Please, I need help to turn around a failing business

[K.Nick]

I have a business that has been opened for a month already and thus far, it really doesn't look good. The business is a store that retail items that are generally bought by teenagers. It is very similar to Claire's, Hot topic and spencer's gift. It is located in a pretty upscale shopping plaza so the rent is very high. Luckily, I was able to get 90 days of free rent when I negotiated the lease. There is no way I will be able to pay the rent at the current sales level. I need to figure out a way to drastically increase sales before I start paying rent. My current/future marketing plan is detail below. Please, I would like suggestion from you guys on additional ways I can market the store or other ways I can increase sales.

Marketing Plan
1) Currently building Facebook, instragram, google plus accounts for the business.
2) Will be placing a 1/4 page ad on a magazine with a circulation of 100K
3) Will be printing flyers and distributed them in places teenagers general hang out and businesses in the area.
4) I Will also try to place ads on magazines and websites of high school within close proximity to the store.

Do you guys have any more suggestions in additional to what I listed above? Your suggestion will be greatly appreciated.

 

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[masaldana2]

read MJs book?

 

[K.Nick]

Yes I have

 

[Will B. Rich]

- Contact business reporters of local newspapers and see if they will do a free write up of your new business

- Talk to owners of other stores in the plaza - specifically stores that may cater to your market - and see what they've done to increase traffic

- Do everything on your marketing plan as quick as possible since you need to see what sticks before the holiday shopping season

- Look into a local deal service (groupon or a clone)

- Have a giveaway for likes/followers on social networks once you launch

How long do you have until rent is due? Would you say you are you having more trouble with in store conversion or just driving traffic into your store?

 

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[liquidglass]

It might seem counter intuitive, but have you thought about doing a coupon? The idea behind it is to get people into the store, they should like what's in it but they don't have a reason to check it out.

- free bracelet with purchase of $15.99 or more
- $10 off anything!

You get the idea. Something that gives someone FREE value to their trip to your store and since you said it's targeted towards teenagers, I'm guessing especially girls (you mentioned claires) they have horrible control over impulse buys, so once they are there are have the shiny awesome stuff right up front. In their mind they are thinking I get $10 FREE!! Then they see these earrings, and that bracelet, and this headband, etc etc. At the register they get racked up to $50 bucks and your cashiers can go "Congratulations you got $10 FREE!" It would set up a positive reinforcement in their mind that they are making a great purchase and getting a steal of a deal.

Good luck!

 

[Gale4rc]

Focus on grass roots, you will not see any ROI from social media anytime soon.

Flyers
Buy ad space in local magazines (should be relatively cheap)
and focus on that type of advertising, online is not a good way to start. It's a great way to maintain and slowly get new business.

 

[Fast-tao]

Define your problem.
Teenegers are not coming or teenegers are not buying?

the first: you not have anough traffic in your store
The Second: you don't have any catchy item, or the store is horrible etc..

For the first problem
- Maybe the location is bad, is it close to a school? NO? Bad! Is it close to any location where teenagers are actually going? Well find this location and give flyer. Involve the teenagers with something..to some quiz and give away Appealing stuff to who give the right answer. of course the quiz must be about teenagers. You have to give away something that the other girls can see at school, so they will ask where the bought it.

For the second problem
- ask to the people is coming what they like in a store like yours and what they do not like...the lights, the colors...the stuff? When you have a lot of customer saying the same things or very similar you can start doing some change.

And try and error...a lot!

 

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[Mike Kavanagh]

Spencer's, Clair's and Hot Topic cater to a certain niche of people and those people aren't in vogue(read: Popular) right now.
Clair's doesn't even fall in to the same category as the other two.

What market did you identify?
Is there a need for your store in the area?
If there is already a store like it, What can you do differently to compete better?
Have you sold anything in the past two months?

To break down the demographics of the other stores:
Hot Topic - Head bangers, heavy metal enthusiasts, Juggalos
Spencers - Head bangers, MMA Fans, Gothic, Practical Jokers
Clair's - Tweens, 16 year-old girls

If you live closer to a city, you may not even have any of these, except for the juggalos and the goths.

Check your local demographics.

Need makes sales, not marketing. Marketing helps move those sales along.

 

[K.Nick]

How long do you have until rent is due? Would you say you are you having more trouble with in store conversion or just driving traffic into your store?

I have a couple of month before I pay my first rent and I think it is a little bit of both. I definitely need more traffic and also the store conversion is low. The customers always seem amazed by the store but most time they just walk out without buying anything.

 

[K.Nick]

First: Right now, Now. I don't have enough traffic. As for the location, I'm located by a cold stone and a game stop. There is also a movie theater close to me. Those where the selling point for the location. I reckon that since those established attract a lot of teens that I should do well also.

Second: Most of the merchandise that I carry are cool and trendy. It seems that people are generally curious about the store. The say they like the store and think it's pretty cool but they just end up not buying anything.

 

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[Get Right]

Ask the few that come in what they would like to see in the store. What would they buy? What are they buying now?

