Retail business kit for dummies

Retail Business Kit
FOR

DUMmIES

‰

2ND

by Rick Segel

EDITION



Retail Business Kit
FOR

DUMmIES

‰

2ND

by Rick Segel

EDITION

Retail Business Kit For Dummies®, 2nd Edition
Published by
Wiley Publishing, Inc.
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Hoboken, NJ 07030-5774
www.wiley.com
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About the Author
Rick Segel, CSP (Certified Speaking Professional) and seasoned retailer of
25 years, owned one of New England’s most successful independent women’s
specialty stores. He’s currently a contributing writer for numerous national
and international publications, a founding member of the Retail Advisory
Council for Johnson & Wales University, and the online marketing expert for
Staples.com. Rick is the director of retail training for the Retail Association of
Massachusetts and is currently serving on the boards of directors for five
corporations and associations.
Rick earned his CSP, the highest earned designation from the National
Speakers Association, making him part of an elite group of less than 8 percent
of the total membership. Rick is a past president of the New England

Speakers Association and one of the most awarded speakers in New England.
He has been a featured speaker in 49 states and on three continents, and has
delivered over 1,900 presentations. Rick is always one of the highest rated
speakers at the conferences where he speaks.
Rick has authored five audio programs and two training videos (Stop Losing
Retail Sales and Soft Suggestive Selling). He has written eight other books,
including Laugh & Get Rich, published by Specific House, an insightful look at
our entertainment-based society and how it affects the way we do business;
Driving Traffic To Your Retail Business, published by Inc. Business Publishing;
Sensational Sales and Powerful Promotions, 5000 Best Sales and Promotional
Names Ever Compiled, and The Vendor of Choice, published by Specific House;
and The Essential Online Solution, published by Wiley. Rick has appeared on
over 100 radio and TV shows, and he represented the retail community on an
episode of the Sally Jessy Raphael Show titled “Buy It, Wear It, and Return It.”
Rick’s clients include McDonald’s, Dillard’s, Bentley Luggage, Gulf, Texaco,
Shell Oil, Dunkin’ Donuts, National Retail Federation, The New South Wales
Economic Development Council in Australia, Yurekli Seminar Company in
Turkey, San Francisco International Gift Fair, California Association of
Nurserymen, Dallas Market Center, America’s Mart in Atlanta, Ross Park Mall,
Jewelers of America, the U.S. Postal Service, National Main Street, Iowa
Department of Tourism, OK Foods in South Africa, Microsoft, The Plaza at
King of Prussia, Golf Retailer, Craft and Hobby Association, and hundreds of
smaller businesses around the world.
Rick is one of the highest-rated retail speakers in the world today. His upbeat
“laugh and learn” anecdotal style makes him a crowd pleaser wherever he
goes. Rick’s services include:
ߜ Writing, developing, and delivering customized training to all
levels of retailers
ߜ Keynote presentations that educate, entertain, and motivate
ߜ After-dinner presentations that are fun and light but deliver a

message that inspires
ߜ One-on-one coaching, teleclasses, and Webinars


Rick would be delighted to speak at your next meeting, conference, or
convention. For more information on keynote presentations, training, or
consulting, contact Rick Segel at: Rick Segel & Associates, 543 Davinci
Pass, Poinciana, FL 34759; phone 781-272-9995; fax 800-847-9411; e-mail
; Web site www.ricksegel.com.

Dedication
I would like to dedicate this book to my family, because without them this
book would never have been written. First my three children and their
spouses — Lori and Keith Osborne, Lisa and Mike Freson, and Andy and Lisa
Segel — and my five wonderful grandchildren who were all born after the
first printing of this book, Alexis, Shawn, TJ, Jason, and Jillian. To my sister,
Roz, whose encouragement made a difference. To the greatest
in-laws anyone could ever have, Thelma and David Green, who spent 45 years
in the retail furniture business and whose thoughts, beliefs, and ideas are
sprinkled throughout this book.
The true inspirations for this book are my parents. My father never knew
what type of retailer I became because his death was the trigger that catapulted me into the retail business. As different as we both were, many of our
beliefs were very similar and I always regretted never having had the opportunity to work with him. My mom, Sara “Ruth” Segel, was quite a remarkable
woman. She was brought up in poverty but died a success, both personally
and professionally, having built one of the most successful independent
women’s apparel stores in New England. She was loved by her customers and
admired by her competitors. We worked together for 25 years. We fought
and argued but always put the customer first. There were so many things
that she was so right about that one can only learn from experience. It’s sad
in a way to finally learn life’s lesson and be ready to say, “Mom, you were

right,” and she wasn’t here to listen. Mom, I know you are watching and I
hope I have made you proud.
The last and the most important person in the whole world to me, whose
name should also be on this book, is my wife of 39 years, Margie. Not just
because we worked together in the store and in our training, speaking, and
consulting business for the past 36 years. Not just because every word I
wrote was reread and edited by her. Not just because she is a great partner
in life and in business. Not just because of all the highs, lows, and experiences we have shared together. Not just because I love her more than
anything in the world. But because she is my very best friend.
I am a very fortunate man to have had all of these wonderful family members
in my life to help create this book and make me what I am today. I hope you
enjoy, learn from it, and are able to build your business with the same love
and passion we have built ours. It is all about family.


