April 2015
In This Issue
Quick Links
Celebrations
Todd & Peggie Hines received double honors with their 2 stores in Charleston, SC. City Paper awarded them Best Children's Clothing store and Best Baby Store. The local Parent's Magazine awarded them for Best Consignment Store and Best Children's Clothing Store. Double the honors double the fun - Congrats to everyone!
Human Resources
Ban The Box

Multiple states and jurisdictions in the US have started banning employers from asking about criminal history on applications. Referred to as "Ban the Box", the intent is to provide opportunity for those with criminal history to have equal chance to be granted an interview, and for employers to take into account the nature of the crime, the recentness of the crime, and the relevance to the potential position. Winmark has made available to you two application versions on the extranet (HR Forms folder); one that includes the criminal history question, and one that does not.  As business owners, it is your responsibility to know whether your state or local law prohibits the ability to ask about criminal history prior to selecting that individual for an interview.   If you are a ban the box state, this does not mean you cannot ask this information. One way that you may inquire about criminal history is to ask the question during the interview. For example, do you have any criminal history that we should be aware of?  Click here for FAQ's
KDV:
Why Your Franchise Needs Good Bookkeeping
When you are in business for yourself, whether you have a franchise or an independent small business, you are keenly aware of all the needs your company has.  You may need inventory, equipment, office supplies and the most important (and expensive) component is people. Most business owners generally do not believe they need good bookkeeping.  Bookkeeping is often viewed as an expense rather than an investment in success.
Click here to keep reading.
Meet the 2015 FAC


Todd Hines - Charleston, SC - Region 2
(FOM-Toni Crain)
Kathy Hackworth - Fort Wayne, IN - Region 3(FOM - Brian Hejna)
Dawn Rehbein -
Maple Grove & Eden Prairie, MN -
Region 4
(FOM-Amy Higgins)
Kimberly Hellums -
Katy & Houston, TX - Region 5
(FOM-Tom Langley)
Cami Scott
Enfield, CT Region 1
(FOM - Bonnie Keaton)
Pam Madden Harrisburg, PA Region 7 (FOM-Open)
Tom Lewis Spokane, WA Region 6 (FOM - Claire McGowan)
From The Director: It's all about the buys!

 

We are off to a fantastic start in 2015 and as you will read below March was our strongest comparative month for the year.  However, there is a growing concern that our buys are not keeping pace with our sales.  For the year we have experienced a 9.2% increase in used sales but only a 5.2% increase in used buys.  If you have been in the business long enough, you know that eventually sales fall back to the same level buys are at.  If we want to maintain the growth we have experienced early in the year, we have to stay focused on growing our buys.  The question I leave you with this month is: Are your sales outpacing your buys? If so, what is your plan to get more used product into your store?  Is your team doing everything they can to get as much gently used kids' stuff as possible? 

 

As we do each month, it is important to look at what we do to ensure we continue to stay focused on our primary objectives for the year.

 

Improve Customer Count - As referenced above, we need more used product to continue to grow our stores.  With that, the marketing message should be strongly focused on the buy message and more specifically we pay cash for your kids' stuff. Stay focused on ensuring you are marketing to both existing and new customers! Marketing such as Constant Contact, Facebook posts, receipt staplers/flyers are all critical to our success, but are only one piece of the puzzle.  While doing all of that, you also have to find a way to connect with a new customer base is what will ensure growth for years to come.  This may be in the form of Radio, TV, Digital, or Local Store Marketing (Parades, community events, Mom Groups, Day Cares, etc.)

  

Improve Inventory Management - If you have not started the In Season Clearance program it is worth your time to explore it in the coming months.  We continue to see outstanding results in the stores that are committed to this program.  There are many benefits, but the number one benefit of this program is that it gives you and your staff the confidence to buy aggressively from your customers.  In fact, on average those stores that are participating in the program are seeing a 7.5% sales increase in used buys compared to a 4% increase in stores that are not participating in the In Season Clearance Program.  Those buys are turning into additional sales and the stores on the program on average are seeing a 15% higher sales growth rate.

 

Improve Customer Experience - 

With buys becoming a bigger focus, so should the experience your customers have during the buy process.  Is your store a convenient place to sell product.  Long wait times and return trips to your store often deter people from repeat selling.  Put yourself in your customer's shoes, would you make two trips across town to make $25?  We are all busy, but unfortunately being busy is not an excuse our customers are willing to accept.

 

 

 

CAP Regional Overview
Click to Enlarge Image

March CAP numbers are showing phenomenal 11% increase in overall sales. All 7 regions experienced positive sales ranging from a 6.7% increase in region 6 (West) to a 13.9% in increase in region 2 (South-East). 
Another positive for the month was that the average sale for March came in at $28.49, which was $0.74 per transaction higher than March of 2014. In addition to the increase in average transaction our stores on average had 7.1% more transactions than March of 2014.  

 

One other promising note from CAP is that the Newborn category experienced an 8% sales increase in March and is up 7.6% for the year.  As you know, the Newborn category continues to be a focus of ours and is a strong indicator to what the future will hold.  The Newborn category often times is a customer's first experience with our stores and making sure it is a good experience is critical for our success.  If you are looking for strategies to get this category back into shape please reach out to your FOM for tips and strategies that are working well in other stores. A happy mom shopping and selling in the Newborn sizes, has the potential to be your customer for the next 10 years!

Region 1
Region 2
Region 3
Region 4
Region 5
Region 6
Region 7
All Regions 
Official Numbers
The following results are now posted on the Extranet under Sales Performance > 2015 Sales Performance Reports.

Click here to see what region you're in.

