How Social Media Really Affects Spending (Infographic)

How exactly does one go from friending to spending? In July, Vision Critical market research released "From Social to Sale," a survey of social media purchasing trends, to answer that question. 

 The findings just may make you rethink your social marketing practices.
 

Compete With the Big Guys on Black Friday

National chains steal the headlines on Black Friday, one of the biggest shopping days of the year with door busters, loss leaders, and early store openings the day after Thanksgiving. To contend with the big box discounters on this year’s Black Friday, small businesses should learn from best strategies the chains use, leaving the stress, long lines and shoving to the superstores.
1. Leak your Black Friday ad to the media
Black Friday websites, bloggers and the mainstream media publish leaked Black Friday ad scans in November. These leaked ads are popular with consumers, who enjoy perusing the ads early, discussing the deals on forums, and setting their shopping plans for the big day.
While some retailers still threaten legal action against the sites leaking these scans, many of the largest merchants have now come to understand the value of free press. Walmart and Best Buy, two of the most popular Black Friday shopping destinations, both intentionally “leaked” their ads directly on their websites this season.
This year, identify which bloggers or local media sites might help you publicize your sales and send them your ad scan. While you’re at it, give them a news hook: ways shoppers can shop at local small businesses on Black Friday.
2. Offer door busters (even if you think you can’t afford it) 
It’s one of the oldest tricks in the book of big retail – offer an extremely limited supply of insanely discounted items on Black Friday to lure customers into the store. While your business might not want to participate in race-to-the-bottom pricing, consider slashing prices considerably on a few popular products. Remember that door busters are about marketing, not sales, so dip into your marketing budget to pay for the decreased profit margins on these items.
3. Open at a sane hour on Black Friday
Black Friday was firmly pushed into Thanksgiving in 2012 and store opening times continue to creep up this year, too. Kmart will open its doors at 6 a.m. on Thanksgiving. Toys R Us opens later that day at 5 p.m. that day, with Walmart and Best Buy opening an hour later.
While these big box retailers have received some backlash from consumers and store employees, their stores will likely be crowded on Thanksgiving day. This is a good thing for small businesses – big box retailers can receive the negative press and foot traffic on Thanksgiving, leaving the actual day of Black Friday wide open. Try and capture an audience of recovering Thanksgiving shoppers (considering offering free coffee in your shop) and locals unimpressed with the big box chains.
Don’t forget, too, that the real reason for Black Friday’s genesis – the fact that millions of Americans have the day off work the Friday after Thanksgiving and nothing else to do but shop – hasn’t changed. Offer noteworthy value and let the Black Friday brand do the marketing for you.

What You Need to Know About Managing Retail Inventory

In the fifth edition of his book Retail in Detail, retail business owner and consultant Ronald L. Bond offers small-business owners an updated, no-nonsense guide to the world of retailing. In this edited excerpt, the author explains what type of inventory system you should put in place and why.
One of the most time-consuming tasks you'll face in operating a retail store is keeping up with your stock. Unless you have a very narrow product mix, you'll spend a significant chunk of time tracking inventory. Although it requires work and discipline to maintain, a good inventory system will make it easier to meet the needs of your customers -- the key to growing a successful business.
Here are some advantages of a good inventory tracking system:

• Theft control. Without an inventory system, it's impossible to know if you're being ripped off by customers or employees until it's too late
• Customer service. You can avoid running out of stock and can determine if an item's in stock and locate it more readily if you keep track. You can also locate out-of-stock items, their prices, and manufacturers.
• Financial management. Inventory systems help you keep track of how you're doing. It makes little sense to go for an entire year without knowing the status of your stock.
• Product tracking. You can track specific items and weed out low sellers with sales or markdowns.