Author’s Acknowledgments
I feel like an Academy Award winner who has 100 people to
thank and 60 seconds to do it. So please understand my rapidfire approach. I want to thank John Hurst from the Retailers
Association of Massachusetts who believed in me from the beginning and has supported our State Retail Awards program.
I have a special thank-you to my editors. Elly Valas, who is a great
speaker and writer in her own right, has crossed the threshold
from colleague to friend. To Jon Aston for his help in the retail
signage chapter, and my special editor Roland Lacey who has now
served as a technical editor on two of my books. His company,
MediaRight Technology, has made my business what it is today
and has made me Web savvy. I also don’t want to forget the people
at J.D. Associates, a leading supplier of technology for specialty
stores, and especially Deborah Neville for providing valuable
technical assistance.
Thank you doesn’t seem like quite enough to the two people who

not only helped me on this book but inspired me to understand
and appreciate the true meaning and awesome power of visual
merchandising. So to Berit Gagne and Smilia Morvasch (two-time
state-award-winning display artist whose work is demonstrated
on the CD), thank you for your ideas and for all of the WOWs I
received from my customers for all of those years. You guys are
the best!
To my editor from Wiley, Joan Friedman, who has made the process painless and professional and has gotten the very best out of
me and my material. You are a real pro! To my special assistant,
Cindy Potts, who has organized me in a way I would not have
believed possible — thank you! She made this journey much easier
for me by taking care of all those little things that must
get done.
Another special thanks to Marilyn Censullo, my accountant, technical consultant, and friend for all of the help and her unquestioned
belief in me. She makes accounting exciting . . . I wish! But she does
make accounting understandable and that’s the most important
thing any accountant can do.


Publisher’s Acknowledgments
We’re proud of this book; please send us your comments through our Dummies online registration
form located at www.dummies.com/register/.
Some of the people who helped bring this book to market include the following:
Acquisitions, Editorial, and
Media Development

Composition Services
Project Coordinator: Patrick Redmond

Project Editor: Joan Friedman

(Previous Edition: Marcia L. Johnson)

Layout and Graphics: Reuben W. Davis,
Christin Swinford

Acquisitions Editor: Lindsay Sandman Lefevere

Proofreaders: Jessica Kramer,
Bonnie Mikkelson

Editorial Program Coordinator:
Erin Calligan Mooney

Indexer: Valerie Haynes Perry

Technical Editors: Jon Aston, Roland Lacey,
Elly S. Valas
Media Development Assistant Project
Manager: Jenny Swisher
Media Development Assistant Producer:
Shawn Patrick
Media Development Quality Assurance:
Kit Malone
Senior Editorial Manager: Jennifer Erhlich
Editorial Supervisor: Carmen Krikorian
Editorial Assistants: Joe Niesen, David Lutton
Cover Photos: © Image100
Cartoons: Rich Tennant
(www.the5thwave.com)

Publishing and Editorial for Consumer Dummies
Diane Graves Steele, Vice President and Publisher, Consumer Dummies
Joyce Pepple, Acquisitions Director, Consumer Dummies
Kristin A. Cocks, Product Development Director, Consumer Dummies
Michael Spring, Vice President and Publisher, Travel
Kelly Regan, Editorial Director, Travel
Publishing for Technology Dummies
Andy Cummings, Vice President and Publisher, Dummies Technology/General User
Composition Services
Gerry Fahey, Vice President of Production Services
Debbie Stailey, Director of Composition Services


Contents at a Glance
Introduction ................................................................ 1
Part I: Testing the Retail Waters................................... 5
Chapter 1: Retailing: How It Really Works and How It Can Work for You .................. 7
Chapter 2: Defining Your Vision: It Starts with a Dream............................................. 17
Chapter 3: Branding: Making Your Business Memorable ........................................... 27
Chapter 4: Get ting to Know Your Customers Before You Even Have Any ............... 37

