Are Low Prices Enough ?

The college bookstore business is experiencing a sea change. Look at these stories from just the past week...

From St. Paul, Minnesota

This fall, several college campuses and one independent book store are taking steps to reduce the high cost of textbooks. The effort comes after decades of student complaints about the cost of books, and action by the state Legislature to put money toward a possible solution.

From Flagstaff, Arizona

The [Arizona Board of Regents'] Textbook Task Force released a plan in June 2007 that aimed to ease the squeeze on students' wallets. Its recommendations included new procedures to encourage faculty to order textbooks on time, expanding textbook rental programs, instituting "low-price guarantees" at university bookstores and setting uniform deadlines to order textbooks before the buy-back period to make sure that more money is available for students returning used texts.

And this sign of the times from Morgantown, West Virginia

Andrea Baumgartner, a senior criminology major from Parkersburg, saw significant savings when she stopped buying from the WVU bookstore and shopped at amazon.com.

"I bought books for the first two years of college and spent about $400 a semester, so then I bought from Amazon, and spent less than half," Baumgartner said.

Students have complained about the high price of textbooks since the first freshman got lost in the Library of Alexandria, but today there are a multitude of pressures making life downright perilous for on-campus retail. Here's a story from The Ithacan that would put sweat on the brow of any merchant in any industry...

To counter the rising textbook prices, the U.S. House of Representatives Education Committee introduced a provision to the renewal of the Higher Education Act earlier this month, that requires textbook publishers to disclose information to colleges about revisions, copyright dates and other information regarding textbooks.

When legislators get involved in manipulating the prices you charge for your merchandise, you know there's rough sledding ahead.

So how do college merchants compete with low overhead competition from the internet and local used book stores?

How about by defining a retail environment that customers are willing to pay a premium to experience?

What can you offer that the competition can't? I can buy a shirt online, but I can't feel the fabric. I can't try it on or ask if it will fit my girlfriend. I can order from a web site in seconds, any time of the day or night, but I can't enjoy the company of friendly experts who know me and know how to help me find exactly the right purchase. I can shop in my bathrobe, but I can't be a part of a scene that helps me meet people, learn about new products, and feel I'm participating in the life of a vital campus community.

The other day, my wife and I visited Dick's Sporting Goods in Louisville. When we walked in the front door, we were greeted by an employee who was supervising the climbing wall! And she was keeping very busy. What a creative solution! My first response was to ask, "Who in the world wants to go rock climbing on a shopping trip?" My wife pointed to the long line of customers with purchases in their hands. "They do, apparently."

Can your store do that? Of course it can. Maybe you can't recreate an outdoor adventure, but do your staff, your decor, your fixtures all say, "Come in. This place is special. There's something here that's worth your time and money." They'd better.

When I was in college, the bookstore was little more than a warehouse with a cash register at one end. That just won't cut it any more. The campus store is no longer the only game in town, and it is not likely to be again.

You probably can't compete with the prices from the dot-coms. But you can compete and win by offering a real life experience that the web can never duplicate.

Are You This Committed to Your Customers?

I have a letter in front of me that I want to share with you. It's from our health insurance company - not the first industry I think of when I hear "bending over backwards to serve your customers."

Please accept our apologies for any problems you may have experienced recently when purchasing your prescriptions. We're committed to handling all customer transactions properly, and it is very important to us to meet your expectations. Right now, we are working to resolve the service issues you may have experienced. [emphasis mine]

We want you to know you can count on us for better service in the future. Also, in appreciation for your business and your patience, we are giving you an $80.00 credit that you can use toward your next order...

That's a pretty significant piece of change to give away as a gesture of appreciation. But here's the kicker -- nothing had gone wrong with my order! It went smoothly as ever. I called on the phone, punched in some numbers, and next thing I knew, my medicine was in my mailbox.

This company had something go wrong, and rather than spend the time and money to chase down every possible legitimate complaint, they took this extraordinary step - just in case I had been one of the people affected.

Businesses pay a lot of lip service to how much we value our customers. Would you be willing to take this kind of risk - spending money you didn't have to spend - admitting to BIG mistakes of which most of your customers were not aware - just to let everyone who MAY have been affected know that the incident did not reflect the way you want to do business or the value you place on your customers?

How impressed am I with my insurance company today? A lot.

They just this indifferent customer into a very loyal client.

--- Bob Johnson, Corporate Sales Director

Bucking for Straight A's

I read a good article in MedEsthetics magazine by Stacey Burns about five "A's" to use for evaluating your retail environment. Their publication is targeted to the spa and personal care industry, but the principles apply to every store.

Is your retail environment accessible? Do your guests feel welcome? Can they come in, touch, smell, and experience the best of what you have to offer?

Is it adjustable? Can you adapt to changing merchandise, or are you locked in to one configuration or arrangement?

Is it authoritative? Do your signs and graphics tell your customers what they need to know about your merchandise, your store, your company? If your staff can' t help right away, does your store help guests to understand the value you offer?

Is it attention getting? Do your lighting and decor tell customers a story that they can't hear anywhere else? Do props, fixtures, and POP displays express your store's unique identity in a way that makes people want to know you better?

Is it appealing? In retail, the old cabinet-maker's maxim applies: "Perfect is good enough." Flawless displays create an image customers want to identify with. Dust, dents, and disordered shelves do a disservice to your merchandise and to your business.

In today's retail, the way shopping feels to your customer is as important as the cost and quality of the goods you are selling. You are not just building a store, your are creating an environment that will define you for your customers long after they are out the door.

