Retail Industry Articles

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Retail Industry Articles

Software and Hardware
Sales and Marketing
Customer Service
Staffing & Employment
Billing and Accounts Receivable
Vendor Relations and Purchasing
Retail Insurance
Retail Communication

Software & Hardware

The old adage, "Let the buyer beware," may ring true in some cases, but when it comes to pleasing the customer, the modern retail industry is pulling out the high-tech stops. From stocking shelves and delivering goods to marketing and advertising, tools such as the Internet, point of service systems, contactless credit cards and a broad range of retail management software are stepping up the business of selling.

Still, rapid and constant staff turnover continue to plague retailers, but pundits say the same technology that facilitates the supply side likewise can go a long way to keeping employees on the job. And, with the glut of gadgets and systems currently available, the savvy retailer would do well to get a handle on what's out there.

High-tech service providers are targeting the retail sector for good reason - cold, hard cash. The second-largest industry in the United States, the retail trade generates about $4.2 trillion in annual sales (food service sales included) and accounts for a whopping 12.4 percent of all business establishments nationwide.

Vigorous as business is, the action no longer is confined to bricks-and-mortar operations. A 2005 study conducted by BizRate/Shopzilla reveals that 87 percent of shoppers now compare Internet retailers' products against catalog merchants and retail stores to find the best deals. And 71 percent of online shoppers say they consider online sales and discount offers to be superior to those they find offline through retail or catalog merchants.

Although retail operations - from mega-chains such as J.C. Penney and Wal-Mart, to independent specialty stores - are employing online catalogs, sales and specials in growing numbers, hardware and software manufacturers are doing their best to help vendors to bring the ease and speed of the Web into their stores.

Point of Sale Appeal
One of the most effective in-house tools, from the perspective of some experts, is a Point of Sale System. Besides increasing the level of operational control, a POS set-up can heighten efficiency at the checkout counter, improve staff productivity, track inventory minute-by-minute, if need be - and help with financial reports.

Specific functions include printing coupons, obtaining customer information, calculating various discounts, scheduling work hours and serving as store-to-headquarters e-mail terminals. A basic configuration typically consists of a computer, monitor, cash drawer, receipt printer, and keyboard or scanner.

Keep in mind, though, while a POS system may sound like a dream come true, it's not for everyone. Industry insiders point out that a retail operation's annual revenues should hit somewhere around $700,000 to $900,000 to make the investment worthwhile; otherwise, a standard cash register probably will suffice.

Business owners who decide POS is the way to go should gather sufficient information early on to avoid major meltdowns later. Experts suggest the following guidelines:

Don't sign on the dotted line until you've done your homework. Refer to the Internet for information about POS systems to build a foundation of technical knowledge before you meet with a vendor. Talk with colleagues who have installed systems and find out what has worked for them. Check trade magazines, local newspapers and online publications for the best deals. Finally, consult with several vendors before you finally purchase your dream system. And don't hesitate to ask for customer references.

Get bang for your buck. Typically, vendors - rather than manufacturers - sell POS equipment. On the high end, services will include installation, programming and ongoing support. In these cases, prices can top out at more than $6,000 for a fully equipped terminal. Ready-to-go systems start much lower - between $1,000 and $2,000 but once they come off the shelf, you're on your own.

The system you're considering should interface with your current accounting software (Expect to add upgrades regularly, however). The right POS system will allow pricing adjustments, employee tracking, inventory changes and report compilation with relative ease. Ideally, it should work well for existing credit and gift card set-ups. A reputable vendor will be glad to arrange a demonstration to help you make your decision.

Confirm a back-up plan. Though most POS systems are solid, crashes do happen. For this reason, you want to know you can rely on swift, competent service. Vendors should be able to describe - in full service policies, turnaround time, repair staff qualifications, crisis management strategies (24-hour hotlines or online assistance, for example) and availability of loaner equipment.

Go over guarantees and warranties with a fine-tooth comb. Return and repair policies can very widely, and some are more generous than others.

The Wave of Retail Future
By and large, analysts agree that the ideal high tech system should capture the needs of both retailer and consumer - andRadio Frequency Identification Technology does just that.

In layman's terms, RFID, which dates back to World War II, uses electronic tags to store data. Much like their bar code cousins, RFID tags identify items, but because they operate on radio waves, do not demand close proximity to scanners.

The flexibility of RFID technology is enabling retailers worldwide to increase customer satisfaction, boost sales and improve store productivity. In fact, a large number of the world's major retailers now require RFID tagging.

Here are just a few potential benefits:

Product Control. Because RFID allows product tracking in any store area, inventory managers can maintain an ongoing record of supplies, thus avoiding overstock and shortages. With a handheld wireless terminal (basically, a PDA), employees can transmit information back to a central location.

Quick Response. Store personnel can locate RFID-tagged items in seconds. This level of product accessibility allows staff to provide fast answers to customer questions about price, availability and location of goods. Time spent in the checkout line can lessen, too. How many times have customers waited while baggers or clerks wander the aisles doing "price checks" on untagged items?

