our business needs help now!!!!!

bluemoo

Hi everyone.

Heres how it goes:

I setup a business about 6 months ago.
I dont want to be too specific but we sell shop fittings to retailers.

Things heve got really bad however, and since we have started business we have made very few sales. My wife and I invested considerable savings into the business but were foolish enough to buy up lots of stock ata discount price with this capital investment, rater that market our buisness.

Now we are left with lots of stock in a warehouse that is expensive to rent.

We have literally never marketed the business quite simply because we do not know how to do marketing.

Can anyone give us any reccommendations on how we can reach out to our potential customers?

Id appreciate some marketing ideas / suggestions. (preferably free to implement or very low cost as money is now very sparce)

How can we get our products out there and selling?

(We are based in and cover all of Dublin)


Thanks

A very concerned MR.

keefg

I can't tell you how to get new business I'm afraid as it's difficult for everyone right now and I don't know anything about your industry.

Regarding your stock however......

I'm not sure it it will work in your case but I know a clothing retailer who has also recently felt the pinch.

She had loads of stock which she couldn't sell so she contacted the suppliers who agreed to take it back until her situation improved.

Maybe you can contact your suppliers, explain the situation and the fact that you are struggling with the high storage payments.

If you are lucky they will take the stock back, even if they hit you with a restocking charge it would be better for you than leaving it in a warehouse you can't afford.

gerry87

Hi, not knowing what your product is this comment might be irrelavent. But would your product be specialised to retailers or something desired by people who could help you get the word out?

For example, could you offer some of your stock in return for advertising? Could you offer massive reductions to the shops you do sell to if they put a substantial ad for your product somewhere in their store?

Basically is there any way you can pay for advertising with your inventory instead of cash? It could solve your excess stock and low cash situations simultaneously.

However, as i said your product mightn't sell itself to this too well.

BEst of luck with it anyway.

bluemoo

Hi Gerry, Thanks

I know what u mean but dont think that would work.

Our products are shop fixtures and fittings, like shelves for example.
So i cant see an advert for industrial shelves for example being benificial if placed in a retail shop....?

bluemoo

keefg wrote: »

I can't tell you how to get new business I'm afraid as it's difficult for everyone right now and I don't know anything about your industry.

Regarding your stock however......

I'm not sure it it will work in your case but I know a clothing retailer who has also recently felt the pinch.

She had loads of stock which she couldn't sell so she contacted the suppliers who agreed to take it back until her situation improved.

Maybe you can contact your suppliers, explain the situation and the fact that you are struggling with the high storage payments.

If you are lucky they will take the stock back, even if they hit you with a restocking charge it would be better for you than leaving it in a warehouse you can't afford.

They refuse to take any back.

I know its tough for eeryone but the difference is that everyone else is still marketing..... i on the other hand have not yet or do not know how to market myself.....Do you have any idea where i could make a start in marketing though?

I mean at one stage i was considering leaflet dropping into housing estates but then realised that this would make no sense as my product is aimed at buisness customers........thats how bad i am at marketing?

pebbles21

hi

Which part of Dublin are you situated in and are you tied to a lease

The reason i ask is would you be better renting in a area where retailers would be buying their own stock

I have a clothing wholesale company in fashion City which which has approx 50 wholesale companies within the one complex, and everyday has an abundance of retailers stocking up their shops

There is also two companies selling shop fittings which in my opinion are very expensive as they have it all to themselves in here, and i think a third one would be welcome

There is also plenty of units to let atm and the rents are quite competitive

gerry87

How did your previous customers find you?

keefg

bluemoo wrote: »

They refuse to take any back.

I know its tough for eeryone but the difference is that everyone else is still marketing..... i on the other hand have not yet or do not know how to market myself.....Do you have any idea where i could make a start in marketing though?

I mean at one stage i was considering leaflet dropping into housing estates but then realised that this would make no sense as my product is aimed at buisness customers........thats how bad i am at marketing?

Well the simplest way and most immediate way is to get a website if you don't already have one.

But you are in a tough situation (not that you need me to tell you that) because it's almost impossible to market a business without a budget.

The only ideas I can think of off the top of my head.......

1) Go door to door. Talk to the shop owners to find out if/when they are planning to upgrade their store.

2) Contact as many commercial development companies as you can to see if there are any shopping centre developments (small or large) in the pipeline. Try to get a foot in the door and sell to them before the shops are built rather than just concentrating on upgrades to existing shops.

