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Get Promoting in 2011
Developing a successful merchandising and display plan |
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Written by Bernice Klassen
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If you fail to plan, you plan to fail. This adage is never more true than in today’s market. We are a feast or famine type of business. We make our living from event to event, so planning these events carefully is of utmost importance. Too often, we rely on our memory. Many of us hate the idea of writing things down; however, florists are visual people. We need to see. Seeing the what, where and when is vital to being successful.
As we look ahead to a new year, now is the ideal time to map out your promotions and displays for the coming year. Planning ahead helps you stay in control of your costs and allows for proper time to build excitement about the new sales or seasonal looks you’ll showcase.
But before you start thinking about which blooms you’re going to offer and mapping out planograms for the shop, you need to begin with a sheet that shows your numbers: yes, your total sales and your total costs per holiday. This may require you to go through invoices, but it is imperative that you be honest and open, so that you understand where you really need to be, financially, in the coming year. Taking your total sales figure and dividing it by each holiday will give you a percentage of the total year’s sales you need that holiday to generate. Example: if your total year’s sales were $100,000 and you did $20,000 on a particular holiday, that would represent 20 per cent of your yearly sales. If you want to increase your total year’s sales by 20 per cent, you would need to increase earnings for that holiday by 20 per cent as well – or increase the take to $24,000, unless you found another way to gain those dollars.
Next, find yourself a mentor or advisor. Know that you have someone to bounce ideas and issues off of. This should not be your partner or a family member. Find someone you admire as a successful businessperson who will allow you to phone and e-mail questions. There are a number of us in the business who are more than willing to provide extra help as well. Asking is a sign of strength, not weakness. My dad always said, “The best way to make a friend is to ask for help.” People want to feel of value to others and most are honoured to be asked for their advice.
Once you’ve got a solid grip on your financials, you need to develop a plan to keep customers coming into your shop on a continuous basis. Resolve to address promotions and displays a minimum of once a month. Why would a customer spend time in your shop if it always looks the same? As first-time customers, people come into your shop excited, but you need to give them a reason to return. It is the repeat customer that is your livelihood. Here’s how you can create a great promotions/display plan:
– Write down, on separate sheets, every holiday you promoted last year. These should include your local promotions as well as all regular holidays. Make a list of must do/must not do from your last year’s notes.
– Take a full-year calendar and circle this year’s holiday dates on it.
– See where there will be gaps and where you could maybe plan an in-house promotion. Find a seasonal item for that time period. An example of such a promotion is Chinese New Year, when you focus on a tulip, gladiolus, snapdragon or mini carnation promotion. Another idea is a store anniversary/birthday promotion. Make up a marketing or sale campaign that’s fun and draws attention to your shop. Use TV show titles, use local new/sports stories – be creative! After all, isn’t that what we are?
Now that you’ve pinpointed when and what you want to promote, it’s time to go back and fine-tune each holiday or special sale. You’ll need to pay attention to the following areas:
The theme: A theme allows you to stay on track with your promotion. You begin to search for items that will play into your themes throughout the year, and make your buying decisions accountable.
A buying plan: Documenting what you need will help you remember to be on the lookout for these items and creating timelines will eliminate the last-minute stresses. Be sure to document all products you have booked and their costs. Date your verification and add the name of a person you may contact in the event there is a discrepancy.
The product: Knowing ahead of time what you plan to do will help with scheduling staff, promotions and pre-booking. Making sample designs ahead of time will help you figure out final costs. This is a great place to get your staff involved and excited about the event. Part of this process is negotiating with your vendor to get the cost where you need it to be. Vendors get excited about negotiating costs and can often go back to the grower if they have a guaranteed sale. Make your phone/sales promotional sales pitch sheets while the pitch is still fresh, and be creative with your wording.
Your advertising dollars: Deciding the method of advertising that works for you will eliminate those newspaper and radio specials that you can get caught in. That’s not to say you shouldn’t take advantage of a special price or discount, but unplanned advertising dollars can really diminish your promotional profitability. You can also negotiate with you newspaper/radio based on a full-year commitment.
Spreading the word: Encourage pre-bookings for specific holidays. Go to your local businesses well in advance, with descriptions and photos of your promotions. These items do not necessarily have to be at a better price, but, rather, could be features. Consider limiting the qualities to create urgency for purchasing.
Your window to the world: A well-planned display means you have the product you want ahead of time and you are advertising exactly what you want to. Remember your customers get bored with the same window day in and day out. If the promotion is more than two weeks long, it requires revamping in some way.
Impulse items: Taking special care to promote add-ons at your counter will increase sales. Changing up displays is paramount in getting the extra sales. Include in this the “path of least resistance” display. This is the main aisle your customer will travel.
The bottom line: Never lose sight of the profit line! There is no point in being in business without a profit line. Add wages, delivery costs, etc., as required for your shop to get an accurate picture.
The coming year will only be successful for your shop if you plan it to be that way. Developing a profitable strategy will help you address your concerns and fears and allow you to run your business with a clear sense of purpose and direction. Here’s to a flourishing 2011.
Visit www.canadianfloristmag.com to check out Bernice Klassen’s spreadsheet to help you plan your holiday promotions. CF
M.G. Bernice Klassen is experienced in nearly every aspect of the floral industry, including retail, wholesale and grocery chain. Armed with a usiness administration degree, with a specialty in marketing and management, Bernice is now offering her services as a floral consultant to the industry. Contact Bernice directly at
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