Part II: Settin’ Up Shop.............................................. 49
Chapter 5: Location, Location, Location: Finding the Right Place to
Do Business .................................................................................................................... 51
Chapter 6: Designing Stores That Work ........................................................................ 71
Chapter 7: Choosing Your Merchandise: What to Buy and Where to Find It........... 85
Chapter 8: Get ting the Goods: Controlling Your Buying ............................................ 97

Part III: Detailing the Retailing ................................ 119
Chapter 9: Creating the Business Plan and Structure ............................................... 121

Chapter 10: The F ine Print: Crossing the T’s and Dotting the I’s ............................ 141
Chapter 11: Creating Your In ternal Systems: The Day-to-Day Stuff ........................ 163
Chapter 12: Finding, Hiring, and Keeping a Great Staff ............................................. 183
Chapter 13: Money Matters: Accounting for Money Coming In and Going Out .... 201

Part IV: Spreading the Word Without Going Broke! .... 217
Chapter 14: Generating Word-of-Mouth Advertising................................................. 219
Chapter 15: Advertising Vehicles: What to Include in Your Arsenal ...................... 231
Chapter 16: Signage: The Underutilized Killer Resource .......................................... 251
Chapter 17: Setting Up Successful Sales and Promotions ........................................ 273

Part V: Selling Made Simple ..................................... 295
Chapter 18: Selling the Soft, Suggestive Way ............................................................. 297
Chapter 19: Visual Merchandising for the Artistically Deprived
and Financially Handicapped..................................................................................... 309
Chapter 20: Selling Online: It’s an E-World ................................................................. 319

Part VI: The Part of Tens .......................................... 339
Chapter 21: Ten Keys to Retailing Success................................................................. 341
Chapter 22: Ten Secrets of Extraordinary Customer Service .................................. 347
Chapter 23: Ten Proven Management Practices ........................................................ 351
Appendix: About the CD ............................................................................................... 357

Index ...................................................................... 369


Table of Contents
Introduction ................................................................. 1
About This Book .............................................................................................. 1
Conventions Used in This Book ..................................................................... 2

Foolish Assumptions ....................................................................................... 2
How This Book Is Organized .......................................................................... 2
Part I: Testing the Retail Waters .......................................................... 2
Part II: Settin’ Up Shop .......................................................................... 3
Part III: Detailing the Retailing .............................................................. 3
Part IV: Spreading the Word Without Going Broke! .......................... 3
Part V: Selling Made Simple .................................................................. 3
Part VI: The Part of Tens ....................................................................... 4
Icons Used in This Book ................................................................................. 4
Where to Go from Here ................................................................................... 4

Part I: Testing the Retail Waters ................................... 5
Chapter 1: Retailing: How It Really Works
and How It Can Work for You. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Looking at Some Advantages of Starting a Retail Business Now ............... 7
Setting Up a Retail Business ........................................................................... 8
Deciding If Retail Is Right for You ................................................................ 10
Reviewing some reasons for opening a store................................... 12
Understanding how retailing will affect your lifestyle .................... 13
Using the “8-Point Retail Filter” to Guide Your Decisions ........................ 15

Chapter 2: Defining Your Vision: It Starts with a Dream. . . . . . . . . . . .17
Getting Focused on Your Dream ................................................................. 17
Brainstorming to Gather Your Ideas ........................................................... 19
Talking to yourself ............................................................................... 19
Getting feedback .................................................................................. 19
Letting it flow........................................................................................ 20
Squeezing Your Dreams into a Signature Line ........................................... 20
Discovering what’s important to you: The Nifty Fifty ..................... 21
Evaluating your responses ................................................................. 24

Recognizing effective signature lines ................................................ 25
Creating your own signature line....................................................... 25


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Retail Business Kit For Dummies, 2nd Edition
Chapter 3: Branding: Making Your Business Memorable . . . . . . . . . .27
Getting to Know Branding ............................................................................ 27
Cashing in with a strong brand .......................................................... 28
Making your business your brand ..................................................... 29
Understanding brand associations.................................................... 30
Taking Steps to Build Brand Power............................................................. 32
Finding a niche and becoming an expert .......................................... 32
Understanding who your customer is ............................................... 33
Creating a logo ..................................................................................... 34
Owning a word or phrase ................................................................... 34
Creating trade dressing ....................................................................... 35
Providing consistency ......................................................................... 35
Protecting your brand ......................................................................... 35

Chapter 4: Get ting to Know Your Customers
Before You Even Have Any . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Recognizing the Customer Types ................................................................ 37
Identifying Your Ideal Customers ................................................................ 38
“Sensing” your customers .................................................................. 39
“Filtering” your customers ................................................................. 40
Figuring Out What Motivates Your Customers to Buy ............................. 42
Selling to the eight buyer types ......................................................... 43
Staying in tune with your customers ................................................ 48

