I just read about an interesting research study which found that value-oriented customers perceive some products to have more value when presented with prices that end in the number "9" vs. those with "0" price endings. But a while back I did a blog post about a research study that found that perceived value could be increased when numbers that end in "9" weren't used. So as a retailer, what are you to do, especially if you're trying to position your store as a mid- to high-end shop?

During healthier economic times, I'd suggest sticking with prices that end with "0." However, in light of the fact that everyone seems to be looking for a bargain nowadays you might consider doing some price testing this fall and holiday season, particularly with smaller impulse items.

If you've been reading this blog over the past year, you probably know by now how strongly I believe in a vibrant web presence. I'm excited to announce that our webmaster, Allisyn Deyo, has been hard at work redesigning our company websites, and the first one finished is GIFTSHOPMag.com. I hope you'll check it out—especially the online exclusive content—and let us know what you think. We love feedback!

Here are five tips for you if you're thinking of redesigning your site:

Let your end goal of more sales drive your redesign. After all, the goal of redesigning your website is not just to have it look pretty and be easier for people to use. You want it to drive more traffic, increase the average time people spend on it and give them a reason to come back. As you consider the elements to change think about what you look for on a website. A list of related content next to something you're looking at? The most popular articles that people are currently reading? Commenting on a feature article that is important to you? Whatever it is, make sure you incorporate it. And if your current employee (or company who builds your site) can't do it, find someone who can.

Make sure you protect your assets. You don't want to lose valuable search engine rankings when you redesign, so be sure to use your stats to gauge what pages have the most incoming links and redirect them. Create a specific error page that says, "hi, we've redesigned, please use search and thank you!" and put a search box at the end of that sentence. And create a list of your main category, shopping and general site pages and institute permanent redirects. You'd be surprised how many people use links from a year ago!

Create a dynamic website that you can edit. Make sure when you redesign that you're able to make all the updates you want to the site yourself, rather than relying on a hosting company to make changes. If you're a smaller site, have the person who builds your site do it using software that you can use easily (such as Wordpress or Drupal)—again, if they can't do that, find someone who can. You might spend more than you were hoping too for the site design, but you will save lots of money in the long run making small changes yourself.

Deliver quality content. Consider adding a blog, weekly special reports, recipes or other elements that will reward customers for returning to your site.

Understand and monitor the metrics. Work with your webmaster to ensure you can get regular metrics for your site, and keep a close eye on them as you make changes.

I'm on vacation this week in Hawaii and yesterday I stopped by a local mall with a very large cart program. Usually when I go to a cart, I meet an employee or a manager, but at this program, I was particularly impressed by the number of owners who were onsite working.

At one cart, I met a very nice woman (she had just opened her first last month) who asked me lots of questions about specialty retailing. How do other cart retailers find the best products, what sales per day are average for cart retailers, how location in the mall can impact sales, tips for increasing cart sales, etc.

Of course, I handed her a copy of Specialty Retail Report, but I also referred her to the newest addition to our website—our Cart & Kiosk Forum, dedicated to the needs of the cart and kiosk industry.

I hope you take the time to check out the forum and post (or answer) a question or two. It's not just for cart and kiosk owners, but manufacturers, specialty leasing managers (we even have a private section dedicated for SLMs) and anyone involved (or who wants to get involved) in the retail industry.

(Oh, and for the next three months everyone who signs up for an account will be entered to win an iPod Nano… we're giving away one per month.)

Last week I was invited to Chicago to speak about increasing store profitability to a group of independent camera and digital film processing store owners.

Camera store owners face extreme competition on pricing from the internet, drug stores and big box stores, plus consumer buying behavior, with respect to printing photos, is changing drastically. In the past, people would develop several rolls of film, looking for the perfect shot… now they average only four to five photos.

This means camera stores are at a major crossroads—they must answer the vital question of how they can grow their business when the market/demand for film prints is decreasing, and the market is more competitive than it's ever been.

The challenges of the camera store owner are almost identical to what we're facing in the gift industry—how can gift retailers grow in a tough economic environment, with big box, discount and internet retailers competing on price and acting faster than ever in response to new product trends?

