ETD: 683 Comparing Sales Across Your Chain; Inventory Turns
and Open to Buy; International Calling; Spam? What is it?;Greeting
Cards Trending Away from 'Mass' toward 'Class'
E-Tailer's Digest
etd_post@gapent.com
Tue, 06 May 2003 07:03:17 -0400
E-Tailer's Digest --- Everything for the Retailer
Issue #0683 May 6, 2003
George Matyjewicz, Moderator mailto:georgem@gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
===================================================================
CONTENTS
[1] Greetings
[2] Comparing Sales Across Your Chain
[3] Inventory Turns and Open to Buy
----- ---- --- -- -> Important Offer <- -- --- ---- ---- --
[4] International Calling
[5] Spam? What is it?
[6] Greeting Cards Trending Away from 'Mass' toward 'Class'
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[1] Greetings.
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Hi All:
Some of our list members need some help - calculating open-to-buy and
inventory turns and how to compare sales across stores in your chain which
have different attributes. I gave my thoughts, now let's hear from you.
We have the last of the spam discussions today, which lists the many laws
suggested to stop spam. Interesting stuff, but we need to put a halt to
the thread. Thanks to all who offered the great material.
Pam Danziger has some interesting information on greeting cards - just in
time for Mother's Day, the third most popular holiday for greeting cards in
the U.S. How are sales for you on this holiday? I know Mother's Day has
different dates in different countries. Tell us how it goes in your country.
And one of our members offers a very unique solution to those 30 number
dialing issues some of had with telephone calling cards.
Now, let's get to everything for the retailer.
Sincerely
Dr. George Matyjewicz
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com
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[2] Comparing Sales Across Your Chain
===================================================================
I am a regular reader of E Digest and love your reports. I work for a
retailer, our product range include Party supplies, Toys and Loot.
My boss has asked me to develop a report where, regardless of demographics
and size of the stores, we should be able to identify the best performing
category by store. I have no idea how to come up with this criteria. All
the store are different in size and their demographics are different from
each other too.
What he wants is to some how scale all the stores at one level and then
identify the best performing category by store. I hope you understand my
problem and would help me out.
I have attached a spreadsheet with test data for your reference, (Here the
store "B" is the biggest)
Thanks,
Rashid Jameel
Party Packagers
+++ [Moderator's Comments] +++
I did not include the spreadsheet here. Basically he had seven stores
listed as columns across the top, with categories down the left as rows.
So I suggested that he narrow all sales down to square feet. That gives you
a common denominator. With the spread sheet, I put hypothetical square
feet per store. I then added a new section below his sales, and divided
each category by the square footage for that store. You can now compare on
an equal basis.
Anybody have any other thoughts.
George
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[3] Inventory Turns and Open to Buy
===================================================================
George. Which program do you think is the easiest and best to calculate an
open to buy program to project open orders and stock?
Michelle Stallings
Heritage Golf Group
+++ [Moderator's Comments] +++
I have never found a good open to buy solution in standard
programs. Usually I find it best to create your own by exporting data into
an Excel spreadsheet. Inventory turns are calculated by dividing Cost Of
Goods Sold by Average Inventories which is equal to (Beginning Inventories
+ Ending Inventories) / 2.
Open to buy is more involved and is the calculation of planned sales and
planned inventory to actual sales and actual inventory (taking into account
returns and adjustments) to determine the amount of goods that can be
reordered each month or season.
Does anybody have any experience with Inventory Turns and/or Open to Buy?
==================================================================
----- ---- --- -- -> Important Offer <- -- --- ---- ---- --
IMPROVE YOUR CLOSING RATIO
If you sell a service or an intangible product, we will
improve your sales closing ratio. GUARANTEED!
See results within three months.
http://www.gapent.com/services/sales_strategy.htm
----- ---- --- -- -> Important Offer <- -- --- ---- ---- --
===================================================================
[4] International Calling
===================================================================
I drafted this last week and then did not send it. However, it refers to
Newsletter 678 [4] International calling
In my previous life I travelled a lot for my Company and used a variety of
Calling Card services. To get over the 30 digit problem. I had a small
pocket dialer which generated the tones needed to initiate the call. You
then entered the number you were calling on the phone pad.
