For most retailers, this summer has proven to be a difficult time. I could give you many of the reasons why; however, you already know them. But what a difference a month makes! We think the upcoming holiday season will be strong… here’s why.
The Economy: What Other Retailers Are Saying
Nashville Wraps is in touch with over 100,000 retailers across North America. We listen to them. Here’s what some are saying:
“July was a terrible month but I am seeing August as much stronger. I am a manufacturer of gourmet dog treats. Several of my customers, retail stores, were hanging on by a thread last month, but orders have started to reverse this month (August).” Ronnie Fliss, www.fatmurrays.com
“I began receiving Christmas shipments of ornaments, Christmas dishes, etc., and intended to check them in, mark them, and store them until at least October. When my customers saw me, they asked if I could just go ahead and put them out, explaining that because the economy is bad, they want to begin shopping earlier, picking up a few things each payday instead of waiting until November or December. I am now unpacking and displaying my Christmas inventory as it arrives.” Dorris Brown, This ‘n That Gift Shop, Vicksburg, Mississippi
Be prepared; order early…
Attendance at summer trade shows was down because people were not traveling as expected. Everyone was backing up, and even though products could be ordered, people were waiting for a break. But it doesn’t take much to spur retail sales from hesitant buyers. August sales have been way up and we have high expectations for the 4th quarter. However, retailers should not wait until the last minute to buy supplies as most vendors have lean inventories. Nashville Wraps of course has record high inventories because we think they will be needed! Count on us for your Holiday needs and count on the economy to continue to turn around. Christmas Packaging Collections.
With Consumer confidence up 10% in August as compared to July. The retail customer is, after all, the most important part of our business equation, so this is an indicator of good things to come. It is also an indication that Christmas could come hard and fast this year as it has in many past years when we have had a weak economy. Even if consumers are ordering early, that is just another reason why you should do the same.
Be leary of Imports this year.
Businesses are counting on deliveries from China, but many Asian factories are overwhelmed with production orders and are dealing with a different set of circumstances in the culture and economic climate in China. There is a labor shortage due to the cheap labor market demanding better wages and a (so called) paper shortage. Several of our import products that were supposed to already be here are late, and some are not coming at all. We recommend that you hedge your bets with products made in the USA, Canada or Mexico. Certainly USA delivery and quality are usually better and we think that you get what you pay for; but with the global increases and equalization in raw materials, domestic products have become very competitive with the imports. A perfect example of this is Retail Plastic Bags. Nashville Wraps is strong in domestic suppliers and always has been.
The Election: What if?
It is too early to tell what election politics will do for business. However, if the McCain-Palin platform continues to gain momentum we think that small business will benefit. That will increase confidence to invest in inventories, ideas and promotions and will generally help revenues as a result. Our management believes that one of the reasons America has lost jobs overseas is the lack of real teeth in financial incentives on the tax and depreciation side to encourage investment into the US infrastructure of companies small and large. Regardless of Republican, Democrat or Independent, it can’t be business as usual for the US domestic economy. We do not have a magic crystal ball and our opinion is as good as anyone’s. But we do have a “been there, done that” experience set since Nashville Wraps has been in business beginning in 1976 and during all that time we have gained a wealth of experience in marketing and in the habits and trends which make up the retail world.
Robby Meadows, Director of Marketing
Nashville Wraps
I know the economy is on everyone’s mind, myself included. But, postive thinking and positive attitudes are so incredibly contagious! I had a bit of slump in August, but, by offering a more diverse selection of chocolate products, and kicking in some free samples…I’ve rebounded and am doing well now. I’ve had to walk business to business and meet with owners, but the free samples speak volumes. I want to encourage my buyers and thank them for their support at the same time. I love the people I do business with, and its important that they know it. So, if you can afford some sort of sampling – depending on your type business, it may be well worth it in the end. Just a thought….
I am a recent new web based business owner and Believe me it is hard, but as the Boe & Joan have stated being positive and motivated are the only successful way to “keep” spirits and thus a properous business.
Keep up the Positive Attitude and your Hard Work and Patience will Prevail!!!
LOL
Kate
http://www.auntcakescookies.com
Way to go Joan! If you believe you will succeed you will. I started on the web with my Mom being my Best cheerleader and knocking on doors. I think in hard times such as these a little door knocking and self promotion not only feeds your self confidence but markets your business in a rare 1 on 1 relationship with potential customers. The person person who waits for customers to come to THEM is the person that will not weather the storm very well.
I am assisting my daughter with her very new web business. Since she went live about two months ago she has had only 1 sale. We are doing everything possible to market her business. I won’t go into detail as to what her business is or what we are doing to market it. I want to make a point: not advertise.
I have extreme faith that her business will make it and thrive even with today’s economy. I will not give up! If I do she will sink in her doubt of herself and I,, yes, I am her greatest supporter in this. The doubting Thomas’ of the world will not succeed. Better said by you Robby, forecasts of doom and gloom are self fulfilling. I feel the opposite to be true as well. That is why I am a 52yr old cheerleader! Sis-boom-bah!
The forecasts of doom and gloom are self fulfilling. A survey of customers this week (9/24/08) STILL indicates that most people are expecting better Q4 than in 2007. Also the national forecasts are saying that the percentage of increase will be 1.5% or like it was back in 1999. No one is saying that Q4 will be less than the previous year.
Robby Meadows
Nashville Wraps
It’s now 9/18. A couple of hurricanes have come and gone. Turmoil on Wall Street. New figures on consumer confidence tanking. I have seen other forecasts predicting the worst holiday shopping season in 10 or even 17 years. Keep your inventory thin and hope for the best.