Part II: Settin’ Up Shop .............................................. 49
Chapter 5: Location, Location, Location:
Finding the Right Place to Do Business. . . . . . . . . . . . . . . . . . . . . . . . . .51
Exploring Your Location Options ................................................................ 51
The big box concept ............................................................................ 52
Downtown Main Street locations ....................................................... 53
Locations off Main Street .................................................................... 53
Neighborhood locations ..................................................................... 54
Roadside locations .............................................................................. 55
Strip mall locations .............................................................................. 55
Community center locations .............................................................. 56
Regional mall locations ....................................................................... 56
Specialty center locations .................................................................. 57
Lifestyle community shopping center locations ............................. 58
Matching Your Business with the Right Location ..................................... 59
Looking at Locations from Every Angle ...................................................... 59
Personal considerations ..................................................................... 60
Business strategy considerations ...................................................... 60


Table of Contents
Compatibility considerations ............................................................. 61
Financial considerations ..................................................................... 62
Applying the 8-Point Retail Filter ....................................................... 63
Coming to Terms with Your Landlord ........................................................ 63
Obtaining information from your landlord ....................................... 64
Providing the information your landlord expects from you .......... 65
Avoiding Potential Problems ....................................................................... 65
Recognizing your real expenses ........................................................ 66

Examining other issues before signing a lease ................................ 68

Chapter 6: Designing Stores That Work. . . . . . . . . . . . . . . . . . . . . . . . . .71
Considering Your Image ............................................................................... 71
Establishing Your Store’s Look and Feel .................................................... 72
Choosing a theme ................................................................................ 73
Picking a color scheme ....................................................................... 73
Selecting treatments ............................................................................ 74
Designing Specific Sections of Your Store .................................................. 76
Making a grand entrance .................................................................... 77
Presenting the threshold area............................................................ 77
Perfecting your pathways ................................................................... 77
Dressing up store windows ................................................................ 78
Setting up the cash wrap area ............................................................ 78
Designating a markdown section ....................................................... 79
Creating a waiting area........................................................................ 80
Selecting Display Fixtures ............................................................................ 80
Satisfying Landlords and Building Inspectors ........................................... 82

Chapter 7: Choosing Your Merchandise:
What to Buy and Where to Find It . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
Doing Your Homework.................................................................................. 86
Finding the Merchandise .............................................................................. 87
Buying from manufacturers ................................................................ 87
Working with distributors .................................................................. 89
Finding out about importers .............................................................. 90
Participating in buying groups ........................................................... 90
Introducing buying services ............................................................... 90
Considering consignment merchandise ........................................... 91
The Why of the Buy ....................................................................................... 92

Buyers versus pickers ......................................................................... 92
Category management: The ultimate buying motivator ................. 95

Chapter 8: Get ting the Goods: Controlling Your Buying . . . . . . . . . . . .97
Visiting a Trade Show for Your First Buy ................................................... 97
Dealing with Sales Reps ................................................................................ 99
Getting the most for your money..................................................... 100
Leaving paper ..................................................................................... 103

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Retail Business Kit For Dummies, 2nd Edition
Buying Online ............................................................................................... 104
Placing an Order .......................................................................................... 106
Pricing Your Merchandise .......................................................................... 108
Managing Your Buying ................................................................................ 111
Reviewing the open to buy system .................................................. 112
Introducing the open to thrive system ........................................... 113

Part III: Detailing the Retailing ................................ 119
Chapter 9: Creating the Business Plan and Structure . . . . . . . . . . . . .121
Constructing Your Business Plan .............................................................. 122
The preview: Who are you, and what’s this all about? ................. 122
The description: What’s your business idea, and
why should anyone buy from you? .............................................. 124
Your marketing plan: How are you going to sell it?....................... 125
Your financial plan: How much do you plan to make,

spend, and need?............................................................................ 128
Your management plan: How are you going to run
your business? ................................................................................ 131
The final analysis: Summing it all up ............................................... 132
Choosing a Business Structure .................................................................. 132
Tapping the advantages of a sole proprietorship ......................... 133
Exploring the benefits of partnerships ........................................... 134
Forming a corporation ...................................................................... 136
Working with a Board of Directors............................................................ 138
Selecting board members ................................................................. 138
Running a board meeting .................................................................. 139

