ETD: 704 More on attracting new customers; More on excess inventory;Do Trade Shows work?; Wal-Mart backs off RFID; June same-store sales

E-Tailer's Digest etd@gapent.com
Thu, 17 Jul 2003 06:56:25 -0400


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0704                     July 17, 2003
  George Matyjewicz, Moderator         mailto:georgem@gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
==================================================================
   CONTENTS

  [1]  Greetings
  [2]  More on attracting new customers
  [3]  Is there an excess inventory site?
  [4]  Do Trade Shows work?
  [5]  Wal-Mart backs off RFID
  [6]  June same-store sales

==================================================================
  [1]  Greetings.
==================================================================
Hi All:

Same-store sales stats are out for June.  Same-store sales is a guide in 
retail to measure the industry on an equal basis.  Interesting to note that 
June is the second most important month of the fiscal year for sales 
volume, industry wide, and typically accounts for 10% of annual sales.  The 
start of the summer in the Northern Hemisphere, Father's Day in the US and 
graduations all contribute to a potentially great month.  How did you do?

Do you follow the same sales trends?  What are your top three months for 
doing business?  Your worst?  Summer months are bad for many, especially in 
B2B.  Vacations seem to take priority over business ;-).  Here's one for 
you.  Which  is the month where small business owners take their 
vacation?  It's surprising, and once you understand, you learn how to sell 
to them, if that's your target.

We have some personal experiences with trade shows.  And more on disposing 
of excess inventory.  Our members really know their stuff.

Wal-Mart is backing off on inventory tracking using RFID.  I hope it 
doesn't slow down the implementation of RFID globally.  IMHO, that is the 
greatest retail technology improvement.  We need it.


Now, let's get to everything for the retailer.

Sincerely


Dr. George Matyjewicz
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com
==================================================================
  [2]  More on attracting new customers
==================================================================
I must be slipping.  For the first time in my career, I did not make the 
short list in a sale.  They looked at eight risk management solutions, and 
narrowed it down to two, and we were not one of them.  So, what did I do wrong?

Obviously I didn't qualify the prospect well enough.  They wanted a 
Microsoft platform, and we were on Lotus Notes.  They wanted complete 
Web-enabled solution and we had a partial solution.  They wanted a 
"package" with little modifications and we sell a tailored solution for 
specific needs.

So why did I read this wrong?  Was it the challenge?  Did I not believe 
they really wanted what they said (nobody does)?  Did I think I could charm 
them?  Did I believe we had a strong enough solution that could overcome 
objections?

Probably all of the above.  It reminded me to read "High Probability 
Selling" once again and get back to basics.  Qualify the prospect.  Ask the 
right questions.  Don't waste anybody's time, and we all come out a 
winner.  We don't always have everything for everybody.

Was I disappointed?  Definitely, as we are whenever we lose a deal.  But, 
as I recalled when I first started selling - the next deal doesn't know you 
just lost one.  Get on with it.

I hope this is a good lesson for everybody.  Stick to what works well for 
you, and only alter that plan when you know you will come out a winner.

There's more to attracting new customers than simply advertising.

Bummer.

George

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  [3]  Is there an excess inventory site?
==================================================================
In response to the question, "Is there an excess inventory site?"
Yes, there is ...  "Closeout News."

Each paper & ink issue has hundreds upon hundreds of closeout, surplus and 
excess merchandise companies offering their wares; and they have a good 
variety of listings on their website - but - most readers too often forget 
that companies that "sell" excess inventory also "buy" excess inventory 
(or, they wouldn't have it to sell).

Check it out at:  http://www.thecloseoutnews.com

Jim
http://www.businesslyceum.com

+++ [Next Post] +++
On Tuesday, July 15, 2003, at 04:18 AM, John Shulte wrote:

 > In response to an excess inventory site. I own a URL called,
 > MailOrderClearance.com that I someday wanted to set up for this
 > function. If anyone would like to be a partner with me on such a
 > site let me know.

Perhaps I can help you get started.  Out AdConnect.com technology could be 
used to quickly set up a site with everything you would need to be 
operational except for the actual merchandise.  We would host the clearance 
ads and keep everything running on our server so you have to do little else 
other than market the web site.

We have two version of our service, one would give you a site where you 
would have full control over the categories, pricing, and types of ads 
(classified, auction, or both) people could place.  The second version is 
an upgrade that includes everything the first version has, but adds in full 
branding so users will never know that we are hosting the service for 
you.  For example, see http://virtualcash.com for an example of a fully 
banded pure classifieds site we host.

Terms could be flexible, depending on what you can do yourself, and what 
you might need us to handle.  We don't really have the time to market this 
site, but I would assume with your NMOA group you already have the vendors 
identified, which is half the battle. One further advantage of AdConnect, 
you can set up your site so that the content is fed into a network of 
classified ad sites with an audience of hundreds of thousands of consumers 
at a minimal cost (50 cents per week) to the advertiser.


Brad Waller    | VP, Business and Affiliate Development
http://EP.com/ | http://EPage.com | http://AdConnect.com
_________________________________________________________
Classified Ad Affiliate Program: http://EP.com/b/csp.html
Content for your Web properties: http://EPage.com
Hosted Classifieds and Auctions: http://AdConnect.com

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  [4]  Do Trade Shows work?
==================================================================
George said: Trade shows are a way to attract prospects.  But, are they 
there to see what you have to offer or are they there for the free gifts... 
So, what do you think?  What works for you?