3) Contact the local planning authorities to find out if there are any applications pending for retail premises and find out who has filed the application.

If I think of anymore I'll post them later.

Tony255

I am by no means an expert but is there any way that you can cancel the lease and store the units at home or a garage somewhere while you try to market your business. Also I assume a lot of stores are reluctant to purchase shopfittings at the moment but would it be viable to lease bespoke units to them with a view to purchase.

How about advertising on the side of your vans, this is not really that expensive I think approximately €200 would buy you stickers for either side of the van.

eamonnf

Im not sure if you only supply to the Dublin market, but one way or reaching businesses outside Dublin would be to use the services of a bulk emailer or faxing company like Faxit. Why limit to just one area?

VO

Get a mentor on board immediately - be careful who you chose and make sure they have a good reputation and relevant experience. Sometimes a fresh pair of eyes is very valuable to help you see the wood from the trees.

get out of your lease if you can and arrange for storage of the stock as already suggested. Lots of cheap space out there at present.

Make sure that all your costs are reduced to a minimum. Do a full analysis of your costs.

Join a network organisation BNI/Venture etc - this will produce long term results not short term

Go to any networking opportunity you can chambers; etc

Can you afford to take on a sales person - again be careful who you choose - consider commission only sales agent.

Website - are you using adwords.

get off your backside and go out and knock on doors - not easy but absolutely essential.

Are there allied suppliers who might be able to help you. Somebody selling different products into the same market.

talk to some of your competitors and see if they might be interetsed in your stock at reduced prices

antoinolachtnai

There is an industry press oriented specifically at retailers.

I would think that finding a little group of companies that are interested and where you could get references, like pebbles21 suggested, is likely to be a good way to go.

If you have fittings for a specific type of store, then, this is all the more true. You just have to get into the niche.

Marketing isn't just about advertising or reaching customers. It's also about responding to what the market needs. By way of example - Power City used to just sell you the washing machines - but now, in response to falling demand, they will actually install the washing machine too -. A lot of the competition turns out to be in the 'value add' rather than in the actual core product.

You might feel you have a lot of stock, and I'm sure you do, but the nature of B2B is that it only takes a few big orders to get to the end. So keep on going, keep on trying.

c.m.l

Do you have a website? Have you considered branching out of the Dublin market? Maybe you could look at some planning applications on regional county councils and maybe market to the companies if any,that are doing new shops? I can appreciate that money is tight and you dont want to spend more than you can really afford.But Like previously said if the lease is the biggest expense now could you speak to the landlord and maybe renegotiate the cost of the lease?Worth the question if nothing else.

515

From my reading of it, the big expense and worry for you at the moment is the overhead for storing the stock... maybe you could offer shops (who will not be keen on spending at the moment) great credit terms? So they pay nothing until next year? The savings on the storage might make this worthwhile?

You might find shops ready to jump at this offer, as they don't have cash but are also looking for ways to freshen up their sales pitches.

They get updated shops for little or no initial outlay and you cut down on your storage AND get future sales revenue.

blue4ever

There really is no low cost solution to this. In order to muscle in – you have to invest.

The lowest cost solution (if you were adept in this department) would be to get a bit of web presence, in the absence of advertising.
Your end users:
1) how often do they have a requirement for your products
2) How do they go about finding suppliers – assuming they don’t have a long standing relationship with on already
3) Can you partner (buddy up) to a retailer – multiple chain?
4) How do you find shops that are about to open
How do you sell yourself at the moment – I mean how do customers find you?

Lastly, you have to do something about the lease - either move or renegotiate.

Action !!!!!!!

Call into shopping centres, speak to managers, speak to everyone, go to every shopping centre you can - and find someone. Business to business - what do your competitors do ? Do you know who your competitors are ? How do they market their products ? You can't have just picked this out of thin air and gone about doing it. Other than retailors, is there anyone else you can potentially target ? Could hair salons or beauty shops use your retail fittings ? I'm just trying to brainstorm here for you, I have no idea what your product really is so I'm just throwing out everything that comes into my head. Personally, I'd refrain from spending any more expense until you get some of your crap cleared. Can you get the stuff stored in your house, write off the lease.

You keep going on about marketing but marketing is just communicating your product to the market you are targetting - there are various types etc but what do your competitors do ? Think think think and don't give up !

You could consider using an established site to help you clear your stock for example something like this http://buyliquidatedstock.com/ , perhaps you just want to clear it out and close up the business, if so this might be the way to go. Im sure if you spend enough time searching the web you can find many of these kinds of sites

random.stranger

Might be worth checking out how it sells on ebay.

