e-ret@iler from Profits Plus and Tom Shay
ideas to be more profitable in your business
October 2006 - Our 83rd consecutive issue

The October e-ret@iler contains:

1. The article of the month: Cheaper is not
better
2. e-ret@iler advisory of the month: The Fudgery
3. Web tip of the month: Gross Margin Return
On Inventory
4. Our Power Promoting idea of the month:
Wall of Fame
5. Book of the month: Think big, act small
6. 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. The article of the month: Cheaper is not
better

This article contains several first hand
observations I have made about businesses I
have visited. As you read through the story,
there are comparisons of how other companies
have differentiated themselves from their
competition - but not based on price.

I think you will enjoy the article.

Cheaper is not better

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: The Fudgery

During a recent trip to Baltimore, I took a side
trip to the Inner Harbor. As you enter one of
the buildings, you can't help but hear the
sounds coming from The Fudgery, a shop located
on the lower level in one of the corners. Of
course, they sell fudge. What makes their business
different from others is the way they sell fudge.

This was very evident as I observed a conversation
between two co-workers. As they were talking, the
conversation was not about how one of them rang
up a sale, or handled a transaction, or how they
made the last batch of fudge.

Instead, one was busy telling the other how to
control the "show".

"You have to get into it. It has to be fun for
the customers. You have to engage them and get
them involved in the whole production", was the
instruction being given.

What amazed me was that one employee was explaining
to another employee that there is more to what
they do than just ring up a sale. Instead, this
employee knows that the Fudgery at the Inner
Harbor in Baltimore is about being in the
entertainment business. In a location where
everything is about entertainment, this business
has set itself apart from the places that are
selling flags, cups, coffee, bagels and all of
the other souvenirs and foods. This business is
about selling the experience.

In your business, what is the experience about
with your customers? Or are you busy just
selling products?

O <= After printing the October e-ret@iler, check
here if you plan to reconsider your store's image

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3. Web tip of the month: Gross Margin Return
On Inventory

What if you were to take all of the inventory
you had and sold it without replacing it? Then
you took the money and invested it in the
market or mutual funds. One of the first things
you would ask as you made the investment would
be about the interest rate your money
would earn.

If this is so, why don't more businesses pay
attention to how much of a return they are
getting from their inventory? The web tip
we have for this month is for another of
the calculators on our website. This one
calculates the GMROI - also known as the
gross margin return on inventory.

Some refer to it as the gross margin return
on inventory investment (GMROII). Either
way, you do need to know how your money
is making more money for you.

Click on this link to see the GMROI calculator
on our web page.

Gross Margin Return On Inventory

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

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4. Our Power Promoting idea of the month:
Wall of Fame

We read about this idea in a trade magazine and
decided that we would implement it with our
own special twist. The idea we first saw
was in a store where the staff kept a Polaroid
camera near the checkout and took pictures of
each of their customers. The photographs were
taped to the counters and walls about the
business.

As our business had very high ceilings and there
was little above the eight foot level, we
decided to use this space for our version of
a wall of fame.

Any customer of ours that had been mentioned in
a newspaper or magazine was now a candidate to
join the wall. We would take the clipping from
the paper, frame it, and then hang it on the wall.
We also had customers that were famous - one pro
football player, two pro baseball players, an
Olympic swimmer and several others. We would ask
them or their family members to share with us an
autographed photo so that we could add them to the
wall.

Once you get this idea started, you will likely
find, as we did that your wall begins to develop
a reputation. People begin to volunteer material
for the wall. Several customers would tip us to
items such as the one person that retired from
the local utility company and was the recipient
of a two page write up.

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5. Book of the month: Think Big act Small by
Jason Jennings

This is a really neat book. It tells the stories
of several businesses that have grown into large
businesses, but have maintained the basic principals
they used to start their business. If you are in
the automotive industry you will definitely want
to read the chapter about David O'Reilly and his
auto parts business.

If you have already read this book, or are looking
for more books to read, follow this link to the list
of suggested readings on the book referral page
of the Profits Plus website.

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.

You can click on the link in the upper left corner of this page.

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

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

Tom Shay