Customer Service and Satisfaction. RFID technology allows retailers to reward loyal shoppers (e.g. coupons, sales) based on their purchasing trends. RFID likewise can provide a more complete shopping experience for the consumers. Clothing retailers, for example, may store information, such as fabric content and size, along with accessory suggestions, on RFID labels. Computer monitors in the dressing rooms enable shoppers to access all the information they need - on the spot.

Increased Security. Contactless credit cards contain a chip recognized by the vendor's terminal when shoppers wave their cards in front of a receiver. A "beep" signals that the transaction has been approved. Besides being convenient and efficient, contactless cards hold encryption software to prevent data theft and duplication.

Sales & Marketing [top]

Retail operations may generate billions of annual dollars in sales, but data indicates that sales and marketing expenses are taking a huge bite of the profits. ZenithOptimedia, a leading global media service agency, reports that American retailers spent more than $17 billion in advertising last year, with placements in both print and electronic media.

All the same, Internet technology is rapidly transforming the industry's advertising and marketing strategies. Even shoppers that like to touch, smell and try on potential purchases are checking out the Web before they head for the nearest malls.

The National Retail Federation has found that 70 percent of American adults currently consult the Internet before hitting neighborhood venues for products and services - a 10 percent increase over October 2003 numbers. RetailWire, an online industry news analysis and discussion forum, reports that 68 percent of all shoppers now move back and forth between Internet shopping sites, physical stores and catalogs.

What's more, customers expect the level of service and delivery from all parts of the operation - virtual or actual. To this end, upscale vendors such as Neiman Marcus, Saks Fifth Avenue, Chico's and William Sonoma routinely offer higher-end merchandise on their Web pages, as well as in their stores.

With the Internet clearly a catalyst for change, retailers with smaller, independent operations are scrambling to stay competitive without breaking their advertising budgets.

A recent study, underwritten by the National Retail Federation Foundation and several partnering organizations, offers recommendations from various industry insiders, along with case studies of successful independents across the nation. Those interviewed suggest that smaller retail businesses CAN employ stratagems larger corporations already use effectively.

A Marketing Primer

Let High-Tech Gadgets Do The Work. Customer Relationship Management (CRM) technology, for instance, allows the retailer to not only collect data, but to generate and mail individualized postcards, letters or coupons pitching the right product to the right consumer. With hundreds of options out there, a good many pay-as-you-go systems start as low as $65 dollars per month. Costs for ready-to-use software range from around $200 to $5,000, and up.
Know Your Target Market. A purveyor of guns and ammunition likely would not choose to advertise in a women's interest magazine, nor would he (or she) donate t-shirts to a softball game sponsored by an anti-gun group. He would do better rather, advertising in sportsmen's magazines or on similar Web sites, rather than waste ad dollars appealing to the wrong audience. Yes, this example is simplistic, but it does underscore what marketing experts advise - stick with the outlet best suited to the product.
Consider Non-Traditional Outlets. According to marketing pros, the costs of network television, radio and print promotions continue to escalate. In fact, a California-based small business development center came up with the following averages: Based on a 12-week contract, a 2- by 2-inch newspaper add runs $1,300 per week; television - $200,000 for one 30-second prime-time commercial; radio - $90 to $120 per week on a rotator basis; and magazines - $1,200 to $5,000 per month or per issue, depending on ad size and demographics.

On the other hand, an Internet banner ad on selected Web sites can cost as little as $200 to $1,200 per year. Other potential bargains are e-mail newsletters and promotions, direct mail, cable TV channels and custom publishing.
Make Friends With the Neighbors. Retail establishments of every size are attracting new customers - and getting free publicity in the process - by sponsoring events such as in-house demonstrations, concerts, children's functions art shows and classes. One major hardware chain, for instance, offers weekend how-to workshops on carpentry projects, painting techniques and dozens of other subjects for do-it-yourselfers; a pet store provides free obedience classes (and treats) to canine customers; and a cosmetics store gives free make-up applications to teens every Saturday morning.
Team Up With Other Professionals. Cross-Promotional Marketing allows retailers and other businesses to strategically target the same market without directly competing with one another. The beauty of this technique is that it provides low-cost growth opportunities for any enterprise, regardless of the type goods or services.

An example: With purchases of $50 or more, a ladies' boutique distributes "free manicure" coupons to redeem at a local spa. In turn, with 60-minute massage, the salon presents a $20-off certificate for the boutique. As partners in a cross-promotion, these vendors are reaching far more potential customers at much lower costs. In addition, prospects are introduced to each business through vendors they already use and respect.
Develop Media Partnerships. It's no secret that small retail operations frequently have super-tight marketing budgets. Even so, successful independents can lower advertising costs by negotiating special agreements with electronic and print media providers, such as committing to a 12-month contract in exchange for a reduced price per spot. Others have found that co-sponsoring charitable fund-raisers (5K races, galas, cook-offs and fashion shows, to name a few) with local radio, television and newspapers draws attention to their businesses AND helps others, too.

