ready and available.

Required Postings:

Some businesses require placards or other “papers” that must be visible to the public. Extra copies of these can come in handy if one blows away or gets destroyed.

 

Business License:

Your license to do business is often required to be posted publicly, depending on your area and type of business. Have an additional hard copy, just in case.

 

Insurance:

While you may have access to your business’s insurance policy online, copies of your agent’s name, number and policy number may come in handy if there is an emergency.

 

Having hard copies of all of the documents discussed in this guide is especially important in this modern technological era. You never know when the internet will go offline or a computer might crash, so you can think of these paper resources as the ancient method of backing up your files.

 

For additional resources on the important documents to keep in a paperless world, or other tips for managing your small business, please contact us at the Small Business Development Center – SBDC – serving Paris and Northeast Texas.

Manufacturing and ISO Standards

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Manufacturing and ISO Standards

Paris, Texas is not only known as a shipping point for commodities: cotton, grain, and livestock; Paris does a fair amount of manufacturing.  Neighboring counties in the PJC area, also have cities with Type A sales tax intended for manufacturing and industrial development.   If you are a small business with an industry class in manufacturing, you need to understand ISO Standards and what they mean to you as a business owner.

What are ISO standards?

ISO is the International Standard of Organization; or (formally) it stands for the International Organization for Standardization.  In the 1920’s, several country representatives got together and said: “Hey, we want to make sure our products are safe around the world.” The International Federation of the National Standardizing Association (ISA) was formed by representatives from various national standards organizations who helped set standards worldwide for technical, industrial, and commercial manufacturing. The name was later changed to ISO after WWII and when the United Nations agreed to join forces to create an international standard. Their goal(s) are simple: creating a check-and-balance system for safe products. For instance, if you were transferred to the UK for your job, and needed a car seat for your child, you want to know the car seat you buy is just as safe as one purchased in the United States. If something is ISO certified, you can be sure the manufacturing standard is the same as in the US.

Are ISO standards just for manufacturing?

ISO standards can be used for much more than manufacturing. Think of ISO standards as a recipe, or formula, for the best way to do something. Rather you are manufacturing a product, providing a service, managing a process, or supplying materials, ISO standards can help you work more efficiently. ISO standards hold the wisdom of individuals who have experience and expertise in your business. Here are a few types of ISO standards:

  • Quality Management Standards: Help you work more efficiently,
  • Food Safety Standards: Keeps food from becoming contaminated, or unsafe.
  • Energy Management: Shows you how to conserve energy.
  • Environmental Management Standards: Keeps your environment safe, reduces waste and helps to be more sustainable.
  • Health and Safety Standards: Helps reduce injuries and keeps the workplace safe.
  • IT Standards: Helps keep private or sensitive information secure.

 

What are some ISO standards I should know about?

The best-known ISO standard is called ISO 9000. It’s actually a series of quality management and quality assurance standards that can help small business maintain an efficient quality system of business. The ISO 9000 series is adaptable to any size business and can be applied across all types of businesses. Here is a quick run-down of some of the most popular ISO standards that might help you when running a small business:

  • ISO/IEC 27000: Information Security Management
  • ISO 45000: Occupational Health and Safety Management (in the US it is managed by OSHA)
  • ISO 14001: Environmental Standards and Management
  • ISO/TS 16949: Auto Industry Standards
  • ISO 22000: Food Safety Management
  • ISO 50001: Energy Standards and Management
  • ISO 13485: Medical Equipment
  • ISO 31000: Risk Management

 

Why would I want to use ISO Standards?

Using ISO standards in your business can benefit you in several ways. First, you can learn the best practices, before bad habits develop. Second, being ISO certified helps your customers know that your products and services are equivalent to the high standards, set by the ISO governing body. In short, it makes you and your business more reputable and more appealing; customers know they can trust in you and in your product, service or supply.

 

How do I learn more about ISO Standards?

ISO standards are designed for easy implementation. There are many resources online to help you navigate the ISO standards world. Of course, we at the Paris SBDC can help steer you in the right direction. Contact us today!

 

 

For additional resources on ISO standards and how they apply to manufacturing or to your specific business, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

 

Shipping Costs | Order Fulfillment for SMB (Small to Mid-size Business)

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What is e-commerce?

