For most retail stores, one of the major expense categories is what is called "Cost of Goods Sold" - a problem that resale shops avoid. If you are a non-profit this is especially true, since you will likely be flooded with donations. Even for-profits may find that they don't need to spend much for inventory.

If you have ever worked retail, you know that it is very involving. You are dealing constantly with the public - which means you don't have much if any time to worry about your own problems.

Can you make money as a thrift store owner? One of the surest ways of seeing if a business idea is viable or not is to see what others are doing with it.

Probably the most notable example of a profit-making resale shop is Value Village. This is a nationally franchised chain, and the key to a franchise is that if you follow 'the plan' you will make good money. It has been proven throughout numerous other franchisees. The owners of these are making very nice incomes, putting their children through college, and often living the 'good life.'

I think one of the real advantages of this business over any other type of retail is the joy of discovering. Each time you get a donation, you get to go through it seeing what you might find. It is like a mini-Christmas each time - and occasionally you will find a real treasure amongst the junk. The thrill that this gives you will sustain you through all the not-so-good stuff you have to go through, and keep you eagerly looking for more. Think of it as prospecting for gold, or searching for treasure, and you'll be sure to have fun.

Many resale shops donate some or all of their proceeds to worthy causes - even those that are not by definition charity thrifts. You are doing good things - earning points in Heaven perhaps - and it is smart marketing to boot!

People like to think their money is going to help someone or something that needs help, and given a choice will do business with you if you are supporting a charitable cause.

When you open your own store, whether a resale store or any other, you are a member of a very special group of people. The retailers in any town are a tiny portion of the population, but have one of the largest impacts on everybody in town.

There is usually a Merchan't s Association you can join, and always a Chamber of Commerce. The only limitation to your involvement is your own will and energy. You could become the President of the association if you wish, or certainly an officer, and have a great influence on how things go in your own town. You will have a voice all out of proportion to your wealth or standing. So speak up, get involved and enjoy!

There is more work to running a resale shop than there is in most retail stores. Not only do you have to run a thriving, profitable retail establishment - exactly as you would have to with any other store - but you also take in donations, sort through them, and often clean and repair them before making them available on the salesfloor.

People tend to look down on resale shops. Partly this is due to the fact that our stock and trade is in second-hand goods - which often means things that others have deamed not worth keeping.

Another reason for the lack of respect is that our stores tend to be in less affluent parts of town - in fact the worst parts of town. The saying is that you can tell a neighborhood is in trouble where the 'bad four' are found:

1. Liquor stores

2. Pawn shops

3. Thrift stores

4. Sex businesses, such as adult video stores and strip clubs.

It doesn't have to be that way - some thrifts and a quite high percentage of consignment stores are in ritzy neighborhood.

One of the more unusual aspects of this business is that you will be dealing with an incredible variety of clientele. Most retail shops have their demographic more clearly defined. Shop A caters to baby boomer age affluent women. Shop B caters to older teen girls. In fact, the decor, the displays and even the music playing in the background is designed to appeal to their type or customer.

When running a resale shop, you'll find all types. Literally all types.

The extremely wealthy shop there. In fact, movie stars and rich business types often brag about their great thrift store finds. There was a book released not too many years ago called "The Millionaire Next Door" which talked about all the rich people who look like they have no money.

The professional classes, the white collar and the blue collar workers may all get their collars at the thrift store. High school girls have been known to layer in multiple resale shop finds. Many people have found this to be a great way to stretch their dollars and have fun doing it. For many, it is a great way to spend a few hours.

For some though, the resale shop is the only real store they feel comfortable in. Where other stores would do everything possible to make them leave, the homeless, the poor, the immigrant and even the mentally ill find the resale shop is a welcoming and economical way to buy things.

This means at times the customers will be challenging, at times irrational, at times amusing, but always interesting. You'll have to learn to deal with just about every personality type imaginable.

Target Your Business to an Age Group, Not to the World!

By: John Stanley

As a consultant working with retailers, one of the first questions I ask a client is can they paint a picture for me of a typical customer. Some clients can be very specific, whilst others just give me a blank look, then follow it up by saying everyone is a potential customer; how can they paint a picture of a typical customer?

Alas, very few retailers can claim to have the whole of society as a customer base, the rest of us have to target specific consumer groups.

Historically, these groups were targeted based on their likes and dislikes; this still is an important factor, but in the next series of articles I would like to take you back a step further and analyse the likes and dislikes of consumer age groups.

Market researchers split the population up into Spoodles (Spoiled Toddlers), Pester Power (children), Generation Y (15–25 years olds), Generation X or IKEA babies (25-35 years olds), The Jones Generation (35-49 year olds), Baby Boomers (50-65 year olds) and Greying Tigers (65 year olds upwards).

As retailers we need to decide who are our target group and are we merchandising displaying, promoting and providing the customer service this group finds attractive and appealing.

In this series of articles we will analyse each group from a retail perspective and offer ideas on how to grow your business when targeting one of these groups. In this article we will focus on the first two market groups.

Spoodles

To some people a Spoodle is a breed of dog and to others it is the under 11s. The name Spoodles comes from Spoiled Toddlers and is a name used by Walt Disney for one of its children’s restaurants.

The parent’s icon for Spoodles is David and Posh Beckham, who are looked on as classic Spoodle heroes.

To the toy industry, Spoodles are the key target market, but the key is that if you can keep young children happy, you can keep their parents happy and happy parents spend more money.

In 2003, the world’s biggest retailer identified the importance of this group and introduced an exclusive range of infant wear ‘Child of Mine’. One of the reasons for this was Wal-Mart had an eye on the mother-consumer. Even so, Spoodles are worth $3 billion a year to Wal-Mart in their own right.

The challenge is to look at your own retail sector and to look at the opportunities you have to attract the mother-consumer.

Spoodle Food

The organic food industry and locally sourced foods is a huge growth sector and also receiving political attention in many countries.

Rachel’s Organic is a leading U.K. organic dairy manufacturer and they recently launched organic yoghurts for toddlers.

The objective behind the marketing campaign is that if toddlers are introduced to organic foods, they are more likely to become adult organic food buyers with the pressure on child obesity, organic health toddler foods may have an opportunity.

The Toy Market and Spoodles

Traditionally, parents went to toyshops for toys, but that is all changing. The current trend for electronic toys means the electronic retailer is winning out over the traditional toy retailer.

55% of many toy retailers' income comes from the pre Christmas buying frenzy; the toy industry is probably the most fashion conscious of the retail sectors. It is often governed by what is coming out at the movies. Once the movie has done the rounds, they toy is obsolete in the consumer’s mind.

Spoodle Gardeners

The South African garden industry introduced Mulberry Bear as a character to encourage Spoodles to become interested in gardening. Many garden centres now have a children’s garden sector where they have a whole category of products aimed at children.

Garden centres in South Africa and the USA have started children’s gardening clubs with the aim of getting gardeners into the habit at an earlier age.

