Increasing SalesBEA 2005NEW YORK, NEW YORKJune, 2005

ABACUSABACUS is an initiative to create a benchmark for the measurement of independent bookstore operations.The numbers generated by the ABACUS study were used to create

THE 2% SOLUTIONConcentrates on Four Areas: Sales Margin Compensation OccupancyToday were focusing on Sales

The 2% Solution

How do you Increase Sales?

Bring more customers into the storeSell more to customers once they are in the storeSell more outside the store

Todays seminar will expand upon these ideas presented in the 2% Solution

Increasing SalesWhat well cover

Use advertising and public relations to raise the profile of your storeForm stronger relationships with your customersGet to know your best customers and reward themMake your website an extension of your storeMake your store an exciting and unique place to visit, both physically and virtuallyReach out to find new customers

Section 1Bring more customers into the store.

Bring more customers into the store

Develop a co-op planFind out how much co-op is available to you

Talk to your repsFind out about additional co-op programsClaim indirect co-op through wholesalersDont forget about co-op for non-book

Create an advertising budget for the year

Set the advertising budget as a percentage of salesStart with last years expense and industry benchmarksSet the budget at the net amount youre going to spend(Co-op 1 of 2)

Bring more customers into the store

Develop a co-op planTips for claiming and using co-op efficiently

Focus on the big dollars firstConsolidate advertising to use up smaller co-op amountsBe sure to use your co-op before the end of the yearKnow and use the right medium Monitor your advertising expense on an ongoing basisCreate an advertising package and rate card that publishers can easily understand(Co-op 2 of 2)

Bring more customers into the store

Implement a public relations planProject your stores image

Find a personality that represents your storeProject that personality consistently in all of your advertising and public relations (PR Plan 1 of 3)

Bring more customers into the store

Implement a public relations planCultivate media contacts

Identify appropriate local media contactsHave a designated media relations contactInvite key media to special store eventsProvide members of the media with copies of your newsletter, events announcements, etc.(PR Plan 2 of 3)

Bring more customers into the store

Implement a public relations planMake your store newsworthy

Send out press releases about forthcoming eventsWrite op-ed articles and letters to the editor on relevant topicsMake your website a source for newsUse your stores owner as a public relations asset(PR Plan 3 of 3)

Bring more customers into the store

Build a customer databaseWhat the heck is a customer database anyway?

A system for keeping track of who your customers are, what they are interested in, and how much they spend. It is a crucial tool for growing relationships with your customers. enterprises that fail to establish strong relationships with their customers will see their position eroded by up to 20% per year. --Gartner ResearchIts a lot like dating. Im dating my customers. That is how an independent is going to compete. --Tim Metcalfe, Sentry Foods-Hilldale, Madison, Wisconsin(Database 1 of 6)

Bring more customers into the store

Build a customer databaseBefore setting up your database, decide:

What information you want to keepHow you will capture and store that informationHow you will get customers to give you that information(Database 2 of 6)

Bring more customers into the store

Build a customer databaseInformation you must keep on your customersBasic contact informationWhat the customer is interested inHow they prefer to be contactedInformation you should keep on your customers:How much they spendWhen they last shopped in your storeWhat they buy (Database 3 of 6)

Bring more customers into the store

Build a customer databaseHave a clear privacy policy

Tell your customers what information you keep, and whether you share it with anybodyStress your commitment to protecting their privacyUse this as an opportunity to talk about how independent booksellers are at the forefront of fighting to protect consumer privacy(Database 4 of 6)

Bring more customers into the store

Build a customer databaseYour database will allow you to:

Reach out to new customersBring back former customersBring existing customers in more frequentlyReward your best customers(Database 5 of 6)

Bring more customers into the store

Build a customer databaseTips for getting the most out of your database

Ask complimentary businesses to share their customer listsCreate a welcome message for new members of the database Mail your best customers hand-written thank you lettersSend key customers coupons, gift cards, or other incentivesContact customers who havent purchased in six months or more(Database 6 of 6)

Bring more customers into the store

Use your website as a marketing toolThe store remains the primary channel for purchase among the multi-channel shoppers we surveyed

What is striking is that of the 38% who used the Web to research their purchases, 71% chose to complete their purchase in the store. --Foresee Results/FGI Research Report, January 2005(Website 1 of 4)

