How Much Should Retailers Spend on Advertising?: An excerpt from “How to Advertise your Retail Business.” by Gary Wright.

“I was seriously concerned about spending that much money in such a short period of time in advertising. But actually we found that we came in significantly under budget. … Our percentage of advertising dollars spent against sales, were less than what we’d normally spend because of our sales volume increasing so tremendously…”~G.A.Wright Client – Steve Stebbins

Most retailers spend 2% to 3% of gross sales on advertising. However, advertising
expenditures vary from nothing to about 10%.

Many small stores in regional malls don’t spend anything for advertising. Actually, they
do, but it’s included in the rent. The large anchor stores pull the traffic that keeps the smaller stores alive.

A store in an isolated location obviously must spend more. Advertising also varies by
type of merchandise. Furniture retailers, for example, spend about 5% on average.

As a very broad “rule-of-thumb” advertising percentage plus rent percentage should be
about 10%. So, if you’re spending a lot on rent to get a high traffic location you should spend much less for media advertising.

The advertising mix depends on the media available in the market area. Is there a good
newspaper? Is a directory service available that has online exposure? What about radio, cable and television? Outdoor advertising is also a possibility. Can pay per click advertising on various search engines create more traffic? Is a website necessary? Can direct mail still be used effectively? Is email advertising important?

I will give you many answers to these questions if you call to order the full free report How to Advertise your Retail Business.” 303-333-4453

At one time most retailers could get by with a combination of direct mail, newspaper
and Yellow Pages advertising. It is now more complicated and in most cases depends on the availability of advertising media in each market.

“We learned that the goal of advertising is to create traffic and the result of increased traffic is that it generates sales.”~G.A. Wright Client — Billy Birthrong

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How retailers can find their best customers: An excerpt from “How to Advertise Your Retail Business.” You can get the full report mailed to you by calling 303-333-4453 along with links to a video seminar worth $500.

“Your marketing techniques drastically increased our customer base. Your consultant devised a new marketing approach for us that should enable us to get better results, and better market penetration, from our advertising budget at half the previous cost.” ~G.A. Wright Client — Susan Simpson

Demographics are socioeconomic characteristics pertaining to a geographic area, such as a county, city, or zip code. For example, the average income of all people living in a county is a demographic characteristic of that county.

An analysis of the demographic characteristics of your market area may be an important consideration when making advertising decisions, depending on your store and product mix. If you sell merchandise that everyone buys like soap and toothpaste, then demographics play a less important role. If you sell fur coats or Rolex watches, then demographics are probably more important, because they help you identify your target market – the people most likely to shop in your store.

Demographic information includes:

1. Age
2. Gender
3. Race
4. Nationality
5. Education
6. Address
7. Income
8. Home Value
9. Employment
10. Religion
11. Marital Status
12. Ownership (home, car, pet, etc.)
13. Language

Demographic analysis is surprisingly easy if you have access to a large national database that compiles this information from phone books, census data, real estate records, auto registrations, and other such data sources. Since my company uses this information all the time, we have access to online databases that enable us to do detailed analysis for our clients.

To briefly explain the way it works, we enter the address of a store location. Then, the computer scans the area around that location using a radius we specify, generally between 2 and 5 miles, and accumulates all of the demographic information in the database for the relevant geographic area. We can then print out the information in a report, as well as generate a map that allows us to locate the store and neighborhoods surrounding the store.

We can look at different demographic characteristics down to the carrier route level. A carrier route encompasses the addresses where mail is delivered by one mail carrier. People living in a neighborhood tend to have similar income levels and similar buying habits. Therefore, if you can map the area surrounding a store and then geographically determine which areas are more or less likely to contain your customers, it makes decisions about advertising much easier to make. Direct mail, newspaper, flyer distribution, and outdoor advertising can all benefit from demographic information.