There are a number of computer software programs available for tracking inventory. Some are relatively inexpensive. Many allow you to print and read bar code labels, print invoices, and provide a complete array of reports and statistics.
One disadvantage of using a package inventory system is the inability to use stock numbers that relate an item to a specific product and vendor. You can always look up the information in the system, but it's not transparent from a stock number and you may not have the time to chase it down when you're waiting on customers.
You can also use a database program, such as Microsoft Access, to manage inventory. These programs can handle almost any kind of descriptive product code, but they'll require more computer skills to develop than a package system. You'll also have to develop your own reports and statistical analyses.

If you're not comfortable starting with inventory software, you can begin with a card system. You can purchase preprinted inventory cards from an office supply store that have spaces for the item code, description, supplier, cost, selling price, beginning stock, sales, and current balance.
When a new item arrives, you'll assign it a unique inventory code and enter a description, your cost, selling price, and the amount of your beginning stock on the card. A simple coding system is to use alphanumeric codes, with the first few digits being an abbreviation of the vendor's name, followed by an item number. For example, items from a company called Homespun Cottage could be coded HC-1, HC-2, and so on.
When you sell an item, put the inventory code on the sales ticket. At the end of the day, update the inventory cards from the sales tickets.
Even if you use a computer system, you can still use the same sales tickets, merchandise coding, daily posting, and pricing systems. The only difference is, you'll enter the daily sales and receipts on a computer-generated printout, which you then input into the computer weekly or monthly. Each month, update the inventory and generate a new printout for the succeeding month.
Now that you understand the mechanics of inventory systems, you'll need to establish some policies for managing inventory. Obtaining knowledge about inventory is useless unless you use it to improve your store's sales and profitability. Watch for these indicators:
Items that are selling well and have low stock balances. With this type of item, you'll find it helpful to establish and indicate on the inventory card or computer sheet a desirable reorder point.
Slow sellers that have been in inventory a long time. Unless these are seasonal items, which will sell later, you should consider putting them on sale to move them out so you can put your money into faster-moving items.
Hot sellers for which sales have increased. For these items, you should increase your order quantities or put in a special order to take advantage of the selling surge.
The final inventory activity is the annual physical inventory. This is essential to the prudent financial management of your store and shouldn't be skipped. You must do this at the end of your tax year, which is almost always the calendar year.
To get started, make lists from your inventory system before the physical count and use these to make your count. These lists should include the item code, cost per item, and inventory quantity shown on the records, along with a space for the actual count and a space for the total value of that item in stock.
After the count, calculate the value by multiplying the cost times the actual count. Then total this column for all items to get the total inventory value. With a manual system, you do this by hand, but a computerized inventory system can calculate the values, along with differences between actual and recorded inventories. By comparing these inventories, you'll have an idea of the loss of goods through theft or disappearance.

What You Need to Know About Managing Retail Inventory

In the fifth edition of his book Retail in Detail, retail business owner and consultant Ronald L. Bond offers small-business owners an updated, no-nonsense guide to the world of retailing. In this edited excerpt, the author explains what type of inventory system you should put in place and why.
One of the most time-consuming tasks you'll face in operating a retail store is keeping up with your stock. Unless you have a very narrow product mix, you'll spend a significant chunk of time tracking inventory. Although it requires work and discipline to maintain, a good inventory system will make it easier to meet the needs of your customers -- the key to growing a successful business.
Here are some advantages of a good inventory tracking system:

• Theft control. Without an inventory system, it's impossible to know if you're being ripped off by customers or employees until it's too late
• Customer service. You can avoid running out of stock and can determine if an item's in stock and locate it more readily if you keep track. You can also locate out-of-stock items, their prices, and manufacturers.
• Financial management. Inventory systems help you keep track of how you're doing. It makes little sense to go for an entire year without knowing the status of your stock.
• Product tracking. You can track specific items and weed out low sellers with sales or markdowns.

