International Art Materials Association

   eNEWS:  June 20, 2018 


    Membership          Art Materials World           About Us            Resources   

 

 
See New Products              Submit Member News

 


Move ’Em Out: How to Sell What’s Not Selling

by Rich Kizer and Georganne Bender


As we wrote this article we found ourselves humming the theme from the TV show “Rawhide.” The retail tie-in pertains to the refrain, “Move 'em on, head 'em up; Head 'em up, move 'em on; Move 'em on, head 'em up… Rawhide!” That’s exactly what you do each time you take a markdown: Head ’em up and move ’em out.

At least that’s what we hope you do.

Consider the retailer who was convinced by a dubious financial counselor to invest $1000.  The counselor promised that $1000 investment would yield $2,500 within 12 months, so the retailer handed over her hard earned cash

Three months later the retailer called the financial counselor to see how her money was growing. The answer was disappointing: her investment was down to $815, but the counselor encouraged her not to be discouraged.  Another three months passed and the retailer called again, this time her $1000 investment was down to $488. Six months later its value was just $104.00. Not exactly a happy ending. This scenario happens in retail stores all across the country each year, maybe even in yours.

We’ve all been that retailer.  If you’ve ever held on to merchandise far past its selling life, you’ve been there. Sometimes you hold on to product so long that it begins to fade, wear a little around the edges, and fall out of style. You might even have some of this merchandise on your sales floor right now. Here’s the thing: the fashion and seasonal items you carry have limited life cycles. You should never wait until shoppers turn up their noses and walk away from a display as the only hint that it’s time for a markdown. The basic items you need to stock every day can become shopworn and need to go too, even if it means reordering that same item.

Just because you loved it when you bought it doesn’t mean that customers will too, and it doesn’t mean that it’s guaranteed to sell. We call buying things you personally you fall in love with the “halo effect,” which is dangerous to your bottom line. Your invested money needs to work smarter and harder for you, supplying a return on your investment. Let’s look at the key areas you need to manage to move ’em out:

CALCULATE YOUR TURN
Inventory turnover, or turn, is a measure of the number of times inventory is sold within a period of time, usually a year. The easiest to way to determine your inventory turn figure is to simply divide your last year’s total retail sales by your year ending inventory at retail value.

To achieve a better turn rate, you need to closely control your inventory. Be insistent about delivery dates, and implement a strong markdown program to clear out product that’s past its sell date.

TELL VENDORS WHEN YOU WANT TO RECEIVE YOUR ORDERS
Before you place that order ask yourself when the product actually needs to be in the store, and then tell your vendors what you need. It’s foolish to take late-season deliveries if that can hurt you, and it’s just as foolish to receive goods – and have to pay for them – far in advance of your actual need time. So request delivery dates. You won’t always get your wish, but if you don’t ask, the vendor will always get theirs.

ART SUPLIES, UNLIKE FINE WINE, DO NOT GET BETTER OVER TIME
To manage your inventory and return on investment (ROI), you should know the age of every item on your sales floor and in your back room. When did it arrive? You don’t always have time to run to your computer or POS system to look it up. And let’s be honest, when was the last time you actually did that? Instead, adopt a system to mark each item with a “received date” code that allows you to instantly determine age without having to leave the sales floor to check a report. We like a simple bin ticket for this task.


Bin tickets are stickers that you place on each shelf or fixture to indicate the item’s designated home. Bin tickets should include the information that’s important to you, including SKU number, maximum and minimum quantities, price, cost (in code shoppers can’t decipher), vendor, and date code. The date code tells you when the item was received so you’ll know at a glance which products are selling and which are not.

Let’s say a customer asks for a particular item, so you lead the customer to the place it’s supposed to be. The bin ticket is there, but the shelf is empty. Or worse, the space has been filled in with another product. How long has this merchandise been out of stock? Is there more in the back room? How do you know? Here’s where our Dot System comes into play.

You’ll need a supply of small red and green adhesive dots. A green dot on the bin ticket means there is more of this particular available product in the back room. A red dot on the bin ticket means there is no more in the back room. If there isn’t a dot on the bin ticket then there isn’t any more of this product in the back room and the item is not to be reordered.

