5.
What is the most effective method to push slow sellers? The key is to not let them become slow sellers. When merchandise is new, make sure it is visually displayed well and featured, spend time with staff on product knowledge training to get them excited about the merchandise and have confidence to be able to show the products and their features and benefits to your customers.
“ Put together a list of each category and try to allocate the sales and inventory by each of these categories based on their contribution to revenue.”
6.
Why is it critical to keep track of inventory aging? Once inventory is older than six months, the chances of selling at regular price drop dramatically( in some cases by 90 percent), and the chance of it being damaged or shopworn goes up by 50 percent.
7.
There is no question that the markdown strategy is an effective means to attract consumers. But where do you draw the line when it comes to determining how much to mark down? When it comes to retail inventory, the clock determines everything. If merchandise has been in inventory three to four months and failed to achieve sell-through, then you are better to put it on sale at least 30 percent off. Once it hits six months, it will need to be 50 percent off original price.
By staying on a continuous process of taking markdowns, you will not have an accumulation of old products. You can’ t think about item cost, it is now based on market value. Most business owners need to get the cash back out of old, slowselling products and reinvest in their bestsellers.
8.
How can a spa maximize one’ s retail sales incentive program in order to encourage staff to help push sales? We believe in commission, incentives and contests— tied into product knowledge training and a process of setting sales goals with measured results of each team member— to help motivate the staff. Make it fun and keep it changing so that staff stays involved. Coordinate [ activities to align ] with your promotional calendar so that there is always something going on. ■
GET ALL THE RESORT SPA RETAIL SCOOP from Charles Compton at his PDS titled“ Lifestyle Retail: Smarter, Not Harder” at the 2012 ISPA Conference & Expo. Compton who is also one of the contributors of ISPA’ s Retail Management for Spas textbook, will be joined by Natural Resources Spa Consulting and MySpaShop. com owner Kim Matheson Shedrick. To attend this PDS, register for ISPA Conference at ispa2012. com.
WHAT IS THE BEST WAY to deal with retail product loss as a result of shoplifting, theft or pilferage? Read the digital edition of Pulse on experienceispa. com to get Compton’ s advice on preventing retail loss.
August 2012 ■ PULSE 47