e-ret@iler from Profits Plus and Tom Shay
ideas to sell more merchandise and services
October 2005 - Our 71st consecutive issue

The October e-ret@iler contains:

1. The article of the month: Developing a
Resourceful Sales Team
2. e-ret@iler advisory of the month: 7 traits
3. Sales tip of the month: Own the item
4. Web tip of the month: Turn rate calculator
5. Our Power Promoting idea of the month: Support
Christmas tree lots
6. Book of the month: The Stuff Americans are
made of
7. Your e-ret@iler subscription, contacting
Profits Plus and Tom Shay

O => Print the October issue of the
e-ret@iler so you can read it at your leisure.

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1. Article of the month: Developing a
Resourceful Sales Team

There are two things in retailing that cannot
be disputed; the need for a proactive cashflow
calculator and the need for a continuing staff
education program.

The article of the month discusses the later.

Developing a Resourceful Sales Team

O <= After printing the October e-ret@iler, check
here if you plan to read the article of the month.

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2. e-ret@iler advisory of the month: 7 Traits

You can read more about the book that these
ideas come from when you view the monthly book
suggestion. The book outlines seven traits that
they find in Americans. I would think that the
seven traits are not unique to Americans. This
month we will briefly visit the first trait -
We insist on being able to make a choice.

When I read this part, the first thing I
thought of was a similar situation we
experienced in one of our stores years ago.

We carried one and only one brand of vacuum
cleaners. Sales were good - better than what
the vendor expected us to achieve. Then we
visited with another dealer that told us sales
would increase if we would offer two brands of
vacuums.

It seemed odd to us, but this other dealer was
very insistant we try it. We did and the first
reaction was from the sales rep of the original
line. He was so upset.

However, what the other dealer had said did
come true. Sales of the second brand were
better than what we expected, and sales of the
first brand increased as well.

I think this proves the point - people want
choices. We know that people do not spend as
much time shopping as they used to. But they
do have a need to feel that they did their
"shopping homework". If you offer choices with
the products you offer, then a customer can
feel fulfilled that they did shop for the
best choice.

O <= After printing the October e-ret@iler,
if you plan to review this material for your
business.

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3. Sales tip of the month: Own the item

Maybe it was putting out the fall decorations
at our house that reminded me of a friend in
the Christmas tree business here in Florida.

It is an old sales tip that he and his people
swear by. Think about going out and looking
for a Christmas tree - fresh cut or artificial.

You hold it up, someone looks at it, and you
make a decision - take this one or look at
another.

Except with his people. They have to hold the
item initially. Then they make a point to
touch the item; not just a touch, but his
salespeople "pet the tree". I know it sounds
odd, but he says when his salespeople "own the
tree" and pet it, it conveys a message to the
customer. The message is that they will want
to own the tree.

As his tree salespeople come and go, he tells
me that when his new people finally learn to
own the tree and pet it, their sales will
increase.

This concept can apply to any and everything
you are selling. Do you take pride in owning
the item as you demonstrate or show it to
a customer?

It could increase your sales.

O <= After printing the October e-ret@iler,
check here if you plan to use this tip.

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4. Web tip of the month: Turn rate calculator

A popular question that I get after a presentation
on how to price products is, "What should my
margin be?" My response is, "If you were going
to bake an apple pie with only one ingredient,
what would the ingredient be?"

Of course the person will respond by saying you
can't bake a pie with only one ingredient. That
would be the same answer for their question. You
cannot have a margin for the entire store.

When determining what to sell something for, you
also have to consider how many you will sell. It
stands to reason that the lower your price the
more likely you will sell more. As you are selling
more, your "turn rate" is increasing. There is a
combination of the gross margin of an item, and the
turn rate of that item, that you as a buyer must
decide you are happy with.

As many people do not consider turn rate as they
decide what price to establish for an item, we
have included a turn rate calculator on our
financial ratios calculator page. Please take a look.

Financial Ratios Calculator

O <= After printing the October e-ret@iler,
check here if you plan to look at the financial
ratios calculator.

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5. Our Power Promoting idea of the month: Support
Christmas tree lots

The Christmas holiday selling season is just
around the corner. In the short 45 day selling
season they have,these people will be advertising
and promoting as much as possible and lots of
people in your community will be shopping
at these lots.

Many of these lot operators have become very
sharp business people. They don't just sell
Christmas trees; they are selling lots of
accessories. Perhaps there are ways you can
tie into these short term businesses.

You may be able to get these people to locate
their Christmas tree lot in your parking lot.
Think of all the people that will be coming
near your store. As they sell accessories,
perhaps you could provide them with bags.
(You know, the ones that have your name on
them) You could also print flyers and ask
the tree lot retailers to hand them out to
people purchasing trees.

We know of one retailer that has a tree lot
in front of his business which sells over a
thousand trees during the season. They have
a wonderful working relationship where both
benefit each holiday season.

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6. Book of the month: The Stuff Americans are
made of

I was hesitant to make this the book of the month.
The reason is that we have so many readers of the
e-ret@iler that live and work in other countries.
I don't want to insult anyone by saying, "Look at
how we Americans do it".

Instead, I invite you to look at this book only
from a retailer's viewpoint. Does it matter if
the statistics come from one country? Does it
matter if the authors had no thoughts whatsoever
with regard to independent retailers when they
wrote the book?

The important point is that there are seven traits
they recognize and they can very appropriately
be applied to your business.

I hope that you will enjoy reading, "The Stuff
Americans are made of" by Josh Hammond and
James Morrison.

Book Referral List

O <= After printing the October e-ret@iler,
check here if you plan to read the book of the
month.

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7. Your e-ret@iler subscription and contacting
Profits Plus and Tom Shay.

The subscription is free. Just remember if you
are changing your Internet service provider, you
will need to enter your new e-mail address
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There is a link in the upper left corner of this page for you to subsribe.

Contacting us is just as easy:
The phone is 727-823-7205
The fax is 727-898-3179
The mailing address is:
PO Box 128
Dardanelle, AR 72834 USA

Thanks for visiting with us this month. We
appreciate your taking time from your
busy schedule. Our goal is to help you and
your business to become more profitable. We hope
we have done that.

We encourage you to seek out and do business
with other independently owned businesses. If
you are wanting people to do business with you
because you are a locally owned business, then
it stands to reason that we should be doing
what we are asking others to do.

Get your Profits Plus. May God bless you and yours.
We will see you in November.

Tom Shay