Train your associates to check the stock room each time they come across an empty shelf and a bin ticket with a green dot – this product is available and needs to be restocked ASAP.

KNOW WHEN TO TAKE A MARKDOWN
Markdowns are not your enemy; in fact it’s smart retailing to ditch the dogs. Stores do not close because they had to take markdowns; they close when product is not sold fast enough to create the cash flow needed to cover expenses.

When taken on time, the first markdown is always the cheapest markdown. Clearing out merchandise before the price/value relationship is destroyed is critical. You should begin to mark down items as soon as sales start to slow down.

Let’s say you have an item that’s currently priced at $25.00 but it isn’t selling. If you mark that item down to $19.99, its value goes up in the customer’s mind. If markdowns are not taken in time it takes a much larger discount to create value. Just ask an apparel retailer who’s trying to sell prom dresses at full price in July. Keep this in mind: Markdowns allow you to maximize your invested dollars. When you get those dollars back you can reinvest into newer items that will yield higher margins and better inventory turn.

One of your jobs is to be on the lookout for merchandise that’s past its prime, taking markdowns as frequently as necessary to clear this merchandise. Sales on seasonal merchandise should start just before the season ends; waiting until after the season/holiday is over will severely hurt your return. Packing product way for next year isn’t a good idea either. Get the cash out of your investment and keep it working with new, fresh goods.

PROPERLY DISPLAY MARKDOWN MERCHANDISE
When you run a sale, run a SALE. Display the product near the front of the store or in its normal home. You can also use your speed bump displays to house this merchandise during the sale. Highlight the displays with banners or signs created specifically for the sale.

We’ve seen too many clearance areas that look like disaster zones; that’s no way to create value. Clearance items should be merchandised with the same care as regularly priced product. When running a clearance sale, display this product near the front of the store. After the sale move it to a small clearance area near the rear of the store so that shoppers have to pass through displays of new product to get to it. Clearly sign your clearance area so that shoppers will want to stop and check it out before heading to the cash wrap.

"HOT SPOT'" and "ONE TO THE RIGHT"
Every section of every fixture has what's called a “hot spot”; it’s the part of the fixture that sells product the best. To find the hot spot in any fixture, draw an imaginary cross through the center of the fixture – the hot spot is at eye level (about 5 feet 4 inches) where the two lines intersect. Customers tend to stop in the center of a display to peruse the product, so this area is easily seen. Use it to display important product you don’t want shoppers to miss.

Here’s an insider tip: Remember "Hot Spot and One to the Right." Shoppers do a lot of things they don’t realize they do, like reaching for product with their right hand. This means that the position just to the right of the Hot Spot is also a strong display space. You can use this area to display new items or to energize product that’s still in its selling season but isn’t moving. It’s also a great place to house product that’s a tough sell.

DISPLAY IMPULSE ITEMS AT THE CASHWRAP
A lot more happens at the cash wrap besides just ringing the sale; it’s where impulse purchases live. Load your cash wrap with product customers just can’t pass up. Think of the add-on sales possibilities! If you have a wall behind your cash wrap, use it to create displays that keep customers thinking about product – it’s also the perfect place to introduce new products.

CROSS-MERCHANDISING!
Why just sell one item when you can sell two or three? Here’s where cross-merchandising come in handy. Display different products or categories together on the same fixture. Cross-merchandising helps shoppers easily visualize how the items will look or work together. This technique is always a safe bet for the speed bump displays at the front of the store. Plastic clip strips you attach to gondolas and other fixtures to feature related product work, too. A clip strip of brushes attached to the gondola that houses paints makes perfect sense. Clipstrip.com sells a variety of cross-merchandising options.

MERCHANDISE OUTPOSTS
The next time you are at a department store take a look at the product that’s displayed in the main aisles. Chances are you’ll find tables of product that’s not in its traditional home on the sales floor. These clever displays are called Merchandise Outposts; their sole purpose is to encourage impulse purchases. They make shoppers stop and think, “I need that!” Merchandise Outposts will work on your sales floor, too.