Chapter 10: The F ine Print: Crossing the T’s and Dotting the I’s . . . .141
Getting the Necessary Papers: Registrations, Licenses,
and Permits ............................................................................................... 142
Business certificate (Also known as a business license).............. 142
Zoning permit ..................................................................................... 143
Sign permit .......................................................................................... 144
Police or fire department permits ................................................... 145
Building permit................................................................................... 145
Certificate of occupancy ................................................................... 146
Minimum wage poster ....................................................................... 146
Health permit...................................................................................... 146
Specialized retail licenses ................................................................. 147
Taking the Necessary Actions.................................................................... 147
Getting workers’ compensation insurance ..................................... 147
Recording your lease ......................................................................... 148
Contacting credit reporting agencies .............................................. 149

Table of Contents
Staying Informed about Important Issues ................................................ 149
Taxes: Different kinds from different areas .................................... 149
Americans with Disabilities Act (ADA) ........................................... 151
Covering All Your Bases ............................................................................. 151
Finding Out about Insurance...................................................................... 152
Getting Legal Advice ................................................................................... 157
Avoiding Financial Troubles ...................................................................... 158
Exploring Security Issues ........................................................................... 160

Chapter 11: Creating Your In ternal
Systems: The Day-to-Day Stuff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163
Considering Your Software Options ......................................................... 163
Creating a Procedure Binder...................................................................... 165
Identifying Your Internal Procedures ....................................................... 166
Creating procedures for merchandise functions ........................... 166
Establishing procedures for operational functions....................... 170
Developing procedures for sales and marketing functions.......... 177
Creating procedures for safety and security functions:
Shoplifting and employee theft .................................................... 179
Designing procedures for personnel functions.............................. 179

Chapter 12: Finding, Hiring, and Keeping a Great Staff. . . . . . . . . . . .183
Preparing Yourself to Recruit and Retain ................................................ 184
Finding Super People .................................................................................. 186
Referrals .............................................................................................. 186
Community networking ..................................................................... 187
Online job search sites ...................................................................... 187
Job listings .......................................................................................... 188
Job fairs ............................................................................................... 188

The retail community ........................................................................ 188
Interviewing for Fun and Profit .................................................................. 189
Questions to ask................................................................................. 190
Traits to look for ................................................................................ 191
Developing Employee Assessment Tools ................................................. 192
Keeping Your Employees — Especially the Good Ones ......................... 194
Creating a great work environment ................................................. 194
Making your employees love ya....................................................... 197
Learning a Lesson When Employees Leave ............................................. 199

Chapter 13: Money Matters: Accounting
for Money Coming In and Going Out. . . . . . . . . . . . . . . . . . . . . . . . . . . .201
Bringing the Money In ................................................................................. 202
Dealing with credit and debit cards ................................................ 202
Finding a credit card processor ....................................................... 203
Considering private-label credit card vendors .............................. 204
Working with checks ......................................................................... 204

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Retail Business Kit For Dummies, 2nd Edition
Choosing a Computer System to Manage the Flow ................................. 205
Knowing what a good system can (And can’t) do ......................... 205
Exploring accounting and merchandising packages ..................... 206
Selecting a Service to Dole Out the Paychecks........................................ 208
Knowing When to Use Your Accountant .................................................. 209
Getting the Numbers for Your Reports..................................................... 210

Making the Most of Your Financial Reports ............................................. 211
Learning from your cash flow report .............................................. 212
Reviewing your accounts payable report ....................................... 212
Looking at your balance sheet ......................................................... 212
Understanding your profit and loss statement .............................. 213

Part IV: Spreading the Word Without Going Broke! ..... 217
Chapter 14: Generating Word-of-Mouth Advertising. . . . . . . . . . . . . .219
Realizing Why WOW Is Essential ............................................................... 220
Turning WOW into WOMA ......................................................................... 221
Selling experiences ............................................................................ 221
Getting into the expectation management business ..................... 222
Differentiating: How to WOW ..................................................................... 222
Enhancing the customer’s experience ............................................ 223
Top ways to differentiate .................................................................. 224

Chapter 15: Advertising Vehicles:
What to Include in Your Arsenal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .231
Mastering the Basics of Advertising ......................................................... 232
Producing Ads .............................................................................................. 233
Hiring an ad agency (Or not) ............................................................ 233
Creating your own ads (Or not) ....................................................... 234
Advertising in Newspapers ........................................................................ 234
Running the right type of ad ............................................................. 235
Looking at the different kinds of newspapers ................................ 237
Advertising on the Radio ............................................................................ 239
Making a long-term commitment to one station ............................ 240
Donating prizes .................................................................................. 241
Sponsoring a regular feature ............................................................ 242
Advertising on Television ........................................................................... 242

