Below are some of my articles from 2016 on free store closing sales info. For all the 2016 articles on Free store closing sales info click on the link below. Thanks so much for visiting my archives. I hope you will find some useful information.
If you need to talk with me please call me at 520-305-9693. I would be happy to speak with you regarding any questions you may have on closing your small retail store.
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Is There A Store Closing Sale In Your Plans For 2017?
The Christmas selling season is now behind us and it is now time to review your store’s performance for 2016 and make your plans for 2017. For many retailers the 2017 plans will include a store closing sale, going out of business sale or retirement sale.
Retailing continues to get tougher for the small retailer. It is changing more rapidly than ever. It demands more investment in time and money to keep up with the changes in technology, marketing and inventory control. Expenses continue to increase as minimum wages increase, rents increase and employee benefits increase. The toughest area might well be increased competition. Increased competition with on-line retailers and in many cases competition with your own vendors as more and more of them open up their own on-line stores.
Many small retailers are baby-boomers who are now reaching that point in their live to consider retirement. Much of their retirement funds might be tied up in their investment in their retail store. The number of small independent retail store owners that decide to retire in the next five years continues to grow with each passing year. There is in fact “life after retail”.
If you fall into either category, the retailer who has decided that the rewards of having their own retail business does not meet or exceed the demands or the baby-boomer retailer that has decided that 2017 is their year to retire, you should definitely investigate your options on the best and most profitable way for you to exit your retail business.
Armed with this store closing info, one of the first things you should do is to talk with a retail consultant that specializes in store closing sales or retirement sale. Learn what your options are, how much you can expect to receive, when the best time to conduct your sale, how long your sale should be and what does it cost.
Even if you are not planning on closing your store until later in the year, now is the time to talk with the consultant. He can provide advice on what to do to prepare for that sale.
CCH Consulting looks forward to the opportunity to help small independent retailers maximize the results of their store closing sale or retirement sale.
Call Chuck today at 520-305-9693 for more free store closing sales info!
Has Business Been Tough This Holiday Season?
We are well into the Christmas selling season with only about one week left. You should have a pretty good idea how it’s going to turn out and if you are going to be able to handle all those accounts receivables that will be due in January.
If your like most retailers I’ve talked with this year continues to be a challenge and next year is still full of lots of unanswered questions. As on-line sales continue to grow, brick and mortar sales decline. More store closing info goes online. Competition with on-line retailers, including your own vendors grows each day. Your margins continue to shrink and your expenses continue to rise. It gets harder and harder to find good dependable employees. The talk of a minimum wage of $15 per hour scares the heck out of you.
Now is the time for you to make some decisions.
Can you answer “Yes” to any of these statements:
•My sales have been declining
•I have old or excess inventory
•My bank, vendor or credit card debt continues to increase or is past due
•I’m investing personal funds to cover cash flow problems
•My store continues to have operational losses
•I’m experiencing undue stress
•I’m ready to retire or sell my store
If you answered yes to anyone of these statements you need to seriously consider the future of your business. If you answered yes to two or more of these statements, we need to talk now.
Call Chuck today at 520-305-9693 for more free store closing sales info!
When A Store Closing Sale Isn’t Enough.
In this economy, sometimes a Store Closing Sale might not raise enough cash to handle all of your needs. If your debt level is part of the reason, I ask you to consider orderly ways to cash out of your debts, achieved with savings of 20% to 80% of what you owe. You’ll be able to sleep nights without need of having further contact with your selected creditors and their demands.
Should you elect to stay in business, you can do so while relieved of current debt. And in any event, you’ll avoid the stigma of bankruptcy for you and your business.
Did you know? Credit card, medical, leases, personal and business debts, even liens, lawsuits and judgments can be settled at a savings. Most debts can be relieved at a discount, while clearing your name and conscience. You borrow no money, and reduced payments may be made over time and without interest.
Creditors can be satisfied, accepting as little as 20 cents on each dollar you owe. This is not debt consolidation or refinancing; instead it is settlement achieved confidentially for you and you are always in charge of your money.