Is your store making the grade?

--- Bob Johnson, Corporate Sales Director

Remember Earth Day?

If you are old enough to remember April 22, 1970, then you remember a lot of things were going on as we started the new decade - some good, some very bad. One of the very good ones was Earth Day.

That's the flag I remember. The gold theta over the green and white field and stripes. It made me think of the nation I loved with a Cub Scout's innocence, and the fields and woods where I learned to play baseball and capture the flag.

Politics and economics have changed a lot over the past four decades. The popularity of Earth Day has ebbed and flowed with gas prices, government leaders, and each generation's priorities. What hasn't changed is the importance of humankind's stewardship of our planet's health.

More Questions than Answers

Now it's 2008 and everywhere you turn you see companies "Going Green." But everyone seems to mean something different by the term. What does "Green" mean to your retail environment?

How do you use light, water, heat, and air conditioning? How much fuel does it take to bring merchandise, customers, and staff to your location? How much paper do you use, and what happens to it when you are finished?

Do you make choices about marketing, sales, and clerical operations with conservation in mind? A store is a world that you design and create. Does your creation reflect your values as a business person AND as a steward of our planet?

Balance

The key is balance. Just as the environment relies on balance to hold itself together, your company relies on balance. Your decisions have to based on many responsibilities, not just one. You have a responsibility to the planet - you also have one to your customers, your employees... all the stakeholders whose lives are affected by the health of your business.

Corman & Associates wants to help you to balance all these interests. We will work with you to help create a retail environment that reflects the way you value the global environment. We can help you choose materials, designs, and decor that are both eco-sensitive and commercially effective.

Caring about the environment has been in fashion before. There are lots of legitimate business reasons to jump on the bandwagon. "Going Green" is all the rage right now, but fashions change. Ten years from now, we might have cheap fuel and roaring bull markets , just like in the ninties. People may be laughing at eco-kooks and tree-huggers again. Maybe not. For now, a lot of customers care about "green". That may be a good enough reason to make sure your location lets them know you're with them.

At Corman's we think there's a better reason to care -- we think managing your business AND your stewardship of the earth is just the right thing to do.

Whether it's this year's style or not.

But talk is cheap. In the coming weeks, we'll be talking about the things we're doing here in Lexington, and the things we can help you do in your home town to make "Going Green" more than just a bumper-sticker slogan. We all have a lot to learn. We'll learn together.

--- Bob Johnson, Corporate Sales Director

Are You Ready to Order?

It sounds like something a telemarketer would ask - "Are you ready to order?" It's a way of closing the deal, of putting the ball in the customer's court. Ask the question, then wait for the customer to make their decision.

But it isn't only a sales tool. It's also an important question for customers to ask themselves before they even meet a salesperson.

Am I ready to order?

Before you answer, you should ask yourself some other questions first.

What, exactly is the merchandise I will be selling?

Just saying "Sporting Goods" or "Men's Apparel" isn't a good enough answer. Will you be selling hats or textbooks or decorative candles? How much stock will you keep in the store? Will it hang or be stored in separate bins or on glass shelves?

You probably already know the answers to these questions, but being able to put them into words so that your fixture supplier understands your merchandise as well as you do will go a long way toward developing a fixture solution that really works.

When I picture my store, what do I see? What do I want my customers to see as soon as they walk into my door?

It all begins with your creative vision. When you imagine your store, fully stocked, packed with customers, what do you see? The function of your fixtures is only part of the story. You also have to think about their aesthetics. Defining a retail environment is like sculpture. You choose materials, shapes, colors, and dimensions that tell your customers who you are before they even encounter a salesperson.

No one else can see with your mind's eye. Once you can tell a stranger about the look and style of the store you see in your imagination, you can begin communicating that vision to a sales representative or design professional.

Where will my fixtures be located?

If you are in a high traffic area where fixtures are likely to encounter a lot of heavy shopping carts, and curious little hands you won't want to invest in a lot expensive cabinetry that will be scratched and chipped (or even climbed!)by your customers. Will your fixtures be exposed to the elements, sunny windows, or salt air? The wrong material or finish will turn your beautiful new display case into a garage sale item in a few months.

How much money am I prepared to spend?

You don't need to lay all your financial cards on the table before negotiations even begin, but being able to articulate a price range from the get-go will save you and your supplier a lot of time. It is frustrating to spend hours developing a solution that everyone loves, only to learn at the last moment that it will cost twice as much as you can spend.

What is my schedule?

This card, you really ought to lay on the table. If you don't have a schedule, that's important for your supplier to know. If they are a custom manufacturer like Corman & Associates, they have dozens of projects scheduled weeks or even months in advance. When you are in a hurry to make a presentation or open a new location, and you are willing to compensate them for the rush, a competitive manufacturer will do whatever it takes to make your deadline. If your project is still in the concept stage with no solid opening date in sight, that information will give your supplier the freedom to develop a solution without the extra pressure. Cramming may have worked in college, but design, engineering, and manufacturing need to be carefully executed if you want the best product at the best price possible.

What if I don't have all the answers?
Who does? Knowing the questions is a great start. Once you find a sales person with whom you feel comfortable and a company you can trust, you can start working to put the horse before the cart, so to speak. A top notch manufacturer will work with you to design not only store fixtures, but also an experience - to define a retail environment that tells your customers who you are and helps them to make purchases that satisfy them and keep them coming back.

--- Bob Johnson, Corporate Sales Director