Bring more customers into the store

Use your website as a marketing toolYour website is an extension of the store

Designate a staff member to be responsible for the siteRequire all staff to become familiar with website contentMirror online displays and promotions in the storeHave content that will entice people to come backForthcoming events and promotionsStaff picks with blurbsBook Sense Picks/BestsellersNew releasesNews items/Commentary Update your website content at least weekly(Website 2 of 4)

Bring more customers into the store

Use your website as a marketing toolMake your website user friendly, by allowing customers to:

Search for books and place ordersSee lists of upcoming eventsOpt-in to receiving your newsletters and other announcementsContact store staff(Website 3 of 4)

Bring more customers into the store

Use your website as a marketing toolPromote your website heavily

Mention your website everywhere: on store signage; in your newsletter; in advertising; on store bags, bookmarks, gift cards, etc.; on your voicemailCreate an affiliate programMake staff members evangelists for your siteCreate an in-store kiosk featuring your website(Website 4 of 4)

Bring more customers into the store

Use e-mail as a marketing toolSending e-mail

Make your e-mails relevant, interesting, and timelyDont bombard customers (remember the Rule of 24)Always get permission firstHave a clearly stated privacy policy, and make it easy for customers to opt outDont be a Monday Morning Emailer(E-mail 1 of 2)

Bring more customers into the store

Use e-mail as a marketing toolGet the Most Out of Your E-mail Campaign

Track the success of each e-mail sent How many customers (and which ones) opened the email?Which customers clicked on which links?Which content was ignored?Add what you learn to your customer databasePersonalize e-mail messagesAvoid having your e-mails classified as spamInvestigate outside services to send and host e-mail(E-mail 2 of 2)

Bring more customers into the store

Do more in-store eventsThe goal of an event is not just to sell books, but also to make the store an interesting, inviting, and lively place to which people will want to return.(In-store Events 1 of 4)

Bring more customers into the store

Do more in-store eventsBe proactive in asking for authors

Know who the publicists are and stay in touchRequest authors early Make concrete proposals(In-store Events 2 of 4)

Bring more customers into the store

Do more in-store eventsPromote your eventsList events on your website and in your newsletterUse in-store displays and signsGet the press interested

Promote your successFollow up with publicists after the event Keep reminding publishers how good your events areRemember, publicists look at websites(In-store Events 3 of 4)

Bring more customers into the store

Do more in-store eventsThink outside the box

Host book groupsCreate theme eventsHost a weekly story-time for childrenBring in experts to give lectures and demonstrationsHost political debates and discussionsAllow self-published authors to hold events Hold private events for your best customers(In-store Events 4 of 4)

Bring more customers into the store

Reach out to underserved marketsIdentify which market you want to targetLearn about the marketFind a good source of booksPromote that you now serve this market Be patientbecause of the changing demographics of the U.S., there was an increase in the number of literary readers from all ethnic and racial groups except white Americans. --National Endowment for the Arts Reading at Risk: A Survey of Literary Reading in America, June, 2004(Reach Out 1 of 1)

Bring more customers into the store

Form marketing alliancesRaise your profile in the community

Look for other businesses or organizations that complement your imageCross promote and merchandiseConsider setting up or joining an independent business alliance(Alliances 1 of 1)

Bring more customers into the store

Join Book SenseWe must all hang together, or assuredly we shall all hang separately --Benjamin Franklin, July 4, 1776

Being part of Book Sense connects us to the community of independent booksellers across America. Thats very important to us, and I know it gets us more attention from publishers. --Virginia Powers, General Manager, Olssons Books & Records, Washington DC(Book Sense 1 of 1)

Section 2Sell more to customers once they are in the store.

