Challenge 2009
what t ththe experts s sasay
The chain operator
The medium-sized publisher:
Cards have a history of being fairly
I know it’s a bit of a cliché,
recession-proof. You will often hear about
but great product is always
how people might cut back on their gift
going to win. Great product
spend, but still send a card. It’s my belief
that’s true value for money
that this will continue, because nothing
– but not cheap. I don’t
says, “I care” in the same way a card does.
believe in just chasing
We defi nitely want to continue
down prices and selling
producing great design and quality
everything cheaper, that’s
products that sell. There is little room
the road to ruin.
for error so getting this right is key.
Name me a retailer
Focusing on what sells well and to who
that isn’t concerned or
is fundamental to success during a
has positive like-for-like
challenging environment.
numbers in this trading
I urge anyone to use Pareto’s 80/20
environment? There’s not
Law to look at your products, suppliers,
many, but as far as Clinton
customers and staff (Pareto, an Italian
Cards is concerned, we are
economist, identifi ed that 20% of inputs
cautiously optimistic.
affect 80% of the outputs).
The general view is that the greetings cards business is last into
Determine the 20% in each area that
a recession and fi rst out. There’s even a view that people trade up
has the biggest effect on sales, profi ts
to a better card when times are tough.
and effi ciency in your business. Gift shops
We’ve ridden out tough times before and we’re preparing to do
might notice for instance that cards are
it again. We’ve already stated that we’re actively conserving cash
contributing signifi cantly to their customer
but some of our expansion projects with new shopping centres for
spend even though turnover is lower. They might also notice
instance, have been a long time in the planning and we will continue
that certain card designs draw consumers into their stores
with those. But are we actively looking for new stores? Probably
and that certain gift lines sell well with cards to certain
not.
customers. This can inform their marketing so that they then
I guess you could say the dial is turned down, but not off.
highlight these products to these specifi c customers to draw
Mike Bugler, MD Clinton Cards
more of the right type of customer to them.
Getting close to your customers during these periods
is essential to fulfi ll their needs and stop them voting with
their feet. It’s not all about price. A reliable, approachable,
quality service is very important. We continue to use these techniques to grow our
The multiple retailer:
business and have seen Christmas sales grow by 26% this year and Spring sales
I love times like these. It sorts the men from
for 2009 are off to a fl ying start (up 20% on last year to date) with our best ever
the boys and if half of the weaker card
spring designs now on release.
retailers out there drop out that will make it
You can also fl ip the 80/20 rule to look at the areas that have the biggest
easier for me.
negative effect on business and our profi t: Customers that take up too much
The current fi nancial climate it is
time, staff that are not pulling their weight, suppliers that regularly let you down,
potentially a time we may see some loss
and products that are taking up useful selling space on your shelves or in your
of revenue but certainly not a time to
brochures. If we whittle these 20% out we can reduce our costly problems by up
‘batten down the hatches’ and sit it out.
to 80%.
In a recessive retail environment greeting
We have done this recently to improve effi ciencies in production and introducing
card retailers are not at the bottom of the
a bonus scheme, which has meant better output for less cost and more pay for our
food chain by any stretch and I actually
staff.
see huge opportunity for expansion and
Businesses that stay focused on the right areas will continue to thrive and
development particularly with incredible
improve ready for the next upturn. Remember it is better to choose a well thought
deals achievable on new leases. We
through plan, execute it and get on with life than to sit around worrying about
have just invested in warehousing and EPoS and although capital
forces outside of your control. Worrying will damage your health, persecute your
expenditure like this is far more of a considered decision these
friends and family and stop you from taking action out of fear. Be brave, stay
days, we need all the information we can get to maximize our
focused and try to have fun. The captain who sails her ship through a storm
opportunities.
(outside of her control) will be stronger and more experienced on the other side.
Terry Harvey, M&P Cards, From the Heart, Locksheath, Hants
Don’t give up.
Jeremy Corner – Blue Eyed Sun
26 Greetings Today
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