There are a number of computer software programs available for tracking inventory. Some are relatively inexpensive. Many allow you to print and read bar code labels, print invoices, and provide a complete array of reports and statistics.
One disadvantage of using a package inventory system is the inability to use stock numbers that relate an item to a specific product and vendor. You can always look up the information in the system, but it's not transparent from a stock number and you may not have the time to chase it down when you're waiting on customers.
You can also use a database program, such as Microsoft Access, to manage inventory. These programs can handle almost any kind of descriptive product code, but they'll require more computer skills to develop than a package system. You'll also have to develop your own reports and statistical analyses.
If you're not comfortable starting with inventory software, you can begin with a card system. You can purchase preprinted inventory cards from an office supply store that have spaces for the item code, description, supplier, cost, selling price, beginning stock, sales, and current balance.
When a new item arrives, you'll assign it a unique inventory code and enter a description, your cost, selling price, and the amount of your beginning stock on the card. A simple coding system is to use alphanumeric codes, with the first few digits being an abbreviation of the vendor's name, followed by an item number. For example, items from a company called Homespun Cottage could be coded HC-1, HC-2, and so on.
When you sell an item, put the inventory code on the sales ticket. At the end of the day, update the inventory cards from the sales tickets.
Even if you use a computer system, you can still use the same sales tickets, merchandise coding, daily posting, and pricing systems. The only difference is, you'll enter the daily sales and receipts on a computer-generated printout, which you then input into the computer weekly or monthly. Each month, update the inventory and generate a new printout for the succeeding month.
Now that you understand the mechanics of inventory systems, you'll need to establish some policies for managing inventory. Obtaining knowledge about inventory is useless unless you use it to improve your store's sales and profitability. Watch for these indicators:
Items that are selling well and have low stock balances. With this type of item, you'll find it helpful to establish and indicate on the inventory card or computer sheet a desirable reorder point.
Slow sellers that have been in inventory a long time. Unless these are seasonal items, which will sell later, you should consider putting them on sale to move them out so you can put your money into faster-moving items.
Hot sellers for which sales have increased. For these items, you should increase your order quantities or put in a special order to take advantage of the selling surge.
The final inventory activity is the annual physical inventory. This is essential to the prudent financial management of your store and shouldn't be skipped. You must do this at the end of your tax year, which is almost always the calendar year.
To get started, make lists from your inventory system before the physical count and use these to make your count. These lists should include the item code, cost per item, and inventory quantity shown on the records, along with a space for the actual count and a space for the total value of that item in stock.
After the count, calculate the value by multiplying the cost times the actual count. Then total this column for all items to get the total inventory value. With a manual system, you do this by hand, but a computerized inventory system can calculate the values, along with differences between actual and recorded inventories. By comparing these inventories, you'll have an idea of the loss of goods through theft or disappearance.

5 Ways Tech Is Stopping Theft

Even if you have the most brilliant social media strategy and are constantly bringing new faces through the door, it will be hard to stay profitable if unpaid merchandise walks out behind them. New technologies are helping businesses decrease their losses by either preventing crimes before they happen or catching shoplifters in the act. However, it is essential to select the right product for your industry and business model as well as actively use the technology in your day-to-day operations.
Here are five technologies that can help you prevent shoplifters:
1. Video analytics. This software can be paired with security cameras allowing retailers an innovative, real-time way to analyze your surveillance. It identifies and detects when suspicious activity occurs, such as a customer walking out of the store with unpaid merchandise, and concealment of goods on the sales floor, and allows merchants to go directly to the incident on video, saving hours of monitoring and reviewing. “You can also integrate the technology with a point of sale system to catch financial losses at the register, such as an employee making bad choices or a cashier working in cahoots with another thief,” says Garth Gasse, director of assets protection for the Retail Industry Leaders Association.