Sell more to customers in the store

Improve traffic flow and ambienceLook at your store through the eyes of the consumer

Start outside, work your way inside and around the store Follow your customers traffic patternsNotice how each part of the store looks, feels, sounds, and (yes) even smells(Ambience 1 of 4)

Sell more to customers in the store

Improve traffic flow and ambiencePay particular attention to:

VisibilityHeight and spacing of fixturesLayoutEase and logic of traffic flowLocations of departments, information points, and cash registersConvenienceAccessibility of merchandiseEase of access to information resourcesSpeed of check outGeneral ambienceVisual harmony Background music, temperature and smell (Ambience 2 of 4)

Sell more to customers in the store

Improve traffic flow and ambienceAdd amenities that build traffic

A cafA magazine/news sectionInternet access terminalsTicket sales A masseuse?(Ambience 3 of 4)

Sell more to customers in the store

Improve traffic flow and ambienceFocus on merchandising, to make it more:

Eye catchingInterestingCustomer friendlyTimelyWell-maintained(Ambience 4 of 4)

Sell more to customers in the store

Introduce a customer loyalty programDecide on a program structure

Extra discount at the cash register?A gift card each time the customer spends a certain amount?Charitable contributions?Invitations to special events?

and remember, price is not everything(Loyalty 1 of 2)

Sell more to customers in the store

Introduce a customer loyalty programKeep it simple!

If your staff cant explain the program in the time it takes to ring up a sale, it is too complicated.(Loyalty 2 of 2)

Sell more to customers in the store

Bring in non-book merchandiseDecide what kind of merchandise makes senseSource merchandiseA good book buyer does not a good non-book buyer makePlan carefullyFollow through, be a retailer(Non-book 1 of 1)

Sell more to customers in the store

Sell gift cardsThe statistics on gift cards:

Gift card purchases grew 50% from 2002 to 2003Gift card sales are projected to exceed $73 billion by 2007Most bookstores tell ABA that theyve seen a minimum of a 20% increase in gift card sales versus gift certificate sales, and some over 100%(Gift Card 1 of 2)

Sell more to customers in the store

Sell gift cardsGetting the most out of gift cards

Position gift card merchandisers around the storeSell gift cards on your websitePromote gift cards in your newsletterRemember that the recipient of a gift card is frequently a new customer, and surveys show that they often spend more than the value of the card(Gift Card 2 of 2)

Section 3

Sell more to customers outside the store.

Sell more to customers outside the store

Use out-of-store eventsDecide what kinds of events you want to do

Off-site author signings at conferences and meetingsBook tables or booths at conventionsBook fairs(Outside Events 1 of 3)

Sell more to customers outside the store

Use out-of-store eventsLet the world know that you can do events

Contact publicists and sales repsPost signs in your storeMention it on your website and in your newsletterContact local non-profit organizations, event planners, etc.(Outside Events 2 of 3)

Sell more to customers outside the store

Use out-of-store eventsUse events to promote your store

Take promotional materials with you:BookmarksBagsYour newsletter and event calendarInvite attendees to visit your store(Outside Events 3 of 3)

Sell more to customers outside the store

Sell to corporations and institutionsCreate a store policy for corporate discounts, and publicize itIdentify key local corporations and key contacts within those corporationsDo targeted mailings announcing your corporate sales programParticipate in your Chamber of Commerce(Corporate Sales 1 of 1)

Increasing SalesSummary

Use advertising and public relations to raise the profile of your storeForm stronger relationships with your customersGet to know your best customers and reward themMake your website an extension of your storeMake your store an exciting and unique place to visit, both physically and virtuallyReach out to find new customers

The End!

Thanks for listening!

ABACUS

ABA produced an ABACUS study every year until 1997. The reason we stopped was lack of participation, and that was a shame. It is critical, especially in highly competitive times such as these, that independent booksellers have industry benchmarks against which to compare their businesses.

We revised the survey to make it much, much easier to participate, and participation has gone up, but its still not where it needs to be.

Weve extended the deadline this year to July, hopefully allowing more stores to participate

Your numbers are kept STRICTLY confidential. Only two people at ABA will ever have access to your numbers Avin Domnitz and David Walker. Not me, not members of the Board, not Oren, not Ellie. Just Avin and David. 2% Solution

If youve never seen Avin present the 2% solution, make you sure do at BEA this year. The basic idea is this: The average ABACUS reporting store is showing a 1.37% loss. A modest increase in sales (3%) when coupled with a modest increase in margin, and better control of payroll and occupancy expenses, can have a very positive impact on your bottom line

Todays seminar deals with the first item on this list: Sales. Find out how much co-op is available/Create an advertising budget