So, what's the formula for success?

The answer is simple—retailers can grow their business if they follow these three steps:

1. Sell products that aren't found elsewhere
2. Offer top-notch service
3. Ensure your products are of great quality

Camera store owners have been forced to re-examine their value proposition and re-define what business they're in—changing from being just film processors to providing new ways for consumers to tell their story (maybe through photo gifts such as books or mugs and large scale photo prints). These products are not only unusual gift items, but also highly personalized where quality is important, thus giving consumers a reason to shop at their stores.

Now is the perfect time for all of us to ask: What business are we really in? Where are we headed in the next two to five years? How are we going to get there?

Today's guest post is from Gail Markert, Markert Group Consulting 

With the summer show season quickly approaching, it's a good opportunity think about your buying strategy now. Here are five ideas for better buying this summer:

1) Stock products that have visual impact or will make a creative display. Your shoppers are time crunched and cash strapped. Hence, it is more important than ever that your visual displays and products attract customers so you'll sell more inventory. As you're shopping the markets this summer, think about how you'll display the various items you're considering purchasing. Especially, if you're on a smaller budget than last year, make every penny count by investing in inventory that will sell itself through great packaging, interesting designs, and products that will lend themselves to unique and creative display options.

2) One is the loneliest number. An amazing number of specialty stores order only one unit of a particular item. The downside of this buying strategy is that it doesn't tell a story about the products, the display will lack visual interest (displaying one unit is always harder than a group of similar items), and it does not give you valuable information such as the rate of sale between sell dates.

3) Distinguish yourself from the competition. Chain stores have a need for a certain standardization of products and processes so merchandise can pass through their systems as optimally as possible. They are also limited to certain price ranges, packaging types and customization. Herein lies your opportunity: sell what the mass merchants can't sell. For example, custom gift baskets, products that can be personalized, handcrafted products, or unique products not found in chain stores are great ways that independent stores can differentiate themselves. A knowledgeable staff is another chain challenge and a benefit to you.   

4) Plan to succeed. Every store should have a merchandise assortment plan. Compare items, classes and suppliers sales results to the same season the prior year. By creating a detailed plan for each season you will know exactly which suppliers and classifications are up or down to the prior year. This will help you develop a plan to drive your business forward. If you see business softening, shift some dollars to areas of potential growth. Follow your plan closely when buying so you can proactively advance your sales. 

5) "Be open" for business. You probably have a pretty firm idea of which products work best for your store and which ones won't. This is a big plus and a time saver but it can also have a dark side. To keep a fresh perspective, it's good to occasionally challenge yourself on your openness to new products.  Trade shows are a great place to open your mind. Ask each of your reps about any top lines they carry that you don't currently sell. At the very least, by the end of the show you will be up on all the hot sellers and that information may help you "be open" to trying one.               

Would you pay a new employee $1,000 to quit? Zappos does and it works!

In a recent blog post on Harvard Business School's website Bill Taylor writes about an innovative online shoe retailer, Zappos. (They have four million shoes for customers to choose from and expect to do $1 billion in sales this year.) What makes this company interesting is not only their product selection, but also that they have built their company on providing outstanding customer service.

In order to ensure their that their 1600 employees follow through on the company's credo of service, each new hire undergoes a rigorous training program and is given a tempting offer of $1,000 to quit after the first month. Taylor says,

"When Zappos hires new employees, it provides a four-week training period that immerses them in the company's strategy, culture and obsession with customers. People get paid their full salary during this period. After a week or so in this immersive experience, though, it's time for what Zappos calls 'The Offer.' The fast-growing company, which works hard to recruit people to join, says to its newest employees: 'If you quit today, we will pay you for the amount of time you've worked, plus we will offer you a $1,000 bonus.' Zappos actually bribes its new employees to quit!"

According to Taylor, about 10 percent actually take the cash. However, it enables Zappos to determine if the new hire has the sense of commitment they are looking for in an employee. Since its inception, the CEO has raised the quit-now bonus from $100 to $1,000, and it may go higher as the company grows.