Customer Service [top]

State-of-the-art technology and a strong marketing plan clearly brings new shoppers flocking to the door, but the question remains How can the small to medium-size retail operation keep them happy?

Research released by Jupiter Media Metrix predicts that a growing number of U.S. businesses will spend at least $500,000 on customer relationship management tools over the next two years, more than they'll commit to any other major infrastructure initiatives.

According to many experts, this is the right move. An investment in technology - along with a healthy measure of old-fashioned service - is the ideal mix to build a loyal customer base.

Cyber-Strategies

Use computer systems and software to serve and reward customers. In the checkout line, point of sale technology can store names, addresses and the personal information of loyal shoppers, as well as track purchase histories. Collecting data in this manner makes it easier to target the appropriate demographic groups for special rewards, such as discount certificates or frequent shopper cards. In the last decade, the practice of sending birthday cards with generous discounts as "gifts" has become increasingly popular.
Pole Displays, POS accessories allowing customers to see item and price information, as well as advertisements for related goods, keeps them informed right up to the time they check out. These run around $200.
Utilize a Web store - together with your bricks and mortar operation - to glean consumer information. Online sites often provide registration forms requesting mandatory data, such as names, home addresses, e-mail addresses and phone numbers, as well as optional input, depending on the nature of the product (e.g. clothing sizes, birthdays, family data, etc.).
Keep in mind, the idea is not to invade anyone's privacy, but to deliver more personalized service by getting to know your customers.
Help shoppers help themselves. Many retailers are installing in-houseKiosks to facilitate customer transactions, as well as to improve the total shopping experience. Analysts estimate that retail kiosks, with an average cost of about $6,000, make up at least 30 percent of the self-service kiosk market. At their most basic, these models contain touch screen product displays and interactive store directories.
Even so, a number of major chains, including high-end department stores, have broadened their functions to include gift registries, entire product catalogs, automated order forms, credit card enrollment and even job application centers for prospective employees. Purveyors of big-ticket items, such as home furnishings, are discovering that Instant-Credit Kiosks can be especially helpful to younger consumers who must be mindful of their budgets. Unlike the traditional experience - where folks shop first, then apply for financing - these stations enable potential buyers to apply for private-label credit immediately upon entering the store. Credit-line approval follows within seconds.

A retailer who operates furniture stores in Pennsylvania and Maryland (Wolf Furniture) estimates that about 90 percent of his credit applications are done via kiosk, with an average ticket growth of 15 to 30 percent across stores. Typical rental costs of credit kiosks, including service and maintenance, run between $400 and $600 per month, based on a three-month lease. Retailers must provide a broadband connection.

Tried, True and Traditional

Reward loyal customers. A personal relationship with customers can keep them shopping at your friendly neighborhood independent, even though that chain-store giant lurks just down the street. Statistics show storeowners can increase profits by 25 to a whopping 125 percent simply by retaining 5 percent more customers. Given this, increasing numbers of smaller retailers are offering incentive programs, such as frequent shopper cards, preview sales and V.I.P events for particularly loyal patrons.

Show your clientele you care. Calling regular customers by name; inquiring after their families; phoning them when special or unique items come in; remembering their favorite colors or brand of coffee - these simple kindnesses may well impact the bottom line.

Respect customer privacy. Given the volume of data retailers can access via POS systems and the Internet, the consumer's right to privacy has become a hot topic. To this end, retailers should assure their clients that personal information they've provided won't land them on someone else's e-mail or telephone list.

Respond graciously to complaints. The majority of successful retailers say it's better to suffer a minor loss rather than lose a loyal shopper. To this end, rectify problems promptly and the customer for bringing it to your attention. Remember in mind - shoppers who feel cheated, insulted or ignored won't hesitate to spread the bad news to their friends.

Teach the principles of customer courtesy to your employees. A rude or uniformed salesperson can lose business. Be sure personnel understand that keeping customers happy means job security for everyone in the store. When you notice an employee taking particularly good care of a shopper, recognize the effort.

Staffing & Employment [top]

The retail sector overall, and small business retailers are a great source of employment opportunities to many American workers, especially those needing to enter the workforce for the first time. Entry-level part-time, temporary, and seasonal work is plentiful and a lot of people first experience working has been in retail. For a variety of reasons—work schedules, part-time dominated workforces, etc., small business retailers sometimes find it hard to attract and retain good people. Because of the nature of retail employment opportunities--seasonal, part-time, minimum wage, etc., turnover among retail workers is high with about one-third of all employees being replaced every year in retail establishments.

So let’s look at your small retail oriented business and see if there is anything different. For one thing, you probably do a lot of your sales on-line, from your website and/or other media exposure. With today’s new entrants into the workforce, your small business might be attractive to someone with excellent computer/internet skills who isn’t particularly fond of being a face-to-face sales representative. So, you could have a big upside advantage over a large retail establishment where most of their employment opportunities are in a physical location, on your feet and meet, greet and smile sales positions.