MAXIMIZE IN-STORE SIGNAGE
Signs act as silent sales people, helping customers when no one is available to help. Women read signs for information; men rely on them to make decisions. And since 70 percent of purchase decisions are made in-store, your signs actually entice shoppers to buy. To be effective your signs must be three things:
  1.  Easy-to-read. Use at least a 30 point font so shoppers can see them even without their reading glasses. Use both upper and lower case letters, all caps are harder for older eyes to read. Most books, newspapers, and magazines use a serif font because this type is easier to read. Times New Roman, Palatino, Georgia, Courier, Bookman, and Garamond are popular serif fonts.
  2.  Easy-to-understand. The offer or item description on the sign must be is perfectly clear. Use small, simple words so the sign is easy to scan.
  3. Professional. Print signs on your computer on a neutral colored paper. (Know what neon paper says to a shopper? It says, “This stuff sucks and we can’t give it away.”). Use proper sign holders, not tape, to display signs. And unless handwritten signing is part of your brand, don’t do it.
WALK THE SALES FLOOR EVERY DAY
Do our 360 Degree Pass-By™ every, single day.  Start at the front door and walk the entire store – every aisle, nook, cranny, cutting table, restroom, cash wrap and service area. Note things that need to be fixed, fluffed or filled-in before the store opens for the day. When done religiously, the 360 Degree Pass-By™ will keep you focused on every area of your sales floor. Ask your store associates to do it, too. They have a different perspective so they will see things you miss.

The bottom line? Look at every display in your store as if it’s a pile of cash, because that’s what it is. No matter how much you love it, if a product isn’t selling, it has to go to make room for something that will. Move ’em out!

Rich Kizer & Georganne Bender are professional speakers, retail strategists, authors and consultants whose client list reads like a “Who’s Who” in business. Companies internationally depend upon them for timely advice on consumers and the changing retail market place. KIZER & BENDER’s observations are widely featured in national newspapers, national and international industry and consumer publications, and on radio and television programs across the U.S. You can learn more at www.KizerandBender.com.


COPYRIGHT KIZER & BENDER | ALL RIGHTS RESERVED
By the Numbers



 
Know your buying groups. In the 2018 Artists & Art Materials Study, more than 7,000 interviews were completed.
 
A total of 5,713 respondents classified themselves as Hobbyists along with 723 students and 654 professionals
 
There’s a wealth of information in this study, which is free to download here for NAMTA members. 

 


Notable Quote

“There is no art without intoxication. But I mean a mad intoxication! Let reason teeter! Delirium! The highest degree of delirium! Plunged in burning dementia! Art is the most enrapturing orgy within man's reach. Art must make you laugh a little and make you a little afraid. Anything as long as it doesn't bore.” 
- Jean Dubuffet







  

NAMTA Suppliers

Sign up for your 2019 Booth - fill out this form, or contact Rick Munisteri.

Know an art supply retailer that is not a NAMTA Member? Let us know so we can make sure they know about Art Materials World 2019. Send info to Karen or call 704-892-6244.

 


Art Advocacy


•  NAMTA Art Advocacy Grants will be given for programs that promote and foster the visual and creative arts in one of the following categories:  Public Art, Art Education, The Military, and Health & Healing.

Let your customers know about this grant
.
 

•   Print this flyer and leave it at your checkout or hand out to your customers.
•  Or, put this link https://namta.memberclicks.net/art-advocacy-grant-application to your newsletters and social media.
Thank you to Art Advocacy Grant Sponsors    and   .
If you or your company would like to sponsor the Art Advocacy Grant Program with a donation, please click here.



•  Combat Medic to Ceramic Artist: Art as Therapy
from Americans for the Arts ARTSBLOG
posted by Shawna N.M. Barnes, June 2018

I’m a disabled (differently-abled) Operation: Iraqi Freedom (OIF) Veteran who found clay after my medical retirement from the US Army in 2011, where I served as a combat medic. It has turned into a business, a passion, and my art has taken on a new purpose. I am passionate about how much my sculpting has helped me and I have an even deeper passion for sharing this amazing self-care concept/activity with as many people as I can.

