#LBCWantsToKnow >> January 2019: Measuring Business Metrics

product development planning for makers

Throughout January, I’ve been hosting a conversation among the Lucky Break Instagram community.  The focus topic? Measuring business metrics. We shared the kinds of strategic planning we implement at the beginning of a new year. Last week, I asked them to make some concerted decisions about the type of business metrics they’ll be measuring in 2019. I’m eager to share their responses alongside a free downloadable template to help you get a better handle on your business data.

 

Measuring Business Metrics

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THE LUCKY BREAK COMMUNITY SAID…

  • bobo design studio: I used to care a lot about social media (IG) numbers monthly.  However, I find that they fluctuate so much that it’s become a vanity metric. I see the actual ROI is not in social media, but in my email list. I’m going to focus on subscriber growth, spend from the newsletter, and open/click rate.

 

  • bathedinglaze: I’m so new that I don’t even know what I’m supposed to be measuring.

 

  • stellachroma: I want to grow my email list, monitor my conversion rate in my shop, and tweak my shopping cart email to get the best conversions there I can.

 

HERE ARE MY THOUGHTS…

 

Bathedinglaze isn’t alone. Intuitively, many of us realize that we need to be tracking business metrics, but we aren’t sure which data matters. Too often, we haven’t created the structures necessary for diving into that information even when we have concrete data available.

 

But the adage “That which gets measured, gets done” is true! When you start paying attention to the metrics of your business, those metrics improve. Forbes offers some fascinating insight into the psychology behind this concept.

 

Research shows that the desire to win is heightened when rivalry and time pressure coincide, and the simple act of measuring something sparks that sense of rivalry in many people. Of course, that rivalry doesn’t need to be with others. It can be with one’s self as a sort of “competition” to see whether you can beat a goal. Without a measure, there is no way to determine whether you have won, and therefore, less motivation to get something done.

 

Then there’s that small matter of accountability. When we set goals and measure performance against that goal, we can hold ourselves (and others) accountable for the resulting success or failure. We have concrete data that shows us what we did or didn’t do, what the impact was, and what we need to do differently. Without accountability, we can’t coach people towards success and growth, and we have a heck of a time meeting our overall targets.

 

THE POWER OF CONCRETE BUSINESS DATA

 

I’m confident that the singular most important thing you can do to improve your business in the coming year is to capture data on a monthly basis. And that’s why I’m sharing the “Company Snapshot Report” template that I designed for my own business. Team Lucky Break puts this report to work each month to collect essential metrics that ensure that I keep a finger on the pulse of my business. This exercise enables us to easily digest our metrics, empowering us to quickly strategize around the progress of the company at twelve critical junctures throughout the year.

 

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#LBCWantsToKnow >> January 2019: Breaking Business Bad Habits

product development planning for makers

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Today we are talking about breaking business bad habits. Each month, I ask my Instagram community to join me in a focused, crowd-sourced discussion on a specific subject.  For the month of January, we’ve been rolling up our sleeves to chat about beginning of the year planning. This blog is part one of three… I’ll be collecting your thoughts and sharing them here all month!

 

Breaking Business Bad Habits

 

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 THE LUCKY BREAK COMMUNITY SAID…

  • shoprarejoule: Not being organized. I’m learning how to streamline this year.

 

  • smallcompanyartworks: I want joy to be the litmus test for more of my business decisions. Not just the direction to take my art, but what to outsource, sales channels, etc.

 

  • bobodesignstudio: Planning and being less reactive. Even if that means planning one quarter ahead.

 

  • starblastco: Poor cash flow management and budgeting. Read Profit First last month so I got all my systems in place to never let that happen again!

 

  • bubblesbabez: Trying to leave behind procrastination, but it won’t leave me alone.

 

  • mistybluebotanicals: I’m going to embrace wholesaling this year!

 

  • maiookshop: I’m striving to be more consistent, more brave and more proactive this year.