Here’s how it works: A Professional Debt Manager (PDM) is an experienced negotiator who, when retained, studies all aspects of your situation. With each debt, determination is made as to whether you desire to pay in full over time or prefer discounted settlements. The PDM, having obtained limited Power of Attorney from you, serves as an authoritative third party hired to achieve acceptance from creditors you electively assign.
The PDM will immediately stop calls, letters and demands from such selected creditors, their agents and their attorneys. Using negotiation skills, the PDM obtains settlements, presents them to you for approval or disapproval. Their fees are based on the savings they negotiate for you. If you aren’t happy with the settlement, you disapprove it and you owe nothing.
When debt loads are out of control, CCH Consulting, recommends this tool to its clients. Our job is to help you put more money in your pocket at the end of the sale. We have several excellent PDM firms that we recommend as a result of their performance for our clients in the past. Call us for that recommendation if your debt load is out of control.
Call Chuck today at 520-305-9693 for more free store closing sales info!
Store Closing Info – Should You Sell or Have a Store Closing Sale?
What should you do when it comes time to retire from a retail business? Coopers and Lybrand, an international professional services company conducted a study of the retail industry to explore how retail stores are sold. It surveyed respondents operating approximately 12,000 stores and looked at a variety of means employed to sell the inventory and assets of retail stores, including the following four primary methods:
- Going Concern Sale – A store is sold to a purchaser who intends to continue operating it as a business and is willing to pay for some “goodwill” over and above the value of the assets.
- Bulk Sale – Inventory is sold in lots to a business owner for resale.
- Auction Sale – Inventory and other assets (furniture, fixtures and equipment) are organized in lots and sold at auction.
- Store Closing Sale – Inventory and assets are liquidated in a going-out- of-business sale.
Methods #1 and #4 are the most popular.
Retail businesses with large inventories sometimes have a higher asset value than an appraised value based on the store’s cash flow (the money that remains after all the operating expenses are paid but before the owner draws a salary or pays any debt service). This is especially true where the owner has been pumping profits back into the business to build up the inventory.
Suppose a retail store had inventory of $200,000 but a cash flow of only $25,000. Over their five-year ownership period, the proprietors had taken little salary, choosing instead to plow most of the profits back into inventory.
Unfortunately, even if the sellers could realize the value of the inventory in a going concern sale, the $25,000 provable cash flow is insufficient to retire that much debt and still pay the buyer a salary. In situations like this, it is often a strategic alternative to sell off the assets through an orderly liquidation (store closing sale).
In many such cases, a retailer will purchase additional inventory to showcase during the liquidation process. The words, “Liquidation Sale – Everything Must Go,” are great attention-getters and will drive traffic to a store when all other “motivators” fail.
In a going concern sale, inventory is valued “at cost” (what the seller paid for the inventory).However, in a store closing sale, an owner often offers discounts of 20 percent to 30 percent at the beginning of the sale. If a piece of inventory cost the seller $50 and was priced to sell at $100 (a typical keystone markup), a 30 percent discount would equate to a $70 selling price…$20 more than the owner would have realized on that item if it were included in the price of the business as a going concern. Even at a 50 percent discount, the owner will recover all the money that has been diverted to inventory.
CCH Consulting helps retailers plan and execute store closing sales to maximize the owner’s return. We have great experience with store closing info. We analyze the best timing for a store closing sale, anticipate the return, contact media reps,train employees, price the merchandise and survey the competition.
If a business generates sufficient cash flow to substantiate a “goodwill” figure over and above the wholesale value of the inventory and other assets, an owner should consider selling the business as going concern . Two obvious advantages of this type of transaction are:
1)The business continues in operation, which often has an emotional value that is priceless to the entrepreneur who started it.
2) The employees retain their jobs, which is often a major concern to an owner with loyal, long-term employees.
Another factor impacting the decision may be the presence of an existing lease. If the business owner is the personal guarantor on a lease with five years left,he/she will either have to make arrangements with the landlord to retire that obligation early, or sell the business as a going concern with the buyer taking over the remaining lease obligation.
Call Chuck today at 520-305-9693 for more free store closing sales info!
Do Store Closing Sales Still Work?
I often get asked, “Do Store Closing Sales Still Work”. I think this is because of the large numbers of store closings that have been announced by major retailers this year. It seems we’re always seeing store closing info online. Without a doubt the retail industry is still over stored when one considers the changing shopping habits of today’s market.