Pester Power

The 8-14 year olds, the tweens, rely on pester power to influence their parents when it comes to shopping. This market in Canada alone is worth $20 billion (Ref. Ropin the Web, Alberta Govt. Summer 2004)

The main source of enjoyment for this age group is music, TV and sports. This means as a retailer you need to think through some key issues.

As the Alberta research emphasises:

1. Make sure your business is connected in some way with local sports programmes that are heavily supported by this age group.

2. This age group has a green streak, therefore make sure you have an environmental message you can get across to this group.

3. Sponsor school events, such as “Student of the Week”, “Athlete of the Year” or any other appropriate award.

4. Promote your business via S.M.S. This group will not see or register your traditional adverts.

5. Relate your products to fundraising events wherever possible.

6. Look at fast food retailers and build into your offer playgrounds, contests, games and other incentives.

7. If there is a company to closely watch when marketing to tweens it is ‘American Girl’.

TV Does Have a Role

Why is it called pester power? Look at the results of the research carried out by Raising Kids in the U.K.

12% of parents think advertising to kids should be banned

30% think adverts are a great tool to introduce kids to marketing

but

83% of parents have been pestered to buy a specific Christmas toy

68% of parents have been pestered for snacks

30% of parents have been pestered over a movie

If we reverse the coin, pester power is a highly successful retail tool, especially as 30% of Australian parents take their children shopping (Ref B&T 12 August 2005). Hence the success of McDonald’s Happy Meals. The kids and the parents buy.

How Pester Power Works

When my daughter was younger we fell into the pester power market. In our location we had a choice of four garden centres we could visit. Our daughter was adamant that we could only visit one of them. When we challenged her why that one, the response was they recognised her as a person and gave her a flower.

You don’t need a lot of money to capture the market; it’s the little things that make the difference. As a result of that care, we are still loyal to Zanthorrea Nursery many years later.

Article Source: http://www.articlerich.com

John Stanley is a conference speaker and retail consultant with over 20 years experience in 15 countries. John works with retailers around the world assisting them with their merchandising, staff and management training, customer flow, customer service and image. www.johnstanley.cc

When most people think of a store, they are thinking only of the sales floor, and rightly so. The sales floor is where the money is made.

It needs to be of adequate size and configured to fit the product. If you are selling jewelry, a very small space will work If beds, you need a huge amount.

The sales floor area ideally can be separated from the preparation and admin areas. You don't need customers looking in there. On the other hand, it is ideal if you can see much of the sales floor from the admin area. That way you can keep an eye on the floor. This can be done by putting the admin area up high on a second floor balcony, for instance. It can also be done by videocameras with monitoring screens in the admin area.

Your processing area is where you do everything to items before they go out onto the selling floor. This would include sorting through the merchandise, minor repairs and cleaning, and pricing.

Ideally this are has a separate entrance/exit from the sales floor, and easy access to a disposal bin. People will drop all kinds of things off. It is a bad idea to be carrying garbage bags full of donations through the store.

You'll also need some space to do your paperwork and bookkeeping. If you are small operation, this can be done on a single computer, and may even be done at a home office.

If you are a larger operation, it pays to have an office set up. You should have intercom buttons set up at the registers, and maybe even a few places in the store, so that your assistants can athat arise.sk you questions

You'll want to take a careful look at access for your store. You want to avoid locations where it is difficult for drivers to exit the road or to reenter it after shopping. Examples might be where the driveway to the parking lot is too near a busy intersection, or fronts onto a divided highway where the flow is in the opposite direction from where most people would want to go ( for instance, away from the city)

Some of your customers may not be driving to your shop. How convenient is public transportation? A bus stop right near your store means that you will be much more attractive to those who use buses for transportation - usually lower income types who are likely to be thrift shoppers.

Often people think that the best location is one that is on a busy street with lots of traffic - after all this means many people will see your sign! However that is not necessarily a great thing. People might see your sign, but be unwilling to stop. You want to avoid roads that might be very busy, but it is mostly commuting traffic. People who are rushing to work or are eagerly rushing home are less likely to stop on the way. What you want is 'leisure' traffic - people who are not rushing to get somewhere.

Another good location is to be where people are stopping to shop anyway, for instance at a strip or shopping mall with a grocery store, department store or bank.

Most communities will require a certain number of parking spaces depending on the size of the store. Ideally this is off-street parking. Obviously this may not apply in a dense urban setting, and it is a local government issue. The only way to know is to ask att the Planning Department.

Resale shops sometimes need to deal with characters who have some flaws in character. Some of those might decide that your business might be a nice target for theft or for vandalism.

You'll want good lighting, visibility and traffic flow as deterrents. Of course, it would be perfect if you could be located next to the police station! ;-) Seriously, you should not be afraid to go to and from your store because of the location you choose.

A large portion of what is donated will have to be disposed of as unsellable. It makes your life much easier if you have easy access to a dumpster.

If there is a reason for people to stop anyway, they'll be more inclined to browse your store as well

It is a great attractant to your store to be able to 'spill' out beyond the boundaries of your walls. It can make the whole neighborhood more interesting and even festive. It tends to get people to stop and browse better than just about any other method, and attracts those who would never have stopped in at 'that type of store' otherwise.

Putting displays of merchandise out on the sidewalk and the whole area between street and store gives the impresion that there is a great sale going on.

Some communites prohibit this, some promote it, and others allow it with restrictions.

Richmond, California says: Outdoor retail display, restaurant, and related activities, as well as festive and interesting forms of pedestrian-oriented lighting, are encouraged at ground level

Here are St Paul, Minnesota's rules:

Any person, partnership, firm or corporation ("person") which operates a retail business in Saint Paul may, with advance written notice to the director of the department of public works ("director"), use a limited part of the public sidewalk which immediately adjoins the premises of such retail business for the display and sale of its merchandise. All of the requirements and restrictions of this subsection (c) shall be binding upon such person and upon the display and sale of merchandise. In addition, the director may, without adverse hearing procedures, impose additional reasonable restrictions upon, or withdraw approval of, the use of any sidewalk for retail sales where necessary in his or her judgment to protect the public health, safety and welfare or to prevent a nuisance from developing or continuing. Withdrawal of approval may be for either a specified time or an indefinite period, within which or after which no such person shall use the public sidewalk for the display or sale of merchandise. Such additional restrictions or withdrawal of approval shall be effective upon delivery of written notice thereof to the person, or an employee of the person at the business premises involved.

(1) The display and/or sale of merchandise shall not be permitted in any portion of the public sidewalk where normal pedestrian traffic flow is obstructed. A minimum clearance of at least thirty-six (36) inches must be maintained on the public sidewalk at all times.

(2) No display racks, tables or other equipment of any kind shall be placed, or permitted to remain, on the public sidewalk during any period when merchandise is not displayed and available for purchase. While such merchandise is displayed and/or available for purchase, all racks, tables and other equipment shall be maintained in a clean and sanitary condition.