ScouseMouse

Go to retail group cluster meetings.

Retail chains like Centra, Londis, Spar all have internal mail. Some have cluster meetings where the owners/managers get together and talk about problems, are kept up to date about new set ups and so on.

Get onto the group and see if you would be allowed to do a presentation at the next meeting. This could be 20+ shops spoken to in half an hour.

Its worth a try.

Good luck.

dh0661

bluemoo wrote: »

I mean at one stage i was considering leaflet dropping into housing estates but then realised that this would make no sense as my product is aimed at buisness customers........thats how bad i am at marketing?

Hi - I posted in diy boards awhile back that my hubby bought some second hand (job lot) shelving to kit out a shed in reply to someone who was looking for shelving for a shed.

So maybe your marketing idea was not crazy after all, how about trying to merge up with a shed supplier in your area?

DubTony

superscouse wrote: »

Go to retail group cluster meetings.

Retail chains like Centra, Londis, Spar all have internal mail. Some have cluster meetings where the owners/managers get together and talk about problems, are kept up to date about new set ups and so on.

Get onto the group and see if you would be allowed to do a presentation at the next meeting. This could be 20+ shops spoken to in half an hour.

Its worth a try.

Good luck.

Nice idea, but the cost of working with these groups makes it a non-runner. HELLO-MONEY and KICKBACKS are an accepted part of the business.

bluemoo

pebbles21 wrote: »

hi

Which part of Dublin are you situated in and are you tied to a lease

The reason i ask is would you be better renting in a area where retailers would be buying their own stock

I have a clothing wholesale company in fashion City which which has approx 50 wholesale companies within the one complex, and everyday has an abundance of retailers stocking up their shops

There is also two companies selling shop fittings which in my opinion are very expensive as they have it all to themselves in here, and i think a third one would be welcome

There is also plenty of units to let atm and the rents are quite competitive

But dont retailers usually have goods delivered by the supplier to their shop?

gerry87 wrote: »

How did your previous customers find you?

Contacts and friends whom i know through business.
So it wasnt much of a marketing effort for this.

keefg wrote: »

Well the simplest way and most immediate way is to get a website if you don't already have one.

But you are in a tough situation (not that you need me to tell you that) because it's almost impossible to market a business without a budget.

The only ideas I can think of off the top of my head.......

1) Go door to door. Talk to the shop owners to find out if/when they are planning to upgrade their store.

2) Contact as many commercial development companies as you can to see if there are any shopping centre developments (small or large) in the pipeline. Try to get a foot in the door and sell to them before the shops are built rather than just concentrating on upgrades to existing shops.

3) Contact the local planning authorities to find out if there are any applications pending for retail premises and find out who has filed the application.

If I think of anymore I'll post them later.

Do websites really generate that much sales?.....
Especially in this area of business to retail???

Do you mean sell to the developers? Surely it is the retailer whom fits out their store upon agreeing a lease?

Thanks you have beeen very helpful, any more advice would be reallly appreciated

VO wrote: »

Get a mentor on board immediately - be careful who you chose and make sure they have a good reputation and relevant experience. Sometimes a fresh pair of eyes is very valuable to help you see the wood from the trees.

get out of your lease if you can and arrange for storage of the stock as already suggested. Lots of cheap space out there at present.

Make sure that all your costs are reduced to a minimum. Do a full analysis of your costs.

Join a network organisation BNI/Venture etc - this will produce long term results not short term

Go to any networking opportunity you can chambers; etc

Can you afford to take on a sales person - again be careful who you choose - consider commission only sales agent.

Website - are you using adwords.

get off your backside and go out and knock on doors - not easy but absolutely essential.

Are there allied suppliers who might be able to help you. Somebody selling different products into the same market.

talk to some of your competitors and see if they might be interetsed in your stock at reduced prices

How do i get a mentor on boards?
What can i offer him in return?
An equity stake do you mean?

What do you mean by allied suppliers? i dont understand this atall?

Thanks:)

antoinolachtnai wrote: »

There is an industry press oriented specifically at retailers.

I would think that finding a little group of companies that are interested and where you could get references, like pebbles21 suggested, is likely to be a good way to go.

If you have fittings for a specific type of store, then, this is all the more true. You just have to get into the niche.

Marketing isn't just about advertising or reaching customers. It's also about responding to what the market needs. By way of example - Power City used to just sell you the washing machines - but now, in response to falling demand, they will actually install the washing machine too -. A lot of the competition turns out to be in the 'value add' rather than in the actual core product.