If you are fortunate enough to need help in your retail small business, you are probably paying close to minimum wage for entry level-type people because your profit margins are thin and you wage a constant battle to maintain your profitability (especially with the seemingly ever rising cost of the commodities you use as well as constant consumer demands for the lowest possible price in the market). To avoid legal and benefit costs, you hire only part-time people, it is rare that you keep people for a “long-time”. You have to do some training on your products and processes. It is sometimes a challenge for people to get to be dependable (i.e., get to work on-time, or show up every day they are scheduled).

So, who do you hire? Where do you find them? In all likelihood, the richest source of “good” people will be students who need a part-time schedule that is flexible. If you have embraced the consulting/part-time model of providing the people your business needs, you might target segments of the population that could be interested in continuing to work but a life-change has taken them out of the “9 to 5” work world. New parents who must provide their own child care might be amenable to flexible, part-time employment. So might the person who has just retired but who doesn’t want to get out of the game completely. Both of these last two options work well if your business allows most of the work to be accomplished on-line or remotely. And don’t forget the relatives of friends and other family members (once removed) who might be willing to lend a hand. The author is personally acquainted with one small retail business owner who recruits almost exclusively from among her cousins and second cousins.

Because of the demographics of the majority of those employed in retail establishments—younger employees, part-time, unattractive work schedules (i.e., work holidays, weekends, nights, low pay scales, minimal employee benefits like health insurance, etc.,) the most important function in a retail business is to have an effective way to attract new employees. For a small business owner, that is even more problematic because small businesses cannot afford human resource and training professionals on staff and they are expensive to employ or hire on a contractual basis. Here are some tips to help the small retail business owner find (and hopefully retain) the staff needed to keep the business functioning well:

Include a line regarding job information on your business cards. Use the back of the card if you need more space.
Post help-wanted signs at local colleges or high schools, as well in your store. Many university newspapers operate job opportunity web sites, another great option.
Offer gift certificates, "finders' fees", product discounts and other inducements to customers who send potential employees your way.
Create a staff “soft” new hire (also known as inexpensive) incentive program--two tickets to the movies, dinner certificate, a paid day-off, merchandise, etc. to workers who make successful referrals of new hires.
Tell everyone you're seeking staff. Your family, friends, your Facebook page, twitter groups, your accountant, customers, etc., in short, everyone you know. They may know someone who's right for your business.
Do everything you can to keep good people. Retention in small business, retail environment is a key business imperative. Your staff must clearly see and conclude that you care for them a lot. Sure, you must pay a reasonable wage and give people the hours they need or want to make ends meet, but beyond that it has been shown over and over again that if people like their co-workers, think their boss if fair, friendly and cares for them, is understanding, etc., that the “personal connection” loyalty keeps people in your shop when without these working environment characteristics they would have left a long time ago.

In today’s world, it is also a “must” to make certain that every person you are hiring (or engaging) is fully fluent, functional, trained, and adept at using today’s tools to perform work in a virtual world. This training should include knowing how to maintain the integrity of e-files, systems, e-storage, and all forms of communication medium so that, the integrity of your client’s information/data/transaction data/information is not compromised. It is also a good idea to “test” their comfort and expertise levels using a fully automated and integrated system before you make any offer of employment.

If you need to hire (or replace) people where do you find them? A quick internet search will give you the contact information for schools which provide training in your State or geography (and they usually have a referral service for alumni). Also, with today’s social media reach, using your private list of key contacts by simply letting them know you have a specific need for an employee will probably satisfy your talent needs faster than you can imagine. If you use your search engine to query “employment agencies near {zip code}” not only will you get names of a variety of hiring agencies (aka “headhunters”) who can relatively quickly provide you with suitable candidates at a reasonable cost, but you will also see a number of boards on which you may post your “opening” at virtually no cost. If you use this tool, be prepared for an avalanche of candidates—the point being, be selective in the modalities you use to find talent.

For more ideas on how to find the people you need, please refer to the Human Resource for additional suggestions.

Billing & Accounts Receivable [top]

In today's retail business, the swoosh of a card swiped through a scanner pretty much drowns out the clink of cold cash hitting the till. A report from CreditCards.com, an online site where consumers can research and apply for their very own plastic, reveals that general purpose credit cards represented 23.6 percent of overall consumer spending volume in 2005. Conversely, cash accounted for only 13.7 percent in the same time period.

On the accounts receivable side, this state of affairs has boosted revenues, pundits say, because a typical credit card purchase runs 12 to 18 percent higher than a money transaction. On the other hand, time-lags between buying, billing and payment, as well as added fees and operational expenses, can choke a healthy cash flow - a problem particularly bothersome to small- and midsize- store owners.

Credit cards aren't going away, but a number of technical and practical strategies can help entrepreneurs receive timely payment for goods and services. And though many consumers still write checks to pay monthly retail invoices, industry analysts suggest a number of programs that can convert them more quickly into cash.

Avoiding Credit Casualties
Keeping the accounts receivable column on track begins with a card swipe, continues through the billing process and winds up only when a payment clears and the money actually is yours. Fortunately, information regarding the subject abounds on the Internet. Some of the best, in fact, is available through the National Retail Federation (www.nrf.com), the Small Business Administration (www.sba.org) and a number of university-based business colleges.