U.S. Top 5 YTD:
1) 20344 Minney    $321,969
2) 20650 Simpson $293,538
3) 20652 Yanda    $293,433
4) 20683 Reising $290,572
5) 20663 Henderson $267,706

Canadian Top 5 YTD:
1) 20675 Henderson $186,905
2) 20622 Eccles    $184,228
3) 20256 Wright    $174,663
4) 20310 LaBlanc $170,753
5) 20395 Tainsh    $162,688

Top 5 YTD % Increase:
1) 20910 Kot 77.5%
2) 20456 Reich 53.11%
3) 20894 Jones 46.7%
4) 20858 Camacho 45.71%
5) 20845 Diaz 40.66%
From The Operations Department
The Excuse of Busy
Poster: Jacksonville, FL - Christina Keel
With the Spring selling season in full swing, your store should feel busy. With that said, it is important to remember that busy is a good thing, it is not an excuse. Busy is not an excuse for providing mediocre customer service, not processing buys, not completing a closing checklist or any other task that leads to a positive place for customers and employees to be. Anticipating what excuses staff, management and you may have for why something is not being done to the store standards will help you establish an action plan ahead of time. If staffing is an issue going into your Back to School season have you started the hiring process now?

Poster: Mishawaka, IN - Tracy & Roy Schrimsher
It is so easy to say "It's just too busy!" When saying that, though, you undermine your ability to get tasks accomplished and you open the door for staff to say "It's just too busy to..." get the buy done, get the store cleaned, help the customers, etc.

Remember, you set the standards, and if you create excuses that compromise your standards your staff or management team will learn to do the same.
All who filled out a No Excuse Culture postcard at conference should have received it by now. Stay focused on your goals. If you said Customer Experience is going to improve what steps have you made to make sure that it is improving? Has the staff done the Customer Experience Modules yet? Are you holding staff accountable when you see poor customer service? Have you made the store more presentable or easier to shop?

Remember: If you can't you won't and if you can you will.
 
Poster: Niles, OH - Brenda Money and Trish Papantonakis
Questions From The Field

1.    How do we handle things when a customer wants all the detail of what we were paying them for their items?
As reminder we train to print the "custom details where it does not have the individual pricing for each item, but does line list all item descriptions and a grand total.  It's not uncommon for a customer to inquire about the payout on a particular item and it's perfectly acceptable to let them know. Be sure to tell them both the price we will sell the item for as well as the price they will be receiving. But what if they want the detail for everything? The answer is simple - you do it. Upon their request- provide them with the "store" detail receipt. Through DRS you can print this version as one of your print options. As they look it over remind them that we generally pay 30% - 50% of what items sell for new and that you pay 30% - 50% of what you sell it for. Follow this up with the reassurance that you want them to be comfortable with the offer and that they are under no obligation to accept it or that select items can be removed.

2.     How do I handle a customer who comes in complaining about another OUAC or Winmark brand store in the market?
Start by apologizing for their experience. Thank them for letting you know and ask them if they have brought this to the attention of the store owner or manager. Provide them with the store phone number and encourage them to speak with one or the other. If they would prefer email - remind them that the store's web page has an email link. Then ask them if there is anything you can do for them today to make their day better.

3.    What is the advantage of using a pricing gun rather than just handwriting a number on the tag for the In-Season clearance program?
The application process is actually faster than the hand written process. It looks more professional and by utilizing a white sticker all the time, it's not overly noticeable, allowing you the flexibility to not take markdowns if it's not necessary.
Monthly Operational Reminders
April
15 Tax day
27 Review May's Operation Calendar
29 Audit back stock log
30 Year End financials due for Gold Standard qualification
30 All S/S back stock should be out now
30 IN-Season Clearance - Pull February (02) for 50% off placement

May
01 Begin using white attachers
01 IN-Season Clearance - Label April (04) product
05 Cinco de Mayo
10 Mother's Day
18 Victoria Day (Canada)
22 Begin promoting Clearance Blow Out event (6/6)
25 Memorial Day
26 Review June's Operation Calendar

June
01 IN-Season Clearance - Label May (05) product
06 Host Clearance Blow Out event
07 All remaining clearance apparel & shoes is now 50% off.
21 Father's Day
30 Assess Back To School staffing needs
Advertising & Marketing

Facebook Contests

 

How do you get more Facebook followers? Contests! The type of contest/sweepstakes you run will depend on your goal: more page engagement, increased email sign ups, additional customer information, etc.

 

If you want to incentivize your followers to engage with you, you may choose to give something away like a gift card or a tablet. It's important to note that you can require someone to like or comment on the post itself, but requiring a page like isn't allowed. Remember, your goal is to increase quality connections rather than superficial likes. Here are some quick tips:

 

What you CAN do:

  • Ask people to Like your page, just don't make it a requirement to enter.
  • It is permissible to require someone to Like a post or comment on a post to enter a sweepstakes / drawing.
  • Ask people to send your page a message.

What you CAN'T do:

  • Require someone to Like your page.
  • Require someone to "Share" a  post.

Using a third party app, such as ShortStack, is effective as well but can be a little more complicated, and depending on your expertise, may require a digital agency to install and work with it. While you can gather valuable customer data this way, there are rules and requirements you must provide, so contact your marketing manager for details. 

Email Marketing Schedule
What's your Email Marketing Schedule?

Tip: Stay top of mind and relevant! Remember, you have plenty of templates that you can reuse to promote your store-specific specials and events. Here are our recommendations:

April Options
New - Earth Day campaign (coming soon!)
New - Avoid Garage Sales campaign (coming soon!)

May Options
Reuse BTS Hiring campaign
Reuse Memorial Day/Victoria Day campaigns
New - Mother's Day campaign (coming soon!)
New - Summer Toys campaign (coming soon!)
 
Have other campaign ideas? Let us know!




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