Don’t promotion companies only run GOB’s? If I hire one, won’t everyone think I am going out of business?
Many promotion companies are designed to help retailers stay in business. In some cases running a GOB was the only solution for a store owner. However, over the years the role of many promotion companies has evolved based on the needs of the furniture retailer. Some stores found that their own sales just weren’t working so they hired a professional promotion company to help the retailer stay in business.
Are the liquidators the only ones that make money?
The liquidation company is the one that takes the necessary risks. Before the first sale is made, promotion companies have to pay to relocate all necessary sales staff, create advertising material to begin a sale and prepare to buy merchandise with its own credit lines, if needed. It is sadly true that in the past there have been plenty of cases where the retailer has been left holding the bag, created mostly by unprofessional, greedy individuals and companies who make false promises just to sign a new account. They “front” this money because they believe the sale will be successful, otherwise a legitimate promotion wouldn’t go this far.
Will a high impact sale will hurt my reputation?
Each store’s reputation is individually assessed and presented in a positive light. A good promotion company will sit with the owner and discuss what is the best message or theme to put on the sale – you must make it believable otherwise the public won’t buy in. Once the theme is in place, we then find the best way to deliver it to the public without hurting your reputation.
Does the business that the promotion generates take away from future sales?
People don’t stop buying furniture because your sale is over. It is true you are advertising very heavily during this period but when the sale is over you will decide what theme to put on your next promotion. Today’s consumers are triggered to buy when the price & value are in line. You should learn new techniques from a reputable promotion company so when the sale ends, you will be able to incorporate new ideas into future advertising.
If I hire a liquidator, will my vendors think I’m going out of business and freeze my credit?
Credit managers are glad to see you are doing something to improve your situation. If you need to raise cash to get current on your bills, the best call would be to your credit managers and landlord – it shows you are being pro-active by doing something instead of waiting. Make the phone call and keep the communication channels open.
Will I will lose control of my business if I hire a liquidator?
Personnel are selected specifically to match the qualities of your store. You are not giving up ownership – you are reaching out for help and you hired a promotion company to become your “partner” during the campaign. They should bring you a staff that is compatible with both your customers, staff and the qualities of your store.
Does a store have to be in real trouble before it runs a high impact sale?
Often the best time to run a sale is when you are not forced to. If you are forced to run a sale because you have fallen behind in your payable, your landlord is threatening eviction & you start bringing the stress of business life home – you just can’t think straight. We know what happens next, you start making wrong decisions, decisions based on desperation. No planning and then mistakes happen. We’ve found some of the most successful sales took place when retailers had time to think through what their goals were and then hired a professional company to help deliver the end result.
Why can’t I run a high impact sale myself?
The truth is you can. You are a capable, creative retailer who had the nerve to open your store, hire people and promote it over the years. You’re still in business today, so obviously you’re doing something right. The question is – are you doing the best possible job? During a High Impact Sale you only get one chance to do it right – why wouldn’t you want a professional by your side to maximize the results? Successful stimulation events have a unique character and use a psychological approach that is different from a regular retail furniture store event. The normal retail approach will not create the excitement required for a successful event. Better to put the responsibility into the hands of professionals or accept, maybe two-thirds, of what the sale might produce by running it yourself.
Will my employees quit or be fired?
No, we actually like to meet with your experienced staff, interview them, and explain how helpful they can be by staying on during a sale. Some will quit for fear of not having a job if the event is a GOB.
How much money will I make?
That depends on many factors such as your overhead, expenses, payroll, etc. but past history has shown owners usually see about a 10-15% net, net profit after the sale concludes.
As the owner, will I now be answering to you? What will I be responsible for?
No, we all set our goals together and work as a team to accomplish the goals you set for us.
When and how will I be paid?
In some cases, we can write you a check up front for your inventory or you can do a joint venture with us and share in the profits. It’s your choice.
How soon can you start?
We like to plan, so the longer we have, preferably 2-3 weeks, the more successful the event. But we can also start in about a week if needed.