The goWholesale Blog

The Great Consumer Schism - Tips for Brand Name Retailers

April 28th, 2008

It’s begun. The Great Consumer Schism is effectively working its way through America-an event last experienced in this country in the ’70s. Economic disparity in America is nothing new. But in times of recession the division is inflated and even more apparent as seen through shifts in spending habits. It makes perfect sense of course that middle to lower income households are switching from brand name items to generic in order to save a few bucks.

So what does this mean for retailers? Well, if you sell cheaper products, this is great news! If you sell brand name (and therefore more expensive) products you may want to reconsider your strategy. Here are a few suggestions:

Consider including cheaper items in your inventory as an alternative for customers with tighter budgets.
Revamp your advertising to appeal strictly to wealthier customers.
Revamp your advertising to enforce the value of brand name products over generic.
Offer “freebies” along with the purchase of certain brand name items.
Have a sale! Who doesn’t love a sale?

These are just a few ideas to get you started thinking in the right direction. For more tips check out Don’t Let a Slow Economy Slow Down Your Business

Posted in Generating More Sales, In the News | No Comments »

Social Shopping Sites Bring More Opportunity to Small Businesses

March 31st, 2008

Interesting thing isn’t it? How the internet has completely replaced the need to leave your house to buy things. Shopping malls were once the great meccas of consumerism. What a shame….What’s that you say? They still are? Oh….how is that possible? The internet has EVERYTHING and you don’t even have to get off your duff to get it!

Sarcasm aside, in spite of the incredible convenience the internet affords, people are still flocking to malls around the world to find what they are looking for. So why is that? I thought the internet was supposed to make things easier?

The reason for this according to a recent Inc.com article, is that while shopping can be done individually, it is largely a social activity. We rely on recommendations from our friends and family to locate sources for certain products we may be interested in because we trust these people to give us good leads. In the internet world, all we’ve had to rely on are the search results Google and the like produce for us which, as we savvy internet users have come to find out, is based primarily on variables that do not have the consumer in mind, often producing the most prominent (read “well known”) sites first.

We’re in luck though. Smart entrepreneurs have recognized this and are doing something about it. For the first time, we are starting to see websites dedicated to tailoring the online shopping experience directly towards the consumer. Sites such as ThisNext, Shoposphere and Kaboodle are what is called “social shopping” sites. And here’s what they do:

Features recommendations by friends and like-minded shoppers
Gives authority users based on quality recommendations
Display a wider array of smaller (and arguably cooler) brands/businesses

As a small business marketer here’s how and why you can use these sites to grow your business:

It’s zero cost if you do it right. For example, on ThisNext, if you fill out a “Shopcast” including one of your products, it will likely generate interest and click throughs to your website.
Again, done correctly, you could also end up forming a mini army of volunteer brand evangelists. Word of mouth is still a very valuable marketing tool. The same applies for the internet.
You will see not only a rise in web traffic but also in sales. Topo Ranch, a t-shirt company, stated that after posting their original Shopcast, their “daily Web traffic has increased by almost a third and sales have risen 165 percent.” The numbers don’t lie.

Just remember to be a responsible member of these communities. Many of them self police anyway but you cannot approach it from a strict marketing standpoint. Don’t be intrusive and abuse the system. Merely develop good relationships and allow it to work for you.

Posted in E-Commerce and E-Business, Generating More Sales, Marketing Your Business | No Comments »

St. Patrick’s Day sales expected to be lower than last year

March 7th, 2008

According to the National Retail Federation’s 2008 St. Patrick’s Day Consumer Intentions and Actions survey, conducted by BIGresearch, consumers will spend an estimated $3.64 billion on St. Patrick’s Day, less than last year’s $3.76 billion.

Some are speculating the projected decline to be directly related to the fact that the holiday falls during the holy week before Easter this year. It could also be due to the looming recession which has consumers more wary about where they spend their dollars.

Regardless of the reason, if you are in the business of selling seasonal merchandise, you may want to consider some extra effort in your promotions in the coming week. Also, some cities are moving their official celebrations to March 14th to avoid any religious observance conflicts. Be prepared to take advantage of seeing this holiday celebrated more than once this year!

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Tips for Surviving the Slow Down

February 21st, 2008

Small businesses are some of the most affected by economic downturns. While these practices can and should be implemented during times of prosperity as well, they will help businesses survive during a recession.

Get involved: Don’t just join local organizations and charities–get on the committee board! This not only will help you stand out and make a name for yourself, but it will also get you meeting and working with more people. Also always keep in mind that strangers you strike up conversations with at the grocery store or fellow parents at a PTA meeting can be new customers/clients. It’s good old fashioned networking.

Reach out to existing clients: These are people you already know need your goods and/or services. Chances are they like doing business with you and are willing to do more if you take the time to think of new ways to serve their needs. If you can’t think of anything yourself, call them up and ask.

Do NOT cut your marketing budget: You need to market yourself more than ever when consumers are shy about where they are spending their money. You are competing even harder to make the sale over other competitors so you need to reinforce your brand, products and services as things people still need, despite the economic downs.

Offer a special service or discount: It may seem counter intuitive to charge less when you need to be making more, but this tactic will get people buying and let’s face it, customers buying at a discount are better than no customers at all. Also a little extra customer service should cost little to nothing at all and the benefits could be very important to keeping your business afloat.

Posted in Finance and Accounting, Generating More Sales | No Comments »

Mob Shopping: Is America Ready?

February 19th, 2008

Are you?