 

  • trulyblessedmaneke: I’m leaving my perfection cloak in the dust! It was SO heavy & it slowed me down in 2018.  I’d much rather wear my cloak of accomplishment when I tackle my to-do-list like a BOSS!!!! I know I can always improve.

 

  • kidessenceshop: I want to keep a positive mindset and be better at follow-through on my plans. Towards the end of last year, I was so burnt out from focusing on my fears in my business that some of those fears became a reality. If I keep a positive mindset 100% and take those failures and turn them into successes this year, I know I can meet some great goals.

 

HERE ARE MY THOUGHTS…

I’ve noticed a few habits that many of us lug around, though they aren’t really serving our businesses. My goals for Lucky Break clients are to eliminate clutter (both mental and physical), to establish parameters that help encourage solid, focused work habits, and to help them build a support network. To that end, here are my top tips for calibrating yourself for success in the new year.

 

MUTE YOUR NOTIFICATIONS. You know all those things that buzz, ding, and whirl? The constant inundation of alerts and notifications contributes to mental overwhelm and they break focus every time they make noise. You needn’t be notified when someone places an order, sends an email, favorites a picture, likes your page, or shouts you out on Twitter. Remove all audible notifications and ensure that your email isn’t auto-checking throughout the day. Recalibrate these systems so that you’re in control of when you review information, not the other way around.

Along those same lines:  Flipd is my new favorite app. It prevents me from constantly peeking at my phone and indulging my ADD when I should be focusing on other work tasks.  Give it a try… it’ll change your life!

 

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#LBCWantsToKnow >> November 2018: Small Business Owner Mindset

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Small Business Owner Mindset

 

Each month, I ask my Instagram community to join me in a focused, crowd-sourced discussion on a specific subject.  For the month of November, we rolled up our sleeves to chat about small business owner mindset. Nobody understands the stress of the holiday season like a small business owner, and I was thrilled to see so many Lucky Break Clients sharing their thoughts and experiences.

 

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THE LUCKY BREAK COMMUNITY SAID…

  • bodysystemsteri: It’s so essential. And I feel as entrepreneurs we don’t take notice till it’s too late.
  • zirafkahanka: For me these three come first: SLEEP, EAT, MOVE. Then anything else. To start to look at my life this way helped me tremendously last year.
  • printtherapy: I have to make the time. I’ve burnt out so many times emotionally and physically that I now really understand the importance of self care. For me it’s good sleep, healthy eating, and working out. It’s also time alone and Netflix binges 🙂 Either I spend time taking care of myself, or I spend the time being tired and anxious and therefore unproductive.

 

MY THOUGHTS:

Overwhelm and burnout are, unfortunately, rampant in the entrepreneurial community.  While everyone’s coo’ing over four-hour work weeks and how sexy it is to be at the helm of your own ship, what they’re not often talking about is how we often work 60-80 hour work weeks and how we sometimes sag under the weight of long to-do lists and massive responsibilities.  I don’t mean to be Debbie Downer, but we’re all about “real life” business here at Lucky Break and that’s the reality for many of us.  But as someone who’s hit her brick wall more than once, I’ve learned the importance of self-care.  A few tips I’ve picked up along the way…

  1. Put your own oxygen mask on first. The LBC Community is made up primarily of women and we often put ourselves last, taking care of ourselves only after everyone else has been tended to. But you can’t pour from am empty cup and I’ve learned to move myself up in line so that I can be a healthy resource for those who depend on me.

 

  1. Business ebbs and flows. There are times in each of my businesses when I’ve needed to let off the gas a bit to tend to my own health o r the wellness of my family.  Keeping the gas pedal pressed all the way to the floor 24/7 is an impossible ask, so flexibility is key. Recognizing that there are seasons for big launches and concerted waves of outreach, and the development of new collaborations has been key, because there are also seasons for pulling back and conserving energy. Yin and yang and all that jazz.

