Ep #336: Answering Your Call-In Questions

Okay, you asked and I answered. I am so thankful for so many of you to reach out and share your questions on a variety of topics for me today in our very first ever call in episode on the podcast. And I have to tell you, I am definitely inspired. I want to do this again and I want to hear more questions. So let me know. Listen to this episode. I hope you are inspired and find some good tips and advice as we go. But if you have a question that was not asked in in today's episode, send me a message on Instagram @aj Alderson or @ the Boutique Hub and I will get you the link so that we can do this again. I would love to continue and make this a regular thing on the podcast so you can be included and we can have your questions answered. Guys, enjoy this episode with some great, short, sweet, simple and to the point questions and answers commonly asked by boutique owners. Let's talk about your business strategy and the juicy details of what actually works from mainstream fashion to fashion on Main street and the entire ecosystem behind it. How do we scale your company and do it with the balance and the happiness that we all seek? Let's hear from those insiders, experts and strategists that actually make it happen. I'm your host, Ashley Alderson from the Boutique Hub and I can't wait to chat. Hi Ashley, this is Erin Twaits from Belle Boutique in Dover, Delaware. So I'm constantly striving to identify my ideal customer and and find my niche so that I can best serve her. What are your tips for identifying exactly who she is and where I can find her so that I can focus my energies in the right place as far as social media channels and advertising outlets so that I can speak to her and meet her needs. Well, hey Erin, I'm so glad that you asked this question because I think there's always an evolution of this answer, right? There is this start of your boutique owner journey where you're trying to identify who your ideal customer is going to be. And then there's that point in your journey where you realize my customer isn't who I thought she was anymore. And it's not always one size fits all right? Because just like your own style evolves, so does hers. So let me take this back to the beginning. If you are someone who is new in this business, a lot of times when you get started, your ideal customer is going to be the most like you. So when you think about the things that make you excited in terms of fashion and lifestyle and inspiration That a lot of times is going to attract who is going to shop from you in the first place. So if you're someone who has a bit of a western flair and you really love to style pieces together with turquoise and lots of layers and lots of spunk, that is that ideal client is going to look a lot like you. If you're someone who is very casual and comfortable and you need ease in your life, you need to be able to put a outfit together really quick and easy because you've got to chase your kids 500 places, you're going to start to attract people just like that. So I would start to ask yourself, what really motivates you when it comes to the products that you're selling? What do you most look forward to? And then start to build that brand, the photography, the graphics, the aspirational pieces around that idea. But don't feel like you have to be married to it forever, because as time goes on, it's going to change and it's going to evolve. And the best thing we can do in retail is be really good at failing fast. As terrible as that sounds, failing fast means we're willing to take a risk on products, test them out, see what the data is going to tell us, how fast they turn, or if we restyle them and reshoot them and repost them, if they're going to turn, and then be willing to go in and try something new. So always be testing when it comes to your products and what you're going to be selling in your boutique, as well as how you're going to style your brand and your brand imagery. And then as you go along on a daily basis, no matter what stage you are in this business, a couple things you can always do that are gonna be really helpful. Number one is to always be asking questions. Always be asking questions about who your customer is, what motivates her, where she gets her style, inspiration, what other places she loves to go shopping, what motivates her, what her biggest frustration is right now, what she's buying for, who she's buying for, what price point she's buying for. And as you're buying, as you make trips to market, bringing her along with doing lives and doing be the buyers and asking those questions, that's always going to help you kind of continue to uncover what the next trend and the next best product is going to be for your customer. The second thing I would tell you to be doing on a regular basis, no matter what stage of business you're at, is customer surveys. And this is something in retail bootcamp, Aaron, that we do right off the bat. Because I find that in business a lot of times we build the plane as we fly it. We build this thing, we figure out how to make it have some traction and then we pour some fuel on the fire. But sometimes in order to sustain the growth that we're having, we have to go back to the basics and kind of rebuild and re solidify the foundation it's all built on. And customer surveys, if we do them twice a year, really help us to do that. So I have a whole strategy we lay out inside a retail bootcamp on that. But what I can give you is making sure you're asking who she is, where she lives, a little bit about her lifestyle, asking her where else she shops, where she gets her style information, what her biggest fashion fears are and frustrations. I think you're going to come back to what it's like to buy online, buy through live selling, what it's like to dress her body or maybe if she's young and busy with kids, she just doesn't have time. But asking her those questions and then also asking her what she's loved about shopping with you most and what other advice she would have for you, make sure you open that constructive criticism question, which I know as humans we're all a little bit scared to do, but it's okay because we're going to get really, really good feedback. So, Erin, I love that you're asking this question and thanks for participating. Hi Ashley, this is Michelle with Lake and Pine Company here in Wisconsin. My question