(3) The use of a portion of the public sidewalk for retail display or sale shall not be an exclusive use. All public improvements including, but not limited to, trees, light poles, traffic signals, pull boxes or manholes, or any public-initiated maintenance procedures or work, shall take precedence over said use of the public sidewalk at all times. The merchandise and display racks, tables and equipment shall be removed from the sidewalk immediately to permit such public-initiated maintenance procedures or work.

(4) No alcoholic beverages shall be allowed on the public sidewalk at any time.

(5) No plant tub shall be located or maintained on the public sidewalk as part of the display and/or sale of merchandise under this subsection.

(6) This subsection applies to and permits only the sale and display of merchandise and goods, and does not permit the sale, display or provision of services on the public sidewalk. This subsection does not apply to or allow the sale and display of merchandise and goods on public sidewalks by transient vendors or other persons who do not operate a retail business in a building on the private property adjoining the public sidewalk where the sales and display take place.

(7) No person shall sell or display merchandise, or permit the sale or display of merchandise, under this subsection until he or she has first obtained liability insurance or an amendment or rider to an existing liability insurance policy insuring the said person and the city and its officers and employees, against liability which might arise out of the display or sale of merchandise by such person upon the public sidewalk in an amount at least equal to the maximum statutory liability of the city, its officers and employees. Failure to obtain such insurance shall be grounds for adverse action against all licenses held by such person, and shall be a misdemeanor violation of the Saint Paul Legislative Code. The city, together with its officers and employees, shall be named as additional insureds in the said liability insurance policy, and shall meet all other requirements established by law or the city risk manager.

Nobody Reads Signs and Other Popular Myths

By: John Stanley

People don't reads signs, you heard people say it, you have had said it yourself. What is the point of putting a signage strategy in your business when nobody reads them in the first place.

Let's look at his popular myth in more detail. Firstly, all retailers have to accept that consumers today are inundated with messages on signs, as a result, the majority are not read. Any sign that looks amateurish, too complicated or is not targeted is, in today's over signed world, rejected by the consumer. They simply don't have time to read them.

Consumers have become selective in what signs they will read. In today's retail world you have to be targeted and specific if you want customers to take in the message.

What's the message?

Signs are used to communicate various messages to consumers and the first priority is to decide what message you want to get across to your audience.

Some signs aim at getting a brand message across, symbolism is more important than the words. Nike, Shell, Coca-Cola and McDonald's are all highly successful at getting symbolic brand messages across through their signage strategy.

The key is to be consistent in all your signage when it comes to branding, this includes consistency in colour, word typeface and graphics. Other messages you may want to get across may be price, benefits of a product, or technical details about the product.

A sign should inspire people to buy, alas too many signs just provide price and technical jargon and as a result don't achieve their objectives to increase sales.

Sonia Larson of Michigan University in the USA has spent her career researching into signage strategies that work for consumers and retailers alike.

K.I.S.S.

Signage clearly fits into that K.I.S.S. principles of business (keep it simple sells). Because consumers don't have time to read signs, keep it simple actually increases sales.

What does keep it simple mean?

Tell me the name of the product

Provide me with the three key benefits

Give me the price (in that order)

Take a look at many product signs and look at how information is presented. In a lot of cases they actually deter consumers from buying rather than encouraging them to buy. They often have too much technical information presented in a way that consumers cannot absorb the information.

I have worked with so many hundreds of retailers around the world who have proven that a simple signage strategy does increase sales.

But too many signs confuse customers!

I agree, the last thing you want is a store that looks like a cemetery with loads of signs looking like tombstones lined up along a pathway. I'm a great believer that point of purchase signage should promote about 10% of any category. This means you need to rotate your signs to ensure all products have their fair share of promotion at any one time. The key is to ensure every category is adequately covered. I often come across situations where some categories are undersigned whilst others are over signed. Getting the balance right is critical in maximising sales per square metre across the whole of your retail space.

Make signs stand out

Many companies produce excellent signs, but then forget that the sign needs to stand out. The sign stand is as critical as the sign itself.

Sell freshness

We are in the freshness industry and this applies to signs as well as products. Signs must look as fresh as the product. They need to reflect the seasons, be topical, clean and vibrant. Stale signs can affect the whole image of the business and suggests the products it is trying to promote are also stale. Somebody should be walking the store at least once a week and checking out the store signage strategy.

Article Source: http://www.articlerich.com

John Stanley is a conference speaker and retail consultant with over 20 years experience in 17 countries. John works with retailers around the world assisting them with their merchandising, staff and management training, customer flow, customer service and image. www.johnstanley.cc

Your town's planning department or zoning commission will be happy to provide you with the latest "mapping" of the retail location and surrounding areas that you are considering. Here are some questions to consider:

* Are there restrictions that will limit or hamper your operations?

* Will construction or changes in city traffic or new highways present barriers to your store?

* Will any competitive advantages you currently find at the location you're considering be diminished by zoning changes that will be advantageous for competitors or even allow new competitors to enter your trade area?

Most zoning boards, along with economic/regional development committees, plan several years in advance. They can probably provide you with valuable insights to help you decide among tentative retail locations.

Business Licenses Required to Legally Start Your Business by Elias Stassinos

Here's a list of business licenses you need to start your business.

All starting businesses need one or more business licenses and tax ids before legally starting business operations. After reading this article you will know exactly what business licenses you need to start your business. First, all starting businesses need a business license.

There are a few businesses that are not required to have one but that's a small percentage compared to the percentage of businesses that need a business license to legally operate. The business license requirement applies to all businesses: Home-based businesses, online internet businesses, contractor's businesses, professional businesses and any other type of business. If you are a professional, such as a mechanic or hairdresser, you might need to apply for a professional license directly from the state. However, you will still need to obtain a business license in addition to your professional license. Depending on the location of your business, or the type of business, the business license is filed at the state, county or municipal level of government.

Second, you may need to register a DBA. If you using a business name that does not include your last name, you need to file a DBA (Doing Business As), also called a fictitious business name, an assumed business name, a trade business name, a trade firm name or a business name certificate.

Keep in mind that even if you use your last name as part of your business name, and the business name also includes a suffix such as "& Co," "& Sons," "& Associates" or anything that denotes additional business owners, you need to file a DBA. Incorporating or forming an LLC is like the registration of a DBA business name so long as the corporate or LLC name is identical to the name you are using to conduct business. So, if you incorporate or form an LLC, you don't need to register a DBA business name. However, even if you file a Corporation or LLC, and the corporation name or LLC name is different from the business name you will use to conduct business, you need to file a DBA. Here's a link to an inexpensive and professional DBA filing service: http://www.businessname.net .

Third, if you sell or lease taxable items or services, in most states, you are required to obtain a state sales tax id number (also called a seller's permit, wholesale license, retail license or resale permit).

The reason that the state wants you to have this tax id number is that, as a retailer, you will be collecting sales taxes, which you will need to later pay to the state. You will need a sales tax id number to buy wholesale, or if you are a wholesaler, you will need it to sell wholesale. For example, if you have a toy store, you will be able to buy wholesale without paying any taxes for the toys to the wholesaler and, subsequently, charging taxes to your customers when you sell the toys.