E-commerce is buying or selling a product online over the internet. When you search online and buy a new pet toy to replace the squeaky stuffed bunny the dog dismantled, you are ordering from an e-commerce business. Let’s say as a hobby, your Aunt Lucy knits fancy unicorns. Together you start selling them to friends at the local flea market. To grow your business, you decide to start posting pictures online. Soon you are selling fancy unicorns by the dozen on platforms like Etsy or Shopify. Simple as it may be, you now have a small e-commerce business.

  • In 2020 e-commerce topped just over twenty-six trillion in sales globally.
  • Growth in the US alone is expected to increase by eighteen percent to over four trillion in sales for 2021.

 

When does e-commerce make sense?

By the end of 2020 the COVID 19 pandemic had dramatically changed e-commerce. Regarding transitioning to e-commerce, Forbes writes the following from an article contributed by square Inc, on November 18, 2020; According to the PwC Global Consumer Insights Survey, safety is the top priority for 49% of urban consumers. The same survey showed that 86% of consumers are likely to continue shopping online even after pandemic restrictions end.

Consumers are prioritizing both health and convenience. To remain competitive, more businesses are offering services like click and collect and curbside pickup.

A 2020 survey from Incisiv seems foretelling as it showed that:

  • 85% of shoppers have increased curbside pickup.
  • 79% of shoppers say contactless pickup is important.
  • 80% of shoppers expect to use contactless and curbside pickup more in the next six months.

 

When should you automate?

Does the thought of being buried neck-deep in mythical yarn animals sound unpleasant? Let’s say the house is full of shipping boxes with Aunt Lucy’s knitted unicorns and you are renting a truck to haul packages to the nearest click and ship drop off center. It is likely time to automate. If counting trips to the yarn store or postal center hasn’t convinced you, a good standard to follow is when the business reaches a daily fulfillment of thirty (30) orders per day.

As most business owners learned, the term “adapt or dissolve” became an all too real state of business with the continuance of the pandemic. That alone may be the factor for deciding to automate.

 

 Making plans to automate your business:

There are many resources online that specialize in automating a business. Finding the right fit can be a daunting, but a necessary task. Do your homework as all good business decisions require research. Consider the following key areas when automating your business:

  • Marketing: Coordinate changes to your business through all channels via e-mail marketing, short message services (texting), social networks, website upgrades and paid advertising.
  • Finance: Integrating the financial aspect of a business into the automation process can reduce costs and errors. Integrating the invoicing process can also improve the supply chain.
  • Sales: Automate the sales process to track and contact existing customers as well as generate leads for both inside and outside sales to new clients. The goal here is to create more sales while maintaining the current customer base.
  • Product development: Efficient automation should free up more time to develop new products.
  • Product: Working on the business not in the business is the goal here. Automation that creates other means for product manufacturing other than the proprietor doing the work allows for this to happen.
  • Supply chain: Integrating vendor orders, shipping, warehousing, and invoicing will improve the supply chain. For example, Aunt Lucy now has a team knitting her unicorns and they need more yarn. An automated purchase order is sent to the yarn supplier each time an invoice is generated, or a shipment of unicorns leaves the warehouse.
  • Customer service: Integrating things like chatbots on your e-commerce site to answer frequently asked questions can free up more complex customer service issues requiring human contact. Also, scripting these outsourced contacts can further improve customer service beyond the FAQ’s.
  • IT: Automation through things like cloud management platforms can help control computing cost, security, and performance as well as forecasting futures. This helps free up IT personnel to work on pioneering new technology for the company like a computer chip recording that sings a lullaby when you squeeze one of Aunt Lucy’s unicorns.
  • General business function: Automate as many of the companies processes such as HR, payroll, travel scheduling, inventory management and order fulfilment can decrease errors and inefficiencies while improving compliance issues and provide insight to the business.

 

Shipping cost and order fulfilment; a micro-focus on the benefits of automation:

If you are now considering automation for your company, let’s focus on what it can do for shipping cost and order fulfilment.