A little later I had a Psion organizer (remember those?). This would let
you select a name from your contacts list and hold the organizer's speaker
over the phone mouthpiece and send the tones for the number. I assume
modern PDAs can do something similar.
After a bit of Googling, I found that there is a product called PocketPhone
for Pocket PC which will do the same thing and costs $8 at
http://www.pocketgear.com/software_detail.asp?id=1767
There are similar products for the Palm or you can go to Radio Shack and
get the Pocket Tone Dialer Model 43-139 for $15.95 (if it is still available)
Best regards
Richard Woolnough
Bespoke Solutions Ltd
www.BespokeSolutionsLtd.com
+1(441)295 0951
We can tailor your business
+++ [Moderator's Comments] +++
Super! Thanks Richard. Does this work for you in Bermuda? How are
telephone charges there? What other costs do you incur that we may not see
in other countries?
George
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[5] Spam? What is it?
==================================================================
Moderator's preface. This will be the last thread on spam, as it can go on
forever. Interesting to note the legislation in progress against spam,
with my favorite being the bounty. Maybe they'll consider draw and quarter
<g>.
---------------------------------
Our moderator wrote...
>Spam is defined - Unsolicited Commercial Email (UCE).
YES - but - the people who are judging spam use the term to label any email
they do not like.
Twice in the past year, I have been labeled a spammer by recipients of my
email who have signed-up for my Business Lyceum e-Letter.
Who will make the determination??
Jim Straw
--
Are YOU making enough money?
Maybe you're using the wrong tools.
Check out the "POWER TOOLS for Entrepreneurs" at:
http://www.businesslyceum.com/mdl.html
You won't be disappointed.
+++ Moderator's Comments] +++
Not everybody accepts your logic Jim. See next post for the many articles
on laws that may be enacted as posted by Tom on the Web Consultants
list. My favorite is the bounty to be offered per Rep. Zoe Lofgren,
D-Calif. ;-)
+++ [Next Post] +++
This could turn out to be a lucrative business for those able to track them
down! :) Also read that bills are being considered to make it a felony with
large fines and prison terms and, again, giving Virginia jurisdiction
because the major backbone providers are located within that State (and,
probably, most traffic is funneled through it, too).
Rep. Zoe Lofgren, D-Calif., said Wednesday that she will introduce a bill
that creates a bounty for identifying spammers.
http://www.eweek.com/article2/0,3959,1051282,00.asp
Carving up spam
http://rss.com.com/2009-1024_3-999033.html?type=pt&part=rss&tag=feed&subj=news
By CNET News.com Staff
May 1, 2003, 4:00 AM PT
Roundup: Unsolicited bulk e-mailers are in the hot seat this week as
lawmakers, computing giants and marketers each apply more pressure.
Meanwhile, one study shows a prevalence of fraud in the business.
Are blacklists killing more than spam?
http://rss.com.com/2100-1028-999317.html?tag=nl
Participants at a government confab spar over whether lists that target
ISPs used by spammers are legal--and whether they do more harm than good.
May 1, 2003
Lawmakers: It's open season on spam
http://rss.com.com/2100-1028-999020.html?tag=nl
Proposals to control the digital deluge include a national "do not e-mail"
list and criminal penalties for repeat offenders.
April 30, 2003
AOL touts spam-fighting prowess
http://rss.com.com/2100-1025-998944.html?tag=nl
The company asserts that it repelled more than 2 billion unsolicited
commercial e-mails in a single day this week. The fight, however, is far
from over.
April 30, 2003
Spam sent by fraud is made a felony
http://rss.com.com/2100-1029-998888.html?tag=nl
In the toughest move to date against unsolicited commercial e-mail,
Virginia enacts a law imposing harsh new felony penalties, including prison
time.