Please contact our office to receive an email or mailed copy of the full “How to Advertise your Retail Business” Report at 303-333-4453 or email garywright@gawright.com

www.gawrightsales.com

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This video shows a G.A. Wright client talking about her quilt store liquidation sale and the results she achieved using the store closing programs offered by G.A. Wright. G.A Wright has worked with many quilt shops as well as sewing and fabric retailers. G.A Wright offers Retail Store Closing Programs and Store Promotion Programs. This store is located in Alaska. We work with retailers in all 50 states and Canada. If you are interested in having a G.A Wright Consultant talk to you about a possible Going Out Of Business Sale or Retail Promotional Event please fill out form below or call 303-333-4453.

After the Video: We are pleased to update you on this Quilt store sale which ended this week. All of the fixtures were sold and even some wood framing posts inside a wall were sold. On the last day of the sale the customer came and picked up the wood 2×4’s but not before we snapped a picture. (shown below) We often say we can sell everything down to the bare walls, but we might have to change our slogan to: We sell everything including the walls!

Comments from the owner:
“On the first day of our closing sale I made as much money as I was initially offered to sell my business. We completed the sale two weeks early, with all the inventory sold and with 30% more in sales than the initial sales goal. I’m very happy with the results.” G.A Wright Client Dina Pappas

Wood framing inside a wall that was going to come down. SOLD!

Wood framing inside a wall that was going to come down. SOLD!


Fixtures sold and waiting for pick up!

Fixtures sold and waiting for pick up!


1st Day of Sale: Lines of customers. Full line wouldn't fit in camera view. It was a wonderful day!

1st Day of Sale: Lines of customers. Full line wouldn’t fit in camera view. It was a wonderful day!


Store Closing Information Packet

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Do you ever wish you could wave a magic wand and turn your store into cash? Do you ask yourself how to tell if you need to liquidate your store or if you can stay in business?

Well…it may not be quite that easy but, it’s probably much easier than you think to turn your store into cash with a Professional Store Closing Sale. It’s safe, fast and can result in a higher return on investment than other methods of selling a store.

Of course, I’d be the first to admit there are some disadvantages of a Store Closing Sale. So…just to be sure you consider all the options carefully, I’ve listed some pros and cons.

Disadvantages of a Store Closing Sale

You’ll wonder what people will think.
You’ll worry everything won’t sell.
Your business broker will argue you should have sold the going business.
You’ll work like crazy for weeks.
You’ll start seeing customers you thought died years ago.
Employees will complain about too many customers and too much work.
Vendors will call wanting to know why orders have dropped off.
Your banker will ask how you paid off your note.
Then you’ll need to begin making tough decisions about what to do each day.
Friends will approach you with exotic vacation ideas.
Prospective partners will want you to evaluate new business opportunities.

Advantages of a Store Closing Sale

The only advantage…you’ll have lots of money.

So…do you really want to deal with the disadvantages of closing your store and turning all of the inventory, fixtures, equipment and other assets into cash? If you do, I can help.

For FREE Portfolio of information call us at 303-333-4453 or fill out form below.

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Selling a retail store takes time. How do you know which type of liquidation sale is right for you? Bulk sale, auction, selling as a going concern. What if we told you a sale to consumers is the best way to exit the retail industry?

A Store Closing Sale to consumers produces the highest cash return, the results are predictable, and it can be accomplished in a short period of time, usually less than 60 days. A Store Closing Sale will normally produce a higher return than any competing method of selling the inventory and other assets of a retail store, including its sale as a going business.

The major asset of most retail businesses is inventory. Because of the wide range between wholesale and retail prices, a retail business is unique in the fact that it can be sold in a sale to consumers for much more than can generally be obtained in any other way.

Most methods of selling stores or the inventory and assets of a store, involves a sale in the wholesale market to other businesses. A buyer who intends to operate a retail store, or resell the inventory purchased, has the ability to purchase new inventory at cost. That buyer will not pay wholesale prices for inventory that has been on the sales floor. In fact, negotiations with a buyer in the wholesale market normally start at half of regular wholesale prices for the best merchandise, and go down from there.

