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The Gifted Retailer

GDA Staff -- Gifts and Dec, 1/10/2012 11:31:02 AM

The secret to a successful business is to constantly analyze your numbers and have a new and changing business plan advises Linda Semmler, owner of Earth Inspired Living in Winter Park, FL.

Gifts and Decorative Accessories: What do you like best about being a retailer?
Linda Semmler: The ability to use so many skills I have learned throughout my business career; so many different aspects of running your own business - merchandising, customer service, category management and purchasing; along with basic general management. It's never boring!

GDA: What was the most valuable piece of business advice that you ever received?
LS: Look at your business by the numbers. Dollars per sq. ft., average transaction, average price point sold and narrowed down by category. When you do that, the creative, emotional side of things either get verified or discounted. Either way, it gives you a solid basis for decision making.

GDA: What is/was your most successful promotion?
LS: Bounce back gift cards. Purchase $100, receive a $20 gift card for use at a later time. Brings folks back into your store and they always spend more than the gift card amount!

GDA: What three products/lines are you best sellers?
LS: Habersham soy wax vessels, Roost recycled newspaper items and Trollbeads.

GDA: What are you doing to attract new customers?
LS: Working with neighboring businesses to do co-op advertising that tags onto current events within the shopping district. There is more power in numbers! Social media is also a big part of Earth Inspired Living our strategy. Building our fan base and then ensuring we give them great information, along with events and promotion communication.

GDA: What was your most effective display?
LS: Using empty plastic water bottles to illustrate very quickly that our Green Art Studios plastic bottle flowers are truly from recycled plastic bottles. This illustrated the point much quicker than any sign could.

GDA: How do you find your best employees?
LS: Our customers and friends refer folks. We have very seldom hired someone that wasn't already excited about our store as a customer.

GDA: What was your biggest retail problem and how did you solve it?
LS: When we first opened the store, we truly thought we were going to be a small furniture and home accessories store with a "green" concept. What we realized was that our personal accessories (jewelry, bags, etc...) were outselling the Earth Inspired Living furniture pieces. Category management will tell you so much! Analyzing the business, we realized we needed to change direction over time. We slowly transitioned within a year's time from predominantly home-oriented eco-friendly product to personal eco-friendly product. We continue to analyze and change based upon what is selling.

GDA: How is the current economy affecting your business?
LS: It has meant that our average price point has had to come down, but we encourage multiples. Starting "clubs" that reward customers for shopping our lines more consistently and getting to thresholds that reward them with free product has been very well accepted. We continue to have growth, but it is even more important that we offer every price point. We need to ensure that everyone can find a gift they feel good about giving, but in their price range and budget.

GDA: What advice would you give to a struggling retailer?
LS: I hate to keep going back to it, but if you don't analyze your numbers and have a new business plan for each year, it will be difficult to find out what is working and what is not. A business plan is a constantly changing guideline to running your business, not a static piece you did when you first decided to go into business. It will always make you think about how you can improve!

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