For me, the simple act of creating is enough catharsis and has provided me with enough therapeutic benefits to keep doing it. Different forms of creative expression will help different issues. The key is to be willing to experiment with all these different creative outlets to find the one that works best for YOU. There’s dozens if not hundreds of different outlets that you can use as self-care.

It is important to remember that art therapy is very different than art as therapy. Art therapy is conducted by licensed therapists, psychologists, or counselors who have gone to school to receive additional training in art therapy. Art therapy is under the guidance and supervision of a trained professional with a specific goal/objective in mind. They know which kinds of activities would best help somebody with a variety of disorders, mental health complaints, trauma, etc. They are clinically trained to know which tasks and treatments would best help the patient’s individual circumstance and diagnosis . . . . read entire post


•  NEA Funding Increase Approved

Americans for the Art Action Fund reported that The Senate Appropriations Committee approved the FY 2019 funding increases for several federal cultural agencies based on the allocations set earlier this week by Senate Interior Appropriations Subcommittee Chairman Lisa Murkowski (R-AK) and Ranking Democrat Tom Udall (D-NM). The Senate matched the House of Representative’s $2 million funding increase for the NEA and NEH, bringing their budgets up to $155 million each for FY 2019. As these bills eventually move into conference, we will continue to work on the possibility of additional funds for a new Louise Slaughter grantmaking fund as mentioned in report language in the House funding bill.

The voice of arts advocates was clearly heard. Nina Ozlu Tunceli, Executive Director of The Action Fund asks that you keep pressure on Congress by contributing to their Campaign to Increase Funding for the Arts in America.



Fact of the Week #173: Art provides us with the history of ourselves and other groups. Historical art shows us how people looked, what was going on, and how people felt about certain situations at the time. Political cartoons show us the opinions of those who don't approve of something, while paintings from the Renaissance show us how religious people were in that period. Cave paintings taught us how the very early humans lived. theodysseyonline.com
See more FACTS

 

Visit namtaartadvocacy.org for news, resources, and facts about Advocating for the Arts.

 


The New Normal: How Retailers Continue to Evolve

from NRF.com, May 21, 2018
by Sarah Rand, VP Digital Communications at National Retail Federation - NRF

Have you heard that retail is dying? We have too -  but the numbers don’t support that story. For over a decade, NRF and Forrester’s State of Retailing Online studies have shown an industry in flux with never a dull moment. Forrester Retail Analyst Sucharita Kodali can attest to that: “The myth of the retail apocalypse!” she says. “We’ve got to crush it now!”

Kodali joins this episode of Retail Gets Real to present findings from the latest report, which surveys retailers about key investments and plans for the year, and discuss examples of successful retailers adapting to the changing retail environment

Retail store closures were some of the biggest news stories in 2017, feeding a narrative that retail is in decline. The numbers show a different outlook, though: More brands plan to open stores versus close them this year. The best examples come from brands that used to be ecommerce pure-plays - Warby Parker, Amazon and Rocksbox, to name a few — opening physical stores. “Pure-plays have realized that it is really hard to gain mindshare and market share online,” Kodali says, “and there is nothing better than to have a great physical manifestation of a brand … to help build that brand.

Retailers continue to find ways to integrate the digital and physical worlds, especially in store improvements like self-checkout and back-end processes like task management for store associates. The challenge remains prioritizing “digital first” over other organizational goals, optimizing product assortment and getting content online. For as much as companies want to engage in the latest and greatest thing, Kodali says, “there are a number of basics that companies still seem to need to get in place and get right before they can truly make the most of their digital strategies.”



Freight Insurance: Is It Right For Your Business?

A PartnerShip Blog Post from Jen Deming, June 2018

Let's face it: ship happens. Even though many shippers prepare for the worst and do their very best to protect their freight, loss and damage are an unfortunate reality of the business. Freight insurance is a vital tool that business owners can use to offset the costs of freight damage and limited carrier liability. Unfortunately for many shippers, freight insurance coverage can be complicated to understand and is often misunderstood. How do you know if you should be using freight insurance?