Retailers are in the business of operating stores. The process of closing a store adds a new and very different management burden. Ensuring success requires careful planning, close monitoring of sales, margins, and expenses, and aggressive execution of a well-designed sale plan.
Experience with hundreds of store closings in every retail category has provided G.A. Wright the knowledge and experience to know:

1. How to line up a crowd of excited customers waiting for the sale opening.
2. Why a good image, quality merchandise, and loyal customers will mean the best total return from a Store Closing Sale.
3. How to answer all of the questions customers will ask in a way that will increase sales while building your image in the community.
4. How to create a buying frenzy in the store, which causes customers to buy now rather than wait or check prices elsewhere.

A Store Closing Sale, supported by G.A. Wright, can help you achieve the following objectives:

• Close a store quickly and efficiently.

• Obtain the highest cash return.

• Sell inventory, fixtures, and equipment.

• Collect accounts receivable.

• Eliminate the risk of financing a business sale.

• Maintain good relations with customers, employees, suppliers, landlords, government agencies, bankers and the local community.

• Maintain a positive business image.
Retail liquidation Programs

Complimentary Portfolio on How to Sell a Retail Store with a G.A Wright Store Closing Program. Fill out form below. There’s no cost or obligation. * offer is for retail business owners only.

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How to Close a Nursery and Garden Center with Liquidation- A Case History:

Overview:
David & Janet Lockwood, owners of Tem Bel Nursery & Garden Center in Temple Texas, needed to close their store due to cash flow problems resulting from a down economy. Since they were really impressed with the G.A Wright web-site as well as the materials they received at no cost in the mail, they made the decision to hire G.A Wright for their Store Closing Event. Their goal was to retire from the retail industry in a short period of time and to sell the inventory and fixtures at the highest price possible.

The Store Closing Sale
The first day of the sale they had nearly 200 customers waiting in line to get into the store before they opened. It was the biggest day in sales they have had in their 28 years of business. Throughout the day they had lines of people at all three registers running out of the show room and into their nursery center behind the building. Additionally, during the days after the sale started many of the customers came back and made repeat purchases. Almost every piece of merchandise was sold before the sale was set to end. Even fixtures had been sold prior to the final day. It was a true wall-to-wall blow out sale.

Free Retail Store Closing Planning Kit:

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Want to learn a good Strategy to Reduce Inventory Fast? You can avoid cash flow problems by turning some of your excess inventory into cash. And, you may also be able to gain some advantage by reducing your level of debt. Surely you know this is the time of year that causes many of my retail clients a good deal of stress with payments due on holiday merchandise and sales dropping off as usual in January and February. I know how difficult it can be with money going out faster than it’s coming in and I’d love to help you solve this problem. I think your store might benefit from two valuable pieces of information. First, I’ll send you a Digital Video Disc (DVD) entitled, How to Turn Old Inventory Into Cash Fast and I’ll also include a Special Report, How to Reduce, Eliminate or Restructure Your Debt. Just fill out the form below. or CLICK HERE

G.A. Wright conducts High Impact Retail Sales Promotion Events. Our free guides may help you complete a sale on your own. However, if you feel like you need a little more support, contact G.A Wright to conduct a Inventory Reduction Sale for you. We have a proven strategy that will get customers in your store buying and returning daily until your merchandise is sold.

“Our cash flow increase was over 300% of the amount of business experienced in the three months prior to the sale, just as you had projected
.”~G.A. Wright Client Jo Shadid

“I personally received a new education on how to find and reach a new customer base and how to wake up the one I already had.”~ G.A Wright Client Earnest Nak

“I definitely appreciated having a Consultant from G.A. Wright to work the sale. It eased the load quite considerably as well as taught myself and staff how to increase our traffic flow.”~ G.A Wright Client Donna James
1502 dvd

To receive the DVD and Special Report fill out form below. Call us at 303-333-4453.

