It’s hard for me to even think that it is the year 2010. It sounds like something from science fiction. Growing up I would have expected 2010 to have people living on the moon, flying to the office on anti-gravity vehicles, growing hydroponics in large scale and so on. But fortunately we can still dream, and dreams are what realities are born from. I would like to hear what your vision of 2010 is… Back yourself up 20 years or more in time and think about it.
OK…So back to the future (or the present). For 2010 the short answer is “more of the same”. But before you get disappointed at that short answer, give me a minute to explain that more of the same is not so bad…
Retail:
The retail forecast for 2010 that we are basing operations on are +5% over 2009. I have seen estimates as high as 6.6% but they are hard to swallow. Of course this is an overall estimate and certain segments will perform better while others will continue to decline. We think it is all about knowing what your customer wants and being able to deliver it to them.
As I drove into work this morning in the small town of Hendersonville I saw many empty store fronts, vacant buildings and a lot of “For Lease” signs. Were those failures a general sign of the times (yes)? Or did those businesses not offer the products or services that their customers really wanted? For example: There are several small car lots now vacant because the CARMAX lot allows its customers to shop online. The local pizza restaurant is out of business, while on the same street Papa John’s and Domino’s are expanding… same thing?
So maybe it’s that all failures of business can’t be attributed to the economy, but rather to the failure to market goods, services, and merchandising that today’s customer wants and needs. It is not easy being in business anymore, but the smart businesses will survive.
Trade Shows:
While travel is still expensive and as a population we have cut back on travel, we realize that as business people we cannot just stick our heads in the sand because our competitors will do the travel, see the new products, and take market share if we stay at home. That being said, I see an increase at major trade shows because people know that they cannot simply surf the internet to find the kind of new and innovative ideas, products and the interaction that always happens when kindred spirits get together.
Expenses:
Any possible reason to increase the costs of energy and raw materials such as paper, plastic resin, and of course fuel will be taken by large scale providers. However pent up these increases are, they will be throttled back by lack of demand and the slow economic recovery. Nashville Wraps is predicting operating expenses to hold in the 2.0 to 2.5% range and the same for the cost of most materials. We have seen minimal cost increases at the beginning of the year so far. We also think the employee compensation which has been generally frozen for the past 18 months or so is due for an increase also in the 2.0% range on average.
From Nashville Wraps:
As you probably already know, Nashville Wraps takes a leadership approach in business trends. Not only are we confident enough to share our sales data and insights with you, we are all about creating product scenarios to benefit our entire customer base. The results of that often affects the entire retail and food packaging industries. 2010 will be no different for us, and in fact in these times of economic hardship we tend to be even more progressive to deliver packaging that differentiates our customers.
In January of this year Nashville Wraps launched an unprecedented 7 new design groups of gift and gourmet packaging, plus we have added hundreds of new and unique products to our Green Way line of eco-friendly packaging.
A word on Green…
As we know, being green is no longer just a trend. It is a lifestyle and those who embrace it are known by others who do the same. We as a better-educated people can see straight through green schemes and will not tolerate “greenwashing”. We are growing tired of political maneuvering on green issues and just want to be told the truth without persuasion. That is what the stance of Nashville Wraps has been and will continue to be. It is why we set apart the registered Green Way line of sustainable packaging and why that you get the truth from us even if it costs us a few sales for non-green products.
So in 2010, green becomes even more of the standard, and it is no longer represented by just the color “green”. Almost anyone can toss green into their trade show booth and claim to be supporting green products. While we like the color green and moreover what it represents, it has evolved way past that and into every element of design and colors. We simply say. “Green Never Looked so Good” (Well with us anyway).
In a related thought to this I do believe that more and more people are reading labels and are expecting to see reusable, re-giftable and certainly categorically “green” retail packaging. While most lables do not show contents, they do show country of origin. We are slowing comming to realize that products made in America mean more jobs for Americans. And likewise more jobs for Americans means more business in your store and ours. Read the labels, let manfacturers know that you want more US goods!
Happy New Year!
Robby Meadows
Nashville Wraps
Thanks to all for the great comments! I did want to mention that our Atlanta Gift Show was way up (as predicted above). Attendance was good, mood was good, buyers were buying. A lot of people are out of inventory due to the late Christmas rush. So far the forecast is batting 1000! Will keep you advised in this and other blogs.
Robby
I have owned two retail establishments in the gift basket/gourmet foods category and upscale pet boutique category, as well as other businesses and I have relied on Nashville Wraps for all of my packaging needs. No one else compared for service and fair pricing, no one (and I did try a couple of other companies). Due to family concerns I am now embarking on a Pampered Chef journey and find I am in need of packaging for marketing purposes; you can bet I will buy my packaging from the company who has the small minimum, reasonable quantities and competitive pricing. I think you hit the forecast on the head, Robby, and those who offer their customers quality and service will always win. Thanks for opening your vision to all our “micro” businesses as well as the corporate giants! I will forever appreciate it. Kay
I am a new believer, after recieving a few catalogs and being turned off at high minimums and fee’s, I am now inspired to update my little desserts shoppe pacakging. I look forward to reading future blogs filled with ideas to help us be the best little desserts shoppe in town(i’m starting small). Comming Soon—Simply Desserts Shoppe on the web!