From basic good sense to high-tech gadgetry, current revenue management tips and tools apply to retail operations of every size and type even small, independent retail operations. Here are a few basics:

Be tech-timely. A point-of-sale system goes a long way toward getting the accounts receivable ball rolling. By maximizing the amount of data inputted with each sales transaction, a solid POS set-up provides all the raw material for tracking, billing and follow-up of customer accounts. Better systems typically include ongoing support services, including repairs and overhauls. Industry analysts suggest upgrading terminals at least every three years.

Ensure that all people-systems are "go." If he accounts receivable column is suffering, sometimes the person pushing the keys is at fault. For instance, when transaction numbers don't seem to jibe, running either too low or too high for expected sales patterns, an employee may be processing credit cards, debit cards - or even cash sales - incorrectly. A hardware/software training session or two may be all it takes to rectify the situation. Again, POS vendors often provide instructional services to customers as part of their support package.

Review, review, review. Going over monthly statements and financial reports with a fine-tooth comb - and understanding them to the final fee and decimal point - is an absolute fundamental of the entire billing and accounts-receivable continuum. By doing this faithfully, a store owner, especially one that does his own bookkeeping, may well identify inconsistencies that are hurting the bottom line. By the same token, the company or bank that handles a retailer's receivables has a professional obligation to assist with all matters regarding that account.

Stick to a collection protocol. A dependable cash flow keeps the coffer full. This may mean dealing firmly, but professionally, with customers slow to come up with their credit card or installment payments. Experts stress that retailers NEVER ignore overdue payments. When receivables pass the 30-day due date, rebilling should follow within 24 hours. Sixty days from the initial invoicing, an employee can contact the customer, in a friendly, impartial manner, by telephone. After 70 days, the retailer should call personally to ascertain the problem, taking care to gather information through concerned, even-tempered questions. A collection agency should enter the picture only when the owner is certain he won't get his money any other way.

A Word On Checks And Balances
Much like their plastic cousins, written checks truly can cut off cash flow, mostly because it takes time for them to process and clear. Happily, technology has spawned a number of payment systems designed to help business owners maintain a positive balance:

Online checking. Internet store retailers can access and process electronic payments directly from the Web site. Fund transfer to the owner's account takes under 48 hours significantly less time than paper transactions.

Telephone. Particularly suited to mail order services, customers authorize "checks" to cover purchases via the phone line, with monies deposited into the retailer's accounts within two days. This system is much cheaper than credit card processing, because costly transaction fees are not a factor.

Accounts receivable check conversion. ARC, available through a number of leading financial service providers, allows customers to leave paper checks in a drop box or lockbox. The hard copies are converted into electronic debits, then processed through the ACH (Automated Clearing House) network. Any checks drawn on consumer accounts payable in U.S. dollars are appropriate for ARC conversion. Here's how the technology works: A machine reads the check to obtain the magnetic ink character recognition (MICR) information, such as serial and routing numbers, inscribed along the check's lower edge. This data, along with the check account transmits in the form of an ACH record to the ARC provider. In turn, the provider initiates a transaction and credits the retailer's account in the next business day.

Electronic check recovery. A boon to retailers who see too many bad checks, this process allows the owner's bank to forward the returned check to the service provider's processing center. The check goes into a data base, where it is resubmitted via the ACH network. The benefit? Electronic recovery allows retailers to tend to their customers, rather than tracking bounced checks.

Vendor Relations & Purchasing [top]

The landscape of the retail industry changes from one month to the next. As new product trends surface, others fade into the shadows of the clearance rack. For this reason, business owners must keep their shelves stocked with highly-desired, up-to-date merchandise. The stores with the most fluid inventory circulation tend to keep the checkout line elbow to elbow. Before cashing out customers, however, retailers must deal with the lifeblood of the industry: Vendors.

Vendor Relations: The Value of Friendship
At the end of the day, establishing an effective product cycle starts with good vendor relations. Industry pundits stress a few basic tips to select the right supplier.

Up close: Some retail aficionados recommend contacting the vendor and inviting a representative to personally visit the store. In too many cases, a manager fills out the order form, the delivery personnel drop off the supplies at the back door; and that represents the extent of retailer/vendor relations. Through holding a face-to-face meeting with a vendor representative, retailers can introduce the supplier to management and other employees, set up a schedule for store demonstrations, and/or negotiate product placement in return for price reductions. In any case, the vendor wants to sell their products as much as the retailer. Discussing sales strategy and setting up a formal contact will allow both parties to move closer to that goal.
Honesty is the best policy: Retailers should always express to the vendor exactly what they expect in the way of services. Many businesses actually devote a separate section of their Web site solely for this kind of supplier communication. On these pages, the company usually lists a set of qualities they desire in a vendor. These might include:
- Financial viability
- Value added services
- Strong ethical standards
- Quality control and standard operating procedures
- Flexible delivery schedule
- A basic understanding of the retailer's business
Essentially, outlining expectations helps to better ensure the vendor fully understands and accepts the retailer's code of business conduct.