Ask your reps how much your co-op pool is and find about out additional co-op programsMany publishers have special allowances for newsletters, website placement, and other promotional activities. For example, Harper has yearly newsletter allowance of up to $1,000. This is in addition to regular pool co-op. Many publishers have similar allowancesbe sure to ask your rep about these kinds of opportunities each time you make a buy.Claim indirect co-op through wholesalersAsk your wholesaler for a co-op report. (Ingram now has this information on ipage, so you dont need to ask for a report)Dont forget about co-op for non-book merchandise Examples of merchandise which is usually eligible for co-op or display allowances: calendars, DVDs, music CDs, magazines.Set the advertising budget as a percent of the sales budgetAll expense planning must first stat with a sales budget. See the Budgeting & Monitoring information on the Professional Development section of BookWeb.Use last years advertising expense/industry benchmarks as a starting pointThe logical place to start is with historical data. Its also wise to consult industry benchmarks, like ABACUS. But dont get hemmed in by what you did last yearmake your plan based on what you want to do this year.Set the budget at the net amountAfter youve set the budget, adjust it based on the amount of co-op youre likely to claim. This will allow you to either do additional advertising, or to shift fund elsewhere, for example, to your bottom line!Tips for putting together your co-op budget

Focus on the big dollars firstIn other words, concentrate on the top 20 publishers. And have a cut off beneath which you wont botherits probably not worth sending a claim just to get $10 worth of co-op.

Consolidate advertising to use up smaller co-op amountsFor example, if you have $200 in co-op from a publisher, try to use it all in one promotion rather than having to send in four separate claims for $50.

Be sure to use your co-op before the end of the yearYoull probably be too busy in November and December to work on planning promotionsso try to get everything planned and approved before the fourth quarter.

Know and use the right mediumFind out what your customers respond to (trial & error, ask them), and know what various media cost.

Keep track of what you are spendingYou can use a spreadsheet, or simply a paper ledger.

Publisher friendly programsCreate a rate card with store placement, newsletter, and other costs to make it easier for publishers to know what theyre getting for their money. It also simplifies the administrative burden for you.Decide what image you want to project

Find a personality that represents your store This can be either the owners personality (if they have one!) or a created personality.

Project that personality in all of your advertising and public relations Remember that your store image should be consistently projected in everything that you do:The look of the storeWhat merchandise you choose to feature and advertiseThe look of your advertisements and promotional materialsYour websiteYour bags, bookmarks, etc.Your communications with the mediaYour relations with your customersHow you deal with other local businesses and organizationsEven the name of the storeIdentify media contacts

Identify the appropriate contact at each local media outletFor newspapers, look at bylines. For television, call the station and ask for the news assignment desk. For online media (of course) send them an e-mail.

Assign one person to be the designated contact for media relationsReporters will know who to ask for when they are working on a story, and you will ensure that your store speaks with one voice.

Invite key media to special store eventsHold a private party for the press to meet local authors. You can even invite some of your best customers (which kills two birds with one stone).

Provide members of the media with copies of your newsletterBe proactive in reaching out to media contacts.Make your store newsworthySend out press releases about forthcoming events or store happeningsFax press releases about a forthcoming event two weeks to one month ahead of time.Do not send a calendar with multiple events.

Write op-ed articles and letters to the editor about topics that affect your storeFor example, first Amendment issues, local business affairs, cultural affairs

Make your web site a source for newsCreate links to topical articles, write your own commentaries, create a press room with news about the store and the book industry, create an owners BLOG.

Use your stores owner as a public relations assetIf the owner has a strong (and, preferably, likeable) personality, use it to promote the store. Some examples of business owners who have been highly successful in blending their companys personality with their own and using their personality to raise the profile of their business: Mary Gay Shipley (That Bookstore in Blythevill); David Schwartz (Harry W. Schwartz Bookstores); Chuck Robinson (Village Books) [Note from David Walker] AvinI thought we could use David as the prime example herehis ability to get well over a hundred customers to order an obscure, out-of-print edition of War & Peace just by giving a newspaper interview, his article and interviews against the Patriot Act. We could perhaps reprint the Journal Sentinel War & Peace article as a handout, and even have a copy of the Koenemann edition (for the BEA presentation), to show what a remarkable achievement it was to create so much interest in it.

Data can be kept as:Part of your POS system if it provides a database feature.Or kept on a separate computer.Index cards can work in a rudimentary way, but they are very, very limiting. To do this right, a computerized database is the only way to go.

The point is to keep as much information as you need to keep, and dont use the constraints of your computer system as an excuse for not starting a databasefind a way to do it (even if that means changing computer systems).