 

  1. When I feel myself breathing up against a brick wall, a change of energy is needed. Think of it as an intervention: work half-time in your business next week. Go to bed an hour earlier every day this week. Find one thing from your to-do list that you can delegate to someone else. Being attuned to yourself and proactive about your own wellness is much easier than picking up the pieces after you’ve slammed into the wall and everything has shattered.

 

 

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THE LUCKY BREAK COMMUNITY SAID…

  • a_wildflower_gypsy: Meditate and clear my mind out in nature, phone free. Quiets the chaos and allows ideas to flow.
  • zhibathandbody: I clean… something about putting on my sneakers, cleaning house, and burning sage gets my juices flowing. I find myself away from those things that have my mind cluttered.
  • mistybluebotanicals: I like to FB and insta-stalk creative people I admire. Instagram, in particular, is hard for me because I don’t feel particularly talented in the creativity department, so I like to see what other folks are doing visually. Somewhere taking a ride somewhere news helps to unblock creativity for me.
  • pearlglow_bodybutter_and_soap: I like to look at things I love, read, or start at the beginning. I’ll go back to some of the first things I created or wrote, this always helps.

 

MY THOUGHTS:

I second all of these awesome suggestions! One thing I’ve learned in fifteen years  of being a full-time entrepreneur: pushing through roadblocks rarely helps. When I’ve reached my breaking point, the best thing that I can do is redirect my energy.  Whether that’s cooking a good meal, taking the dog for a walk, calling a good friend, or soaking in a hot bath- anything I can do to change my current paradigm and replenish energy levels before diving back in proves beneficial. Throwing good energy after bad is rarely successful. But it’s also very necessary to dive back in. So take heart, walk off the ship for a bit, but don’t abandon the ship entirely.

 

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#LBCWantsToKnow >> September 2018: Websites

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Each month, I ask my Instagram community to join me in a focused, crowd-sourced discussion on a specific subject.  For the month of September, we rolled up our sleeves to chat about websites. Your own website is one of the most critical tools in your entrepreneurial toolboxes + I’m thrilled to see so many Lucky Break clients putting theirs to good use.

 

 

Which e-commerce platform do you use? What do you loathe or love about it?

THE LUCKY BREAK COMMUNITY SAID…

bburford:  at Bang Candy we have used many of the platforms you’ve mentioned and moved around for various reasons. Shortly after I joined the brand last year we started working with an incredible local brand called CoHub that brought all channels of our business together. I don’t know if it would work well for you, but for me it’s great because I’m talking to a support team that is 10-15 minutes away from our shop. It makes my job slightly easier to maintain.

horsefeathersgifts: We’ve used many different platforms and Shopify is by far my favorite. It’s so user friendly!

valerieoba: Shopify is simply amazing. So user friendly and so detailed at the same time!

alliedattilio: Love Squarespace!

normalsoap: We get tickled every time we get to tell our customers our website. Shopify has made this wonderful and it’s helped with direct sales at markets, getting great sales data and tracking inventory!

ebornbeauty: We use Big Commerce and love it… many things like reporting, integration with Square and Paypal, etc are included and you do not need to pay for additional apps. Their customer service is stellar and 24/7.

woodenheartdesigns: I’ve been an Etsy seller since 2012 with my personal website forwarding to my Etsy shop. After reading something you wrote about how important it was to have your own e-commerce site, I signed up for Shopify and have been teaching myself how to tweak it and now trying to increase traffic. I love how it’s coming together and have found it pretty easy to use…and if I didn’t know or understand how to do something it’s easy to find tutorials. Thanks for the nudge to get my own shop vs just Etsy!

shopmilked: From Wix, to Shopify! I love that Wix allowed me to tweak my site, and make it incredibly beautiful without the added fee for a theme. But ultimately, I moved to Shopify for the integrated customers accounts, shipping and reporting. I do dislike the fact that Shopify still doesn’t have certain features like store pickup, or customer reviews, or more free theme options.