First and foremost, it is important to understand the difference between freight insurance and carrier liability . . . . read entire article

Visit PartnerShip.com/NAMTA for complete program details and member discount information. Shipping program can be used in USA only


New Product

The new Nitram Stylus is so easy and natural that creative and expressive responses just seem to flow from the tip. Beautifully designed, this lightweight drawing tool is made from medical grade stainless steel with a sleek barrel. Versatile and robust, this drawing tool inspires confidence for indoors or outdoors - plein aire. See more details on the New Product Page.


Member News

NAMTA member Johanna Wiseman at Akamai Art Supply, in Hawaii recently contacted NAMTA regarding the severe impact caused by the lava flow in Pahoa Hawaii as you’ve seen in the news. 

Johanna sent us the link to a gofundme site that has been established for those who would like to contribute to their relief efforts by a lady named April Buxton who says, "I am raising money for the evacuees that are currently living in the parking lot of the Pahoa Community Center. I have been living in Leilani for about a year and now I'm one of those displaced by the current eruption at Kilauea . . . ." - read more.

Art Supplies donations are also appreciated and you can send materials to be distributed to victims, to:
Johanna Wiseman
Akamai Art Supply
73-4976 Kamanu Street, #108
Kailua-Kona, HI 96740
(808) 334-0292



Art Materials Retailer Magazine has NAMTA retail member Cindy Hoeper (pictured right) on the front cover of their Summer issue with an article that starts on Page 10 about Cindy and her store Lakeshore Art Supplies, located in Wisconsin. Cindy has some positive comments about Art Materials World and NAMTA members Dan and Ann Ebert from Central Art Supply in Oregon, who helped by mentoring Cindy with information and ideas about the industry.

Also in this issue of Art Materials Retailer Magazine, you might see yourself on the 'Faces of Art Materials World' - pages 24 - 27.

 

 


Welcome New Member


Established in 2013, Sacred Heart Studios is located in Rochester, Minnesota. The studio has a strong following their tattoo artists' quality artwork and custom designs, and a friendly and welcoming feel. Co-owner Stephanie Holt said they are opening and art studio rental business and plan to start retailing art supplies and look forwarding to learning about the retail side.







NAMTA regularly searches the web for articles and stories that may be of interest to members.

 

 

The Real Reason Small Businesses can Compete with Anyone
Smaller companies are often touted as having better customer service than their larger competitors...

Here's How to Deal with a Grumpy Employee
One of my direct reports, someone who I’ve worked with for several years, has been suffering from a bad attitude lately...

5 Steps Leaders can Take to Turn Setbacks into Great Teachable Moments (and 3 Things to Never Do)
Every company experiences mistakes. These provide some of the best employee teachable moments...

How to Connect with Gen Z
While Millennials are often dubbed digital natives, today’s teens are truly the first generation of consumers to grow up in an entirely post-digital era. They have never known a world without smartphones and instant access to information at their fingertips...

Answering these 10 Questions Yes will Instantly Prove You are Meant to Lead People
This self-diagnosis will help determine employees' commitment to their boss, and to their work...

 

 

 

NAMTA Members get access to special pricing and more with a Store Purchasing Card.
Click here for more info!



Member Account #: 8012 806 1458


Contact: Steven Woods-Gray
855.337.6811 (ext. 12730)
[email protected]

 




Is Your Company Hiring Creatives?

The Savannah College of Art & Design (SCAD) offers more than 40 preeminent degree programs designed to prepare students to excel in creative careers.

Opportunities exist for you to recruit global SCAD talent on campus - virtually, or in your market. For more information, emai[email protected].






NAMTA members can list a job on this page by filling out this form

Your listing will stay on the Positions Available page for as long as you want, and there is no charge.






NAMTA 356 Mobile App

The NAMTA App is not just for Art Materials World anymore. It's 365 days a year and brings you much of the same information you can find on NAMTA.org.

Go to the App Store and download NAMTA. Contact Karen with membership directory updates.




Take a look at this form and see if you'd like to answer the questions to be a Spotlighted Member in an upcoming issue of eNEWS. 

This is a great way to let other NAMTA members know a little about you, your company and products.





    

               


Questions, email Karen or call 704.892.6244