Let them come to you: Traditionally, retailers searched for vendors by referral, word of mouth, etc. Today's technology, however, makes it so the supplier often seeks out the retailer instead - after all, they are the ones providing the service. Many store Web sites include a section specifically for vendors interested in conducting business with that operation. Online supplier registration allows vendors to get their portfolio in front of a retailer in a matter of minutes. This tool lets businesses keep a digital profile of many potential suppliers. The virtual registration forms usually request that the vendor lists experience, capabilities, standards of business, etc. In certain situations, the supplier may update their profile over time by accessing the portal. Ultimately, a compilation of online registration forms serves sort of as a bidder's database.

Purchasing: The Buying Game
While not all retailers sell the same items, one common bond unites everyone in the industry. When the racks, shelves or stockrooms start to become barren, management must place an order. A number of businesses apply the following rules of thumb to their purchasing procedure.

Don't base decision merely on product cost: Many retailers warn against bouncing around from one vendor to the next in an attempt to find the lowest price at the time of the order. Since suppliers routinely offer deals to keep up with competition, this only looks to make the job of purchasing merchandise more hectic in the long-run. Instead, experts say stores should select suppliers based on product quality, delivery performance, experience, etc. Once a store finds a dependable vendor, they should stick with them over time. Suppliers often appreciate loyal retailers and usually are more flexible with price and scheduling in order to retain fixed business.

Perfecting the transaction system: Some retailers have established a competent core of vendors, yet feel something is missing when it comes to maximizing value. For businesses faced with this issue, profit improvement firms offer services designed to scale back inventory spending. Utilizing auditing techniques, and often proprietary software, these firms work to identify lost profits related to overpayments and/or under-deductions. In some cases, it might be as simple as comparing vendor shipping patterns. Nonetheless, the goal is to trim costs Moreover, these firms tend to focus on validating and recovering the money. With an eye on the client's bottom line, profit improvement firms help retailers activate internal controls to track financial performance. In addition, they strive to establish a strong working relationship between stores and their vendors.

Retail Trade Insurance [top]

At the end of the day, you take the money, lock up the cash register, bolt the door and set the alarm. But what else are you doing to protect your business? Today, a number of insurance coverage options are available to help protect you in any circumstances.

You've Done Everything Else

You insure the health of your family. You insure your automobiles and home. You make sure these policies cover every foreseeable circumstance. Do you do the same for your business and employees? Business-owner policies cover your properties and inventory. Liability coverage assists you in the event of an accident caused by a product or service you sell. In addition, liability protects you against an accident occurring on your property. Workers compensation insurance protects your employees if they would become injured or ill as a result of the functions of their job.

Business-owner policies: (BOP) are available under many names, and combine elements of property insurance, a homeowner's policy, and liability insurance, with additional, optional, riders. The BOP, at its most basic, covers your real estate (owned or leased often the landlord's policy doesn't provide for your inventory and equipment) and other business properties office equipment, inventory and many allow automatic seasonal variances in the insured value as an additional way to protect you when your inventory levels rise and fall with your selling seasons. The additional riders include coverage for burglary and robbery, spoilage and more.

Liability Insurance: This covers you if a person was injured on your property, or as a result of a product or service you sell. Legal costs and damage settlements are covered by liability insurance. The most common liability case is the slip and fall, and there are steps you can take to minimize risks in this and other liability prone areas, a discussion with your insurance agent can help you find and fix these situations.

Workers' Compensation Insurance: This coverage takes care of medical bills, settlement monies, and a portion of lost wages for employees injured while performing a function of their job. Laws vary by state regarding requirements for coverage, so check state and local regulations. Often, certain types of employees (independent contractors, for example) are exempt, and certain numbers of employees may mean different levels of coverage.

Riders: Other types of insurance, called riders, are available for purchase. They include:

Business Vehicle Coverage: This operates similarly to the auto policy on your personal vehicle, but, because many auto policies will not cover a business vehicle, this affords an extra layer of protection in the event of an automobile accident. Check your current auto policy to see if your business vehicle is covered.
Burglary and Robbery Coverage: This assists you after there has been a burglary or robbery of your business. Some policies may require specific security measures, such as a security system or security cameras, be in place to be insured.
Employee dishonesty policies cover threats from within - theft, embezzlement and fraud perpetrated by employees.
Spoilage Coverage: This protects perishable goods like food and flowers from loss in the event of a power outage or some other event that would cause them to be spoiled.
Transportation Floaters: These insure merchandise in transit over and above the insurance coverage provided by the freight carrier. The United States Post Office and other package shipping companies offer insurance on packages shipped by you for little cost, and, if you ship to customers, it is always a good idea to insure the package.
Terrorism Insurance: This has become more popular since 9/11, and many insurers offer this coverage at no additional cost. Check with your policy or agent to see if you are covered.

