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Green Business: Federal Tax Incentives Impact Your Environment and Your Bottom Line

Posted onAuthoralice@specialtystoreservices.com

137590-Woman-recyclingThe concept of ‘going green’ has become more than a tagline. For businesses, there are some excellent advantages for choosing ‘eco-friendly’ as a method for cost reduction, while also reducing a company’s carbon footprint. The American Recovery and Reinvestment Act of 2009 was signed by President Obama and allows both residential and businesses to take specific energy tax benefits. Depending upon which choices you make, there can be long-term bottom line savings and escalation of the company reputation as a green business.

There is a distinct benefit to a tax credit as opposed to a deduction. A deduction reduces the total amount that is taxed, while a tax credit is a direct dollar-for-dollar reduction on the tax bill itself. This is not to be confused with Section 179 deductions, which typically have a percentage amount allowed based on the type of business and includes a per-year cap. Section 179 deductions have benefited business, but the amount available for reduction has been reduced year after year.

As a company makes decisions on the types of changes they will be instituting to become a green business, the tax credit dollars are becoming one of the largest incentives and are an encouragement for companies to select eco-friendly options. Many states are offering tax incentives, as well, so as to escalate the value of the investment choice.

Businesses have a unique opportunity versus residential, because of higher budgets and renewable energy grants available for businesses (Section 1104). Tax credit decisions can encompass a variety of possible changes and can include:

  • building structure;
  • renewable and/or sustainable energy sources;
  • replacing standard company vehicles with hybrid, electric-powered vehicles;
  • the use of alternative fuels.

There have been some changes in the requirements that now allow a 50% credit and an increase to $50,000 for the per-location limit.

Renewable energy selections can include a variety of solar, solar-thermal, biomass, wind, landfill gas, fuel cells, geothermal heat, solar-hybrid lighting, municipal solid waste, hydrokinetic power, tidal and wave energy, anaerobic digestion, ocean thermal, photovoltaics, micro turbines, fuel cells that use renewable energy, and geothermal direct use. When thinking about renewable and sustainable energy options, businesses will have the tax credit and a savings in overall energy cost expenditures that will be carried year over year.

If you are considering changing your business structure to accommodate ‘green building,’ you will need to work with qualified and licensed contractors. The United States government has strict guidelines and requirements with which a contractor will be familiar. To qualify for a LEED certification, 75% of the square footage of the commercial building will need to be compliant. The laws governing ‘green construction’ may also be different from state-to-state, and this is where your contractor’s knowledge will be of best use.

Making a ‘green choice’ is an excellent way to receive tax credits, but there is another uptick that the marketing team will love. Representing your company as an ecologically conscious organization is an attractive position for the reputation of the organization. Potential customers are now reviewing the businesses that they want to invest in, and a green certification is a competitive advantage.

While tax credits for smart ecological choices in business have stayed, it is important for any company to confirm the up-to-date tax requirements with a tax professional before making green business decisions.

To get you started, we recommend you check out the following information:

Leveraging Your Website Data For In-Store Merchandising

Posted onAuthoralice@specialtystoreservices.com

Beautiful woman smiling with her digital tablet and shopping bagsIn today’s net market, everyone has a website. For those that have a brick and mortar store or are a pure-play e-commerce company, a website can offer a plethora of information for an owner to ensure that inventory is available for sale. When used properly, a website can also be an asset upon which your customers and potential clients can rely.

Business analytics (BA) is a term that is being used quite extensively. Also known as business intelligence, BA is the ability to examine and analyze the information or data from a transaction list to determine future actions. The transactions can be tracked via a website and/or a point of sale. You don’t have to be a big corporation to accomplish business analytics, you just have to have access to (and be able to read and make use of) the technology at hand to see the signs.

There are a number of factors you need to consider for a product-centric website that can complement in-store merchandizing.

  1. You need to know what consumers are looking for and when.
  2. You need to have the items in stock when they want them.
  3. You need to be able to use the data from your website to anticipate purchasing trends.
  4. You need to stay up on overall net purchasing trends for your vertical.

The first move a savvy web owner makes is installing Google Analytics. This offers an opportunity to examine when consumers are viewing your site, what pages they are landing on, and how long they are staying on them. Your traffic patterns will give a bird’s eye view for popularity, elevation in searches and can allow you to make any adjustments to the site for increased traffic.

Most website platforms have a dashboard that is a goldmine of information. You probably have a list of the top 10 (or 20) search words and possibly the most viewed pages. Each of these areas are a priority to help you to understand what consumers are looking for and allows you to have the products in stock. Take heed of items that may be special or seasonal items.

Another recommendation is to use a product ordering technology. These include smart scanners that:

  • keep track of your inventory
  • automatically link to the manufacturer
  • keep track of the timing and amount of your past orders
  • prompt you when there are additional ‘deals’ available

Smart scanners can also link to your website to update inventory and set alert flags for products that are not available or are no longer offered, as well as those with a status change to available.

Depending upon what products you carry within your store, you will want to examine popular websites from your competition, social media search topics and the hot trending searches as they relate. Combining the technology tools for your own business analytics with the results from the Internet will give you a gauge for what will need to be on hand and in stock at the store.