Taylor ends his post with the following,

"If you want to create a memorable company, you have to fill your company with memorable people. How are you making sure that you're filling your organization with the right people? And how much are you willing to pay to find out?"

Two thought-provoking questions every business owner should consider.

Today's guest post is from Allisyn Deyo, Webmaster and Editor for Pinnacle Publishing Group.

You're a small business owner. You know you need a website, but honestly, it's an expense you aren't looking to have right now and so you keep putting it off.

Well we're here to tell you: STOP! Stop putting it off. Get yourself a web presence now, and I guarantee you will thank us later.

Here's why:

A website connotes success. Seriously, it does. You've created a brand, so expand it online, send out email newsletters… let people know you're here to stay.

It helps people find you. Where's the first place you look for information? If you answered the Internet, you're like more than half the country (particularly if you're under 30). A simple, five page website with about information, location information, a map, a contact form and upcoming events is easy to do and will let people know you mean business.

It gets you email addresses. Perhaps you get the email addresses of your customers in hard copy, but do you use them? A simple website will allow you to collect more and then to use those email addresses to send out coupons, flyers and announcements… for free.

It's cheap! A small website costs virtually nothing and can exist forever, without changes. Want changes? Find a designer who will modify a Wordpress blog into an easily manageable (read: no coding or web expertise needed) website, attach a plugin or two (for an email newsletter, perhaps?) and you're off to the races. You can make all the content updates, change pictures, send out emails, etc., all from a browser window without knowing a thing about coding or programming.

Longevity. Eventually you're probably going to want to sell online, or maybe even retire and just have a few things you sell, without worrying about shop overhead. A website that's been around for a few years has higher SEO (search engine optimization.. or, how people find you online) than one that popped up yesterday, and you'll have a better idea of how it works… no worries about learning something new right away.

I recently built-out a website for a restaurant. They gave me a design and using Wordpress, I turned that into a twenty-five page website. It contained a small Flash component, an email capture form (with a plugin for a newsletter in the backend) and pages they can modify when prices and food changes. They can even take new photos and have them become part of the Flash component!

How much? $700, and until they decide to completely redesign, they'll never need to pay someone for maintenance, as they can make all the changes themselves.

There has been an interesting dialog on the Retail Forum about charitable donations. As a retailer, you're in a position to get a lot of solicitations from local schools, hospitals and non-profits looking for products or gift certificates for fundraising events.

I have a personal philosophy that it's good karma to give. During the holidays, our company chooses a charity to support. Last year we sent more than $500 worth of supplies to the troops in Afghanistan, and for several years prior, we provided toys and clothes anonymously for a local family we found through a non-profit.

Many of the retailers expressed concern over just how many people were asking for donations. One retailer in particular offered some great advice on how to turn a charitable donation into an opportunity for your store. Instead of giving one $50 gift certificate, she specifies to the organization to auction/give away five $10 gift certificates to different people. She has found that by giving a lower denomination the gift certificate recipients often spend more than the face value of the certificate.

Even if the recipient chooses to just spend the $10, she said she's never upset because it's a chance to introduce a new customer to her store or reward an existing one.

We've been keeping a big secret, but I think we're finally ready to share the news..

This summer we're launching a bi-annual supplement to GIFT SHOP called GREEN Retailer, a magazine committed to the success of the eco-friendly gift store owner. Our mission is to be an essential business resource for gift store owners who are beginning to implement green strategies and for those who have already incorporated these sustainable practices.

I'm very excited about our new project! Eco-friendly products are growing by leaps and bounds in the consumer marketplace. Not only is this trend a great opportunity for you to provide your customers with what they want, it's also a chance to increase sales while helping to save our planet.

GREEN Retailer is coming this summer!

At this time of year, it's critical to keep your stores looking fresh. One easy way to do that is to change your store windows frequently—I'd recommend every other month.

A fun way to keep your displays rotating would be to have a contest with your employees. Let's say you have six employees, so you create three teams of two people and each team would merchandise the windows two times a year. Every time the windows change, take pictures of the final display. At the end of the year, ask your customers to vote on their favorite window, and reward the winning team with a prize (paid time off, gift certificates, etc.).

You might be surprised just how creative your staff will get!