But the answer to that question is a very definite “YES”. The results that my clients have achieved during this past year are in fact stronger than historic results. The “sell through” has been stronger and the final margins received throughout the sale are higher. The results of “Retirement Store Closing Sales” were the retailer has been in business for 20 or more years is even stronger.
So if you are considering exiting your retail business, a Store Closing Sale is in most cases your best choice. It can be done quickly and with better financial results than any other option.
Call Chuck today at 520-305-9693 for more free store closing sales info!
Chuck Haug
CCH Consulting, LLC
Timing On Direct Mail Is Key For A Store Closing Sale
Direct mail letters and postcards are valuable tools when it comes to announcing your Store Closing Sale or Retirement sale to your customers. In my opinion they are second to only email marketing to your customer list.
Direct mail marketing is expensive so you need to make sure that your message reaches your customer in a timely manner. The worst thing that can happen is that your direct mail piece arrives after the kick-off of your sale. It is like sending your friends an invitation to a party that already happened.
When you are working with your printer and mailing service you need to approve mailing list and proofs in a timely manner. You should always mail first class postage and mail 5 days prior to the start of your sale. That way the piece should arrive at your customer’s home one or two days prior to the event. Also make sure to account for any mail holidays that fall within that period.
Missing a mailing date will surely result in a much lower turnout for you opening date. You will have missed that opportunity to create that “buying frenzy” that store closing sales are known for.
Call Chuck today at 520-305-9693 for more free store closing sales info!
STORE CLOSING SALE Info – AVOID THIS MISTAKE
Unfortunately there are lots of opportunities to make big mistakes when it comes to planning and implementing a Store Closing Sale. Some can really set you back. Recently one of my clients made a fairly serious one.
Two days before the Sale was to start we put up window banners in all of the clients windows.
Ten windows in all. Four of the windows had banners that stated “STORE CLOSING SALE”.
The windows looked awesome. We were shouting our message. Within one hour of the banners being put up my client received a call from her landlord telling her that the window banners with “STORE CLOSING SALE” had to be taken down. They were in violation of the lease. She could not keep the banners up and in fact she could not run a Store Closing Sale according to her lease.
My client thought that she did not have a lease and was on a month to month basis because she refused to sign her lease at the last renewal date because of a rent increase. After many worrisome hours and much stress my client’s lawyer informed her that the landlord was correct both about the banners and that the Sale could not be a STORE CLOSING SALE.
CHECK YOUR LEASE EARLY ON WHEN PLANNING A STORE CLOSING SALE!
Most leases for space in a major or regional mall have clauses prohibiting store closing sales.They feel that a Store Closing Sale is bad for the Mall’s image and for the rest of the tenants.
In most cases the challenge of signing a Store Closing Sale can be met. If the sale is marking the retirement of the owner, a “RETIREMENT SALE” banner is usually approved by the landlord. It does not have the same negative image impact that “Store Closing Sale” has.Another way to sign a Store Closing Sale without saying it is to use a combination of “SALE” and “Everything Is On Sale” banners.
Call Chuck today at 520-305-9693 for more free store closing sales info!
Chuck Haug CCH Consulting LLC
Store Closing Info on The Biggest Mistake When Conducting A Store Closing Sale
When independent retailers decide that they are going to have a Store Closing Sale without the assistance of an experience professional store closing consultant to help, the opportunity for mistakes is huge. The single largest mistake that most make is in their discount strategy to liquidate their inventory.
Why Smaller Discounts?
Most store owner that run their own Store Closing Sale often times begin the sale with too deep of discounts or take the same discount across the board. It has been my experience that 80% of the retailer’s inventory should be at discounts no greater than 20% to start the sale if their inventory is fresh and current. The remaining inventory would be at 30%, 40% and 50% discounts. This inventory is old or shop worn inventory, inventory that has already been marked down prior to the sale starting, out of season inventory or discontinued inventory.
Taking the same discount across the board may be the easiest way to do it, but it is definitely not the most profitable way. Why in the world would you take the same discount on your best selling items as you would for those items that move slowly.
Is 20% Discount Enough?