2. Anti-push out technology. In the “push out” scam, a shopping cart is loaded with goodies and “pushed” right out of the store. Anti-push out technology is a modification of existing technology that prevents shopping cart theft from lots. With this loss prevention technology, underground wires are installed around the perimeter of a store parking lot and a device on the shopping cart locks the wheels when the cart crosses that perimeter. The technology can be redeployed to prevent push-outs by embedding wires at the store's front doors and locking up cart wheels that have not been pushed through checkout, says Bill Alford, president of International Lighthouse Group and member of the ASIS National Loss Prevention committee.


3. Facial recognition software. Stores using video surveillance can benefit from integrating facial recognition software into their video program. When someone enters the store, the software compares the person to known shoplifters in the database. If a known shoplifter enters your store, facial recognition software sends an alert to the smartphone of your manager or your loss prevention agent. “The best part about this technology is that it can prevent shoplifting from actually occurring by allowing a manager to approach the person and ask them to leave,” says Alford. He says that the facial recognition database can be used to track repeated visits to multiple locations and the facial recognition technology can be especially helpful for merchants targeted by organized crime rings. To most effectively use the software, merchants would need to take photos of people caught shoplifting in their store.

4. Mobile point of sale. With a traditional point of sale system, the cashier is stuck behind the cash register, giving potential shoplifters plenty of opportunity to head out the door with a shirt or piece of jewelry. But a mobile point of sale system allows your employees to be on the store floor, which often discourages theft because clerks are mobile and thieves feel they have less opportunity to steal. This system is especially useful for large stores or those that often have one person working alone, who can't monitor all areas. “However, it is essential that all staff using mobile point of sale technology have security training before engaging with perpetrators,” says David Feeney, IT director of integrated solutions AlliedBarton Security Services. For best practice, he suggests having a professional security guard is nearby to limit staff involvement with the shoplifter.

5. Smart display system. A new and emerging technology, these systems allow high-theft merchandise to be openly displayed rather than be locked in a cabinet. “If several items are taken from a cologne display, the smart display system triggers a flag that immediately sends a preventative message via email or text to a loss prevention person in the store who may be able to stop theives before they leave the store,” Alford says. An audible alert can also sound. He recommends this product for stores with a theft problem targeting specific items, especially health and beauty care items, baby formula and perfume.

Affordable Custom Made Suits? It's No Longer an Oxymoron

In 2009, when Richard Hall and McGregor Madden were working in Shanghai--Hall for the Canadian trade office; Madden for Groupon--the two friends didn't aspire to dress like GQ models. That is, until they fell in with a crew of stylish Swedes who introduced them to the world of low-cost custom clothing. As the two upped their sartorial smarts, others took notice. "When we'd go home for Christmas to Oregon and Indiana, all our friends would comment on how nice our clothes were," Hall says.
In 2011, after Hall lost his job and Madden decided he was ready to move on, they leveraged their knowledge of Chinese manufacturing and trade, technology and the Mandarin language to create Proper Suit, a company that sells high-quality, Chinese-made, custom laser-cut suits online. In just two years, Proper Suit reached $1 million in sales, and its founders, now based in Chicago, have launched a second, potentially more lucrative business called Hall&Madden, a subscription dress-shirt service.

In recent years, the menswear arm of e-commerce has become big business. Dozens of companies, including Indochino, Black Lapel and Arden Reed have ignited a bespoke tailoring revolution. "I think what drives a service like this comes from people in places with a strong high-tech drive," says Joseph Rosenfeld, a personal-image consultant in Silicon Valley. "It's popular with people who are tech-oriented and sit in front of a computer all day. They have a proclivity to do what comes naturally."
Hall and Madden, however, believe their particular service has an edge over the competition because it is not entirely digital. They realized almost as soon as they began that to be effective, the tailoring process required face time with their clientele. In the beginning, Proper Suit trusted consumers to take their own measurements--but some weren't getting the fit they expected.
So the partners, along with two other fit specialists, began crisscrossing the country, scheduling tailoring appointments every three to eight weeks in major cities such as Atlanta, New York, Los Angeles, Chicago, Seattle, San Francisco and Washington, D.C. After an hourlong fitting, customers could place orders via Proper Suit's website, which charges between $850 and $1,400 per suit, depending on the fabric.

