Posts Tagged ‘small business sales’

By Rieva Lesonsky

Retailers are facing increased competition these days from online merchants. But there’s still one weapon brick-and-mortar stores have in their arsenals that ecommerce sites can’t use: scent. The use of scents in stores is growing, Reuters recently reported, as consumers expect more of an “experience” when shopping.

The technology for scenting stores is becoming more sophisticated, but also increasingly affordable. One expert cited in the story says you can scent a store for under $100 a month.

Scent technology can range from using fragrance-infused ceramic beads and diffusers to spread smells through a small store, or disseminating the scent via the ventilation system for larger stores.

Good scents put people in a good mood; experiments have found that people were more inclined to help others when in an environment with pleasant smells. As for the bottom line, studies have shown that shoppers in a pleasantly scented environment stay longer in a store, which generally translates to spending more money there.

However, determining what scents to use can be a science in itself, since there’s no one universal scent that everyone likes. Food scents tend to be popular, creating feelings of well-being or urging customers in, say, a bakery to buy. For example, popcorn scents typically make customers want to eat—which could be a good thing if you’re selling food, but not so good if it inspires people to rush out of your store for lunch.

If you’re using scents in your store, tread lightly. Overpowering consumers with odors can easily backfire, so make sure whatever scents you use are light and unobtrusive. Until you’re sure of the effects, it’s also a good idea to start with scents that quickly dissipate or can be removed, such as scented beads, as opposed to pumping scent through the ventilation system where it may linger.

Also keep in mind that in today’s allergy-riddled society, many customers are sensitive to fragrance. If your business caters to this kind of customer, perhaps a store that has no scent at all is the way to make the sale.

Image by Flickr user Dennis Wong (Creative Commons)

By Maria Valdez Haubrich

It seems all we’ve been hearing about the holiday shopping season is that consumers are crazy for deals. They’re using their smartphones to scope out the best prices, signing up for daily deals services to get special offers and even camping out at the mall on Thanksgiving to get discounts at dawn (or midnight, depending on the retailer). But there’s an equal and opposite phenomenon taking place as well, The Huffington Post Small Business recently reports: At the same time they’re craving deals, consumers are also willing to pay higher prices for products and services they value.

Big companies including Nike, Starbucks and McDonald’s have recently raised prices to compensate for the rising cost of materials—and so far, consumers seem willing to pay. If the trend continues, it will be sweet relief for retailers, restaurant owners and other businesses, which have seen the prices of raw materials, ingredients, packaging and shipping products rise in the past year.

The Huffington Post cites government data that consumer prices for food, travel and other goods have increased steadily this year. However, at the same time, consumer spending has also grown every month of 2011 except one when compared with the same months a year ago.

If you’ve been considering increasing prices, is now the time to do it? You may feel nervous about raising prices—after all, you’re not Starbucks or Nike, right? However, there are some common threads when it comes to products consumers are willing to pay more for.

Are they luxury items? Consumers typically don’t expect luxury products to offer price cuts (think Apple stores), so raising prices could actually increase the product’s value in your customers’ minds.

Are they “little treats”? Many consumers who are cutting corners on ongoing expenses like cable bills or buying store-brand groceries are still willing to splurge on small extras like gourmet coffee, manicures or other “little indulgences” that make all the cost-cutting bearable.

Are they essentials? If you truly offer something consumers can’t find elsewhere or can’t get along without, they’ll likely have to grin and bear a price increase. Just be careful you aren’t building resentment among your customers so that they’ll leave the minute they find a cheaper offer.

At the same time, keep in mind that while consumers are in a cost-cutting mind-set this holiday season, the holidays are also a time when everyone feels a little looser and more likely to indulge. Thus, shoppers The Huffington Post talked to were looking for deals, but willing to shell out $5 or more on a latte during their shopping search. In other words, if you can sneak in a price increase during a time when consumers are more likely to overlook it, you may just be able to get away with it.

Image by Flickr user Jim Legans Jr. (Creative Commons)