The 'challenge' test

If it's not competing against a big box, it's a soft economy. If it's not a soft economy, it's something else again. There's just no end today to the myriad challenges faced by toy specialists.

Before these challenges become overwhelming, it can be helpful to reduce them to their simplest form. Breaking down potential obstacles into a handful of concrete issues makes it easier to face them individually. The following includes some of the more common retail snags, while offering solutions for better business efficiency.

When introducing a new item, I have often heard, "That product won't work for me…I know my customers." While certainly you have the most interaction with your customers, sometimes a new product will unexpectedly grow your business. While these days it is important to buy conservatively, do not let moderation hinder the creativity and changes necessary to intrigue your current customers and bring in new ones.

When meeting with your reps or attending trade shows, look for something a little bit different. If you are in New York, call a similar store in California and ask what's hot; you will most likely be pleasantly surprised by your customers' reactions!

Customers certainly like to see new products in your store. But do not change a line simply to change a line. If a product line is generating sales, keep it going and re-order for as long as you can until the sales stop. Until that time, don't take the line out, don't change the pricing and don't change the display or location. Leave a successful product alone. Your cash register will let you know when it is time to change it and/or call it a day.

At first glance, two similar products may appear to belong on the same shelf. But sometimes they don't. Do not assume that all playthings in a category sell the same way.

For example, some plush lines may be more gift-oriented, while others are more toy-focused. These collections, while similar, might be better off in separate areas.

Additionally, placing a new line next to a hot seller in the same category may diminish the success of the fresh merchandise. Who could forget the Beanie Babies? Any plush next to them was never truly seen!

In so far as possible, let product lines, especially new ones, stand out. Do not be shy about asking your rep or the manufacturer directly about where in the store a line might sell best. If a line does not generate enough sales, try another location or a better display presentation before giving up.

Presentation and product location within a store may stand to impact overall sales. Less expensive, impulse buys belong in the front of the store and by the cash register. While staple items go in the back, consider a window display featuring a sampling of these products upfront.

Do not place non-impulse products in high demand within easy reach of customers, or they will find it and just leave. You will benefit if shoppers walk through your entire store. They may pick up an extra little something now or remember the item for a return visit in the future.

"Even though your product line was a great seller for me, I cannot re-order because I have so many other products that haven't sold yet." This is something reps hear more often than not. If you have a winning product line, bring it back in right away.

On the flip side, don't sit on inventory that isn't moving. Before a year goes by and the stock no longer has value, it's safe to bid it goodbye. One idea is to have a regular monthly sale on slow-selling items. While you will not receive a full mark-up, in the end, your cash flow will improve and your actions ensure that your customers will return at least once a month for a good deal.

Let's face it. Specialty retailers will never be able to compete with the big boxes on price. Instead, focus on other strengths in your business.

• Offer friendly and personal service that is often lacking in the mass market. Build relationships with your customers. Shoppers still enjoy walking into a store and hearing, "Hi Amy. How's Joe doing?"
• Create a loyalty reward program for repeat clientele.
• Set up attention-grabbing events, such as a design-your-own-toy or write-a-story-about-your-favorite-toy contest. Host a formal reading of one or two entries. Most importantly, make sure your customers and local media know about them, too.

Ultimately, fostering a positive retail environment may help stimulate sales and interest new customers. At the very least, you will probably enjoy the workday a little bit more!