Fourth, if you will hire employees, you will need to obtain a federal employer tax identification number as well as a state employer tax identification number.

These tax id numbers are required if you are an employer. Employment taxes are paid both to the federal and to the state government. Note that a federal tax id is also you business id number - just like a social security is your personal id number. Even if you are not required to have it, it is a good idea to obtain one and use it to open a business checking account. Otherwise, you will need to use your social security number to open a business bank account. Here's a link to a company that can obtain any tax id number for your business: http://www.tax-id-number.info .

Finally, incorporate your business or form a Limited Liability Company (LLC) to avoid personal or civil liability.

You are not required to incorporate or form an LLC but it is recommended because a corporation or LLC is a separate "person" or legal entity and, thus, separates you from the business. Filing a DBA, does not protect your personal assets. However, if you incorporate or form an LLC, your debtors can only satisfy claims from your company's business assets not your personal assets such as your home or automobile.

You can hire a lawyer to file your business licenses, a less expensive legal service or you can do it yourself. After obtaining the required business licenses discussed above, and opening your business accounts, you can legally start business operations.

Obtain all required business licenses for your business so you can start making money!

Copyright (c) 2006 Elias Stassinos

Elias Stassinos, Esquire is a business attorney that has assisted thousands of small business owners and entrepreneurs launch their first business enterprise. Visit his law firm Website: http://www.stassinos.com .

Additional notes by Steve: I do NOT recommend incorporating or forming an LLC unless you check first with your tax person and attorney. The shield against lawsuits is not very strong nowadays, and in some cases incorporating can hurt you tax-wise. Certainly in some cases it well help you with taxes, so you need to have someone who is an expert go over your own situation.

Since you will be opening a retail establishment as a resale shop, there are additional licenses and permits that might be required - check with your local Planning Department of your city. Examples of these might include an Occupancy Permit, Fire and Safety Permits, etc.

The Triple Net Lease That Will Decrease Your Costs and Increase Your Revenue! by Tony Seruga, Yolanda Seruga and Yolanda Bishop of Maverick Real Estate Investments, Inc.

Many commercial property owners, especially of older properties, pay for many of the operating expenses associated with the property. The tenants may pay utilities, or some taxes and insurance, but for the most part, the owner is responsible for paying these operating expenses.

Too often, the commercial properties that produce income, such as apartments, office complexes, retail centers, and strip malls are not maximized to their full potential! This is because of leasing structures and the difference between what the owner and tenant are responsible for.

It used to be common for the owner to pay the property's taxes, insurance, and utilities under a full service lease. The tenant would simply pay the rent every month, and the owner would pay the bills. This greatly cut into overall profits, as the owner was using rent income to pay the additional bills.

Savvy commercial property owners and investors soon came to realize that if the tenants are using the property, they should have to pay for the expenses of keeping it in operation. After all, who is using the water, electricity, trash services and common areas? Not the owner, but the tenant.

Net leases became popular, instead of the full service lease, which required the lessee to pay only the taxes and insurance. The lessor would be responsible for utilities and other related operating expenses. This change in lease structure allowed more profit to stay in the hands of the owner.

Even still, owners took the lease structure one step further. In recent years, and even recent months, both young and old properties are being changed to net-net-net leases, or the triple net lease, where the lessee (tenant) is responsible for paying three of the most important operating expenses: taxes, insurance, and utilities. A true triple net lease is one in which the lessee pays all of the operating expenses, and the lessor simply receives a rent check every month.

This structure of leasing has become very popular, and many commercial properties are making the switch because it greatly decreases the overall expenses, net operating income, and make the property higher performing and extremely more valuable. The lessors may not be happy, as they are now required to pay for the entire property, as opposed to just their living space.

So how does the lessor know how much each lessee must pay? Besides separating the utilities and having each unit's tenant be responsible for that which he or she uses, the common expenses are divided among all the units according to the total square footage of living space. The larger the unit leased, the more they pay.

If you are looking to increase the return on your property, and are currently not employing a triple net lease, you should look into getting the contracts changed. You will immediately see how much money you can keep in your hands when the tenants are paying for all common area maintenance which may include parking lot cleaning, parking lot's electric, the lawn care, pool maintenance, and all other utilities used by the project.

You will look forward to collecting your rental checks every month, and not watch them pass through your hands, only to go to those who supply services that only your tenants use.

Your tenants may not be happy at first, but the cost is dramatically less when spread among every tenant in the building and their specific living area. The risk of transferring to this triple net lease is definitely worth the risk, especially when many commercial property owners are making the switch.

Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.

Article Source: ArticleRich.com

These are fixtures, attached to real estate that are generally acquired or installed by the Tenant. Upon expiration of the Lease the tenant can generally remove them, provided such action does not damage the property or conflict with the lease. For example, the cabinets, light fixtures, and window treatments of a retail store in a leased building are leasehold improvements.

It is not unusual to negotiate with a landlord of a property that has been sitting vacant for a while for the landlord to either do or pay for improvements to make the site more usable for your store. Rather than the landlord doing the work or contracting it out, you may propose that the landlord just compensate you for all materials - maybe even paying you for your time.

Leasing - rather than buying commercial real estate - is often a more practical and affordable solution for small businesses than buying a building outright.

This is generally true when:

* your current cash flow does not allow the up-front outlays and down payment required for a purchase,

* you don't want to be responsible for building maintenance,

Before becoming famous for his role as Frankenstein's monster, Boris Karloff worked in real estate.

* you want to remain mobile in terms of type or size of business space and/or location,

* your company's credit rating will not support a mortgage,

* you haven't been able to locate property you'd like to purchase,

* declining real estate values make buying a building unwise,

* leasing through inner city incentive programs provides substantial discounts,

* sub-leasing or being part of a business cooperative yields value-added benefits; and/or

* a lease can cut your tax bill even more than a purchase.

Types of Leases

Even though you may already work with a commercial real estate broker, you should become familiar with the different kinds of leases available as they can substantially impact whether or not your business will succeed. These vary from property to property and include:

Gross Lease. This is the most common kind of lease in which you as the tenant will pay rent and your landlord taxes care of taxes, insurance and maintenance costs related to the property. Generally, gross leases contain escalation clauses allowing the amount of your rent to be adjusted (usually each year) to offset your landlord's increased expenses.

Net Lease. A net lease transfers some or all of the expenses a landlord is traditionally responsible for to you as the tenant. With a single net lease, you will pay rent plus taxes related to the portion of property you are leasing. Under a double net lease, you will also pay a proportional part of the building's insurance premium. With a triple net lease, you will pay all of the charges under a double net lease plus maintenance costs.

Fixed Lease. This kind of lease provides for a fixed amount of rent over a fixed rental period (term).

"A verbal contract isn't worth the paper it's written on." - Samuel Goldwnyn (1882-1974)

This kind of lease seems most non-threatening at first glance, since you are not obligating yourself for rent increases in the future (as with a gross lease). However, there is a downside to a fixed lease. If you want to renew the lease when it expires, the landlord may choose to raise your rent substantially (especially if your business appears to be doing well and would suffer from relocating elsewhere). It may be better to opt for a longer term lease with pre-fixed or determinable rent increases so you know what you are getting into in advance.