bubblebabez: Big commerce here, too.

sheabath: Went from Etsy to Indiemade. Best decision I ever made!

bougiequaintrelle: BigCommerce. I like the ease of use. I loathe the fact if you want to make further customization, you lose tech support.

stellachroma: Started with Etsy, moved to Big Cartel, and am currently with Shopify. I’m loving it with no complaints!

grayzenacres: I’m a Shopify convert. Love the support and apps…not fond of their payment gateway. When I installed my bank processor, Shopify added a 2% processing fee, needless to say I uninstalled bank processor otherwise it’s the best!

zhibathandbody: I’ve been with Weebly for 10 or so years now. LOVE that so many cool features come with the free and paid accounts. Love that they listen to the users on adding new features. LOATHE that those features take so long to implement. LOATHE that they now seem to nickel and dime you on advanced features and services.

makermountainfabrics: I use Shopify and love it, mostly. I do NOT love their calculated shipping as it is way overcharging and I am losing a lot of sales over it right now and need to get it in line.

sumamsworld: I love Shopify for its one-stop-shop convenience, but the shipping charges are super huge lately (like triple the actual cost if I took it to the Post Office).

pillowcandyllc: We use Shopify. I made this decision after going through your linesheet/wholesale training. So glad I did!

 

MY THOUGHTS…

The answers above are pretty consistent with what I see reflected in my client base as a whole. Shopify is the most beloved platform among my roster of product-based brands. A distant second and third are Squarespace and Big Commerce.

 

I’m a big (unpaid) advocate of Shopify and recommend it almost universally. It’s not as easy to design as something like Wix, but the design capabilities- and (more importantly) the technical capabilities- leave platforms like Wix and Weebly in the dust. Shopify is fairly cost-effective, extremely robust, and highly adaptable.  If online wholesale ordering isn’t a primary aim of your business, then Squarespace and Big Commerce might be good options.

 

I wrote a detailed, two-part review of the most popular platforms a year or two ago and my opinion hasn’t changed much since then.  Check out Which E-commerce Platform is Right For You? and Which E-commerce Platform is right For You, Part 2. I can tell you this: when you update from Wix, Weebly, or WooCommerce to Shopify, you’re going to feel like upgraded from a Ford Focus to a Ferrari. You truly don’t know what type of functionality you’re missing (or how your current technology might be hamstringing your sales and operations) until you see how the other half lives.

 

PRO TIP: Many of my clients report that Shopify will throw in the real-time shipping for free if you agree to pre-pay the Shopify site fees for the first year. If that appeals to you, then reach out to them directly and sweet-talk your way into a deal!

 

Do you offer a “loyalty” program via your website? If so, what program do you use + would you recommend it?

THE LUCKY BREAK COMMUNITY SAID…

dorneenaturalbodyluxuries: I need to set up an actual program.

stellachroma: Interested to hear about this!

doubleclutched: I use smile.io on my site but no one uses it.

bobodesignstudio: I just saw smile.io is an integration with Privy which is what I use! I haven’t looked into it yet, but I’m curious.

priiacosmetics: We use a VIP points program. Customers earn 1 VIP point for every dollar they spend. 10 VIP points is equal to $1 in savings off of future purchases. Our clients LOVE our program!

 

MY THOUGHTS…

I L-O-V-E loyalty programs and it’s one of the things we dissect in Brick House Branding. Why? Because they encourage repeat customers. They can blissfully easy to manage thanks to new technology. And they can allow you to reward your best customers without getting into a pricing war with your wholesale stockists.  I adore a good win-win-win.

 

Big Commerce wrote a deliciously detailed blog about customer loyalty programs that’s absolutely worth a read. Shopify recently published a robust, data-driven blog that certainly makes the case for rewarding your customers while Smile.io dissects some popular loyalty programs to get at the heart of why they work. Speaking of Smile.io, I hear good things about their loyalty technology, which is compatible with Shopify, Shopify Plus, and Big Commerce. They offer a stripped-down, completely free version, too.