Network TV ......................................................................................... 242
Cable TV .............................................................................................. 243
Advertising in Magazines............................................................................ 243
Renting Billboards ....................................................................................... 244
Advertising Online ....................................................................................... 245
Telemarketing .............................................................................................. 246
Using Direct Mail ......................................................................................... 247


Table of Contents
Setting Up a Preferred Customer Program............................................... 247
Collecting customer data .................................................................. 247
Using data effectively ........................................................................ 249

Chapter 16: Signage: The Underutilized Killer Resource . . . . . . . . . .251
Realizing What Great Signage Can Do ....................................................... 252
What can signage do for customers? .............................................. 252
What can signage do for the retailer? ............................................. 253
What can signage do for the vendor? .............................................. 254
What can signage do for the community? ...................................... 255
Applying the I.S.E.E.E. Formula .................................................................. 256
Employing Various Types of Signs ............................................................ 257
Using exterior signs on premises..................................................... 258
Creating exterior signs to use off premises .................................... 261
Displaying interior signs ................................................................... 262
Boning Up on Sign Mechanics .................................................................... 266
Fonts .................................................................................................... 266
Borders and frames ........................................................................... 267
Layout principles ............................................................................... 267
Headlines and copy ........................................................................... 268

Color .................................................................................................... 269
Pictures ............................................................................................... 269
Percentages ........................................................................................ 269
Performing a Sign Audit .............................................................................. 270

Chapter 17: Setting Up Successful Sales and Promotions. . . . . . . . .273
Considering Reasons to Run a Sale or Promotion................................... 273
Opening a new store .......................................................................... 274
Moving to a new location .................................................................. 274
Generating cash and stimulating business ..................................... 274
Making room for new merchandise ................................................. 275
Overcoming boredom ....................................................................... 275
Adding names to your customer database..................................... 275
Letting the dogs out........................................................................... 275
Marketing to a new area .................................................................... 276
Marketing to a specific group........................................................... 276
Meeting competition ......................................................................... 276
Announcing any change .................................................................... 276
Going out of business ........................................................................ 276
Running a Great Sale ................................................................................... 277
Naming your sale ............................................................................... 278
Choosing sale merchandise .............................................................. 280
Advertising and promoting your sale.............................................. 281
Preparing your store for the big event............................................ 282
Analyzing the success of your sale event ....................................... 283

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Using Professional Sale Companies .......................................................... 283
Exploring Promotion Ideas ......................................................................... 283
Competitive promotions ................................................................... 284
Noncompetitive promotions ............................................................ 286
Identifying the Characteristics of a Good Promotion ............................. 290
Making It Fun ................................................................................................ 291
Planning Effective Promotions ................................................................... 291

Part V: Selling Made Simple...................................... 295
Chapter 18: Selling the Soft, Suggestive Way . . . . . . . . . . . . . . . . . . .297
Recognizing a Great Salesperson .............................................................. 297
Remembering Some Fundamental Rules of Retail Selling ...................... 298
Turning lookers into buyers ............................................................. 299
Practicing soft, suggestive selling.................................................... 299
Getting people to like you ................................................................. 300
Making a good impression ................................................................ 300
Realizing that customers buy with their emotions ....................... 301
Avoiding LCR ...................................................................................... 301
Knowing what not to say .................................................................. 302
Perfecting Your Sales Process ................................................................... 302
Greeting customers ........................................................................... 302
Building a bridge ................................................................................ 302
Creating a bond .................................................................................. 303
Making suggestions ........................................................................... 303
Handling customer objections ......................................................... 304
Closing the sale .................................................................................. 305
Dealing with Challenging Customers ........................................................ 306
The know-it-all .................................................................................... 306

The whiner .......................................................................................... 306
The number nerd ............................................................................... 307
Mr. Wishy-Washy ............................................................................... 307
The possessor .................................................................................... 307
The socializer ..................................................................................... 308

Chapter 19: Visual Merchandising for the Artistically
Deprived and Financially Handicapped. . . . . . . . . . . . . . . . . . . . . . . . .309
Listing the Elements of Visual Merchandising ......................................... 309
Displaying the Goods .................................................................................. 311
Selecting merchandise and themes ................................................. 311
Creating a feeling or mood ............................................................... 313
Working with props ........................................................................... 314
Uncovering Tips and Tricks of the Trade................................................. 315
Hiring a Visual Merchandiser..................................................................... 317