Its also important to provide incentive to get customers to give you their information. Consumers are becoming increasingly protective (with good reason) of personal information, so you need to make it worth their while. The most obvious incentive is a loyalty or frequent buyer program. Many stores use this to great success. (More on loyalty programs later.)Information you must/should keep on your customers Basic contact information:Name, address, phone, email, etc. What the customer is interested in Subjects of interest.Whether they are interested in hearing about store events and promotions.Whether they want to receive your newsletter (dont just assume that they doyou should always let your customer tell you what information they want to receive).How they prefer to be contacted E-mail (HTML or plain text?) or regular mail?How much they spendThis will enable you to identify your best customers, and (conversely) your worst customersWhen they last shopped in your storeThis will enable you to identify former customers who need to be tempted back into the store.What they buy If you are not comfortable keeping track of customers specific purchases, you can track their purchases by subject area or category.Have a clear privacy policy

Tell your customers what information you keep, and whether you share it with anybodyThis is a legal requirement, and makes for good customer relations.

Stress your commitment to protecting their privacy

Use this as an opportunity to talk about how independent booksellers are in the forefront of fighting to protect consumer privacyExamples:Tattered Covers fight to protect the identity of one of its customersKramer Books and the Monica Lewinsky affairOlssons resistance of the Toricelli subpoenaABAs fight against provisions of the Patriot Act

Tips for getting the most out of your databaseAsk complementary businesses/organizations to share customer lists with youExamples of complementary businesses or organizations include: Arts organizations, theatres, independent movie houses, and other independent businesses in your town. Once you have access to their customer list, ask them (the other business) to send a letter on your behalf. The customer and this business already have a relationship, and its to your benefit to leverage that. Create a weclome message for new members of the databaseA hand-written note from the owner is a very effective marketing toolMail your best customers hand-written thank you lettersAgain, hand-written notes are very appreciated by customers. Send key customers a coupon, gift card, or other incentiveFor example, a gift card or an invitation to a store event.Contact customers who havent purchased in six months or more How many consumers ever get a hand-written, personally addressed note from the owner of a store? If you schedule time to send a half dozen notes a day, its not such a daunting task. (By the way, 6 months is the period that most large retailers use to determine whether someone is a former customer.)A GOOD EXAMPLE OF GETTING THE MOST OUT OF A DATABASE:Harry W. Schwartz Bookshops mailed a postcard to every customer who bought a calendar the previous year telling them that this years calendars were on sale at 20% off. Schwartz paid for the mailing, but the calendar publishers paid for the in-store displaysand Schwartz sold a lot of calendarsThese survey results emphasize a point that we will be returning to throughout this seminar, which is that the Web shopper and the store shopper are not necessarily different animals.

Your website needs to be seen as a device for bringing customers into the store as well as serving those customers when they are not in the store. As the quote here shows, the website is not a separate sales channel. Your website is an extension of the store

Designate one member of your staff to be responsible for the siteYour website needs the same attention as your childrens section or your returns. Assigning one person to take overall responsibility will ensure that attention gets paid.

Require all staff to become familiar with the siteYou dont want your staff members using Amazon.com for look-ups in the store. Get them familiar with and excited about your website. Require them to each make a purchase through the site (if you offer e-commerce services), at least once a year.

Mirror online displays and promotions in the storePrint out pages from the website, and post them in appropriate sections around the store. Do the converse online.

Have content that people will come back for/ Update your website content at least weeklyTime moves faster online. If your customers dont see interesting, engaging content changing frequently, theyre not going to keep coming back. Turn your web site into an amenity for your customers

Allow customers to:

Search for books and place ordersGive customers the option of having the book shipped to them or picking it up in the store.

See lists of upcoming eventsAccording to BookSense.com statistics, events pages are among the most commonly visited content areas on participating stores websites.

Opt-in or out of receiving your newsletters and other announcementsWeve already talked about importance of giving customers this option.

Contact store staffMost bookstore websites allow customers to send an e-mail to just one main address, but you should consider allowing your customers to send e-mails to individual staff membersif the customer likes to deal with a particular staff member when they come in the store, they should be able to deal with them by e-mail too. (Having said that, take care in posting employee email addresses this can lead to an increase in SPAM.