One of the most important insurances:

Umbrella Policies These protect you over and above your other policies, acting as another layer of defense in the event a claim is filed. The monetary value of umbrella policies depend on the limit of your other polices and the amount you would need to cover your business assets.

Many riders overlap one another, such as burglary and robbery and employee dishonesty, but it is a good idea to be fully covered and protected from any unforeseen circumstance.

What's a Retailer to Do?

Your particular corner of the retail world has insurance needs that can be met by building a relationship with an insurance agent and working closely with them. The better they know and understand your business, the better they'll know which types of coverage will best protect your business. In many cases, a BOP combing property, liability, and vehicle coverage works best.

Costs for these different insurance coverages vary from company to company and by the terms of the particular coverage. No matter the cost, your business must be protected, but, according to Insurance Information Institute, there are a few things you can do to reduce your premiums:

Shop around for rates. Costs and terms vary from company to company, look around and find the best one for your business.
Raise your deductible. A higher deductible means a lower premium, so increase it.
Buy a package policy rather than several small coverage packages. Most insurers offer discounts with bundled insurances, check with yours for rates and discounts.
Build a relationship with an agent and work closely with them.
Take steps to prevent loss. Upgrade your alarm system, locks and latches, and file security; install security lighting and cameras these things can help reduce premiums, check with your agent for further steps you can take.
Avoid losses (claims). Fewer claims mean lower premiums, so do your best to eliminate unnecessary risks on your business property.

The main thing to remember is to protect yourself and your business. A little shopping around and some careful examination of your niche in the retail world will help you find the best plan for your business.

[top]⇑

Retail Trade Communication [top]

In the daily rush of the retail world, how do you keep track of stock, timesheets, employees and schedules and still serve the customer? A cell phone, Smartphone, or Portable Digital Assistant (PDA) may be just the thing your business needs. Each of these devices now come with an array of service options designed to help retailers keep the register brimming with cash.

Check Out Cellular Telephones

Just as cells are the building blocks of life, the cellular telephone is the building block of modern business communications. According to the Cellular Telecommunications and Internet Association (CTIA), there are over 250 million wireless subscribers in the United States today. That means 81 percent of the U.S. population has access to a wireless device. That means most of us - 75percent according to ctia.org - will use a wireless device in our business. As a result, the retail industry is reshaping its management and marketing approach to best benefit from today's mobile movement.

A cell phone's primary use is to send and receive calls from anywhere at anytime, but even the most basic models on the market today allow for Short Message Services, or "text messages." Text messages (users send short messages composed on the cell's alphanumeric keypad) and Push-To-Talk features (users immediately speak with other cell phone users by simply pushing a button rather than dialing a number) have become popular and easy ways to communicate in the retail workplace. In the past when an employee needed information on a product, they likely would hunt down the manager or use a stationed store phone to dial the related department.

Today, however, sales people can text message or use the Push-To-Talk feature to quickly get a hold of the data they need. This allows them to answer consumer questions much faster, find prices on products without manually searching, etc.

In fact, a number of today's mid-sized to larger retailers issue work phones to staff members the first day they hit the sale's floor. By doing so, management has a direct line to manpower at all times. This comes in handy should the boss need to change someone's schedule on the fly, request extra help, want an employee to run an errand while on break, etc. Still, retailers are not turning to cell phones to only make operations more efficient. Many have incorporated mobiles into their advertising campaigns as well.

Mobile Marketing allows the retailer to get in front of the consumer anytime, anywhere. Through text message campaigns, stores send saving's alerts, product updates and sales announcements directly to the consumer's cell. Mobile phone service providers offer Web-based interface packages that allow retailers to spearhead entire campaigns in minutes. Certain package features include scheduled messaging, data tracking and answer tracking. Text message marketing possibilities include interactive contests, voting, e-coupons, sweepstakes and more.

Handheld Mobile Point-Of-Sale Technology: A Real Bargain

The ability to get the consumer in and out in a timely fashion speaks volumes about an operation's efficiency. Mobile Point-Of-Sale gadgets - while not necessarily considered communication devices definitely can play a role in reducing time spent chatting on the store's intercom system. Mobile POS systems let employees conduct general retail tasks like shelf price auditing, inventory tracking, checkout, real-time advertising and product information collection. With all of these capabilities at the user's fingertips, workers spend less time hunting for answers and consumers spend less time waiting for a response.

Retailers Sold On Smartphone and PDA Technology

First things first Maxwell Smart did not use a Smartphone. That shoe-phone was at best an early cell.

Smartphones and PDAs combine the cell phone's abilities with expanded access to the Internet and email, as well as the opportunity to use programs more commonly found on a personal computer or laptop. In the fluid retail industry, quick and easy access to inventory sheets, bank statements, product reviews, consumer databases and other vitals can make all the difference in the world.

Capabilities

The biggest benefits Smartphones provide to the retailer are expanded access to the World-Wide Web as well as compatibility with a suite of office programs. Smartphones also offer a built-in Qwerty keypad that is larger and easier to use than the cell phone alphanumeric keypad. This makes tasks such as ordering inventory and tracking route information much smoother - and from any location with WiFi to boot.