Another reason to take smaller discounts at the beginning is that it leaves you the opportunity to use additional discounts later in the sale in your promotions to generate additional interest and store traffic.
I never use actual percent off in my initial advertising. Because most of the costumers do not think a 20% discount is enough discount to entice them to come in and shop, we don’t tell them what the discount is. We let them use their imagination. Oh what a imagination they have, We advertise “Huge Discounts”, there are some, “Everything on Sale” and “Everything Must Go” to generate the traffic.
Once in the store and faced with only 20% off discounts on the best items, they buy because they know it will not be here next time they come in if they wait. That is the magic and physiology behind running a profitable Store Closing Sale.
Need more free store closing sales info? Call Chuck today at 520-305-9693!
Chuck Haug CCH Consulting, LLC
Free Info on Client Mailing List
Unfortunately many of my clients do not have a customer list to use to promote their store closing sale. With email marketing and direct mail marketing being the two most productive medias to promote store closing sales you need to find a source for consumer addresses. Email marketing represents a real challenge because most purchased email list are not effective. This is particularly true if you are considering a general consumer email list. The open rate that I have experienced with general consumer email list is under 2%. It is not a good investment,
If your product is a highly specialized product or a focus life style product the results are better, but probably still not a good investment.
Focus On Direct Mail Marking
That means that you should focus your marketing budget on direct mail marketing. A saturation mailing to all homes in a two to three mile radius is usually effective for general merchandise. If your products are a little expensive you can set income levels for the addressees. If you set your income level for home owners at $75,000, only homes with a household income of $75,000 or more will be mailed to. You can also choose if you only want to mail to single family dwellings or multi-family dwellings.
You can really get specific if you have a solid understanding on the demographics of your customer. The more filters you put in to your search for mailing addresses the fewer addresses you will receive, but the better the chance that the list represents your customer. Also the more expensive the list is. You should be willing to spend more for a more qualified lead.
Call Chuck today at 520-305-9693 for more free store closing sales info!
Chuck Haug CCH Consulting, LLC
What Makes A Good Email For A Store Closing Sale
What makes a good email for a Store Closing Sale? Well, they are a little different than most email campaigns. An email promoting a Store Closing Sale should be short, direct and easy to read. If you use an image, it should not over power the message. This email is not to build your brand. It is to create immediate action and response. It must contain a strong “offer” and “a call to action” It’s not advertising, it’s promotion.
Call Chuck today at 520-305-9693 for more free store closing sales info!
Chuck Haug CCH Consulting, LLC
Marketing for the Small Retailer – A Real Tightrope Act
More store closing info for small retailers looking for help in marketing. For most small retailers, planning their marketing and allocating their marketing dollars is a real balancing act. One small slip and you come tumbling off that tightrope and for most there is no safety net below.
A marketing mistake can not only have serious short-term effects on your sales, but also affect your store reputation and brand. For the small retailer reputation and brand is key.
When developing your marketing plan, you need to have one goal in mind. That goal is to develop and maintain a relationship with your customer base. In the past a small retailer could be successful by serving a niche within a given market area. That’s not true in today’s “connected” world. Your customer can go on-line and shop that niche statewide, region wide, nationwide or worldwide. That means that to be successful you must offer more than just product.
Call Chuck today at 520-305-9693 for more free store closing sales info!
Chuck Haug
CCH Consulting, LLC
It’s Not Too Late For Store Closing Sale
The fourth quarter of the year accounts for more Store Closing Sales than any other. This year will be no different. The fact is that the fourth quarter is usually the most profitable time to close an independent retail operation. That’s because it is usually the strongest sales quarter for most retailers. If you take that fact and add the multiplier effect of a Store Closing Sale, those sales numbers are very impressive. Factor in the fact that you can take advantage of the natural sales curve, your advertising expenses will be less. More people are out shopping.
Although we are quickly approaching the beginning of the fourth quarter there is still time to plan an execute a Store Closing Sale before the end of the year. Most Store Closing Sale last 6 to 8 weeks and can be planned with a 2 week lead time. So if you’re considering a Store Closing Sale, NOW is the time to call and find out if it you should conduct your Store Closing Sale before Christmas or wait until after the first of the year.
For more store closing info go here.
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