And by the way, BookSense.com allows a store to do all of the above and more!Promote your website heavily

Mention your website everywhereToo often a store builds a website, pays for it, maintains it, and then tells no one about it. Do an audit of your website marketing. If you were a customer walking into your store, would you be aware that the store had a site? If the answer is no, you have work to do. Create an affiliate programAffiliate programs are the most powerful online marketing tool. The number of websites that feature books or book content is staggering. Most of them want someone else to handle fulfillment, though they expect to be compensated in some small way (5-6% of the sale). Likely affiliates include local authors, non-profits, school websites, other businesses in your town, etc.Make staff members evangelists for your siteWeve already talked about the need to have staff familiar with the site. If they get excited about the site, they become your best cheerleaders.Create an in-store kiosk featuring your websiteThis is an option that carries an expense, but stores that have set up a kiosk have found it to be not only a successful tool for promoting the website, but also a good customer service tool. Sending Email

Make your e-mails relevant, interesting, and timelyTailor your emails to your customers interests. For example, dont send event announcements to customers who have not expressed an interest in events. Send e-mails slightly ahead of forthcoming events and promotionsnot so soon that customers will forget them, and not so late that they wont be able to attend.Dont bombard customers with too many e-mails (remember the Rule of 24)According to the Rule of 24, you should not send more than 24 e-mails a year to your customers. Although there is no scientific basis for this rule, it is based on the experience of companies that do a lot of e-mail marketing. The key is to find out what your customer wants.Always get permission!!Make it easy for customers to opt out of receiving future e-mailsThis is a legal requirement, and makes good sense from a customer relations point of view. The easiest way is to have opt-in/-out boxes on your websitebut you should also allow the customer to opt-out by e-mail, by calling, or asking in-store. The important thing is to respond to requests promptly.Dont be a Monday morning e-mailerResearch shows that the day of the week an e-mail is sent greatly affects whether it gets looked at. A huge number of marketing e-mails are sent on Mondays, so e-mails sent on Mondays are typically looked at less than those sent on other days. Weekend e-mails have the highest open rate. The best day to send will vary according to your customer baseyou should experiment with this.Get the Most Out of E-mail

Track the Success of Your Email CampaignsMost email services, like the ABA Constant Contact program, allow users to track how many and which users opened the email and clicked on the links. This is very valuable information that allows you to hone your marketing messages.Add what you learn to your databaseBy learning about your customers interests, you can further tailor your marketing messages to them. Its crucial that you record this information in your database.Personalize email messagesResearch shows that people respond much more favorably (and often) to personalized messages. Avoid having your e-mails classified as spamThis is a very serious problemaccording to some sources, around 90% of all e-mails are now blocked as spam. Large services like the ABA Constant Contact program are vigilant in seeing that email makes it to its intended destination.Investigate services to send and host emailABA has a partnership with Constant Contact, one of several large, successful companies that provide an array of services in managing email campaigns, including: managing lists, handling bounce backs, easy opt-outs, tracking clicks, etc. Be proactive in asking for authors

Know who the publicists are and stay in touch with themKeep a database of publicists by imprint (ask your reps who they are.)Stay in touch by e-mailing them about events in your store or forwarding items of interest (e.g., news about their authors that they may not have come across)Keep in touch with them when they move housesread the People page in Publishers Weekly and send them an e-mail or note congratulating them on their new position.

Request authors earlyAs soon as you hear that an author you are interested in has a book coming out as soon as you get the catalog or sooner -- start working the publicist and your rep.

Make concrete proposalsPresent the publicist with a complete packagewhere you intend to hold the event, how you intend to promote it, etc., so they can sign off right away. (Publicists like to have tour arrangements squared away and off their desks.)Promote your events/Promote your success