Step Lease. A step lease provides for pre-set rent increases that go into effect at stated times. This can provide you with peace of mind insofar that you will know in advance what your rental amounts will be for a longer period. However, you should take a careful look at each scheduled increase and determine if they seem reasonable; i.e., in keeping with historic consumer price indexes or local rental increases.

Percentage Lease. This kind of lease allows your landlord to share in your success or bad fortune. A percentage lease provides for a fixed amount of rent, plus an additional amount that is set as a percentage of your gross receipts or sales.

The following defines the terminology of provisions that will affect your commercial lease.

Lease Term. This identifies the amount of time the lease will be in effect. If you think you may want to stay at this same business location beyond the initial term, you should negotiate an inclusion in your lease agreement that entitles you to renew the lease for a specified period and rent.

Rental Rate. This defines what your rent is and when it must be paid. Most leases also include late payment provisions that impose additional charges if you fail to pay the rent when it's due or within a specified time period. If your business experiences seasonal or irregular sales activity, try negotiating a flexible rental rate that will correspond to the anticipated changes in your cash flow.

Escalation Clause. This clause provides for specified increases in rent over a specified time. These escalations can be fixed or determined with reference to an outside factor; i.e., increases in the landlord's operating costs, increases in a cost index, or increases in your business's gross receipts or sales.

"Attempt the impossible in order to improve your work." - Better Davis (1908-1989)

Improvements and Modifications. This provision identifies whether or not you have the right to make improvements or modifications to the facility so that it better suits your needs. In some cases, a landlord will build or modify a space to suit a tenant's particular needs, prior to the tenant moving in. These agreements must be spelled out in the lease. Additionally, watch out for language requiring you to restore the space to its original condition: if you knock down a wall, you don't want to be stuck with a bill to undo the work.

Maintenance/CAM. This provision determines who is to maintain which portions of building and/or land. If you are responsible, you must make sure the lease specifies whether you can contract with anyone of your own choosing to provide these services, or if these service providers must be approved by the landlord. CAM is Common Area Maintenance - be clear on exactly what the landlord can charge back to you, such as installing a new elevator or stairwell, etc.

Competition. If you are leasing retail space in a larger facility, such as a store in a mall, there may be restrictions placed on the landlord's right to lease nearby space to businesses offering goods or services similar to your own. (If the lease does not include such a provision, you should push for one.)

Subletting. This provision spells out whether - and under what conditions and circumstances - you are entitled to sublease all or part of your premises to another. (Remember, even if you sublet, you are still the one legally responsible for paying the rent, etc. to the landlord). Should you outgrow the space and want to move, you'll want the right to sublease or assign the space to another company without a hassle from the landlord.

Taxes. This clause specifies who is responsible for the real property taxes or portion thereof.

Insurance and Liability. This provision determines who is responsible for casualty and liability insurance and the amount of coverage to be carried. Additionally, this provision may specify under what circumstances you and your landlord may excuse each other for liability for injury to persons or to the property.

Warning signWatch out for language that would legally excuse your landlord from damages to persons or to the leased property caused by the landlord.

Renewal Option. This specifies whether you have the option to renew the lease when it expires and for what amount of rent. Including a renewal option in your lease can protect you from an unreasonably large rent hike when your first term expires.

Purchase Option. This provision spells out whether you'll have the right or obligation to purchase the facility at the end of the lease term. This provision should spell out the option price or range, and how and when the option to purchase can be exercised.

Destruction/Condemnation. This provision states whether the landlord is required to rebuild and specifies

The Pastry War was a year-long conflict in 1838 between Mexico and France. Mexico refused to pay for damage done by Mexican army officers to a Frenchman's restaurant.

whether the rent will be abated and if your lease obligations are terminated in the event the facility is totally or partially destroyed. This provision will also define what rights you and your landlord will have if the facility is taken over by eminent domain (acquired by a government body for a public purpose).

Warning signMost leases include a provision for termination of the lease following destruction of the facility based on the time it will take to repair or the costs involved. Insist on a cutoff time after which the lease is terminated to prevent your losing business while a landlord takes forever to make repairs.

Landlord's Solvency. This is a necessary provision protecting your rights as a tenant if your landlord's building - along with your leased premises - are foreclosed upon. If you are concerned about the landlord's solvency before you enter the lease, require your landlord to obtain a non-disturbance agreement from any mortgage holder. This would obligate them to adhere to the terms of your lease even in the event of foreclosure.

Zoning and Land Use Restrictions. This provision spells out the zoning and other restrictions that apply to the building and your use of it. If your intended use would violate a zoning rule or private land use agreement, insist - or have your attorney insist - on a provision that lets you out of the lease if you are unable to obtain a zoning variance or other judicial relief.

Going Dark. In a mall or office building, smaller businesses can be hurt when a major tenant "goes dark" by not renewing their lease or by going out of business. You may want to consider adding a clause to your lease that would give you a substantial rent reduction or the right to close your store if a major tenant or several other tenants go dark.

Security Deposit. This is the amount you'll pay in addition to rent in order to activate the lease. This is in addition to other costs spelled out above.

Ancillaries. Look at clauses related to parking and building hours, etc. when you negotiate your lease. If the AC or heating is normally shut off at 8:00 PM each night and your staff always works late, try to get those hours extended.

You'll also want to check out leasing storage space for the portion of your merchandise that is not on the sales floor.

To clean fragile fabrics, you'll want to steam them instead of subjecting them to a washing machine or dry cleaning process.

If your operation gets large - you'll want to outsource laundy to an outside cleaners - one that handles large loads. Look for linen and/or uniform cleaning companies.

Get it Out! Tips for Clothing Stain Removal by M Slater

Everyone has done it—spilled red wine on a favorite blouse, or forgot to police pockets for crayons or ball point pens before they hit the wash. Stains are everywhere, and there are many ways to get rid of them, from home remedies to manufactured products. With so many choices, so much advice, how do you know what to use on what?

It’s important to know your clothing.

Is it your stained clothing dry clean only, or hand-washable? Certain fabrics can be destroyed by the intended stain treatment. For example, silk and wool will be ruined by chlorine bleach. You’ll also want to know what temperature washable items should be washed at, so that you’re not using a hot wash on an item that can only be washed in cold water.

Dry clean only items should be taken to the dry cleaners as soon as you can, preferably within 24-48 hours. Provide as much information as you can about the stain, and what steps, if any, you took to remove the stain. Dry cleaners have an impressive arsenal of solvents that cater to the type of fabric and stain to help maximize removal. Giving them all the information you can will help save your garment.

It’s important to know your stain.

To treat a stain efficiently on washable clothing, it’s important to know where your stain falls in the different stain categories. Stains are broken down into five categories:

* Protein

* Tannin

* Oil-based

* Dye

* Combination stains

Protein based stains

These tend to be organic in composition. Egg, blood, mucus, urine, cheese, milk, and baby formula fall into this category. The most important thing to keep in mind with protein stains: do not use hot water. Hot water will cook the stain into the fiber of the cloth, making it harder, if not impossible to remove.