 

Loyalty programs need to be continually promoted in order for them to be successful. Tuck periodic reminders in your email marketing campaigns, add verbiage at checkout to invite customers to join, and feature the account login prominently on your website. Mention that program at least once per month on your social media, too. The effort can yield massive results.

 

One new evolution I’ve been keeping an eye on? Paid VIP memberships.  Check out what wildly popular shoe company Freshly Picked is doing with their new program, The Fringe.  Customers join for $10 a month (the plan can be cancelled at any time) and they enjoy: a $10 monthly store credit that doesn’t expire, 20% off everything sitewide, free shipping, and early access to new releases. Ca-ching!

 

Do you collect product reviews on your website? If so, which software do you use + would you recommend it?

THE LUCKY BREAK COMMUNITY SAID… 

bobodesignstudio: I do, but I struggle to get people to actually leave one! The one I have is an app from Shopify called “product reviews”… innovative name, I know.

herbanrootsllc: The product reviews app with Shopify is awesome! Customizable, automated emails after every purchase, free and paid options. I also send out a pretty printed piece with every order listing ways that customers can connect, including writing reviews.

halfpintnaturals: Yotpo app on Shopify.

urbanessencesalonspa: I have a hard time getting folks to actually leave a review. I use AmeriCommerce for my website and after a customer makes a purchase it sends out a review request in about 10 days. When I see customers out at vending event I ask them to leave a review and they always end up leaving the review on my Facebook page.

treats4chickens: We have used Yotpo for several years on a paid plan. I include small pre-printed note card letting people know they’re going to get an email asking for a review. I also select one review a month and send that person product freebies. It seems to be working quite well.

 

MY THOUGHTS…

Product reviews are increasingly powerful tools that play a large role in converting eCommerce browsers into eCommerce customers. They serve as powerful social proof that either ignites interest or throw a bucket of water on it, depending on what’s said about your product. If Amazon, Yelp, and Google have taught us anything, it’s that customers look before they leap.

 

I’m a firm believer that product reviews are an absolute *must* on any eCommerce site. As brand owners, we need to provide a platform for reviews, respond to reviews which are less-than-flattering, and actively invite our customers to participate in the process. The unboxing experience should proactively promote customer reviews.. a simple reminder in that key moment can make all the difference. And it’s much less intrusive then repeated post-purchase emails reminding customers that they’ve yet to read a review.

 

Interested in getting a product review program going? Here are a few of my favorite resources…

  • Need inspiration? Lucky Break Clients Leahlani Skincare and Osmia Organics both do a fantastic job of collecting and featuring customer reviews.
  • Yotpo is the third-party review app that I hear the most consistently good things about.
  • I recommend two books that have helped me both understand the importance of critical feedback and better navigate these tricky customer service waters. Check out Hug Your Haters and Zombie Loyalists.

 

 

What’s your #1 pet peeve when shopping from product-based websites? What one thing would you change about your website?

THE LUCKY BREAK COMMUNITY SAID… 

north.oak.apothcary: When I have to jump through too many hoops to get to the end.

bathedinglaze: I visited a website just yesterday to order a gift. The banner at the top of the page advertised free shipping. When I checked out, shipping was charged. Looking further into the page to see if I could contact someone, I came across their info page that had words spelled wrong and run-on sentences. It turned me off, and I left their site without ordering.

mistybluebotanicals: I hate having to click through too many pages to find what I am looking for.

theryssa: Zulily makes you sign up to just look around. I won’t do it on principle!

mysecretmusicbox: I really dislike having to enter my shipping address etc. more than once and having to click through more than one page to complete a purchase. If they could make the journey through those pages a little more entertaining or charming it would help a lot. Great food for thought!