List events on your website and in your newsletterHave an events calendar, but also feature the next event on your homepage. For your newsletter, use the front page if you have a big name author, with an events calendar inside.Use in-store displays and signsPost your events calendar around the store and have a forthcoming events display with copies of the books; ask the publicists for promotional materials (author photographs, etc.); have a dispenser so that customers can take copies of the calendar with them.Get the press interestedSend out press releases two weeks to one month ahead of an eventthe publicist can help you with wording the release and making press contacts. (Do not send out a calendar of multiple events). If you have a really important author, call or e-mail your media contacts.Follow up with publicists after the eventSend an e-mail talking up the event and attach some photographs. Tell the publicist how you plan to promote/sell any remaining signed stock (selling through your website is a good idea). Youre more likely to get authors in the future if publicists know they wont be seeing many returns from you.Keep reminding publishers how good your events arePost write-ups of your events on your website. Keep track of particularly successful past events so you can quote sales numbers.Remember that publicists look at websitesMake sure your website looks as good as your store, and be sure to include lots of information on your event. A photo gallery of major authors who have visited your store is a nice touchAuthorless EventsHost book groupsSome stores have private rooms for book groups, but if you have the space consider hosting the group in the store so your customers can listen to the discussion. Create theme eventsFor example, a Halloween party or a meet local authors eventHost a weekly story-timeStory-times are a proven success at stores all around the country. Bring in experts to give lectures and demonstrationsHave a college professor come in and talk about anthropology, or meteorology, or whatever. Build a display around the topic. Host political debates and discussionsBy providing neutral ground for different political points of view to be discussed, you help solidify your place as a center of the community. Allow self-published authors to hold events in your storeThe author supplies the books and the invitation list, and you sell the books.Hold a private event for your best customers Include some authors, local celebrities, and media personalities to add glamour. (Chuck Robinson of Village Books in Bellingham, WA actually gets into a tuxedo for his event!)Reach Out to Underserved Markets

Identify which market you want to targetDo some research to see which markets in your area might be underservedethnic groups, sexual minorities, special interest groups, etc.Find out who is already selling books to that market and what they selllook in minority newspapers and magazines, visit other stores, ask your customers, etc.Remember that not all special interest groups want to shop in specialty shopsthey like other books too. So just because theres a specialty shop in your area doesnt mean there isnt space for you to enter the market.Learn about the marketAsk customers, read specialized literary reviewse.g., Criticas magazine for the Latino market, the African-American review, the Lambda Report for the gay market.Find a good source of booksMany publishers now have specialty ethnic imprints (e.g., Rayo Books from Harper, Afria from Simon & Schuster), so you could certainly build a decent section by buying from major trade publishers. But you probably want to start out by working with a wholesale (several major wholesalers offer specialty inventory management services). There are also specialty wholesalers for foreign language books.Be patientIt will take time for your target customers to learn about your new specialty, and for you to hone your selection. Dont be afraid to ask your customers for feedback.Raise your profile in the community

Look for other businesses or organizations that fit with your image and customer profileArts organizations, theatres, independent movie houses, plus other independent businesses such as hardware stores, coffee shops, etc.

Cross promoteHave a place in your store where you display promotional materials from allied organizations, and have them display your materialsyour events calendar, copies of your newsletter, bookmarks, etc.

Consider setting up an independent business alliance in your townThese have been successfully started in a number of towns.

BookWeb has a wealth of material on independent business alliances, and Main Street initiatives.Look at your store from your customers point of view

In addition to doing this on your own, ask staff members, family, and friends for their input as well. Understanding the strengths and weaknesses of the stores ambience can be difficult for an owner or manager. This material will be covered in-depth at Kate Whouleys Improving Ambience, Increasing Sales seminar being presented at BEA. If youre not familiar with Kate, shes one of the foremost experts on bookstore traffic flow/abmience in the country.

A couple of key points:

VisibilityGood line-of-sight visibility helps deter theft and control shrinkage.Background musicSurveys show that background music is very important in driving consumer behaviorthe music you choose should reflect the mood you want to create in the store and should be appropriate for the time of day. (Be sure to comply with music licensing restrictions. See the Bookselling This Week archives for details.)TemperatureTemperature is an often overlooked factor. Many stores set the thermostat for the comfort of the employees. It should be set for the comfort of a customer coming from outdoors.SmellAnd, by the way, research indicates that the best smells for a bookstore to have are probably cinnamon or coffee; both invoke feelings of warmth, family and coziness. Another recent study said that citrus smells orange in particular are most conducive to creating an atmosphere in which customers are likely to spend money. Add amenities that build traffic

Remember that the idea is to bring in more traffic and make the store a more interesting and lively place, not necessarily to make a big profit from the added amenity.

(But, of course, that doesnt mean you shouldnt aim to make a profit.)