You might feel you have a lot of stock, and I'm sure you do, but the nature of B2B is that it only takes a few big orders to get to the end. So keep on going, keep on trying.

Thanks

Have you any sugestions on how i could make those big sales to big companies?

blue4ever wrote: »

There really is no low cost solution to this. In order to muscle in – you have to invest.

The lowest cost solution (if you were adept in this department) would be to get a bit of web presence, in the absence of advertising.
Your end users:
1) how often do they have a requirement for your products
2) How do they go about finding suppliers – assuming they don’t have a long standing relationship with on already
3) Can you partner (buddy up) to a retailer – multiple chain?
4) How do you find shops that are about to open
How do you sell yourself at the moment – I mean how do customers find you?

Lastly, you have to do something about the lease - either move or renegotiate.

Thanks, appreciate you advice

ugg

Hi there. I'm sorry to hear about your difficulty.
You should go to your local enterprise board. They offer sound advice and should be able to put you in touch with a marketing mentor (for free).
It might also be an idea to join local business networks and go along to their meetings.
As for your storage dilemma, I agree with the other posters about storing stock in your home if at all possible - even throw a few flat pack floorboards up in your attic to make extra space. Remember, though, if you're storing inventory in you home you should have it insured - however, this will probably still come in lower than warehouse costs.
You should also do a google search on how to market your business for free - you'll find loads of useful advice.
As already mentioned here, Google Adwords is an excellent and cost-effective way to advertise your business. You're charged only when somebody clicks on your advertisement and it's all keyword linked so your ads pop up alongside relevant searches.

TheCostumeShop.ie: Ronan

Sorry to hear about your problems.

If i were you i'd go to the empty retail units that will eventually become occupied. Tell them your story either in writing or better still in person if you can, don't tell a sob story but tell them your unfortunate situation could be an opportunity for them. Keep it in WIFM form (whats in it for me) of talk.

Be willing to take a hit / loss on your stock to keep yourself afloat until things get better. Remember its better to sell your stock at a loss than just go bust and have a liquidator sell it off for nothing.

Try possibly doing a strategic partnership with a retail park owner looking to differentiate himself.

maninasia

Deleted User wrote: »

You could consider using an established site to help you clear your stock for example something like this http://buyliquidatedstock.com/ , perhaps you just want to clear it out and close up the business, if so this might be the way to go. Im sure if you spend enough time searching the web you can find many of these kinds of sites

If I was you I'd offer bargain basement cost price or even the stock at a 10-20% loss and try and shift it in big volumes ASAP. This is to get rid of it before it depreciates further and free your time up to do some other business that is more practical in these times. To be honest this is probably what the people did who sold it to you, they knew the market was tanking and got rid of it quick!
I'd also store it in the cheapest place possible.

Occam

bluemoo wrote: »

Things heve got really bad however, and since we have started business we have made very few sales.

The key for you right now, is not to throw good money after bad. You need to look closely at the fundamentals of your business, before investing more money in marketing and warehouse costs.

Figure out the size of your target market. This is likely to have shrunk since you started your business.

Its pretty common to fall into the trap of blaming low sales on poor marketing, when in fact the low sales are due to over optimistic sales forecasts or shrinking markets... so before you invest more money be sure that you don't have a bigger problem than high stock levels.

Make sure you properly work out your margins on sales. Stuff you sell now will be more profitable than if you sold the same items in 6 months, as you have to pay to warehouse them. Even if you were able to clear the warehouse in say 9 months by increasing sales, would the business be profitable? Is it possible that the items you would sell in 9 months would actually be selling at a loss due to warehousing costs? If so can you sustain this loss?

Draw up some realistic cash flow projections, and figure out where the business is really headed.

Be realistic about the potential of your marketing efforts. If for example you build a web site, what number of sales do you expect it to generate? Is there a proper return on your investment. Think carefully leaflet drops etc, what conversation rate etc would you expect...

Finally if you have not done well at marketing the product in the past, learn from that. Don't make the same mistake twice. If you are sure that the business would be profitable with increased sales strongly consider bringing some sales and marketing expertise on board. Its a good time to be hiring a sales rep with strong experience, and a heavily commission based package sounds like it would suit your company.

PK2008

Having no experience with them I dont kno whow good they are but the Dublin Chamber of Commerce might be able to connect you to people;

http://www.dubchamber.ie/