Mob shopping, also known as team buying, is a consumer buying tactic originating in China, that involves gathering a group of people together in-store to drive a bargain with the seller. There are many websites and forums (TeamBuy.com.cn) that facilitate the time and place. The popularity of these events is mostly due to the cultural ideology that no price is set in stone and that bargaining is a way of life in China. And consumers are seeing results. While many sellers do not particularly like this new tactic, some are embracing it and even setting up events themselves so that the teams who are willing to buy right away will get a discount.

The internet is a large part of the success as the instant communication is vital to organizing these sometimes spur of the moment events. Also, the with internet’s world wide reach more and more people are becoming exposed to the idea… and it’s catching on.

So what do you think? Will this shopping craze work in America? As a store owner, would you be willing to bargain with these groups of people in order to move more product?

Posted in E-Commerce and E-Business, Generating More Sales | No Comments »

Anti-Valentine’s Day - Trend Alert

February 13th, 2008

There’s a tradition in my family that for any occasion that warrants a card, especially birthdays, the meaner the card is the better. We often try to out do the other contenders and the result is often big laughs. The more insulting the card, the more you’re loved–we have an understanding.

We’re not the only people who share this fun, albeit unusual, tradition and with Valentine’s Day upon us, it appears that businesses are beginning to cash in on this quirky trend. For example, American Greetings Corp. has an entire category of “Anti-Valentine’s Day” cards.

And they’re not the only ones capitalizing on the anti-Valentine’s Day theme. Other businesses are coming up with unique ways to promote their businesses such as a bowling alley in Cleveland hosting a “Love…Spare Me!” event and clothing and merchandise stores selling t-shirts and stickers promoting “single awareness.”

So the next time a popular holiday rolls around, try a variation on the theme…you might even start a new trend!

Posted in Generating More Sales, Marketing Your Business | 1 Comment »

IBM isn’t wasting time “Ideating”…are you?

January 15th, 2008

If you’ve been watching any tv lately, you’ll have seen IBM’s commercial for their new campaign “Stop talking. Start doing.” If you haven’t…watch a football game or two. I guarantee you’ll see it.

True, it’s lighthearted and humorous but they’ve actually got a good point. It’s easy to get caught up in brainstorming new ideas and even falling into an “innovation trap”, which would be the feeling that you can’t move forward without some brand spanking new incredible ideas. While every business is constantly in need of fresh ideas, if you get too wrapped up in it, it will become debilitating not to mention frustrating when you don’t get the results you are looking for.

So what should you do? Well, take a page out of IBM’s book. While they are always working to produce the next big thing in technology, they are now apparently simultaneously looking for ways their business can work with other businesses (and potentially piggyback on a major success!). Look to others to see what they are doing and see how you can help them do it more efficiently, or better. This isn’t to say you should steal other people’s ideas, but there are countless opportunities available for your business to perhaps form some sort of partnership.

No one ever said innovation had to be an individual activity. So take some time to think about where your business might fit into others ideas and you may just find a $wealth$ of benefits in doing so.

Posted in Generating More Sales, Marketing Your Business | No Comments »

Pink is the new….Taser?

January 9th, 2008

I had heard about this a few months back on a local morning radio show and it has become relevant again as I saw an article in MSN.com’s Small Business site that savvy female entrepreneurs are now hosting Taser parties (instead of the classic Tupperware variety). The disc jockeys facilitated the conversation and of course took calls from listeners weighing in.

The topic: Pink stun guns.

The big deal: It’s a genius marketing ploy for a weapon company.

The consensus: Make it pink and it will sell–whatever “it” is.

The women who called in were more than enthused about this development in self protection and some had even already purchased or received the pink protective devices from loved ones as gifts. The general feeling was that before, while they wanted to have a Taser, they were turned off by the standard black or silver ones as those colors (on this particular product) exude masculinity, aggressiveness and thus produce a general fear of holding one in one’s hand. There’s a reason weapons are traditionally black–it’s scary! So when the news that these weapons would come in “friendlier” colors, it made these women feel less afraid to handle them.

Taser has not done anything the fashion industry, cell phone manufacturers or countless other companies with countless products hasn’t done when marketing to their female clientèle. They haven’t come up with a brand new marketing tactic. But what they have done is step out of the conventional box and took a risk. They now offer “fashion Tasers” in a multitude of colors including of course, two shades of pink and even a sassy leopard pattern. And they are selling like mad.

So the moral of this story? You don’t have to invent a brand new, never heard of before, marketing scheme to increase your sales. Simply consider the possibilities that are right in front of you…and don’t be afraid to try.

And that there’s just something about pink.

Posted in Articles, Generating More Sales, Marketing Your Business | No Comments »

The sales tax riddle…

December 10th, 2007

Regardless of what trade your business is in, one of the hardest things to get right is determining what sales tax you’re going to charge your customers. After all, you don’t want to charge too much sales tax and scare them away; yet at the same time, you can’t afford to charge them too little. Here are a few clues to help you get it right.

How to Determine Your Sales Tax Charges

Posted in Articles, Finance and Accounting, Generating More Sales | No Comments »

Here’s One For the Holidays!

December 7th, 2007

As the holiday season is one of the busiest for all retailers, it is also during this season (and particularly in the first few days after the holidays are over) that the risk of return fraud runs the highest. So how can your business avoid return fraud this holiday season? We’ve compiled a list that will help, whether your business is an online one or brick and mortar.

4 Easy Steps to Avoid Return Fraud This Holiday Season

Posted in Articles, E-Commerce and E-Business, Finance and Accounting, Generating More Sales | No Comments »

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