Giving 'at the Office'

Q: Some days, it seems like I get more phone calls requesting donations than asking about the merchandise we sell. I hate to say "no" to anyone, especially a good customer calling on behalf of her favorite charity, but I feel sometimes like I'm giving away the store. How do other retailers handle this problem?

A: One of the joys of owning or running a retail business is the opportunity to garner goodwill for your shop by making a visible contribution to your community. Still, you can't say "yes" to every request, or you'll end up giving away more than you sell.

It helps to have a policy in place regarding donations, or a donation budget for each year. You need a plan. For instance, perhaps you want to concentrate on the arts, programs for young children, or churches and other houses of worship in your immediate neighborhood. By explaining this to a volunteer calling from the local American Red Cross, you'll come across as a caring, thoughtful businessperson, even when you must reluctantly decline the request.

Once you've decided what organizations to give to, the next question is what to give. Cash donations should be the last option for a retail store, since they result in the least amount of exposure for your merchandise. Gift certificates, on the other hand, have the advantage of bringing customers into the store, and are often popular auction and raffle items. If there is to be a public display of donated items, consider offering something showy to represent your shop. Don't use a charity display as a chance to get rid of an old, unwanted item. It's a public relations opportunity, so you should follow the advertising adage: "Sell what's selling."

If you do have clearance items you want to get rid of, by all means donate them to charity. But in that case you should remove the labels and give them to Goodwill or a non-profit's garage sale to be sold anonymously.

Check with your accountant to see what kinds of deductions you're entitled to for donating merchandise or cash to a non-profit group. Keep a record of all the organizations you support, post it where your staff and/or customers can see it, if you want your gifts to be recognized.

Volunteerism is another way your business can be visible in support of the community. Your own activities as the store's owner or manager reflect on the business you're running. It's also important to support staff members volunteering for charity fundraisers. Ask if you can include the non-profits your employees are involved with in the list of charities you support.

Q: At the winter gift shows, it seemed like every line had merchandise linked to the Red Hat Society. How do I determine whether to jump on the bandwagon when a trend like this comes along?

A: I'm always amazed at how quickly the gift industry can produce hundreds of related items when a fad such as yellow ribbons, patriotic flags, roosters, or red hats comes along. One of the keys, of course, is that these images are perceived as non-licensed, so anyone can join in. And they do. After all, we retailers have an insatiable appetite for new merchandise.

But I think real caution should be shown before buying into new trends. In the case of the Red Hat Society, you need to ask whether the market you're trying to reach matches the over 55, upper middle class, female demographic of the Society (as well as the Red Hat Ladies, another, unaffiliated, group that sponsors similar products). Have you heard customers talk about being in a Red Hat group? Do you have employees who can tell you how big this trend is likely to get in your community?

Another question to ask is whether the type of merchandise being offered fits with your product mix. If you're mostly into collectibles, then hats, notecards, and magnets might not be the right items for your store. On the other hand, if you're known for witty "girlfriend" gifts and a good mix of mid-priced merchandise, this might be a perfect theme to bring in a fresh look.

When you decide to go with a new trend, you should be bold enough to make a real statement with the merchandise. For example, a few red hat shopping lists mixed in with the other notepads isn't going to do it. Bring in a line of flamboyant hats, perhaps some T-shirts, and notecards with the poem by Jenny Joseph that started it all. Make a display that will attract customers already aware of the trend, and intrigue those who aren't. Post an article about the Red Hatters for customers who don't know what it's all about.

To make the most of a hot trend, you also need to integrate it into your advertising plan. You might, for example, hold a contest for local red hatters sending in the best group photo. You could do a cross-promotion with a local restaurant interested in having red hat groups hold a meeting there. Or perhaps a movie theater would allow you to sponsor a matinee of a "chick flick," with free admission to those wearing red hats.

Above all, whenever you decide to bring in a new trend, don't order too deep. You don't want to be stuck with dozens of each item when the trend fades, as all trends (even Beanie Babies) eventually do.