 

MY THOUGHTS…

All the amen’s to these answers! Typos on websites don’t inspire confidence.  Missing contact information is the kiss of death for most shoppers. A lack of search functionality, fuzzy navigation, or illogical product categories are laborious and drain energy, slowing conversions except for the most committed of shoppers.

 

The checkout process, in particular, routinely drives potential buyers away. A few questions you can ask yourself to audit your own checkout process:

  • If the entire checkout process can’t be completed on one screen, is there a progress
    bar at the top of each checkout page so that buyers always know where they are in the process?
  • If a “free shipping over x dollars” incentive is offered, does the cart reflect how much more must be spent in order to meet the necessary minimum to score the incentive?
  • Can payments be completed on site or must they be sent off to a third party site like PayPal?
  • Are multiple payment options available?
  • Are customers able to check out without needing to create an account on the site?
  • Is there an option for hurried customers to copy their “billing address” information over to the “shipping address” field to save time?
  • Are any unnecessary main navigation links removed during the checkout process to keep the user moving forward with their purchase?

 

JOIN THE CONVERSATION

Be sure to stop by the Lucky Break Instagram, where every month we chat about all things business. I’d love to hear your thoughts and hope you’ll lend your voice. Search the #LBCWantstToKnow hashtag to weigh in! In October, we’re chatting about all things systems.

 

#LBCWantsToKnow >> June 2018: Holiday Wholesale Outreach

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Every month, I ask my Instagram community to lend their voices to a focused business conversation so we can crowd-source meaningful discussions. I call it #LBCWantsToKnow and it’s one of my very favorite things of 2018! Though the mercury is peaking and all the wee ones are out of school at the moment, I’ve got the holidays on my mind… because the wholesale march generally begins in mid-summer.

 

When do you start planning for holiday wholesale outreach?

 

THE LUCKY BREAK COMMUNITY SAID: 

  • canardlabs: July 1st. Our Holiday Catalog Insert is launched and sent along to our reps and rep groups! We order the Fall/Winter ingredients in May. Make the products and photograph them in early June, then release them to our peeps by July 1.

 

  • olivemyskin: August is when I start. Keeping records from prior years helps tremendously. It make order placing easier.

 

 

MY THOUGHTS: The holidays often catch makers and product designers off guard and our holiday game plan needs to kick off much earlier than many new business owners realize. Buyers for most categories start scouting for new merchandise in late July and August.  If you’re ever perplexed by when they’re on the prowl, look towards the trade shows for your product category.  Those always occur in at the start of prime buying seasons, so it’s an way way to remember when you need to turn up the heat.

Many of us experience an annual retail slump in the summer months- retail consumers (both those that shop online and those who flock to brick + mortar stores), are otherwise distracted with summer plans. They’re out of rhythm, focusing on other endeavors, and we don’t have the benefit of any major gift-giving holidays in June, July, or August.  Though it’s painful to see revenues wither in these months, that also makes this period “prime time” for holiday prep. Finish up any new product development, tee up your fall releases, polish marketing materials, and line up a concerted push for wholesale attention. Then launch those efforts in August and keep the heat on for new buyers straight through late October.

 

In my experience, December is pretty much a ghost town in wholesale, but that’s generally a blessing as most of us are swamped with retail orders. November typically sees a steady stream of orders, but they’re generally reorders from stockists who are selling out inventory or existing accounts who are a tad late to the game on holiday ordering. But August? September, and October? Prime time to get on the radar of new shops you’re itching to get into.

 

 

Will you be releasing new products for the holiday season?

 

THE LUCKY BREAK COMMUNITY SAID: 

 

  • olivemyskin: Holiday scented candles and warm, spicy soap

 

  • woodenheartdesigns: Adding new products now based on my best selling items and revamping some things so I don’t feel so overwhelmed right before the shopping season starts. My biggest challenge is always finding work/life balance during the peak season.