Protein stains are easiest to remove when fresh by soaking in cold water—you can put in your washer and agitate in cold water only to help break up the stains. If the stains are old, scrape the material off the clothing if caked on, and then soak in cold water. Protein stains with a dye quality (such as beets, berries) may need an over the counter bleach product to remove the color.

Tannin stains

This category includes coffee, tea, beer, alcoholic beverages, tomato juice and washable inks. Treat these by rubbing in a detergent soap, such as Tide, Whisk or Woolite for delicates, and wash in hot water. Never use bar soap on a tannin stain, as it will set the stain and make it impossible to remove. Make sure you check your laundry soap ingredients, because more manufacturers are putting regular soap into the mix to save money. Set-in tannin stains may need bleach to remove them.

Oil-based stains

These are a lot like tannin stains in that they are best removed with a detergent soap and hot water. Oil-based stains include such culprits as butter, mayonnaise, hand and face cream, or greasy cuffs or collars. You’ll rub a heavy-duty detergent directly into the stain (you can also use a pre-treatment stain remover such as Shout) and wash in hot water.

Dye stains

Welcome to one of the most difficult stains to remove, even when fresh. Blueberries, mustard, tempera paints, and Kool-aid are the usual culprits. They require a mixture of detergent soap and bleach that’s safe for the garment to remove them. If you have a colored fabric, use a color-safe bleach. Rub in and wash in hot water.

Combination stains

The usual suspects here include ball point pen, candle wax, lipstick, hairspray, chocolate and catsup, to name a few. These stains require two steps to remove them, since they usually contain an oily part and a dye part. You’ll want to rub the stain first with a dry-cleaning solvent (such as Shout or Spray-n-Wash), then after use a detergent soap. Wash in hot water, repeat until the stain is removed.

Treatments to Avoid

* Dishwasher detergent on stains, as it’s too strong and it can cause a reaction with skin when wearing

* Vinegar may weaken some fibers, such as cotton and rayon.

* Ironing candle wax will not remove the stain, but instead drive it deeper into the fabric.

* Hairspray for ballpoint ink—the hairspray may give an additional stain because of the perfumes and other chemicals in it.

Be careful when using chemicals to remove stains. Never mix together stain removal substances, such as bleach and ammonia. This combination causes a toxic fume that can be very harmful, if not deadly. Other chemicals may react negatively when combined.

Find more useful articles and list your clothing shop or other business at one of Australia's largest business directories

Article Source: http://www.articlerich.com

CLEANING AND DISINFECTION

Keeping the store clean and orderly is very important for health, safety, and the emotional well-being of both customers and workers. One of the most important steps in reducing the number of germs, and therefore the spread of disease, is the thorough cleaning of surfaces that could possibly pose a risk. Surfaces considered most likely to be contaminated are those with which people are most likely to have close contact. These include toys that children put in their mouths, crib rails, food preparation areas, and surfaces likely to become very contaminated with germs, such as diaper-changing areas.

Routine cleaning with soap and water is a useful method for removing germs from surfaces. Good mechanical cleaning (scrubbing with soap and water) physically reduces the numbers of germs from the surface, just as handwashing reduces the numbers of germs from the hands. Removing germs is especially important for soiled surfaces which cannot be treated with chemical disinfectants, such as some upholstery fabrics.

However, some items and surfaces should receive an additional step, disinfection, to kill germs after cleaning with soap and and rinsing with clear water. Items that can be washed in a dishwasher or hot cycle of a washing machine do not have to be disinfected because these machines use water that is hot enough for a long enough period of time to kill most germs. The disinfection process uses chemicals that are stronger than soap and water. Disinfection also usually requires soaking or drenching the item for several minutes to give the chemical time to kill the remaining germs. Commercial products that meet the Environmental Protection Agency’s (EPA’s) standards for “hospital grade” germicides (solutions that kill germs) may be used for this purpose. One of the most commonly used chemicals for disinfection in child care settings is a homemade solution of household bleach and water. Bleach is cheap and easy to get. The solution of bleach and water is easy to mix, is nontoxic, is safe if handled properly, and kills most infectious agents. (Be aware that some infectious agents are not killed by bleach. For example, cryptosporidia is only killed by ammonia or hydrogen peroxide.)

Recipe for Bleach Disinfecting Solution

(For use in bathrooms, diapering areas, etc.)

1/4 cup bleach

1 gallon of cool water

OR

1 tablespoon bleach

1 quart cool water

Add the household bleach (5.25%

sodium hypochlorite) to the water.

Recipe for Weaker

Bleach Disinfecting Solution

(For use on toys, eating utensils, etc.)

1 tablespoon bleach

1 gallon cool water

Add the bleach to the water.A solution of bleach and water loses its strength very quickly and easily. It is weakened by organic material, evaporation, heat, and sunlight. Therefore, bleach solution should be mixed fresh each day to make sure it is effective. Any leftover solution should be discarded at the end of the day. NEVER mix bleach with anything but fresh tap water! Other chemicals may react with bleach and create and release a toxic chlorine gas.

Keep the bleach solution you mix each day in a cool place out of direct sunlight and out of the reach of children. (Although a solution of bleach and water mixed as shown in the accompanying box should not be harmful if accidentally swallowed, you should keep all chemicals away from children.)

If you use a commercial (brand-name) disinfectant, read the label and always follow the manufacturer's instructions exactly.

Psychological Effects of Color

--------------------------------------------------------------------------------

Introduction:

It is probably well to mention at this point that color affects people Psychologically. These qualities were discovered during the Middle Ages, and are partly responsible for the use of so much blue in the stained-glass windows in the great cathedrals. Color meanings and perceptions around the world are often paradoxical. It's up to the designer to choose a palette that works to the advantage of a given design.

White

        White - is cheering and reflects sunlight, particularly when used with red, yellow, or orange.

        PSYCHOLOGICAL RESPONSE

        Purity, cleanliness, precision, innocence, sterility, death

        NOTES OF INTEREST

        Signifies virginity, marriage in the U.S. but death in India and other Eastern cultures.

Black

        Black suggests color and like gray it is depressing unless combined with a livelier color.

        PSYCHOLOGICAL RESPONSE

        Power, sexuality, sophistication, death, mystery, fear, unhappiness, elegance

        NOTES OF INTEREST

        Signifies death and mourning in many Western cultures. In packaging, conveys elegance, wealth, and sophistication.

Blue

        Blue - reduces mental excitability and therefore helps one to concentrate. It is both cooling and sedative, but cannot be used indiscriminately, as too much of it produces melancholia.

        PSYCHOLOGICAL RESPONSE

        Trust, conservative, security, technology, cleanliness, order

        NOTES OF INTEREST

        Used in the U.S. by many banks to symbolize trust.

Green

        Green is a cooling color and acts as an opiate.