April 29, 2003
This just in: Spammers fib
http://rss.com.com/2100-1029-998750.html?tag=nl
Fraud in spam is a big problem that calls out for law enforcement, says the
FTC, which found that 66 percent of the unsolicited messages contain
fraudulent claims.
April 29, 2003
What e-mail marketers need to do
http://rss.com.com/2009-1122-999025.html?tag=nl
The spam plague threatens to eviscerate e-mail effectiveness. Forrester
says that marketers need to follow best practices in program design,
message creation, testing and measurement to ensure success with consumers.
April 30, 2002
A modest proposal to end spam
http://rss.com.com/2010-1071-998513.html?tag=nl
CNET News.com's Washington watcher, Declan McCullagh, has the scoop on an
upcoming antispam initiative, as federal lawmakers scrutinize the problems
caused by junk e-mail.
April 29, 2003
Va. Blocks Bulk E-Mailers
http://www.washingtonpost.com/wp-dyn/articles/A56764-2003Apr29.html
New Virginia law would seize junk e-mailers' assets
http://www.nandotimes.com/technology/story/872183p-6086404c.html
Cheers,
Tom
Cyberspace Publishing
===================================================================
[6] Greeting Cards Trending Away from 'Mass' toward 'Class'
===================================================================
This Mother's Day, May 11, marks the nation's third most popular holiday
for greeting cards, with the National Retail Federation predicting 60% of
consumers will buy Mom a card. But when consumers shop for cards, they will
increasingly turn away from the mass-market brands, such as Hallmark and
American Greetings, and seek more exclusive, special messages.
The $14.2 billion greeting card and stationery market is undergoing a
transformation that picked up steam after 9-11. Consumers' primary
motivation for sending a greeting card is to make an emotional connection
with another. But after 9-11 people who 'care enough to send the very best'
often turn to more specialized, exclusive cards and personalized
stationery. The trend in greeting cards is clearly away from 'mass' toward
'class.'
For the last 10 years, the major card brands have pursued mass distribution
strategies, placing their cards in as many outlets as possible to be
everywhere and anywhere consumers are likely to think about buying a card.
So today, Hallmark, once considered the most exclusive card brand, can be
found in 42,000 retail outlets including chain drug stores, grocery stores,
major discounters and mass merchants.
The result of this mass distribution strategy is market saturation. By
being everywhere, they have lost their 'specialness.' The strategy has
backfired and in 2003 the company reports that their greeting card,
stationery, gift wrap, ornament, party ware and gifts business is down 1%
from the previous year.
Today the big opportunity in greeting cards and stationery is toward
luxury, targeting the passionate consumer who wants to connect through
special, exclusive cards and personalize greetings. The luxury segment
accounts for about 10% of the total greeting card and stationery market and
is growing. With more exclusive cards priced in the $3-to-$5 range, it's
hardly an extravagant purchase.
The Schurman Fine Papers company has innovated the luxury segment through
their franchised PAPYRUS store chain, today numbering about 125 stores
nationwide. Located in upscale malls and shopping environments, PAPYRUS is
positioned directly against the mass brands by offering "exclusive greeting
cards that cannot be found at the corner drug store or the local supermarket."
Crane & Company, the paper company that provides the U.S. Mint with
currency paper, is getting into the luxury business too. Starting in 1994
by opening company-owned stores, today Crane has about 20 stores across the
country, also located in upscale malls like Short Hill, NJ, Chicago's Water
Towers Place, and McLean, VA's Tyson Galleria.
Unity Marketing is currently updating its Greeting Card & Stationery
Report: The Market, The Competitors, The Future Trends as a business
planning tool that provides marketers and retailers with the facts and
figures about the industry and market they need to build a vibrant business
now and into the future. The new edition will contain the latest consumer
survey data on their purchase behavior and motivation in buying greeting
cards and stationery.
Pam Danziger, President
Unity Marketing
author of "Why People Buy Things They Don't Need"
www.unitymarketingonline.com
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