 

[rkmalo1]

I would make sure you have a very clear understanding of your target market and needs they desire and find out how you can fulfill those needs with your store. I agree with the posters that said to focus on implementing your marketing plan asap, but make sure you are filling a need - probably first focusing on grassroot mkting. Find out where they hangout, market there, Do teenagers read that magazine? Is your target mkt on FB? Is your community large enough to hyper target some ads on FB? Who is really buying this higher end product (I'm not entirely sure if your products are expensive but it kind of seems that way)? Is it the teenager paying or the teenager with their parents cash paying? I know it mattered to my parents what I used their money for when I was a teenager.

Like Mike said above "need makes sales"...

I have a friend that owns one of the bars in the town where I am from, before he bought the bar, it sucked. Now it's one of the most popular bars in town. He first did an excellent job of narrowing down his target market then he provided what them with what they needed. One complaint he continuously heard was "there is no good burger joints in this town". Guess what ...he now has the best burger joint in town (with multiple - 15+ types of different burgers) and those burgers literally do the marketing for him. One other thing for him that works pretty well is FB (I'm not saying start this way) but he has 3,500 "likes" on FB, he'll post images of his burgers pretty much daily - with a deal or something like that, it seems to at least bring people in.

I guess my point of that story is to highlight that you need to find your target audience - market to them asap, fill their needs/wants and do it in a way that is above and beyond what any other store in your area does and that alone can bring customers into the store. I think MJ calls this a product-centered business.

Good luck!!

 

[million$$$smile]

This is what I would do and I would begin immediately.

I wouldn't waste any money or time with with ads in any print. I really believe the ROI isn't there to begin with.

Focus your advertising cash in one major area perhaps a few spots on radio(their station) with a contest perhaps geared towards Halloween with a $250 store package for First Place, etc. Bring out the radio station Friday 25 Oct. for a hit date of October 26th. Hit the schools, skateparks, any hangouts where your customer congregate, with flyers. Advertise that they must come into store to sign up for contest. Prize for individual and perhaps two or three. I would blast this out any way possible, with no cash outlay. Your BEST advertisement is the kids themselves. .
Get them on your side
Are you playing their music? Can you hire one of them part time? I would get the best looking girl out front and create a customer survey so that you will know what your market really wants. You might be surprised. You have got to make your store cool. You have got to get into their mindset.

Move fast or you will be shut down in less than 6 months...
JMO

Randall

 

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[Milkanic]

Have you asked your potential customers why they aren't buying anything? Bring in some friend's daughters and interview them for their thoughts. Post of picture of your store/layout - maybe the store itself isn't inviting.

 

[Bigguns50]

I was thinking some of the same as Million...have an 'event' that will attract teens. (if you can do it on the cheap).

The most popular ice cream spot where I used to live hires all very pretty high school girls..(brings the boys). He has cool events during a yearly festival (cyclists/ ramps/ tricks,etc). He's involved in a lot of things the high grade school kids are with donations/coupons/small advertising. Everyone knows the name because his name seems to be everywhere...and not like big billboards and commercials...the small stuff..inserts, flyers, coupons.

The movie theater...gotta be a way to 'advertise' there. If they hire high schoolers give them a 'discount card' ? Trying to think cheap/creative.

 

[Guest3722A]

video games and pinball. offer free play time at strategic times. give em something to talk about to their friends

 

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[Will B. Rich]

Have you asked your potential customers why they aren't buying anything? Bring in some friend's daughters and interview them for their thoughts. Post of picture of your store/layout - maybe the store itself isn't inviting.

Definitely post some pictures! If your only feedback has come from salespeople, friends/family, and non paying customers, we can constructively make suggestions. If it's not too much, include a picture or two of the outside of the store and perhaps the whole plaza.

I can't wait to post my beta on here since my friends and anyone trying to sell me something will just BS me!

 

[CPisHere]

I own a retail store. I'm going to be very honest with you.

If your conversions are low, you have a real problem because no matter how much marketing you do, you won't convert enough sales to be profitable. You absolutely HAVE to get this fixed ASAP for the business to have any chance. With the limited information you've provided, it seems to me that the issue is teenagers are unwilling to spend their own money on the items you have. That means you either have to change your product assortment or find a way to get parents to spend the money.

If you aren't prepared financially to work your way through these issues for several months before breaking even, you are in for a world of hurt. Holiday sales will start picking up soon, which may save you in the short-run, but you have to assess where you are and what's feasible.

 

[JudoTom]

direct marketing... maybe a postcard mailing .. purchase a good list
capture emails when people come in. offer a $250 cash shopping spree
christmas is 3 months away.. start marketing that now
sales training for staff.. get people talking.. get them to help customers..
try to capitalize off of the other businesses. do something on the big movie nights.. download coldstone coupons.. movie coupons or do give aways... try to do some joint ventures w/ other businesses..etc

what you lack in budget/income you need to make up with hard and smart work.


when people ask for help on websites theys show us the site.. if you want take pics and send them to us.

 

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[exige]

Did you do any market research or analysis before opening the store? What made you pick that type of store? Can you get out of the lease? Can you sublet the space? Could you turn the space into some sort of small restaurant like a hot dog place or a 50's style diner like a Ruby's Diner or something that people going to the movies might hit on a date etc. before or after going to see the show?

 

[H. Palmer]

Ask the teenagers that are hanging out in the mall to come into your store and let them tell what they like/don't like/would like.

Then order new items according to their wishes and do some low cost heavily directed marketing, like distribute flyers at their schools or hang out spots.