        PSYCHOLOGICAL RESPONSE

        Nature, healthy, good luck, jealousy ("green with envy"), renewal

        NOTES OF INTEREST

        Doesn't do well in a global market. There are problems associated with green packaging in China and France. Green has been successful in attracting investors in the Middle East.

Yellow

        Yellow is cheering and stimulating and draws attention.

        PSYCHOLOGICAL RESPONSE

        Optimism, hope, philosophy, dishonesty, cowardice (a coward can be described as "yellow"), betrayal

        NOTES OF INTEREST

        Yellow is a sacred color to Hindus.

Red

        Red is exciting and stimulates the brain.

        PSYCHOLOGICAL RESPONSE

        Power, energy, warmth, passions, love, aggression, danger

        NOTES OF INTEREST

        Red changes meaning in the presence of other colors. With green, it becomes a symbol of Christmas. When combined with white, it means joy in many Eastern cultures.

Purple

        Purple is a sedative and soothing.

        PSYCHOLOGICAL RESPONSE

        Spirituality, mystery, royalty, transformation, cruelty, arrogance

        NOTES OF INTEREST

        Purple appears very rarely in nature.

Brown

        Brown is restful and warming but should be combined with orange, yellow, or gold, because it can be depressing if used alone.

        PSYCHOLOGICAL RESPONSE

        Earth, reliability, comfort, endurance

        NOTES OF INTEREST

        Food packaging in the U.S. is often colored brown, to great success. In Colombia, brown discourages sales.

Grey

        Grey suggests color and like brown it is depressing unless combined with a livelier color.

        PSYCHOLOGICAL RESPONSE

        Intellect, futurism, modesty, sadness, decay

        NOTES OF INTEREST

        Gray is the easiest color for the eye to see.

Carpet

   Slows

   Upscales

Avoid the dark and dingy look - the more pleasantly lit your store is the better people will feel about spending time - and money - there.

Bucks stop here

Entrepreneur, June, 2005 by April Y. Pennington

WHAT: Secondhand clothing store where everything is $1

WHO: Jackie and Wayne Bell of Reruns

WHERE: San Francisco

WHEN: Started in 2003

When siblings Jackie Bell, 48, and Wayne Bell, 46, realized high-quality items were no longer readily available to stock their industrial salvage yard, they knew it was time to change gears. So they stuck with the concept of one person's junk being another's treasure and opened up a secondhand clothing store.

The Bells placed an ad in the local Classified Flea Market newspaper seeking clothes for 25 cents per item. Their first response was from the family of a woman who had hoped to open her own thrift store and amassed 10,000 pieces of clothing before passing away. The Bells were able to completely stock Reruns for the grand opening in San Francisco with that purchase, but they now buy most of their inventory from a nonprofit organization.

Advertisement

Despite initial plans to offer every clothing item at just $1 each, Jackie admits she yielded to the temptation to raise prices at fast: "Once I saw all the great clothes, I took my eyes off the larger picture." When six months went by and the partners saw sluggish sales, they returned to the original plan. The day signs went up advertising their new buck pricing, they had their highest one-day sales to date.

Regardless of the stigma secondhand clothing may carry, everything is in good condition, color coordinated and neatly hung at Reruns. "Customers say we should raise prices," says Jackie. "They believe they're taking advantage of us."

In 2004, the Bells moved Reruns to a 4,500-square-foot location nine blocks away, and they now project 2005 sales of $200,000 to $250,000. Jackie hopes to open more stores with the same concept, saying, "Just bring on the people!"

COPYRIGHT 2005 Entrepreneur Media, Inc.

COPYRIGHT 2005 Gale Group

Credit card processing for your business by David Yuri

There are innovative solutions available to all businesses and your business can profit from them. The invention of the credit card and credit card processing are said by some to be the best financial and business improvements for businesses made in the modern world. Customers no longer need to carry cash with them and therefore need not worry about the risks of losing or having that money stolen. The use of credit cards eliminates this risk.

Nowadays, nearly all businesses accept credit cards. When you start a business, the first step to accepting credit cards is by applying for a merchant account. A merchant account will allow you to accept credit cards, debit cards, and all other forms of electronic payments.

A credit card processing merchant account offers flexible payment solutions to meet the specific needs of your business, whether you are an established merchant or are just starting out. A credit card processing company which offers merchant account services should start their relationship with you by analyzing the specific cost-saving and value-added services which best fit your needs. Merchant accounts are available to nearly all types of merchants, such as: retailers, restaurants, e-commerce, petroleum/convenience stores, and the service industries – lodging, travel, trucking, and healthcare.

It’s difficult to decide which credit card processing service is best for your business. This is why there are several aspects you should pay attention to when trying to determine the most appropriate credit card processing service. Knowing about the average approval rating, cost per month, start-up cost, account setup time, customer service availability, the type of virtual terminals offered by the providers, the available POS equipment and the merchant account, can tell you a lot about the type of credit card processing services you will benefit from.

For someone who has no idea how credit card processing works, the entire transaction may look like a complex ritual. In reality, it isn’t very complicated: you swipe the credit card through a credit card terminal, input some numbers and money is retained in your bank account. It’s also about high-speed computer networks. When a merchant makes a sell, the card number, the amount and the merchant ID are sent through the credit card processing computer network to the credit card computer network. Each of them receives the transaction data. The first is represented by the company or bank that handles the credit card processing and the second by Visa’s network or other credit card network. The bank that has issued the credit card verifies if the client can pay for the purchase and the merchant receives authorization to complete the transaction. The money however doesn’t reach the merchant account at that moment. Only at the end of the business day, the entire sum is sent for processing and individual transaction are stripped out and sent to the banks. The sum is finally sent to the merchant that used credit card processing. The entire process is safe and secure and requires little effort for both merchant and client.

If you wish to have a reliable, versatile way to help your business receive verified payments from anywhere anytime, then a credit card processing service is what you are looking for. Your business will increase its sales because ¬credit card processing allows you to accept all forms of payment, anywhere and to get fraud and security protection. Clients with any major credit card, with debit cards and with electronic or traditional checks will easily become your customers. Credit card processing enables you to conduct your business anywhere you want. Whether you are in a remote location with access to the web, whether you own a kiosk and have to manually enter information in such a device or prefer online business, credit card processing is ideal for any location. Most importantly, credit card processing allows safe handling of credit card information by utilizing modern encryption technology. You, as well as your customers, can use credit card processing services with peace of mind.

There are two things your young business should not lack: a merchant account and a credit card processing system. If you don’t have them, then you should because they make your merchant life a lot simpler and safer.

Article Source: ArticleRich.com

Understanding How Merchant Credit Card Services Are Processed

By: Stu Pearson

A merchant account is a credit card account that a merchant opens with a bank, allowing the merchant to accept credit card orders from customers. This is the same as what you see on some web sites that sells things and stuffs.

There are various processing options provided by merchant credit card services providers: real-time Internet processing, retail-swipe terminal processing and computer-based processing.