 A cult-like following ensued. "It's not uncommon for guys to drive four to five hours for a fitting," Hall says. "We had one guy from Singapore who was in New York and delayed his return trip to take a bus to D.C. just to do a fitting."
An observation from all that time spent with customers turned into the duo's latest venture, Hall&Madden dress shirts. They saw that even though men were willing to shell out for a custom suit, they were holding on to their dress shirts for far too long, some showing up to fittings with stained and frayed shirts. "These business guys love their shirts, but they're tired of spending $140 or $150 a pop on them," Hall says.
Hall&Madden aims to help men build their wardrobes through a subscription service that ships three high-quality dress shirts every three, four or six months, for $150 per delivery. The first order includes basics such as white, blue and striped shirts; subsequent deliveries build on the collection with plaids and seasonal fabrics.
The shirts aren't custom-cut like the offerings from Proper Suits, but they do feature more sizing points than off-the-rack designs. Hall&Madden signed up more than 1,000 subscribers in less than a year and has closed in on $500,000 in sales.
Vertical integration and lack of overhead--no retail shops, warehouses or sales staff to maintain--contributes to Hall&Madden's competitive pricing. And the founders' intimate knowledge of China's garment industry keeps styling ahead of the fashion curve. "Patterns are usually designed by in-house people at the manufacturers," Hall explains. "We're able to study the market and work with the cotton mills. We look through what they have and collaborate directly."
As they edge closer to their four-year goal of 8,000 subscribers, Hall believes he and his partner will increase profit margins. "Once you're dealing with 150,000 meters of cotton fabric, that's big-boy status," he says. "That's where you have incredible buying power."
While pushing the growth of the shirt service, Hall says he and Madden are content to keep their original company, Proper Suit, relatively small. "There are natural limitations in a field like this. Fortunately, it's a passion project and a great business," he says, pointing out that finding people who can do fittings is very difficult, and something they won't skimp on. "Quality and fit is everything in a suit. What we do is very technical, but at the same time it's very artistic. It takes a unique person to fit a suit the way we do."

10 Commandments of Retail Sales

Retailers could be in for a hard time this holiday season. According to Morgan Stanley, the American consumer is showing signs of being spent out and fatigued with uncertainty.

Regardless of the holiday season predictions, retailers must be on top of their game. They are all experiencing intense competition for the consumer, shrinking margins and a shopping season that's five days shorter. Consumers will not tolerate sloppy sales approaches and a poor experience. If retailers want to be effective this holiday season, they must vow to serve the customer with these 10 retail commandments.

1. Thou shalt not believe anyone is “just looking." 

A customer can “just look” on their tablets, smartphones and home computer. Disregard this idea that any buyer is just looking and respond with: “90 percent of the people that come here start off by having a look. Why did you come today?" Show them specials, updates and other inventory choices that may not appear on your website.

2. Thou shalt never ignore the customer. 

They come to buy. Don't make them hunt for a sales associate. It is better to pester a customer with offers of help than it is to ignore. Seems pretty basic, but how many times have you seen sales associates congregating at a register or zoned-out folding a pile of shirts?

3. Thou shalt aggressively sell. In highly competitive times, set higher sales targets.

 Selling beyond ordinary expected levels requires a commitment to aggressively selling to every customer and making the most of every opportunity. Begin with a team meeting that sets targets and objectives. Then provide the tools to accomplish them.

4. Thou shalt never let the customer wait. 

When customers wait they become agitated, restless and uncertain. No customer should have to wait for anything. If your payment system is not efficient, you put the entire sale at risk. Make sure you sales process is fast, friendly and easy to move through. Waiting for an open cash register should be a thing of the past with card readers and swipers.