for you is what would be your number one tip to help a small business navigate through these very uncertain times with supply chain for the upcoming holiday season? Oh man. Michelle, first of all, I love another cheesehead. So I love that you're from Wisconsin and calling in. Thank you for that and thank you for listening to the podcast. This is a huge topic right now. Supply chain. It's impacting everyone and more and more, our customers, the end retail consumer, they're becoming very aware of it as well. And it's going to change the shape of our holiday season. And I think a lot of people are going to be buying a lot sooner because we as retailers have been making the general public aware of this issue for some time now. So I would say, number one, make sure you're prepared with whatever inventory you do track down to really sell out your holiday gift guides and bundles and things as early as you possibly can because I think the consumer is going to be buying holiday a Lot earlier than normal. Specifically be ready for Pink Friday, which is coming November 19, the week before Black Friday, because it's going to be huge day considering how early people are shopping and the support they want to give to small businesses this year. So definitely be getting ready early with your promotions. But the second thing I would say, and this is like not just a now issue, but an ongoing issue, and that is build deep, lasting, open communication relationships with your vendors. I think there's a lot of retailers and boutique owners that want to be frustrated at vendors right now that it's not the vendor's fault. And the vendor is equally frustrated with their manufacturer as they're trying to get product in or those at the ports that are not unloading the product from the ships. I mean, it's this whole thing that is a global impact and what happens when Vietnam is shut down impacts all of us. And there's really no one to blame except for the times that we're in right now. So the more you can open, communicate and keep a really strong relationship, a grace filled, no blame relationship with your vendor, the better you're going to be and open communication. Have on your calendar someone on your team. If this is not you, which I hope this is something you can outsource to weekly. Be checking in on what you have coming in in pos and if the vendor is saying yes, this actually shipped and just double checking your timeline so you know you've got gaps that you can fill in by finding other vendors. The other thing I would say is typically in the fourth quarter we buy in four main product categories. And when I talk about these, you're going to see there's one category that's most impacted. Okay. So for the fourth quarter, the first category we buy in a lot is trend. Trend typically is super deep, but that is the category that's having the most impact with inventory issues right now. So we have to find ways to make money other than in trend during the fourth quarter. So you might buy lighter in trend or might from a wider variety of vendors in trend. So think about how that's going to impact that category. The second category I would really think about going deeper is your bread and butter category. When I say bread and butter, I ask what is actually making money in your business? Right. Sometimes we're like, oh yeah, I bought a pack of that and it sold out. Great. Okay, but did you actually make money from it? And is that repetitive over time? Is your data showing you that is where the money is coming from in your business? What is Your bread and butter. And where can you go deeper? If it's basics, that's something you can sell 365 days a year, things you can layer together, it's denim, it's things that will never grow stale for you. So where can I dig deeper into my bread and butter and really buy into that fourth quarter and find things that are domestic if I can't find them coming in internationally? The third category I'm looking at is what is my margin builder? And if you can find companies that have off price stock available right now, buy it. This is a great way to wrap these things into bundles and into gift guides or to use as door busters and promotions in the fourth quarter that you can buy at a great deal. This is out of season. Last season, overstock from vendors, you bring it in a great deal, you can mark up fully, still take a markdown and still make a traditional margin on that product. So those are margin builders. The off price show that takes place in Vegas is a really great place to get hooked up with vendors who offer this or just in communication with your regular vendors to see what they have to offer as well. And then finally the last category is seasonal or our upsell category. So this is a lot of our gift and accessory and lifestyle, our seasonal teas and sweatshirts and things that come in for the holidays. We may have to go a little deeper in this category because traditionally they're things we can get that are ready to ship. You may buy deeper in candles than you have in the past because you can find them domestically where you cannot find trend. So think about analyzing those four categories and where you can really build those relationships with your vendors and then really make sure you are over communicating this to your customers. Because some customers, they're understanding, some have no idea and they expect you to be Amazon. So the more communication, transparency, grace you can have during this really challenging season, I think your customers are going to love how you make them feel and not just what they remember they bought from you. Right? It's all about the relationship and what they walk away remembering at the end of the day. You guys know I'm a huge fan of whatever it takes to build your conversion rate and your average order value online. And that's why we've had such a long standing partnership with Sezzle. Your opportunity to give your customers a buy now, pay later solution that allows them to pay for their products in four interest repayments over six weeks, but get what they want immediately. So join 41,000 stores across the United States And Canada using the Shop now, pay later formula with sezzle. Hi, Ashley, this is Michelle from Wildflower Daydreams. Thanks for having me on your podcast. My question is, currently I have an online boutique and I'm looking to transition to a brick and mortar