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G.A. Wright recently conducted a Store Closing Sale with Placerville Gallery, which is also known as the Original Thomas Kinkade Gallery. Nathan Ross, a co-owner of the store, spoke to us on camera about his experience using G.A Wright and why he decided to liquidate his art gallery. Hear about how a G.A Wright sale works, see a sale in progess, plus overall results he achieved with the liquidation sale to consumers. We hope you will find this video testimonial helpful.  If you are thinking about closing your retail business and would like information about How to Liquidate an Art Gallery or other type of retail store, please contact us at 303-333-4453 so we can mail you a free packet of information.

Other videos are available on our YouTube Channel HERE

Store Closing Information Packet


 

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Liquidation as an Exit Strategy: Is it time to get out of the retail business?
If so, you can do it quickly, safely, and for more money than you probably think is possible.
Here’s how!

Some retailers think that selling their store to someone who will continue to operate the business is the best way to obtain the highest price … They’re wrong. … Your business is very likely worth much more than the highest price you could obtain by selling it to another retailer.

It can take a year or longer to find the right buyer for your business. But, it’s a buyer’s market. You’re not likely to get your price and the buyer will want to borrow most of the purchase price from you.  The best way to sell your business is to sell it to the consumer who always pays the most. Selling as a going concern generally involves considerable financial risk. A buyer who is looking for a business usually does not pay cash. He wants to negotiate a leveraged buyout. If he has $500,000 in cash, he is not looking for a $500,000 business. He wants to buy a $1,000,000 business, paying, maybe, $200,000 up front and the rest over time. This leaves the buyer with working capital and some insurance that he’s buying a moneymaking enterprise.

Many retailers are reluctant to consider a store closing sale, because it is the most involved of the four means of selling, the return appears uncertain and “Going Out of Business” carries a negative connotation. However, it is important to carefully consider this approach because it can yield the highest return of the four methods listed.

A Store Closing Sale essentially attempts to sell the business in parts rather than as a whole. It makes sense that you can obtain a higher price by selling the business a piece at a time than can be obtained by selling everything together to one purchaser. This is especially true for most retail businesses. You probably agree that it’s possible to sell items individually at a higher price than can be obtained by selling those items in bulk. I can show you how to sell a retail business by selling each piece, from inventory … to fixtures … to office furniture and equipment. By conducting a professional store closing sale, the inventory and other assets of a business can generally be sold to consumers for far more than can be obtained any other way. It’s fast, safe, and the best way to get the highest price.

You may not be interested in selling right now. But eventually, you will want to move on to other enterprises or retire. An understanding of how you can obtain the most value for your business when you do decide to sell is important. Decisions you make now can enhance the value of your business when the time comes.

Order our full Retail Exit Strategy Information and Planning Kit below: (no cost or obligation offer for retail business owners only)

 

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Holiday Greetings! We thought that since this is such a busy week for many retailers, a long blog article would be a little too much reading, so we decided on posting a video of one of our most recent sales. Video below shows How to Close a Sewing Supply Store using the Retail Store Closing Programs offered by G.A Wright.

You can sell the inventory and other assets of your store quickly, safely and for more than can be obtained any other way using the techniques provided by G.A. Wright.
See a Store Closing Sale at Make it Sew. The owner, Bob Juenemann, talks about the results he achieved using G.A. Wright to help conduct a professional Going Out of Business Sale.

G.A Wright works with retailers large and small in all 50 States and Canada. To determine if a Professional Sale makes sense for your retail store, it’s generally helpful to receive more detailed information about G.A. Wright that can be sent via mail or email and will include case histories, letters of reference from past clients and an explanation of how we work with retail businesses.

Fill out form below to receive detailed information about competing methods of selling stores, marketing support for store closings, selling fixtures and equipment, case histories and reference letters from our clients, and a DVD showing other sales underway with owners talking about their stores. There’s no cost or obligation.

Store Closing Information Packet

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