Tag: merchandise

Merchandising and Your Small Business

Posted by Winflow – June 10, 2011

Merchandising is an important contributing factor to overall sales. If your small business runs out of a retail space, it is important to develop a merchandising plan. Keep these tips in mind when you are planning the look of your store:

  • Each square foot has a varying sales potential. For example, products by the entrance are likely to sell first so you should stock that location with products that contribute the most sales to your business.
  • The goal of a merchandising plan is to optimize productivity and sales.
  • Choose lighting that compliments your merchandise.
  • Create visual displays for merchandise to attract customers to particular items and increase your sales and profits.
  • When creating a visual display make sure the product is the first thing the customer sees.
  • Organize your sales floor into grouping of various merchandise. For example, all of the kitchen products should be together in one section.
  • Co-ordinating merchandise by colour attracts shoppers.
  • Setting up  related products across from each other is another good method of merchandising.

To learn more about creating a merchandising plan to optimize your sales, visit this page.

For more articles about creating plans for your small business, see below:

Developing an Advertising Budget

Posted by Winflow – June 10, 2011

If you are interested in increasing your sales, advertising your business is the best way to make money. Choosing how much to spend on advertising is the tricky part. Spending too little on advertising can mean poor results and less sales and spending too much can just end up costing your business. Some different methods of developing an advertising budget ideal for your small business include:

  • Unit-of-Sales Method.

    Unit-Of-Sale Formula, infographic by Miranda Newman. Formula provided by Canada Business.

    Determining the advertising costs per product involves using your experience and knowledge to come up with a dollar amount. This method is ideal for specialty goods or products that have limited availability due to factors like weather.

  • Percentage of Sales Method. Determining the right percent of sales to allocate to advertising can be done by looking at other companies in your industry. How much are they spending on advertising? Are you in a position where you need to spend more or less than your competition? Your sales value can be data from the previous year, future sales projections or a combination of the two.
  • Objective and Task Method. Though this method of creating an advertising budget is the most difficult, it often yields the most accurate results. It involves setting specific objectives, determining the media that will reach your target market and estimating the costs of advertising to meet your goals.

To learn more about developing an advertising budget and allocating funds, read this Canada Business Page.

If you need help developing an advertising budget for your small business, contact the Winflow Financial Group. We can be reached at 1.800.956.6897.

Selling on Consignment

Posted by Winflow – June 10, 2011

Selling your goods on consignment involves shipping them to a distributor who only pays for the merchandise he can sell. Though this isn’t ideal, it is a good alternative for business owners who are having trouble getting the funds to keep products in stock or have seasonal products that won’t make it to the shelves in time. It can also be used as a marketing tool. Some other reasons for selling on consignment include:

  • New businesses with no sales may have a hard time finding dealers who are willing to take the risk of investing in your product. Selling on consignment means the dealer has no obligation to sell your product and won’t lose money if the entire order doesn’t sell.
  • Small business owners that sell perishable merchandise may also have trouble finding a dealer willing to stock it. This is another way dealers feel safe and you still make a potential profit.
  • If you haven’t found a buyer, this is a way to expose your merchandise to the market and develop your reputation.

To learn more about selling on consignment, visit this Canada Business page.

If you need help getting your merchandise stocked or turning a profit, contact the Winflow Financial Group. Our trained consultants will make a personalized plan aimed at growing your business.

Starting a Wholesale Business

Posted by Winflow – June 9, 2011

Running a wholesale business can make you a substantial amount of profit compared to running a retail store. This is because you are not making sales a dollar at a time, instead you are supplying inventory to retailers who typically need orders that costs thousands. If you’re considering opening a wholesale business, keep the following in mind:

  • You don’t need a lot of capital to start a wholesale business.
  • You can stock inventory or drop ship it directly to the customers. Drop shipping is when you send the inventory from the vendor to the customer. You avoid paying overhead fees for storing merchandise.
  • Understanding consumer trends is an important aspect of running a wholesale business.

Once you have decided to open a wholesale business, there are a few things you need to get in order. Be sure to set up the following before opening your business:

  • Find manufacturers. Vendors can largely be found online.
  • Find retailers through ads and direct contact. Participate in social media and consider contacting E-Bay or other online stores.
  • Figure out payment terms. Take a look at the competition’s payment terms and see if you can provide stock for less.

If you need help launching your wholesale business contact the Winflow Financial Group today. We can assist you in financing, investment