store. So just hoping you can give me any tips that you have for opening a brick and mortar. Thank you. Well, hey, Michelle, this is a great question and a really common question that we get inside of the hub. So I'm glad that you asked this. And first and foremost, I love that you started online and you've built your customer base and you're building relationships so that you have some traction when opening a brick and mortar. But I always would encourage you to think, is this the path I want to go down? Right. We always think there's this natural evolution of this is how my boutique should grow. I go online and then I have a brick and mortar and then I do this, that, and the other thing. It doesn't have to be that way. So is this something you want to do? Because opening a brick and mortar is going to require a lot more of your time. It's going to require more of you to be patient with scheduling. It's going to require more overhead hiring staff. So really make sure it's the next step that you want to take and not just something you think you have to take. So start there. But second, from there, I would think about location, location, location, and price for that location. Right. And I know we have another question that came in actually from Natalia on price per square foot. And so I want to wrap these two answers together in thinking about this and really understanding how much traffic can I get to this location? And if this location maybe has a 30 to 50% conversion rate at, let's say, $100 average order value, what does that actually look like in sales? And will those sales actually cover what I have projected for my startup costs and my ongoing operations costs? So work some of those numbers backwards and is that lease actually worth it? And then when you go into negotiate that lease, who's going to pay for the build out? Who's going to pay for any ongoing improvements or repairs that are needed? What about insurance and utilities? And also what is the term of the lease? If this is a younger business, a shorter term has to be built in because you don't know if this is going to work for you long term. So start with a short lease if you possibly can, and then build out. After some maybe performance enhancements, you could build into a ladder in your Lease to make sure that the business is actually going to work in this location. I would also think about what is that location? You know, if you're in Lancaster, Wisconsin versus New York, obviously there's a huge difference. But what is that potential going to be for revenue? Again, looking at that traffic, at those conversion rates and at that average order value to make sure it all pencils out. Once you've decided, if this is for you, then a couple merchandising things I want you to consider, and that is, number one, your floor plan. Most often when people enter a brick and mortar, they come in and they go to the right. So as we're laying out your storefront, I want you to take a just a blank piece of paper and draw yourself a little map. And as you think about the fixtures and furniture and the display displays and the experiences people are going to have in your space, how are they going to map throughout your location? Where's the dead zones going to be? Where's there going to be increased need for lighting so that you can cut down on shoplifting? Where are we going to need space for mirrors? Right, that's going to help with shoplifting and just light and giving feel to the area. And as people are coming in and going to the right, we know that that's where our newest arrivals, our highest price goods, our most exciting goods, have to come into the right. So people see them first, not the sale rack in the front. We want them to have to weave their way all the way back to the store to get to those goods. And also the same experience when they're going to weave to your cash register, they're going to weave through just like they would at Old Navy or Kohl's or whatever big box store. As they weave through all the add ons and upsells as they get closer to your cash wrap. I would also take a page out of the book of merchandising for your customers greatest needs telling a story through your merchandising. I'm going to just pick on Francesca's. If you had a Francesca's local to you for a minute. And this whole idea of color coding our merchandising I think is a terrible idea. I hated going into that store and having to dig through a rack of red things that I didn't know what they were going to be because I never walk into a store thinking about, oh, today I'm going to buy something that's red. You know, unless it's game day and then I'm actually buying a collection And I'm buying experience. So when I come in and I think about merchandising, I'm buying for need. I'm buying for the outfit I can wear to the wedding. I'm buying for what I can wear it back to school. I'm buying for what I need in terms of comfy. I'm buying for what I need in terms of Christmas gifts. So how am I merchandising and telling a story and leaving an experience. And then finally, when it comes to merchandising and how you're going to lay out your brick and mortar, how can I create layers? So back in the day in college, you guys, I don't know if you know this about me, but I was a buckle girl. We did not have boutiques at the time in North Dakota, but we had the buckle. And so working at the buckle, we always had a rule that you had to have four pieces layered together at one time. So when you have your face outs, when you have your mannequins, the rule of thumb is you only sell it if you show it. So do I have enough pieces layered together to give my consumer, my customer, my girl, the experience to go, oh, that's a great way to wear it. And not only is that a great way to wear it, but I think I need to buy this, this, this and this because they all are going to go together. So we're all about experience and inspiring someone how they're going to experience that product when they get it back home with them. The other thing I would say is near the dressing room, as you lay out that piece of your brick and mortar, thinking about when someone comes in to try on denim and they don't have the right shoes, let's just say they have a pair of Nikes on and they actually are buying boot cut denim so they maybe need a little bit more of a heel. What are the add ons and products you need to have layered around