  • There are many automation tools and companies that specialize in shipping and logistics available in the marketplace. The best advice here is, when possible, find tools that do not require coding or IT skills to implement—that can increase the bottom-line to the companies shipping and order fulfilment costs.
  • An efficient automation of the shipping and order fulfilment can reduce your overhead through eliminating overstock or dead stock and control inventory as well as track costs.
  • Automation can create an effortless process with not only the company’s supply chain, but fulfilment to your customer.
  • Automated shipping with efficient order fulfilment can reduce the need for human intervention in the process. With less labor costs, personnel can be assigned to other processes that do not require automation.
  • Automation can track specific products and market demands globally. So, if Aunt Lucy is still selling unicorns in California but the rest of the world now has a demand for her new calico kitties, the right amount of yarn gets ordered, proper amount of stock is produced, and customers get their orders on time.

Need more information? We can help you with strategies, tips and tricks to get the most out of your order fulfillment and e-commerce strategies.  Contact Paris SBDC today!

 

 

 

For additional resources on order fulfilment strategies, or in deciding if e-commerce is right for you and your small to mid-size business, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

Pricing Discounts and How to Manage the Bottom Line

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What does “Managing the Bottom-line” mean?

The term “bottom line” in business refers to the profitability of a business after revenues are recorded and expenses are subtracted. It is a company’s net earning value.  Successful businesses learn to invest resources in a strategy to find and keep customers. It continually develops products or services and markets those offerings to increase sales. Cost reduction strategies can further increase a business’s bottom line.

 

How do I manage the bottom line?

There are several strategies you can look at as a small business to manage and improve your bottom line. Here are a few things to look at implementing in your business:

  • Expenses: Look at all of your expenses. Are there areas you can cut costs, such as shipping, rent, manufacturing or inventory that doesn’t move? Examining your expenses is the first step in improving your bottom line.
  • Pricing: Is your pricing covering all direct and indirect expenses and still allowing a profit? If sales are good, but you aren’t seeing a profit, it may be time to increase pricing.
  • Interest: If you have loans on your real estate, or if you are using credit cards to cover business expenses, you may want to look into a low-interest loan or a property refinance. Applying for an SBA loan could offer a lower interest rate while helping you grow.
  • Marketing: Are you using effective marketing for the price you are paying? Review the demographics of who you are selling to and determine if you are targeting those groups appropriately.
  • Networking: A vital part of managing the bottom line is networking. Making connections with customers, manufacturers, and suppliers can all work to your benefit. In today’s business world, networking can involve social media, emails and face-to-face meetings. Make sure you are spending enough time networking.
  • Innovation: Keep an open mind toward innovation. Look for new opportunities to increase sales and decrease expenses.

 

What are pricing discounts?

Don’t you love a bargain? Everyone loves a deal, especially if they feel like they have paid less than the original cost of an item. Today’s small business customer is expecting a deal and they often chose their purchases based on the amount of money they will save.  Discount pricing can be used as both a promotional strategy for new products as well as means for increasing traffic and sales while moving inventory.

Creating successful pricing discounts can increase revenue. Here are a few strategies to consider:

  • Holiday Discount: Offer a discount on certain items during specific times of the year. (Consider “Christmas in July” to clear out old inventory and prepare for new.) Other holidays, such as Halloween, Hanukah, Diwali or Ramadan could be an opportunity to offer a different discount and increase sales.
  • Promotional Discount: Offer a limited time discount on a new item.
  • Bulk Purchase Discount: Offer a tiered discount for items or the amount purchased.
  • BOGO: Buy one get one free sales are proven to be a very popular discount among consumers. You might also consider BOGO-1/2-off (Buy one get one half off) for items that have a smaller profit margin.

 

How can offering pricing discounts help manage my bottom line?

It sounds counterproductive – to offer something cheaper that will (in the end) make you more profit – but pricing discounts, when done properly can improve your overall sales and even increase sales. It is also imperative to know what your costs are so you can “afford” to offer pricing discounts without losing money. There are a few things to keep in mind when offering a discount and still keep your business profitable:

  • Make discounts temporary: You don’t want to de-value your own inventory or items. Showing them discounted for a limited time, will help maintain their perceived value to the consumer.
  • Offer a limited supply: This can be done by turning off the discount after a certain number is sold, or by limiting the pricing discount to only a few, select items.
  • Don’t discount…. but offer a “perk:” Sometimes it’s better for your bottom line to offer a “perk” instead of a discount. Some popular perks for today’s small businesses are:
    • Offer quicker shipping for purchases over a certain amount. (Free shipping is always a good way to get customers to purchase more items.)
    • Include something free – such as gift wrapping or a small gift.
    • Offer a rewards program for repeat customers.
    • Include fellow business discounts (see our business collaboration blog!)