Most PDAs boast the same features as Smartphones, but with a larger selection of programs and accessories: Bar Code scanners, signature capturing software and the ability to easily expand the memory, to name a few.

Streamlining the time you devote to your business is the idea behind using any new technology. With the versatility offered by cell phones, Smartphones and PDAs, comparing functionality verse needs is the best way to profit.

Smartphone Breakdown

Everything the cell phone does in addition to:

Immediate access to office applications mean you can access and update vendor information, inventory and order lists, and customer contacts anytime.
Built-in cameras let you capture, review, and transmit images an eye-catching display, a new product or the latest trend.
Access employee timesheets, your online bank account and other pertinent information quickly and easily.

PDA Breakdown

Everything the Smartphone does in addition to:

Bar code scanning software for inventory management, price checks, and order tracking.
Signature tracking software for delivery confirmation.
Easily expandable memory.
Many other industry specific software and hardware applications.

Of course, all of these devices allow for wireless headsets and earpieces, making them more versatile for our busy world

Know What You Need

Analyze your needs and wants and find the perfect balance in one of these devices. Do you often need to do price checks from the floor, take calls in your car and update delivery schedules while away from the desk? A PDA works well for you. Just need to call and check in with employees and vendors? A cell phone is the answer. Need to order merchandise from the road, as well as text and work on spreadsheets? A Smartphone meets these demands perfectly.

The price of the device is not the only cost to consider when purchasing one of these tools. The monthly wireless plan also factors in. With cell phones, the plans tend to include a set number of minutes, as well as a certain number of text and/or picture messages allowed. GPS service usually requires additional up-front charges and often a monthly access fee. The same holds true with Smartphones and PDAs, but they have additional data plans that allow you to send and receive information such as email and Internet searches.

[top]⇑

Retail Insurance [top]

By Jason Frye

You've Done Everything Else

Riders: Other types of insurance, called riders, are available for purchase. They include:

Business Vehicle Coverage: This operates similarly to the auto policy on your personal vehicle, but, because many auto policies will not cover a business vehicle, this affords an extra layer of protection in the event of an automobile accident. Check your current auto policy to see if your business vehicle is covered.
Burglary and Robbery Coverage: This assists you after there has been a burglary or robbery of your business. Some policies may require specific security measures, such as a security system or security cameras, be in place to be insured.
Employee dishonesty policies cover threats from within - theft, embezzlement and fraud perpetrated by employees.
Spoilage Coverage: This protects perishable goods like food and flowers from loss in the event of a power outage or some other event that would cause them to be spoiled.
Transportation Floaters: These insure merchandise in transit over and above the insurance coverage provided by the freight carrier. The United States Post Office and other package shipping companies offer insurance on packages shipped by you for little cost, and, if you ship to customers, it is always a good idea to insure the package.
Terrorism Insurance: This has become more popular since 9/11, and many insurers offer this coverage at no additional cost. Check with your policy or agent to see if you are covered.

One of the most important insurances:

Umbrella Policies These protect you over and above your other policies, acting as another layer of defense in the event a claim is filed. The monetary value of umbrella policies depend on the limit of your other polices and the amount you would need to cover your business assets.

Many riders overlap one another, such as burglary and robbery and employee dishonesty, but it is a good idea to be fully covered and protected from any unforeseen circumstance.

What's a Retailer to Do?

Shop around for rates. Costs and terms vary from company to company, look around and find the best one for your business.
Raise your deductible. A higher deductible means a lower premium, so increase it.
Buy a package policy rather than several small coverage packages. Most insurers offer discounts with bundled insurances, check with yours for rates and discounts.
Build a relationship with an agent and work closely with them.
Take steps to prevent loss. Upgrade your alarm system, locks and latches, and file security; install security lighting and cameras these things can help reduce premiums, check with your agent for further steps you can take.
Avoid losses (claims). Fewer claims mean lower premiums, so do your best to eliminate unnecessary risks on your business property.

[top]⇑

Retail Communication [top]

By Jason Frye

Check Out Cellular Telephones

Handheld Mobile Point-Of-Sale Technology: A Real Bargain

Retailers Sold On Smartphone and PDA Technology

First things first Maxwell Smart did not use a Smartphone. That shoe-phone was at best an early cell.

Capabilities

Smartphone Breakdown

Everything the cell phone does in addition to:

Immediate access to office applications mean you can access and update vendor information, inventory and order lists, and customer contacts anytime.
Built-in cameras let you capture, review, and transmit images an eye-catching display, a new product or the latest trend.
Access employee timesheets, your online bank account and other pertinent information quickly and easily.

PDA Breakdown

Everything the Smartphone does in addition to:

Bar code scanning software for inventory management, price checks, and order tracking.
Signature tracking software for delivery confirmation.
Easily expandable memory.
Many other industry specific software and hardware applications.

Of course, all of these devices allow for wireless headsets and earpieces, making them more versatile for our busy world

Know What You Need

[top]⇑

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