And yes, one store Book People in Austin, TX even allows a massage therapist to set up a chair in the store and offer neck and back massages. It provides the masseuse with a place to ply his trade, offers customers of the store a nice service, and is something of a conversation piece that helps build word of mouth about the store. (It could also be a source of revenue if the store sublets the space being used. More on that in our Renegotiating a Lease seminar.)

Merchandising should be

Eye catchingGet creative with your displaysuse props, colored backgrounds, etc.Make use of architectural features, such as columns, for displaysInterestingPut unusual books togetherMix books with other kinds of merchandiseUse shelf talkers with blurbs (Book Sense shelf talkers are available on BookWeb.)Customer friendlyMake displays logical and easy to understandUse signs with your displaysMake merchandise easily accessibleTimelyDisplays should be topical, coordinated with advertising, and changed frequentlyWell maintainedDisplays should be straightened and restocked several times a dayDeciding on a program strutcture

Do extensive research before decidingtalk to other bookstores about their experiences, talk to some of your best customers to see what they would appreciate, and (of course) check out what your competition is doing.

Think carefully before offering discounts, gift cards, or coupons. Once you introduce this kind of rewards program, it is very hard to take it back without alienating customers.

You must estimate the projected effect of the program on your bottom lineestimate how much you will gain (or retain) in sales versus what you will be giving away in margin. You may have to cut back in other areas in order to pay for the program.

Remember that price is not everything. You may find that your customers would appreciate some other form of special treatment. The key is to design your program to meet the needs of your market and your customers. Bring in non-book merchandise

Decide what kind of merchandise you want to carrySome types of merchandise you might consider are:Greetings cards and gift wrap; Stationery; Gifts and toys; Food items (candy, coffee, etc.); Art posters; DVDs and CDs.Source merchandiseThe best way to find merchandise is to go to trade shows, such as the New York Stationery Show. You can also ask other bookstores and look in trade magazines.A good book buyer does not a good non-book buyer makePlan carefullyNon-book merchandise requires more planning than books doyou will need to budget your buying (most of this merchandise is non returnable) and plan display space. Follow throughSlow moving merchandise needs to be marked down, since it generally cant be returned. If its not working, move it out.

and dont forget to attend ABAs seminars on Buying, Selling, and Managing Gifts, Sidelines, and Other Non-Book productsSo if you havent yet signed up for ABAs gift card program, sign up now!Getting the most out of gift cards

Position gift cards around the storeUnlike your paper gift certificates, gift cards (which have no value until activated) can placed where the customer is looking. Store that have done this have seen marked sales increases.

Sell gift cards on your websiteOn BookSense.com powered websites, consumers can both buy and redeem Book Sense Gift Cards.

Promote gift cards in your newsletter.Decide what kinds of events you want to do

Author signings at conferences and elsewhereThese are generally the easiest and most profitable kind of events, and dont require a great amount of expertisea good place to start if you dont have much experience with out-of-store events.

Book tables or booths at conventionsThese are more complicated and costly than single author events, and more riskyyou have to take a variety of titles with no guarantee of any sales. But they can be profitable if you have experience with the particular convention and know what books to take.

Book fairsThese have many of the same issues as booths at conventions (high costs, no guarantee of sales), plus there is significant competition in this field. However, they can be profitable if you have expertise and want to specialize in book fairs.Let the world know that you can do events

Contact publicists and sales repsLet them know what kinds of events you can do and who will be handling the event (the publicist will want to know that the event will be in good hands)

Post signs in your store

Mention it on your web site and in your newsletter

Contact local non-profit organizations, event planners, etc.Meeting planning professionals are often looking for interesting events to which they can take conference attendees.

The point is, dont be shy about promoting your store and your events. Use the event to promote your store

[[These are self-explanatory]]Create an extra income stream from corporate sales

Create a store policy for corporate discounts, and publicize itFind out what other stores offer their corporate customers. Also, take note -- your biggest competitors in this arena are likely to be publishers. Be aware of what they offer their direct corporate customers.

Identify key local corporations and key contacts within those corporationsAttend local business meetings, ask your customers.

Do targeted mailings announcing your corporate sales programOnce you have a program, you must promote it. And remember the Rule of 3. Marketing messages dont penetrate the consciousness until theyve been heard or seen three times.

Participate in your Chamber of CommerceYour local chamber or other business groups are great places to make contacts.