 

Need more information or ideas? We can help you with strategies, tips and tricks to monitor and maintain your bottom-line.  Contact Paris SBDC today!

 

 

For additional resources on pricing discounts, or with help in how to manage your business’ bottom line, or other tips for growing your small business, please contact us at the Small Business Development Center – SBDC – serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

 

Local Business Cooperation | Collaboration

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Local Business Cooperation – Working Toward a Common Goal

Does the idea of a group project bring you anxiety? You know…the stress of working hurriedly towards a common goal, all the while feeling like you might be better off working alone? No? Just me?

Well, in the world of starting and supporting your own business, collaborating with others can be vital to surviving amongst the sea of big-box retailers. Whether you have a virtual storefront, or your business thrives on foot traffic, this guide can ease any apprehension by explaining the importance of working together with other small businesses. After all, teamwork really does make the dream work.

 

Like A Good Neighbor, Your Business Is There (Supporting Local Business)

Expanding Your Network

One of the more significant obstacles small businesses must overcome to be successful is right there in the name: small. Entrepreneurs consistently rely on their day-to-day contacts, whether new or familiar, for network expansion. If new connections are not formed, then your business is less likely to thrive. Partnering with another small business, even one with a similar business model, can markedly expand your network to potential customers you could not previously access.

 

Let it be Educational

Here again, teamwork can effectively make your dream work. Teaming up with other entrepreneurs and professionals, especially those with different strengths and skillsets, can offer new techniques on how to effectively run your business. Being open to these learning opportunities can improve your business structure and possibly increase revenue. Be ready to learn from other’s mistakes and successes.

 

Increase Innovation

As a small business owner with an established daily routine, creating and implementing new methods of doing business, or new marketing ideas, can easily become lost among the technicalities. Who feels inspired to alter their marketing strategy after a day of crunching numbers or anxiously awaiting a new product order? Partnering with local entrepreneurs provides the opportunity for new and fresh perspectives that can be harnessed for innovation. Whether it be altering in-store product placement or refining your online marketing strategy, these small business owners can provide constructive criticism or even enhance your ideas. This partnership with other like-minded professionals is mutually beneficial in maintaining that ever-important creative flow.

Overall, the mutualistic relationship formed when you team up with one or more local small businesses can grow these businesses to exponential heights.

 

Break Me Off A Piece of That Local Business Deal (Offer Packaged Deals)

It’s no secret that customers love a great deal. Now imagine the allure of a discounted package deal (bingo!). It’s Friday night in Texas which can only mean one thing: high school football. You race around town looking for that perfect shirt when you notice a large easel with “25% off game day attire!” Ok, you’re interested…but wait! Purchasing any game day attire item gets you a bin of team-colored popcorn at half-price from Mom & Pop’s Popcorn Shop next door. And 20% off your meal at the local café. The list of discounts can continue depending on the number of participating businesses. Get involved with other businesses to offer group-business deals.

 

Best-Sellers

When reviewing revenue data, make note of the top-selling product, or even the top three selling products over the past 30 days, 6 months, and 1 year. If the best-selling products from these time frames vary, the trend should be evaluated for determining future product trends. Selecting products for packaged deals is important for not only enticing new customers but to have them return again in the future.

 

Partnerships

Just as important as selecting the product is finding the right local business to team up with. Do you want to expand your clientele beyond your normal customer base? Or do you want to continue to serve your ideal customer? Once you decide which population to market, you can pinpoint the local businesses you would like to partner with and with whom you can collaborate.

 

Snap! Collaborate! Pop! (Distinguishing Participating Retailers)

You and the other business owners have tested several package deals and determined the one that benefits all participating shops the most. Now, how to spread the word? Creating a distinct image, such as a special-colored ribbon or designing a unique seal, to affiliate participating businesses is a great place to start. Similar to the idea of rating restaurants with Michelin stars, or awarding Olympic athletes with medals, this image should be memorable and easily associated with this branding.

Branding can also improve your offerings-base as more and more businesses will want to become part of the “team with the theme” to highlight their own items and improve sales.