Real-Time Internet Processing

This type of credit card service processing is ideal for businesses that transact business on the Internet. When a customer is ready to pay, they can click on the provided “checkout” link which leads to a secure page where they can provide their credit card information. A confirmation appears on the screen telling the customer whether the card is accepted or declined.

In two business days, the money is deposited in the merchant's account. Real-time providers will then provide merchants with an online database showing all credit card transactions, making month-end accounting and balancing simple.

Real-time Internet processing is ideal for merchants who have lots of transactions every day, since it helps to automate the payment acceptance process. To further increase efficiency, real-time processing offers virtual terminals, allowing merchants to process orders manually from any location over the Internet.

Retail Swipe Terminal

Retail swipe terminals are ideal for most brick-and-mortar businesses, although POS (point of sale) software may also be used. POS terminals are used in "card present " situations, where customers actually have their cards with them and swipe them through the termianl. This is the cheapest processing solution, usually costing a dollar per transaction. It also has the lowest risk of fraud, as customers are able to see their transaction. Most terminals require phone lines, although some that operate via airwaves or by cell phone. Portable POS terminals are ideal for situations such as trade shows, where there are no phone jacks available to connect a regular POS terminal.

Computer-Based Processing

Computer-based processing uses software that enables merchants to process all major credit cards, gift cards and check guarantee services on their own computers. The software processing helps in reducing fraud losses, saving time and money as well as providing powerful features that stand-alone terminals don't provide.

Stu Pearson has an interest in Business and Finance related topics. To access more information on merchant services or on merchant account services, please click on the links.

Article Source: http://www.articlerich.com

Creating a Layaway Plan

By John Alexander

A layaway plan can be the best service your store offers. If properly established with simple procedures, it is a real profit center for add-on sales. Handled poorly, it can be the worst program you implement. The most effective layaway is well organized yet has guidelines that may be easily altered to meet special needs. Hopefully, this article will point out areas where one should be cautious.

Make sure the layaway agreement clearly spells out what the required monthly payments will be. Many stores are too flexible in this area, allowing payments to be missed, which hinders cash flow. When a customer forgets a payment, send postcard reminders that a layaway payment is needed. Every payment brings your customer closer to ownership of the inventory committed for them. In addition, trips to make payments translate into additional sales.

The biggest benefit of a layaway plan is that most customers will stop shopping for an item and a store once a layaway is established. Although, you will have the exception of someone who continues to shop for a better price. This will not happen very often, but when it does, verify the lower price, honor the difference, apologize, and gladly give your customer a credit for the difference. Use this feature as another reason why your customer should commit to using your layaway; they can't get hurt, and neither can you. Better retailers use signs guaranteeing they offer the lowest price or they will match the difference and give you an additional credit for the difference. This is no more than a marketing technique to set your customer's mind at ease that your store has the lowest prices.

Special orders and layaways can supplement your stock orders and, when planned properly, can help towards better freight allowances. Don't underestimate delivery dates! Just because a customer may have delayed placing their order with you doesn't mean you can get it any sooner.

Be up front with your customer, tell them if you will not hold inventory in stock until a certain amount of money has been paid down on the layaway, but hold the price. Write on the initial layaway what the expected pick-up date is and the likelihood of all the items being available by the pick up date. This will save you from losing sales to walk-in customers because you have inventory tied up for months without knowing when a customer is going to pick up their goods. Be careful, nothing will annoy your customer more than if they come to pick up their order and you do not have it complete. Accurate records warning you when items should be ready for pick-up are very important. If you have ninety percent of a layaway complete two weeks before it's scheduled to be picked-up and suddenly there is a back order on an item you need, most customers will understand if you call them early to explain the situation before the scheduled pick up becomes a disappointment.

Most problems arise because of poor communication. Keep your customer informed - especially if there is a problem or delay. Call them to explain before they call you looking for the item. Keep loaner items available in case an item does not come in on time. You can substitute with a similar product until theirs arrives. Have your customer sign a receipt stating they have picked up their layaway. If you exceed your customer's expectations, you will inevitably have a pleased customer.

Special orders are often confused with layaway, so make sure your customer is aware of the difference. Be happy to accept a special order from a customer as this is a service many major competitors will not offer or have very strict terms about. It is imperative, however, that your customer understands special ordered goods are non-cancelable. Many stores are not clear with this procedure, and it can be disastrous if your customer does not agree to this. Explain that you have many other goods that are available for them if they are not certain of what they want, but you want them to be very clear that you do not choose to carry or stock that item. Special orders are not cancelable or returnable under your normal store policies. If you are not clear pertaining to special orders, you will either have more unhappy customers than you can imagine or happy customers and a store full of items you can't sell except as one-of-a-kind mark downs or floor samples.

Signage is an additional area that needs detailing in your store. Many major competitors do not offer layaway and, even if they do, it is not usually as flexible to be customized to meet customers' needs the way that yours can be. Make sure you have professional looking signs clearly citing the advantages of your layaway program. Display signs on high priced ticket items such as cribs or strollers ("$25.00 down will layaway this item" or, "$100.00 down and five additional payments of $75.00"). For many people this will end the search for their nursery products.

Some tips to help keep a layaway profitable.

Keep good records. In "off times" check to make sure that layaways are accurately marked in the warehouse. If possible stack layaway items together in the warehouse separating sold goods from available goods. Place small items in a box or bag, write the items enclosed on the box and seal it. Check that you don't have items marked for customers who have already picked up. Sometimes it is easier to give the customer a crib or chest close to the loading dock door versus the one marked in layaway. Make sure to update your layaway inventory regularly. It will also be helpful to put the expected pick up date along with the customer's name and slip number on the box.

Many times a customer is just not ready for their goods when initially projected (this is usually the only time you have a complete order). Either the room is not finished, the carpet man has not come yet, Dad hasn't painted the room, or Mom hasn't picked the color. Be reasonable and work with your customer; they will appreciate your flexibility. Tell them you can hold it as long as they wish (assuming it is all paid off).

Occasionally, when a store has a cash flow problem, the layaway is the culprit. Let it work to your advantage. If you need cash, offer free delivery to a customer with a large balance if all of their order is complete. Or if things are really tight you may offer an incentive such as a five percent discount if the layaway is paid off before a certain date. Explain that you are really short for space in your warehouse and need the room so your store is offering this incentive to customers if they help you relieve your overloading.

Finally, when your customer has had a positive experience and picked up their nursery layaway, send them a reminder to place a high chair or car seat on layaway. Maybe they can start a layaway on another chest, night stand, mirror, or other furniture to help complete their child's room for the future. Remember, the customer who has committed to your layaway is a bird in your hand, not still in the bush. Treat them honestly and fairly and you should have a customer for life.

John Alexander is the administrator for the Baby Furniture Plus Association, a buying cooperative of 135 independently owned and operated specialty stores. John may be contacted at: Baby Furniture Plus Association, 288 Blue Creek Circle, Dadeville, AL 36853 • 256-825-3080 • 256-825-4198 fax jalexander@babyfurnitureplus.com.

Sales per foot &

Sales per Store - Retail Stores