Making use of your website data and the Internet to ensure the right products are available and the marketing message displayed can be an easy process, once you have all of the tools and steps in motion.

Addressing the Challenge of Holiday Demand versus In-Stock Merchandise

Posted onAuthoralice@specialtystoreservices.com

holidayFor most retailers, monthly volume doubles or even triples during the holiday season. It also seems that every year, retailers are scrambling to make sure they have the items consumers want in stock. This is very apparent in the toy industry when every child wants that ‘special’ toy and hardly anyone is carrying it. There are a few guidelines retailers can use to help to ensure shelves are stocked during the oft-chaotic holiday season.

Preparing for high volume purchasing times, such as the holidays, requires a bit of analytics and a touch of luck. Every retailer should begin preparing at least eight months before the season. This may sound like it is too far ahead, but if you look at when the trade shows are held, you’ll see preparation is the key to success. If you have a trade show in your particular vertical, use some of their analytics expertise. In many cases, they already have some of the data that demonstrates the increase of specific product purchases in your industry.

A second rule of thumb is to use the Internet analytics to see what which products you carry are trending. What are some of the latest upgrades to newer technologies or the latest craze in flavor or color? These will be major factors for decisions in consumer purchases. Some items may have been experiencing a slow increase in popularity, while others will probably be favorites for just one season.

If you have a website that lists products, make use of your platform analytics to see what the most popular items were last year, as well as those that have maintained high volume over time. Remember: Gift buying is on everyone’s mind, but consumers will also be purchasing mainstay items they would normally buy. Use the search statistics from your website to view what consumers were searching for on your site and do an in-depth review of what some of your top competitors are carrying.

Preliminary review should be eight months before the season. Purchase decisions should be at least six months prior, with a final review and additions at the three-month mark. You will also want to contact your manufacturers to get confirmation on potential shipping delays that are almost always attributable to the holiday. If there are any items that have had a history of being out of stock, order these at the six-month review. Communication with your vendors will be most important three months prior to the onset of seasonal buying.

If your industry involves merchandise that has a limited shelf life, such as food, you will need to work with your manufacturer to place orders at least six months in advance, with guaranteed delivery one month before the launch of the holiday.

Once you have a majority of your product decisions and orders, begin focusing on your marketing. Work with all of the people involved in your in-store and website marketing to craft the messages, signage and special discount deals you are offering. This is the time you can get ahead of your competition through special incentives, such as free (or flat rate) shipping, gift wrapping for in-store and complimentary items for purchases over a certain amount. Typically BOGO’s do not do well during the season as consumers are usually buying gifts for others and do not need two of an item.

With just a few easy steps, a bit of planning, and a lot of observation, every retailer can establish a routine to reduce the stress of the season while helping to increase margins.

Trend Surfing: Merchandising and The Art of Trend

Posted onAuthorericw@specialtystoreservices.com

Cart SurfingTrends, whether they are seasonal events, holidays or the latest video game craze, are a great way to feature and sell what is “hot” and “new”. In this post we are going to discuss ways in which you can use trends, both popular and not-so-popular, to your advantage.

This is the time of year when retailers around the country are gearing up for the back-to-school season and their preparations are evident in the changing displays around stores. From supermarkets to specialty stores, the focus is on back to school merchandise.  Stores across the country have stocked up and have showcased their back-to-school items on the end caps of aisles and other high-traffic areas of their stores. The moment a customer steps into the store, his or her eyes are greeted to the back-to-school merchandise. It’s a very basic “line of sight” tactic, but it works well every time. What should you display when there is no holiday or season to push? What products should be front and center?

You might already follow trends within your vertical, but have you thought about stepping further outside of the space to see what is trending in other areas? With so many forms of communication, trends catch on quickly and can spread like wildfire. The trick is to tie up-and-coming trends into your store. Great stock and neat display is not enough. Staying ahead of trends gives you a jump on your competition and improves your bottom line.

In this new era of retail wars, you need all the ammunition you can get to survive and thrive. You can no longer ignore the power (and threat) of online shopping, which continues to take more of the market share. Social networks are entwined in our daily lives, so much so that we don’t even have to switch on the television to get the latest news. If a customer “likes” your page, what other types of products do they “like?” To which groups do they belong? Who do they follow? Social networks allow you to easily mine information regarding what your customers are into. You can use this information to build a better customer profile and merchandise accordingly. Whether it is a new movie, TV mini-series, the newest video game, sporting event, a viral video, or even a grumpy cat, anything can set a new trend. Customers will go to the store expecting to see the latest and you have to fulfill their expectations. If a customer walks into your store and sees a display or merchandise relating to a particular trend, they will be more inclined to buy, as they already have a relationship with that product. Your merchandising, display skills and knowledge of what is trending will fire their impulses to buy.

The 3 Core Principles of Trending
Now that we have talked a little about the importance of trending, let’s take a look at some actionable ways to do so.

Variation: Seasons and events play a big role in attracting sales, but you need healthy sales throughout the year. Instead of waiting for the next festive season, take the reins now. Keep up with the times and latest trends; use these to change and upgrade your merchandise, displaying them artfully for your buyers. Variation of merchandise outside of well-known seasons gives you an advantage over your competition.