5. Thou shalt treat every buyer like they came to spend money.

 Don't qualify the customer's ability to make a purchase. Treat anyone who enters your store as if they have money to spend regardless of what they say or how they act.

6. Thou shalt greet every customer at the front door.

 I once went to a major retailer and it took over 17 minutes before being acknowledged. Appoint a greeter who makes the customers feel welcomed and directs them to the department they need. "Thanks for coming. What can I help you with or what department can I direct you to?"

7. Management shall engage with every customer.

 One way to increase both the customer experience and customer loyalty is to make sure management engages with every customer. This separates your business from the competition and increases value to the customer.

8. Thou shalt provide the best solution, not just the lowest price.

 People buy things to solve problems. Salespeople must ask the right questions, listen to the customer and know available inventory to provide the best solution. "Why did you come here today?" or "What are you looking for here that you didn't find online?” should be asked of every customer.

9. Thou shalt attempt a second sale. Every product purchase creates an opportunity for another product sale. 

Wait until the first product is all but rung up and offer other products that would best support the first purchase. “We have great gloves to match that coat. Let me show you.” People are open to buying more to justify their first purchase. Product saturation not only increases profits, it ensures customer loyalty.

10. Thou shalt help customers extend beyond their budget. 

Never believe a customer when they say they can't afford something. They can and will buy beyond their budget and do so everyday. Almost every household in America including the government extends beyond their budget. Acknowledge the idea of a restricted budget and keep showing them your products, services and solutions that are more valuable than the budget that is restricting them.

Great retailers must look for ways to go above and beyond for customers and provide an exceptional customer experience leading to loyalty and referrals. Your people should treat every customer like a millionaire who is ready and able to buy today. Retailers who do this will see how easily they win over cynical customers and turn them into loyal, frequent shoppers.

The Psychology of Discounts and Deals (Motiongraphic)

Everybody loves a bargain -- it’s business, but it’s also psychological.

The human ability to count is hardwired into several parts of our brains, according to this motiongraphic from eBay Deals. Even before we are able to count, infants develop expectations for what should be the result of an addition or subtraction equation. When the brain perceives larger quantities, then the specific numbers fade away and infants only understand the proportion between two numbers.

And so it is with customers and their knee jerk reaction to getting a deal. Customers will be further incentivized by larger-percentage discounts.

Learn more about the psychology of discounts in the motiongraphic below.

FOX's 'Sleepy Hollow' TV Show Is Scary Good for Local Businesses

In FOX's 'Sleepy Hollow,' actor Tom Mison plays Ichabod Crane

                                                       (right) alongside Nicole Beharie as police Lt. Abbie Mills.

                                                                                       Image credit: FOX

Everyone loves a scary story, right? So when a major television network repurposes a classic, chilling tale for a modern audience, it has the makings of TV gold. This Halloween, it turns out FOX's Sleepy Hollow is also a boon for local businesses in the New York town that bears the same name.
OK, prepare to suspend your disbelief: The mystery-adventure drama is based loosely on Washington Irving's 1820 short story The Legend of Sleepy Hollow and follows the character of Ichabod Crane, who has woken up after sleeping for 250 years and is now partnered with police Lt. Abbie Mills in modern day Sleepy Hollow, N.Y. The mismatched pair finds themselves tracking and battling Irving's infamous Headless Horseman -- only, in this story, the horseman is one of the Four Horsemen of the Apocalypse who are on a murderous rampage.
Dramatic, right? The show's premiere episode, which debuted last month, drew more than 10 million viewers. Now five episodes in, FOX has already renewed Sleepy Hollow for a second season.
Even in these early weeks, the show has had a significant impact on local businesses in Sleepy Hollow, a sleepy village within Tarrytown, N.Y. -- a town nestled quietly on the eastern bank of the Hudson River about 30 miles north of Manhattan.

Privately-owned Castle Hotel & Spa, a refurbished turn-of-the-century castle on a sprawling hilltop in Tarrytown, N.Y.