- Slides: 27
REUSE & RETAIL MANAGEMENT
REUSE & RETAIL MANAGEMENT AGENDA 2: 00 2: 10 3: 15 3: 30 4: 00 4: 30 Welcome/Introductions Reuse & Retail Break 5 Steps to Increasing Revenue Open Discussion/Q & A Store Tour
REUSE & RETAIL MANAGEMENT INTRODUCTIONS Robert Crocker Director Catholic Charities Community Services Thrift Store & Materials Exchange
REUSE & RETAIL MANAGEMENT WHY REUSE? As You Know, Reused Materials: Ø Divert materials from the waste-stream Ø Advance source reduction Ø Preserve the “embodied energy” originally used to manufacture an item Ø Reduce the strain on valuable resources, (i. e. fuel, forests, water supplies & natural habitats) Ø Result in less hazardous waste Ø Save money in purchasing and disposal costs Ø Create less air and water pollution than manufacturing or recycling products
REUSE & RETAIL MANAGEMENT WHY A REUSE BUSINESS? Because selling Reused Materials: Ø Generates new business and employment opportunities for both small entrepreneurs and large enterprises. Ø Creates an affordable supply of goods that are often of excellent quality. Ø Brings resources to individuals and organizations that might otherwise be unable to acquire them. From: http: //www. care 2. com/greenliving/why-reuse-beats-recycling. html
REUSE & RETAIL MANAGEMENT IT’S NOT JUST A STORE… IT’S A SOCIAL ENTERPRISE! Social Enterprises… Ø Are social, mission-driven organizations that apply business strategies to achieve their goals. Ø Generate revenue and provide a platform for a “Triple Bottom-Line” - Social, Environmental and Financial impact. Ø Maintain their mission and social (or environmental) purpose as the core of operations & decision making Ø Must have Quantifiable Impact - a Social Return on Investment
REUSE & RETAIL MANAGEMENT BUSINESS PLANNING Good Business Planning Includes: Ø Visiting other operations Ø Taking the time to write a thorough Business Plan Ø Deciding how you will you become a destination store Ø Determining your social, environmental and financial goals Ø Acquiring Merchandise & Warehousing Ø Determining staffing needs Ø Finances Ø And never forgetting, “Location, Location”
REUSE & RETAIL MANAGEMENT THE MERCHANDISE Plan what to accept— and what to say no to… nicely.
REUSE & RETAIL MANAGEMENT THE MERCHANDISE Acquiring goods Ø Donations - Pick Ups, Walk-Ins, Delivery Services, Virtual Exchanges Ø Purchasing Ø Consignment Managing Goods Ø Ø Ø Merchandise Flow: Keep it moving Warehousing Excess - don’t throw it away!
REUSE & RETAIL MANAGEMENT VALUING AND PRICING YOUR MATERIALS Know the value of your materials Ø What is the market value? Ø Do not under-value your products Pricing Strategy Ø A plan of how to use pricing as one of the drivers of your business Going beyond a simple dollar amount Ø What do your prices say about your store? Your products? How do they fit with your mission? Ø Category Pricing Ø Value-based Pricing Ø Discounts and Promotions
REUSE & RETAIL MANAGEMENT MAXIMIZE YOUR SALES THROUGH CAREFUL PLANNING AND ORGANIZING Store Layout (Floor Plan) Ø Draw it out on paper first: How will people move through your store, and most importantly—shop? Ø Isles-3 feet minimum; customer flow; fire safety… Merchandise Presentation Ø Tell a story Ø Make it look like a million bucks Ø Change displays frequently Signage Ø Make it simple, clear (and in Spanish)
REUSE & RETAIL MANAGEMENT PERSONEL MANAGEMENT Managing Those Dedicated to Helping You Achieve Your Mission Ø Ø Paid Staff Volunteers Your Supervisors – Manage UP Your Board
REUSE & RETAIL MANAGEMENT Operations Ø Ø Ø Policies in writing - be consistent! Procedures in writing, simple & easy to follow Great Service: Customer, Donor and Client Services Ø Pick-Up Scheduling Ø POS System: Inventory & Statistics Ø Flexibility
REUSE & RETAIL MANAGEMENT MARKETING… …Don’t Be Afraid Of This Word Ø Importance of Point of Sale Marketing - Do your customers know what they are supporting? Ø Word of Mouth - It can make or break you! Ø Web Presence and Social Media Ø Networking and Social Networking Ø Branding: shopping bags, price tags… Ø Advertising (you might reasonably be scared of this word)
REUSE & RETAIL MANAGEMENT NETWORKING… …Use the NYC Reuse Community to Build your Business! Ø NYC Reuse Sector Conference, trainings, etc. Ø Visit other operations, invite them to visit yours Ø Referrals - know who takes what Ø Partnerships - leverage your impact
REUSE & RETAIL MANAGEMENT BEYOND “BRICK AND MORTAR” Other Ways To Generate Revenue Ø Ø Store Front Alternatives: Auctions - live, silent, etc. Bulk Sales Partnerships Per Scholas and Catholic Charities Ø Service Providers Who Will Sell For You: Donation Line Ø One-day and Special Sale Events Ø Mobile & Pop Up Stores
REUSE & RETAIL MANAGEMENT BEYOND “BRICK AND MORTAR” Other Ways To Generate Revenue Ø Ø Online Sales Auctions: e. Bay, Mission. Fish and dozens of others Direct Sales: Amazon, your website Other: Craigslist, other classifieds
REUSE & RETAIL MANAGEMENT 5 Practical Steps to Increasing Revenue Now Step 1: Self Evaluation Step 2: Action Plan Step 3: Immediate Action Items Step 4: Short Term Planning Step 5: Long Term Planning Ø Reinventing your store can be a daunting task. However, if you break it up into clear, simple steps it can be done in a series of “smaller tasks”. Ø The following are five steps to increasing your revenue quickly. I call them Practical Steps because much of it can be done without large investments, financial or otherwise.
