Creating
an Open House
Hosting a profitable special holiday event for your business
If you are thinking about having
a fall or holiday open house for your business, we have good news
for you. First, we want to tell you that it is not too late to
begin planning the event. We also want to tell you that it is
not too early to begin planning.
As we conducted interviews
for this article, we found numerous retailers who expressed a
desire to hold an open house, but lacking the necessary information,
or having the idea that an open house was such a massive undertaking
that they could never attempt it. The retailers we interviewed have
all been successful in having one or more open houses each year.
And from the stories we share, you will see why these retailers
continue to have an open house year after year.
The most popular
occasions we found retailers having open houses were the Christmas
holidays, fall, spring, and the anniversary of the business. Those
that had an anniversary open house usually had the event in the
summer. And we found a couple that created an open house after
they had remodeled their business or had made an addition to their
sales floor. We spoke to businesses that had open houses where
their average sales ticket increased more than threefold over
the rest of the year. There were also businesses having a three
day open house with sales for the event equal to their total sales
for the previous month.
What are their secrets? While
you do not have to wait until you have a mailing list to have your
first open house, each of our retailers stressed the importance
of tracking their customers. Those retailers who sold collectibles
such as Department 56, were sure to gather the names and addresses
while also keeping note of what collection the customer had.
Larry
Bird of Gabriala's in Phymouth, Michigan has a very good open house
each October for three hours on a Sunday evening. Because of their
extensive and detailed mailing list, Gabriala's has been able to
determine who their best customers are. So detailed is their information
about their customers, that of the 15,000 on their list, they know
who the 1200 customers are that give them 80% of their total sales.
It is this group that is invited to their open house, a "by
invitation only" event.
Most
of the businesses we spoke with, go the other direction and invite
customers to attend through newspaper advertising and flyers they
create and hand out at their register.
In Papillion, Nebraska,
Cathy Soklewicz of Through the Garden Gate has an open house the
week before Easter and another the first weekend in November.
It is held in conjunction with nine other specialty shops, each
offering extended hours.
In Fort Smith, Arkansas, Joan
Sloat, owner of the Now & Then Shop reports that most of the local
specialty shops hold their open houses on the same weekend which
like Soklewicz's, is also the first weekend in November.
For
the spring open house, the shops in Papillion take "shifts" in
wearing the Easter bunny costume and walking about the town giving
out candy. For the holiday open house, they employ a group of
Dickens Carolers who go from shop to shop singing for the customers.
There were several points of
similarity we found with all of the open houses; food, door prizes,
and discounts. Food offerings ran the gamut from cola, coffee, and
finger snacks, to a fully catered event by a restaurant whose owner
was a frequent customer of the shop. One shop which had utilized
a gourmet coffee which they had purchased at the Chicago market,
received so many compliments from the drink that they added a gourmet
coffee and food shop within their store.
Door prizes, while being
a hit with customers, were a great way of getting names and addresses
for the mailing list. Some merchants gave gift certificates for
door prizes as a way of getting the customer to return to their
business a second time. Others called on the sales representatives
that visit their store to provide them with the items which were given
to customers.
Each of the retailers we spoke
with were creative in their discount or sale prices. Gabriala's
offers a 20% discount on every item during their evening open house.
Sue Loden, owner of Apple Barrel in Schobarie, NY, contacts her
vendors to ask them to provide her shop with special prices on items
so she can pass these savings onto her customers during the open house.
Several of our retailers utilized
an open house to introduce customers to new product categories.
Loden mentioned with the items which are project sales, her shop
has someone on hand to teach customers how to complete the project,
and then have special prices on the
various items.
We mentioned at the beginning
that it was not too late to begin planning your holiday open house;
those merchants who had held holiday open houses over the years
included the open house as part of their plans as they worked to
create the holiday decorations for their store. The same idea works
for a fall, anniversary
or spring open house.
Several of our retailers also
mentioned the need to plan for the additional sales help that would
be needed to assist in hosting the event. Other than the person
whose job it is to serve the refreshments, all of the others hosts
you employ need to be able to assist your customers as if they have
been a long time employee. After all, you are inviting people to
visit your business and these customers need to see your business at its' best.
You
can see from the variety of retailers we spoke to that there is
not one formula which works best for creating an open house. In
closing, there are several questions you should answer in deciding
how to create your open house.
1. Is this open house a reward
to current customers or a means of attracting new customers?
2. Is there anything else occurring
at the same time I have scheduled my open house? You may want to
either tie into the event or reschedule your event.
3. In selecting
foods, what is being offered that is not messy or likely to stain
my carpet? Customers who are offered too much to eat, or whose
fingers are sticky are not likely to take a closer look at your
merchandise.
4. As I hold the open house,
does my store look different - both inside and out - so that customers
know something is going on?
5. Do I want customers to purchase
during the event or just get ideas for future visits to our store?
If you want them to buy, you will need to have special prices.
Once
you have answered these questions, you are ready to begin planning
your open house. And if you want your first one to be a fall or
holiday event, the time to get started is now.