the dressing room so that you can give your customer the best experience possible in the product they're experiencing at the time. So making sure it's shoes or you've got something where you can tape pieces together, or you've got, you know, little clamps where you can pull pieces together if you need to show them how it's going to look with something laying a little bit different, is it making sure you've got the undergarment basics layered inside your, your Nikki Bickies and your Spanx inside of your dressing room so customers can have that experience and then training your Staff how they're going to tell a story with all the products they're bringing to the dressing room. So lots to think about, but hopefully I gave you a kind of point A, to point B, thought about opening your brick and mortar and planning out that experience so that your customers have the best possible experience when they walk in on day one. But thanks for asking the question today. Hey, Ashley, this is Deanna from Southern and Chic Boutique. I had a question. So I know you said stuff about try not to do so many sales and do more of the promotions. I would like more knowledge about the promotions. I do a lot of sales, but not really that knowledgeable in the promotions. Thanks. Well, hey, Deanna, thank you for asking this question. And it couldn't be more fitting when we come into the fourth quarter because one of my wishes for you, Deanna, in the fourth quarter is that you actually get to experience it. And one of the reasons we all get into business is we want freedom. We want three things. We want freedom, flexibility, time with our family, not three Fs. And it's common that boutiques come into the fourth quarter and they're so focused on revenue and sales that they forget about the real reason they're there. And that's actually profit. And it's being able to get to January and pay your tax bill and still have money left over in the bank that you can pay yourself at the end of the year. Nobody likes getting to the end of the year and going, oh my gosh, I worked that hard for nothing, right? So, Deanna, I don't want that for you. And that's why I'm such a big advocate for running promotions versus running sales. And I think the blanket sale is one of the worst things we could do in business because what happens when we mark our entire store or website 20% off site wide is we sell the diamonds with the dirt, right? We get rid of the brand new highest margin sweaters we just brought in with that thing that's been sitting on our shelves molding for the past four months. And they are not to be treated equally. So what happens when we run a promotion is we're actually focused on, on selling the things that matter, right? Moving the things that need to be moved. And I'm going to tell you really quickly about two different types of promotions you could think about. The first is brand builders. So when it comes to the fourth quarter, people remember how we made them feel, not just what they bought from us. And so a brand builder is a way to get them excited about the experience with your brand. So brand builders could be an event that you're hosting either digitally or in person. It could be a collaboration you're hosting with a maker or artisan or a brand that you support inside of your business, giving your customers an experience. It could be boutique bucks that when they spend a hundred dollars, they're getting $10 back in boutique bucks they can come use in January like Kohl's Cash if you're familiar. Or you could be trading those boutique bucks with another local business in town. You could even do a boutique crawl with other local businesses or an online boutique crawl with other online businesses where you're shopping at these other stores and getting boutique bucks for another store instead of yours. So the purpose is you're building the brand and you're giving an experience and you're attracting people into your space not by the discount, but by an emotional reaction you're creating for them. The second type of emotion to think about is bonuses. Bonuses can traditionally be in a Buy More, save more, a Bogo type of experience, or like ladder sales if you're familiar with those, or bundles and cash back bundles or even door busters that you've got throughout the holidays. So promotions focus on what is the product and category that I'm either overstocked in or that I got on a really good deal that I can now pass that deal on to my customers. So we're not selling the diamonds in the dirt together. So remember, when it comes to the holiday season, people remember the emotional experience they had and that goes not just for the sale, but also if they have to return something and what happens supporting and following up after the sale. So no more blanket sales. Deanna, I know you're not going to do it. I know you're going to focus on promotions and how to build your brand. Because this is the time of year everyone's buying and this is going to be the time of year you have the most first time customers out of any quarter. So it's not just about again the sale, but it's supporting them after the sale and encouraging them to come back and follow up and buy with you again and again throughout the upcoming year. So good luck to you this holiday season. I can't wait to see what promotions you run, Deanna. All right guys, that's it for today's call in episode. I'm so glad you submitted your questions. If you love this episode, please head over to Instagram and let me know either on the Boutique Hub or AJ Alderson if we should do this again. And if you would like to submit a question and I'll be collecting those so we can do another call in episode soon. You guys, thanks so much for listening to Boutique Chat. It is my absolute honor to get to be here and to spend time with you and to have the opportunity to build your business. I hope you have an awesome, awesome rest of your day and an even better holiday season. Hey guys, thank you so much for listening to this episode. We hope that you loved it. Don't forget to hit subscribe and leave a rating and review down below for a chance to be one of our featured listeners each and every week. For more information on our spirit of community over competition and how to access complete show notes and bonus downloads from our guests, head on over to the boutiquehub.com and join the community. We'll see you next week.