 

MY THOUGHTS: “New” is the lifeblood of wholesale, and seasonal launches are essential to this market segment. But that doesn’t necessitate that you launch 87 new products or jump into an entirely new product category! Seasonal fragrances for those in the apothecary or candle space, fresh colorways or prints for textiles, a thoughtful jewelry collection of several capsule pieces…. that’s really all you need. And for those in the gift space, bundling existing products into gift sets in ready-to-go packaging is always a smart idea.

 

Ideally, those products are ready to launch in July. I recommend using that month as your benchmark, then doing some quick reverse math to map out deadlines for each step of the development process.  Whether your product development takes 3 months or 6 months, the process usually starts months ahead of when we imagine it would!

 

 

Black Friday + Cyber Monday promotions: Are they a blessing or curse to your business?

 

THE LUCKY BREAK COMMUNITY SAID: 

 

  • lillabarnclothing: We do a small biz Saturday online event with one of a kind pieces and other unique items that aren’t usually available. Trying not to do too many discounts, but this seems to be a fun event especially for our insider group.

 

  • stellachroma: Thanks to you, we don’t do percent discounts often at all and I think business is better because of it. We may do a free shipping and gift with purchase deal this year rather than a price discount.

 

  • horsefeathersgifts: We use Black Friday to clear out any inventory we no longer want on our site. It’s always been a big hit with our customers.

 

  • lotionbarcafe: I am closed on both those days. I am an ambassador for small biz Saturday and that has been the best!

 

  • zhibathandbody: Bundles and free gift wrap is what I do most; occasionally free shipping. Deep discounts were never effective. I set up automation for Black Friday & Cyber Monday, then work up a nerve to do a live event on Small Business Saturday.

 

MY THOUGHTS: It’s terribly easy to let discounts be the death of small business.  A steady stream of percentage-or-dollars-off promotions or occasional deeeeeep discounts serve to hamstring creative brands. They move the needle away from value and center the discussion on price (which really isn’t what you want to focus on, unless you’re a discount brand). They train you customers to only shop when your products are on sale.  They undercut your wholesale partners, which jeopardizes those relationships. All the way around, they get a hard “no” from me.

 

With that said, I’m keenly aware that these are the biggest shopping days of the year and consumers are accustomed to a buffet of offers during Thanksgiving week. I recommend a few things…

 

  • Starve your customers a bit. Not literally, but figuratively. Pull back on your sales throughout the year to make your holiday promos more special.

 

  • Consider adding value rather than deducting dollars. There are are many creative ways to structure offers and incentivize ordering. Consider offering free shipping (or a lower free-shipping threshold than your usual), adding complementary gift wrap, increasing loyalty points on purchases made during a promo period if you offer a loyalty program, etc. Bonus product (buy this, get that) or deluxe samples are always welcome offers, too.  Essentially, do anything other than give people what they often get for less dollars than they usually pay for product. Ideally, you collect the same number of dollars, but those dollars stretch further.

 

  • Transition to a 2.2x wholesale pricing structure. If you create a $22 candle, then offer it for wholesale at $10, rather than the typical keystone of $11. That means that your recommended retail price (and the price your charge on your own website) is 2.2x wholesale, rather than 2x. If you pivot to this type of pricing structure, then you’ll attract wholesale partner like bees to honey and you give yourself a 10% off cushion when you run sales. So your $22 candle can sell for $20 during a sale, and you’ve still protected your stockists by not charging your own customers less than 2x your wholesale. Everyone wins! An occasional 10% off, especially when coupled with a value-added promotion is far better for a brand than a temporary 20, 30, or 40% slash in price.

 

Want to chat more about the power of smart promotions and how you can structure them? I’m offering a free business workshop via FB Live in September to chat about this very thing! Join me on Lucky Break Consulting’s Facebook page on Thursday, September 27 at 2pm Eastern/ 11am Pacific for a live conversation and some rich Q+A.

 

Also, I invite you to join me on Instagram in July I’ll be hosting a conversation about pricing and I’d love to hear your thoughts. Search the #LBCWantstToKnow hashtag to weigh in!