I completely agree with Michelle! I have a business in our small town of Princeton, IL. I strife to provide a unique custom experience and having fun, elegant packaging goes along way! My customers comment on my wrap, bags and ribbons frequently, complimentary fun gift wrap brings my customers back. My business sells other one of a kind handmade items from local artists as well.
I utilize Facebook as a free advertising source and I have made contacts and sales through it frequently. The ability to inform your customers with new products, promotions or events without cost is ideal!
Thank you for the wonderful products and helpful info!
Gina from Bead Buzz Jewelry Designs of Princeton, Illinois
I think this is a topic on everyone’s minds as it was a big topic of discussion this time last year. I do have a small business and have always loved Nashville Wraps – spreading the word too at the various art and craft fairs I sell at too. Packaging is probably the MOST important thing to consider when it comes to selling a product. People are judgmental – if the packaging is cheap, not secure, not colorful or attractive – people pass it up. I can vouch for this from both the perspective of a customer as well as a business owner/sales person.
Last year I embraced the recession devoting time to focus on my products and how it is packaged. I was able to cut costs and increase profits. Whoo hoo – granted I’m surviving, not rolling in the bucks. This year I am doing more of the same – getting a rid of items that aren’t selling and at the same time figuring out ways to give my customers more and increase prices just enough that both they are getting a great deal, yet I am able to walk away with more profits. For me it is all about running a business and embracing change.
On an added note it is also essential to advertise. How else will someone find you if you are not talked about, seen, mentioned, etc.? I do a lot of free advertising – as I too can’t spend much on advertising, but every moment I am able to talk up my business via my business facebook page, updates via email lists I keep , new info updated via my website, writing articles on wordpress and other article sites, and putting some dollars in advertising on sites that pertain to my products – I am seeing every little bit helps.
In all the feed back I get from my business, I have to say the gift bags I buy from Nashville Wraps gets the biggest response. I have people buying my items just to get the gift bag as well as receive comments that my work looks so professional that they want to come to my business and shop – my business is a homebased business where I do art and craft fairs as well as sell to retail boutiques in the area with some online sales too. It is amazing what great packaging can do for a business. Thanks Nashville Wraps from your biggest fans at By the Bay Botanicals!
I agree with Bryan. The tag line…”We’re your local Lavender Farm” would sound great! Read Labels, buy local. 2009 was not only a year of down sales for us ( just like most everyone else) but a year of sadness loosing my husband and partner. At first, with this loss, and the downward sales all I wanted to do was throw my hands up in the air and say” I give up”….but it was MY CUSTOMERS that encouraged me and didn’t let me do that. All were upset at the thought of me closing down. Some were down right mad. Saying ” where am I going to get my lavender products if you close down….we don’t like the others! ” Talk about loyalty and dedication! I have been in business for 10 years and it was a dream that my husband and myself nurtured by not only great customer service, but great handmade products. Nashville wraps hand a had a hand in making us successful also. Small start up businesses need the help of larger suppliers. They need to understand that we can’t do large minimums or wait three weeks for our shipments or if, “God forbid” we ordered the wrong thing and were going to get stuck with it. Thank you, Nashville wraps for helping us little folk become larger little folk who are able to keep a hand on the pulse of customer service. I believe that customer service will pull us smaller companies through this down economic time and the good ones will survive. Trade shows? Yes, I have cut a lot out for 2010 but have adapted the ‘never say never’ attitude. 2010 won’t rival 2006 but it is improving ever so slightly and looking promising. As long as my customers insist that I stay in business, there is a light at the end of this tunnel…..and I AM GOING FOR IT!!
Robby I think your right that we will have a better year. Our company did well last year, and (to your point) it was based on getting to know our customers, while slashing our advertising budget.
Last year we decided that if it didn’t build a relationship with a person, not a customer in an ambigous way, but a name and a face, we would not invest in it as a way to attract customer base.
We are a small company but it worked and we are developing a loyal following by getting close to the customer and reinforcing a single theam. “We’re your LOCAL popcorn company.” We take pride in knowing the folks who come in our factory and introduce ourselves to first timers.
Someday we’ll be advertising big again, maybe, but based on last year. We’ll continue getting close to our customer and taking care of them one at a time.
Thanks for a great article.
Bryan
Owner Catoctin Popcorn Company
Aside form my terrific job here at Nashville Wraps, I am planning to start a small plant propagation business this year. My goal is to retire in a couple of years and use my growing skills as a suplimental in come.
I agree with Robby that the way we market our businesses is VERY important and of course, we need to supply an item that people want. I believe I will be able to do both but I also know it takes time to build a business – I have my plan and won’t expect a profit for a couple of years – will need to reinvest in my business for a while.
Maybe I’ll blog my progress so others can learn from my sucesses and mistakes – I’m sure there will be some of those too. 🙂