Marty's reply: Booths often help me connect with the general public and 
new-career seekers for new customers and business partners. Depending on 
anticipated crowds (and if I have help staffing the exhibit), I usually use 
one of three methods to help me qualify prospects from the "suspects" who 
really aren't interested.

l.  Entry Form Check Boxes: I use this method at booths with the general 
public. Prize values of $20 or more are highlighted in a display and a sign 
which states the time of the drawings. (Gift certificates and postcard 
discount coupons are included in the prize display. Pens are attached to 
the exhibit so they don't "walk away".) The entry forms are a bit smaller 
than an index card and are pre-printed with headings and blank lines so 
participants are directed to PLEASE PRINT their name, street address, 
city/state/zipcode, phone number and e-mail address.  (I'm still amazed at 
how many fill in all the information!) Then PLEASE CHECK YOUR INTERESTS is 
followed by a list of boxes by seven choices: Contact me only if I win a 
prize, Send me monthly e-mail specials and new product highlights, Add me 
to your quarterly events mailing list, I'd like to attend a class, Call me 
with career information, Give me more details on (product name): 
___________, I'm interested in fund-raising for (nonprofit group): 
__________. ** Follow-up Tip: In addition to the publicly drawn winners, 
the "only if I win a prize" individuals may receive a postcard discount 
coupon (with an expiration date). Those who checked other blanks definitely 
receive a coupon with their requested information or after my phone call.

2. Ticket-Stub Timed Drawings, Clipboards & Survey: At convention events 
with focused topics and more time to talk to each visitor, I use two-piece 
numbered ticket stubs on a roll. Visitors register their contact 
information on a clipboard's sheet (pen is attached to the clipboard). I 
put one side of the ticket into the drawing box as I ask about their needs 
and give them their ticket stub after they've heard my initial 
reply.  Visitors are invited to see a videoclip to receive a participation 
gift package (a bag of samples and product literature). Then they are 
offered a one-page survey (on a clipboard with a pen) which has a few 
questions related to the video, product suggestions and their specific 
needs plus space for "additional comments" and their name at the bottom; a 
completed survey earns them another ticket stub. The times of the prize 
drawings are posted (every two hours for a one-day event, every four hours 
for a two-day event), and the winning ticket stub is attached to the sign 
beside the time drawn. Obviously they need to check back to see if they've 
won, so I usually have other times to talk with them.

3. Business Cards: Some convention events have break-time only crowds of 
adults (who are in a lunch line or briefly taking a stretch break). At 
these, I have a booth with no prize drawings and simply allow anyone to 
take a free wrapped candy and a flyer.  A large bowls with signs welcoming 
business cards from those who want the next catalog or career information. 
(I have entry forms and pens on the display for those who have no business 
card with them).

To best meet prospect needs, ask event planners about the agenda and the 
most popular (or keynote session) topics. Then you'll know what to 
highlight in your booth and can have informed staff available when the most 
seekers visit.

Marty Oskvig
http://www.creativememories.com/moskvig

+++ [Moderator's Comments] +++
I guess it depends on what you are offering.  In Las Vegas the folks next 
to us had boatloads of people at their booth.  They were giving away 
T-Shirts and raffling off a lap top computer.  But, that wasn't as 
important as what they were offering.  They were the only company who had a 
national database of employers and potential employees in this particular 
field!  The giveaways were an excuse for people to visit and not feel 
guilty about registering to be on their database!  Brilliant.  And, of 
course, the spill over helped us.

So, don't give away items without some thought.

George
==================================================================
  [5]  Wal-Mart backs off RFID
==================================================================
Retail giant Wal-Mart Stores Inc. has canceled plants for an in-store trial 
of item-level RFID tracking using smart shelf readers. The trial, 
originally planned for a store in Brockton, Mass., was to be conducted with 
Gillette, which hopes to use the technology to tag high-theft items like 
razor blades.

Gillette plans to continue similar trials with European retailers Tesco and 
Metro. In June, Wal-Mart announced that it wanted its 100 top suppliers 
ready to track pallets and cases using RFID tags based on Electronic 
Product Code (EPC) technology. The EPC was developed by the Auto-ID Center 
at MIT to provide Web-based tracking of consumer goods throughout the 
supply chain. The tags contain a serial number (similar to the U.P.C. bar 
code) that would link pallets, cases and eventually individual items to an 
online database of product information.

The Uniform Code Council Inc. takes over management of the EPC initiative 
later this year.

Item-level tracking would provide valuable inventory data and possibly help 
prevent theft, but estimates are that ubiquitous tagging won't be possible 
for another five to 10 years, both because of tag costs and the current 
state of smart shelf technology. At a presentation at the Retail Systems 
conference in June, Wal-Mart CIO Linda Dillman described smart shelves as 
"complicated," illustrating her point by displaying a photo of the fairly 
large and complex innards of one system Wal-Mart was testing.

While the cancellation is something of a step back for item-level tracking, 
analysts say the focus should remain on pallet- and case-level pilots, 
where there is a clear business case for RFID.

Details at...
http://www.frontlinetoday.com/frontline/article/articleDetail.jsp?id=63294

==================================================================
  [6]  June same-store sales
==================================================================
Same store sales for June 2003 was up 2.4% based on Bank of 
Tokyo-Mitsubishi's tally of 78 chain stores which represented $59.1 billion 
in comparable-store sales vs $57.7 billion for the same period in 2002.

June is the second most important month of the fiscal year for sales 
volume, industry wide, and typically accounts for 10% of annual sales.

Rain in the first half of the month affected sales, especially in the 
Northeast US.  The second half was spurred by higher promotional activity 
and Harry Potter.

How did you do?

Details at...
http://www.btmny.com/reports/research/comment/cs0603.pdf

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