REUSE & RETAIL MANAGEMENT 5 Practical Steps to Increasing Revenue Now Step 1: Self Evaluation Step 2: Action Plan Step 3: Immediate Action Items Step 4: Short Term Planning Step 5: Long Term Planning Ø First, do some very candid, self-evaluation. Start by making a check list of what you think is most important to your business. Second, pretend you are a customer and evaluate your store, ask others to evaluate using the check list also. And finally, take your check list to other stores and businesses and complete the check list. Take good notes of things you like and dislike at other businesses. Ø How do you compare? What are your strengths? Weaknesses? What did the other stores do that you should do? Or that you should not do?
REUSE & RETAIL MANAGEMENT 5 Practical Steps to Increasing Revenue Now Step 1: Self Evaluation Step 2: Action Plan Step 3: Immediate Action Items Step 4: Short Term Planning Step 5: Long Term Planning Other Questions To Ask: Ø What, or who is your target market? Ø Are you accessible to your target market? Location? Hours? Ø Do you have the right merchandise? Ø Are you focusing on Retail Industry Best Practices? Pricing Presentation & Housekeeping Merchandise Flow Staffing
REUSE & RETAIL MANAGEMENT Five Steps to Increasing Revenue Ø Once you have completed a self evaluation and have identified some ways to improve your business (goals), the next step is to make an Action Plan. Step 1: Self Evaluation Step 2: Action Plan Step 3: Immediate Action Items Step 4: Short Term Planning Step 5: Long Term Planning Ø Write down your goals in clear, simple statements: make the storefront look like a real store, or improve merchandising, or improve customer service. Ø Determine what you need to do to reach your goals: hang signs, change displays weekly, staff training or incentives. Ø Break these tasks up into three sections: tasks you can do immediately, tasks you can do in the short term and tasks that will require long term planning. Ø Re-evaluate your Action Plan weekly to start, and then monthly.
REUSE & RETAIL MANAGEMENT Five Steps to Increasing Revenue Immediate Action Items should be easy to implement, do not require complicated approvals, and can be done in a few hours or a day or two. Step 1: Self Evaluation Step 2: Action Plan Step 3: Immediate Action Items Step 4: Short Term Planning Step 5: Long Term Planning Ø Hang an OPEN sign on the door and post your hours Ø Create and post a Price List, make it into a flyer to hand out to customers with daily sales Ø Rotate out merchandise that has been around too long Ø Make sure staff are ASKING callers for what you really need Ø Inspired by your store visits, visit some stores that are nothing like yours – what can you take away?
REUSE & RETAIL MANAGEMENT Five Steps to Increasing Revenue Step 1: Self Evaluation Step 2: Action Plan Step 3: Immediate Action Items Step 4: Short Term Planning Step 5: Long Term Planning Short Term Planning will be necessary for action items that require a larger work force than normal, or approvals from your supervisors, and may take a few weeks to accomplish. Ø Make a monthly calendar of in-store events: Holiday Extravaganza, Senior Day, Back-to. School Sale Ø Maintain an event folder so you don’t have to reinvent each time Ø Rearrange the entire sales floor Ø Retrain the sales and phone staff Ø Begin recruiting volunteers Ø Create and hang interior directional or informational signage Ø Create and hang a new street front sign
REUSE & RETAIL MANAGEMENT Five Steps to Increasing Revenue Step 1: Self Evaluation Step 2: Action Plan Step 3: Immediate Action Items Step 4: Short Term Planning Step 5: Long Term Planning takes a while and is often done by a group. I have been working on ideas and projects for years, however, usually these projects will take a few months to a year. Ø Writing or rewriting a business plan Ø Writing or rewriting a mission statement Ø Revamping your volunteer recruiting process Ø Create a “Friends of. . ” group or engage Pro Bono Professionals Ø New Ventures: Other ways of selling your stuff Certainly, there are other important longer term projects such as evaluating location and staffing.
REUSE & RETAIL MANAGEMENT RESOURCES The National Association of Resale and Thrift Shops (NARTS) www. narts. org REDF (formerly the Robert’s Enterprise Development Fund) www. redf. org Housing Works www. shophousingworks. com Good. Will www. shopgoodwill. com e. Bay www. ebay. com Mission. Fish www. missionfish. org
REUSE & RETAIL MANAGEMENT Questions & Answers