Engagement: You also have to keep in mind the diverse demographics that define the customers of today. Age, sex, race, personalities, choices, regions; there are all kinds of idiosyncrasies that make up a customer base. By interacting with customers of social media, you can build a better relation with and understanding of your customers. Trending allows retailers to keep up with the changing dynamics of what their customers want.

Innovation: Using new technologies and platforms let you experiment with different ways to market your business. You have to innovate. Just because it worked for someone else, does not mean it will work for you. Try new things: tap social media; have contests; follow the competition; discover what your customers are into and use all of this to your advantage.

Trending and its influence on modern merchandising is has certainly been accelerated by this era of communication and technology. The good news is that this very technology also provides ample information for retailers to use, as well. Emerging technologies; the latest mobile and hand held devices; faster and constant Internet connectivity; and social networks have all converged to create the perfect platform for trending. If you can harness these to hone your merchandising skills, then empowering your business will be easier and the future more effective.

Need some help harnessing the power of trends for your store? Specialty Store Services can help! Our retail experts can help you choose the right display solutions for your store that can help you capitalize on the latest trend. Call 800.999.0771 or visit our website for more information.

 

Choosing the Right Fixture for Your Stores: Three Important Fixture Considerations

Posted onAuthorericw@specialtystoreservices.com

decisionChoosing the right fixtures for your store and merchandise is not as easy as it may seem. There are many factors that have an impact on what fixture is chosen; from what is going to be displayed on the fixture to how fast the delivery needs to be. Making the wrong choice can cost money and time so take the time to review the following points before you jump.

1. Product and store appropriate

To get the most of your store fixtures, you need to choose ones that best suit your products and stores. There are many factors to consider, such as your products’ pricing, store space, target customer base, and more. If you are selling a high-end product like jewelry, choosing a sophisticated looking display that matches the quality of your merchandise is important. A cheap-looking display may become a turn-off to your target customer base. Also, be sure to choose a fixture that displays your product to its full advantage. Folding a sweater up will not showcase the style and details; while you may need to fold and store the majority of sweaters on shelves, displaying the sweater on a

mannequin will allow the sweater to shine—and encourage shoppers to imagine themselves wearing the sweater. The quality and appearance of your fixtures should always meet or exceed your customers’ expectations.

 2. Longevity and ease of upkeep

Since buying fixtures can be a large investment, another factor to keep in mind is how long they will last. A sturdy, well-built shelf will stand the test of time better than a less expensive but lower-quality shelf. The idea of longevity should also tie-in with the nature of your products. Are you constantly getting newer and trendier products in

that need different displays each time? If so, a wider variety and amount of fixtures may be an acceptable trade-off for higher-quality.

Also, consider how much work it will take to maintain a fixture. If you have staff already working at capacity, they may not have time to take care of a maintenance intensive fixture. Different materials like chrome and other metals, plastic, and wood require varying amounts of upkeep time; wood fixtures may need dusting quite regularly, but chrome may need constant polishing to remove fingerprints and other smudges. Another factor to take into account is where you will be placing the fixture. If it will sit in a high-traffic area, will it stand up to the wear and tear of the crowds?

 3. Price and delivery

The fixture decision includes choosing stock or custom designs. There are advantages and disadvantages to both options; the key is being aware of them and making informed decisions.

Stock fixtures are less expensive and can typically be delivered faster. However, a stock fixture may not have the appearance or characteristics needed to help your merchandise sell. Custom-designed fixtures will be developed and produced with your exact needs in mind. They may cost more initially, but can deliver more return on your investment in the long-run. When deciding on the price and design of your fixture, also consider the cost and speed of delivery. High-quality and reasonable pricing are important qualities for a fixture, but you also want to make sure you get the product when you need it—not 15 weeks after you order it and 4 weeks past your deadline. Choose a vendor that truly meets the promise of fast and affordable delivery.

Interested in learning more about how to choose the perfect fixture? The retail experts at Specialty Store Services can help. Call us today at 800.999.0771 or click here to visit our website for more information.

Luck o’ the Irish Giveaway

Posted onAuthorericw@specialtystoreservices.com


This giveaway is now closed. Congratulations to Paige, the winner!


Good luck is not just for the Irish! Luck seems to come and go, Irish or not, so many of us have little charms that we carry or quirky things we do when we need a boost in the luck department. Some of us may pick up pennies from the sidewalk or wear a lucky shirt when watching our favorite team play.

But we cannot just rely on luck to bring in customers or make our promotions known. That’s why Specialty Store Services is giving away a deluxe write on/wipe off markerboard with chrome stand and markers to help one lucky winner promote sales and events! Just post your comment below saying what your lucky charm is or what you do to bring on the luck. One person will be selected to win. Good luck, everyone!


No purchase necessary, must be 18 or older to enter. One comment per person, please. Void where prohibited by law. Contest valid in the US and Canada only. This contest starts today, Monday, March 12, 2012 and ends Sunday, March 18, 2012 at 11:59pm, central time. Winner will be announced Monday, March 19, 2012. Prize valued at $70.