 

For additional resources on cooperating with local businesses, or other tips for growing your small business, please contact us at the Small Business Development Center – SBDC – serving the Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

 

Bah Humbug

Retail Holiday Sales Strategies

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Bah HumbugRetail Holiday Sales Strategies:

Although it might be sticky and hot outside right now, the holidays will soon be upon us. You know…the “hap-happiest season of all”? Unless you’re a small business owner, then the “most stressful season of all” might be more accurate.

Whether your business is a combined in-store and online customer experience, or your business is entirely devoted to a virtual storefront, this blog offers advice to better prepare you and your small business for the “most wonderful time of the year”.

 

To Strategize or Not to Strategize? (Retail Strategies):

During yet another COVID-19 pandemic that is slated to last through the New Year, shoppers are likely to spend their money through virtual platforms as opposed to hassling with masks and social distancing regulations. This assumption of increased online shopping should be in the back of your mind when designing that magical holiday marketing strategy.

 

What are some good retail strategy tips?

  • Stick to the basics: Crafting that perfect holiday marketing strategy can seem like a monumental task, even more so in the world of online shopping. Sticking to the basics of marketing can be a great place to start and eventually lead to that magical holiday charm.
  • Review Earlier Holiday Campaigns: Auditing and understanding prior holiday campaigns can help you circumvent the same pitfalls from previous years and ultimately prevent a less than ideal history from repeating itself. Review the specific tactics previously employed and understand which tactics worked and those that can be improved or thrown out. It is also worthwhile to study your customer data over the past year. Have the customer’s values changed? Did your overall customer base fluctuate or significantly change? Understanding your customer and what they value most can help with holiday messaging.
  • Know Your Audience: Marketing directly to your audience is why analyzing customer data from the previous year is important. By repeating a previous holiday campaign, or even replicating a competitor’s holiday strategy, your message will likely become lost in all the noise. Instead, thoroughly examine your customer base for any nuances that can be advantageous in developing holiday messaging. If your customer is part of the millennial generation, you might consider increasing your social media presence. Did your customer buy in-store more often than online? In the wake of this second pandemic, you might offer a benefit to buy online, with pick up in-store or curbside delivery options.

 

Just A Small Town-er, Shopping in an Online World (Online Sales):

Planning and preparing for the hustle and bustle of the holiday season is essential during a year where customers are likely to shop online for their holiday gifts. Here are some things to do before sales start:

Prep for Increased Online Traffic:

Merchandising Strategies

First and foremost, an ample inventory should be stocked beforehand to prevent customer frustrations over sold out items and lack of choices. Check prior years to make sure your popular items are readily available.

Increased number of shoppers means increased inventory needs. To avoid long wait times and frustrated customers finding out their must-have gift if out of stock or on back-order, check with suppliers now to make sure you’re appropriately stocked, especially for likely gift items.

Showcase your holiday products. Start by determining which products you’re going to sell this holiday season. Are there specific holiday bundles your target audience has been wanting? What about seasonal favorites?

Next, consider how you’ll display these seasonal items on your site. For example, you could have a holiday-specific category in your site navigation. Make shopping easy by organizing gifts in one place.

Site Speed (Speed = Revenue)

Jon Provisor, CIO of Guidance recommends as the key thing to prepare for the holidays: “Work on speed and security.  There is a direct relationship between page load speed and revenue.”

Your website needs to have the scalability and stability to handle increased demands on your web infrastructure.

Optimize Checkout

  • Simplify checkout to 1 page
  • Enable guest checkout
  • Offer several payment options
  • Let shoppers select preferred shipping option

To test how your site is performing, you can check your site’s speed here: Google Speed Test

Online selling tips

  • Keep in mind that your online store doesn’t have to have every item in your storefront.
  • Select items which you have a good quantity of to ship.
    • Pre-wrap them to fulfill orders quicker.
  • Items with the best profit margins should be highlighted.
  • Make sure to mix in some trendy items and market them as “Get it before it’s gone” to create a sense of urgency.
  • Anticipate shipping problems and urge your customers to order early to avoid delays.

 

I’ll Have What She’s Having…And Other Memorable Tips (Offer Perks):

  • Create memorable packing and unboxing experience
  • Offer buy online, in-store pick up option
  • Discounts for first time buyers
  • BOGO free option

 

For additional resources on retail holiday sales strategies, or other tips for growing your small business, please contact us at the  ParisSmall Business Development Center – SBDC – serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.