Table of Contents
Chapter 20: Selling Online: It’s an E-World . . . . . . . . . . . . . . . . . . . . . .319
Respecting the Role of the Web in Retail ................................................. 319
Figuring Out What Motivates Online Shoppers ....................................... 320
Creating an Effective Web Site ................................................................... 321
Identifying the desired result ........................................................... 322
Defining the desired action............................................................... 322
Securing a domain name ................................................................... 323
Constructing your site....................................................................... 324
Making your Web site sticky ............................................................ 326
Marketing Online ......................................................................................... 327
E-zines ................................................................................................. 328
E-mail marketing ................................................................................ 329

Blogs .................................................................................................... 330
Podcasting .......................................................................................... 335
Positioning Your Web Site for Success ..................................................... 335
Search engine optimization .............................................................. 335
Battle of the referral services ........................................................... 336
Pay per click ....................................................................................... 337
Keywords, keywords, keywords ...................................................... 338

Part VI: The Part of Tens ........................................... 339
Chapter 21: Ten Keys to Retailing Success . . . . . . . . . . . . . . . . . . . . . .341
Practice Database Marketing ..................................................................... 341
Embrace E-Commerce ................................................................................. 342
Invest in Training Your Employees ........................................................... 342
Think Like a Customer ................................................................................ 342
Update Your Financial and Marketing Plans Weekly .............................. 343
Tap the Power of Signage ........................................................................... 343
Attend Seminars and Keep Learning ......................................................... 344
Shop, Shop, Shop ......................................................................................... 344
Make Shopping in Your Store Entertaining .............................................. 345
Demonstrate Professionalism and Consistency ...................................... 345
Carry Distinctive Products ......................................................................... 345
Know Who You Are and Who Your Customers Are ................................ 346
Always Give the Customer More Than Expected .................................... 346

Chapter 22: Ten Secrets of Extraordinary Customer Service . . . . . .347
Thank Your Customer for Coming In ........................................................ 347
Know and Use Your Customer’s Name ..................................................... 348
Anticipate What Someone Wants To Buy ................................................. 348
Give Each Customer Unique Service ......................................................... 348
Let Them Like You! ...................................................................................... 348

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Meet and Exceed Customer Expectations ................................................ 349
Reach Your Customers on an Emotional Level ....................................... 349
Remember That Signage Is Great Service................................................. 349
Keep in Touch with Your Customers ........................................................ 350
Educate Your Customers ............................................................................ 350
Focus on Store Layout and Organization ................................................. 350

Chapter 23: Ten Proven Management Practices . . . . . . . . . . . . . . . . .351
Be Up When They’re Down and Down When They’re Up ...................... 351
Tailor Your Management to the Employee .............................................. 352
Reward the Behavior You Want Repeated ............................................... 352
Don’t Use Criticism and Fear as Motivators ............................................ 352
Spread Praise, Recognition, and Appreciation ........................................ 353
Incorporate Fun, Humor, and Playful Behavior ....................................... 353
Offer Small, Unexpected Rewards ............................................................. 354
Walk in Their Shoes..................................................................................... 354
Use Signage To Your Benefit ...................................................................... 355
Inspire Ownership from Inception ............................................................ 355
Believe That Mistakes Are Opportunities ................................................ 356

Appendix: About the CD ............................................ 357
System Requirements ................................................................................. 357
Using the CD ................................................................................................. 358

What You Find on the CD ........................................................................... 358
Sample forms, ads, and reports ....................................................... 359
Software .............................................................................................. 367
Troubleshooting .......................................................................................... 368
Customer Care ............................................................................................. 368

Index ....................................................................... 369


Introduction

R

etailing today, especially specialty independent retailing, is on the
threshold of a major explosion. Don’t let some of the headlines scare or
confuse you: Some retailers have always failed — that’s the natural attrition
of the retail industry. But you don’t have to. The marketplace is more fertile
today than at any other time in recorded history because of the integration of
easy e-commerce elements into independent retailing.
There is always room for creative, knowledgeable retailers with a different
way of looking at the world and customers. In this book, I share with you
what works, what it takes to be successful, and some secrets from the pros.
Let this book be your manual, but don’t stop asking questions. Generations of
questioning have made retailing what it is today.

About This Book
This book is truly a how-to manual for starting and running a retail business.
It covers every aspect of the retail business from the original dream to the
day-to-day operations of an established store. Rarely will you read a how-to
book that is written with the passion and emotion of this one because rarely

does a how-to author get the opportunity to reflect on his life’s work — to
focus on all the little details that fill the day of a retail professional.
Every point or idea has recalled a whole set of scenarios and/or experiences
that I have actually lived through — mistakes made, lessons learned, and
triumphs celebrated. The purpose of this book is to share my experiences so
that you can benefit from them.
Retail is detail is an old expression you find sprinkled throughout this book.
What it means is that to be a successful retailer, you must focus on many
detailed tasks. If you have a great location, wonderful merchandise, and
super advertising, but your sales staff can’t sell, you have a detail that needs
attention. Most successful retailers become great because of their attention
to details. That’s the reason I fill this book and CD with checklists and
formulas that address a multitude of details.
I have discovered that the most successful retailers are not those who
break onto the retail landscape with the biggest stores, the most expensive
store designs, or even the largest ad campaigns. No, the true winners are
those who address the little things in concert with a vision and mission for
their business.


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Retail Business Kit For Dummies, 2nd Edition

Conventions Used in This Book
When I use a term you may not be familiar with, I italicize it and define it
nearby. Also, Web addresses are printed in monofont to help them stand
out. When this book was printed, some Web addresses may have needed to
break across two lines of text. If that happened, rest assured that we haven’t
put in any extra characters (such as hyphens) to indicate the break. So, when

using one of these Web addresses, just type in exactly what you see in this
book, pretending as though the line break doesn’t exist.

Foolish Assumptions
I try not to make many assumptions about who you are. That’s because the
readers of this book are as varied as the world of retailing itself. They range
from the salesclerk who has just been offered ownership of the store to
ߜ Anyone who has ever considered a career in retailing
ߜ Anyone who has ever thought about opening her own business
ߜ Anyone who loves working with people
ߜ Anyone who loves the merchandise she’s selling
ߜ Anyone who gets a rush shopping for merchandise
ߜ Anyone who gets excited every time he sees new arrivals in a store

How This Book Is Organized
Retail Business Kit For Dummies, 2nd Edition, is organized into six parts, and
the chapters within each part cover specific topics in detail. In addition,
the CD-ROM serves as a reference that puts samples of relevant retail forms
at your fingertips. The CD was designed to be used in conjunction with the
book, and you find references to CD elements throughout the book, but it can
also be used on its own.

Part I: Testing the Retail Waters
This part helps you determine if retailing is right for you and if you are right
for retailing. It presents the pros and cons of retail and offers strategies to
help you turn your dreams of running your own store into a reality.


Introduction

Part II: Settin’ Up Shop
This part covers some of the glamorous reasons that you may want to go
into the retail business: buying merchandise, choosing your store’s location,
and planning your store design. The chapters in this part provide real how-to
information to help you complete these tasks successfully.

Part III: Detailing the Retailing
Every business needs a plan, and the first chapter in this part guides you
through the procedure of creating a workable business plan that will serve
as your blueprint to success. Running a business requires crossing every t
and dotting every i, so the second chapter focuses on tax issues, permits,
registrations, and local requirements you’ll face when you decide to open
your business.
The next chapters in this part focus on the day-to-day stuff — how to actually
run your store. I show you how to establish specific store procedures so
that your business will run smoothly and how to find, hire, and keep a
terrific staff. The last chapter in this part is dedicated to money matters and
accounting for the money — there’s nothing more important than that!

Part IV: Spreading the Word
Without Going Broke!
You’ll be amazed at all the available options for letting the public know
who you are and what you do. The chapters in this part introduce you to
numerous ways for increasing your store’s profile in the community. You’ll
read about ways to get people talking favorably about your store — word-ofmouth advertising — and tips for running exciting promotions and profitable
sales events. I also explore ways to advertise and the power of retail signage.

Part V: Selling Made Simple
The chapters in this section are designed to help you master the art of selling,
whether face to face or on the Internet. They present selling strategies that

will keep your cash register ringing and offer tips for displaying merchandise
in a way that compels customers to buy it.

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Retail Business Kit For Dummies, 2nd Edition

Part VI: The Part of Tens
This final part is made up of lists that highlight some of the basic themes
of retailing. From keys to retail success, to the secrets of extraordinary
customer service, to proven management practices, the chapters in this part
offer tips that will make your business a well-run operation.
Don’t forget to check out the appendix, which explains how to use the CD in
the back of this book.

Icons Used in This Book
Throughout the book, you see little graphics in the margins that highlight
certain paragraphs. Here’s what they mean:
The paragraphs marked by this icon alert you to materials on the CD that are
relevant to the discussion at hand.

This icon marks the information you definitely don’t want to forget.

These short tidbits capture poignant points for you to remember and quote,
based on my many years of retail experience. They are random because there
is no order or sequence in the numbering. The key message is in their name:
Retail Rules!

The paragraphs marked by this icon represent a generally good idea or suggest a way to do something better or more efficiently.

This icon indicates an area of concern or offers a tip on how to avoid trouble.

Where to Go from Here
You don’t have to read this book straight through. Open it up anywhere, and
you’re sure to find gems of retail wisdom to help you make your business
a success.