Customer Roll...

Just as an experiment, I thought I'd blog a day's worth of transactions. I realize this won't be terribly dramatic to most people, but I found it an interesting exercise.

I'll talk about my conclusions at the bottom.


HOUR 1:

1 Guy, 21, asked me to reorder latest Walking Dead. Bought Wolverine comic set, Reborn (Capt. Amer. comic), two packs, Alf and E.T. "I dare you to eat the gum."

1 Mom, 5 kids. Oldest bought Naruto graphic novel, youngest was dragged out of the store after a tantrum. (All had Powells candy bags...) Middle kids, knocked over Mech Warrior display, asked price of dice...didn't buy anything.

1 Dad, herding the kids out of the store.

1 Guy, 20, asked for Uncanny X-Men, showed him current issue, and led him to back-issues. Asked for Hitchhiker's Guide to the Galaxy, showed him first book new, and 2-4th books used. Leafed through Star Wars graphic novel in front of the register. Asked for Pokemon, showed him packs, asked for older binder, told him I didn't have one. Bought 2 packs of Star Wars cards.

Young couple, directed them to used books, they asked for Stuart Woods novels, showed them where they were, they bought a used Woods hardcover.

1 lady, 60, asked for "Rare, 1st Ed.'s" Told her I only carry 'reading' copies. Looked at LeGuin book, leafed through new hardcover copy of All Aunt Hagar's Children, Edward Jones , leafed through new Shel Silverstein books, leafed through Ten Little Indians, Sherman Alexie (looking for 1st editions?) said thank you, and left.

1 guy, 26, first regular (in that I recognize him). Bought Kid Colt comic, and laughed at the Big Lebowski toys...

1 lady, 40, brought a .50 book off the street. Told her about our used books, and she said she'd bring her husband back.

1 lady, 35, wanted stamp supplies. Sent her to Mt.High Coin.

HOUR 2:

1 Dad, 45, 1 kid, 17, asked for magic. Showed them, and left them to look. Dad bought 4 packs. Kid brought up two commons, told him to take them free.

Couple, brought in by 'stamp' lady, asked for "used Harry Potter", told her about our new copies, she shook her head and left.

1 guy, 30, looked at boardgames. Tells me he's a teacher, looking for 'historical' games. (told him he gets 10% off for being a teacher.) Tried to explain Euro games. "I might be back." ***He came back and bought Agricola.***

Couple, looked at books, carried around the Owly toy for awhile. Left without buying.

1 Dad, 3 kids, looking at comics. Bought 4 comics, and Boba Fett standup.

Mom, Dad, 2 kids. Kids asked for Killer Bunnies. Bought 4 used books and Bunnies game.

Couple, looking at new and used books. Bought Dying Earth, by Jack Vance,(because she had read article in the N.Y. Times; "Why haven't I heard of him?") and Iain Banks, and Amber Spyglass.

2 young girls, looking at manga and anime. Bought two manga, got the third one free.

1 regular, went directly to the books, sat down and looked T.P.'s. Bought used A Confederacy of Dunces, John Kennedy Toole.

1 lady, 60, looking at new books. Bought 2 used trade paperbacks.

1 guy, 35, looked at games. Asked for Settlers of Catan. Arrgggggh! Told him I'd have them back in stock on Thursday.

Young couple, looking at books. Left without a word. (Too busy to get to them, dang it.)

Mom, Grandma, and kid. Kid wanted to look at all the toys. Proceeded to drop them on the floor. Started looking at the comics he shouldn't be looking at. Told them they weren't for kids. (I don't think my tone was anything but directive...asked regular if I'd been out of line, he said, no -- maybe a little short, but certainly not rude.) Tried to direct them toward the kids comics. They took offense and left. "We'll spend money somewhere they want us..." Am I supposed to let him look at hard "R" comics? Mystified.

HOUR 3.

Couple, looked at books, left.

Couple, asked for dice. Bought 6.

2 guys, one a regular shelf customer. Bought 12 comics.

Mom and 2 kids. Asked for a book for school, didn't have it in stock. Looked up exact title and author. Time of Butterflies, Julia Alverez.

Mom and 2 kids. Mom looked alarmed, and dragged the kids out of the store. Hmmmm.

1 guy, 70, bought 50.00 worth of sports cards. Talked over old times.

1 guy, 70, bought an old EC comic reprint, showed him the Archives Editions....

1 lady, 35, looked at books and left. Didn't have time to talk to her.

2 kids, looking at books. Stayed forever....

Couple, 70's, looking for Room with a View. Didn't have, added to reorder list.

HOUR 4.

1 guy, 70, looking for the book, I found exact title and author online, A Great Day to Fight a Fire. Another guy, 70, came in to take him away.

1 guy, 60, looking at used books. Bought a used Alice Sebold book.

2 kids, 16, asked for a Dark Heresy module. Bought a set of dice, and a different Dark Heresy module.

1 guy, 30, didn't see him until he was walking out. I'm talking too much.

DAY HALF OVER, 65 PEOPLE IN, 2/3RD'S TO AVERAGE.

Mom and daughter, looking for school book. Looked at their list, knew that I had one of them, Founding Brothers, by Ellis, which they bought.

Mom and dad and two kids. Mom bought an Alice Walker paperback. Again, found a kid looking at a R rated comic, told the parents that, they acted like they didn't hear me....Finally got them to look at the 'all ages' Supermans and Batmans and Spider-mans. Left without buying any...

One regular. Bought a Wizard Magazine, prepaid on a book, and started to say how he buys stuff with Dr. Strange, made him a deal on my Dr. Strange statue, and he put 40.00 downpayment.

Two couples, 60, sent them to the books. One asked for James Michener, bought used The Drifters.

One young couple, didn't have time to greet them because I was talking to the above family. They left before I could say anything.

Young couple, 17, one with ice cream, told her I couldn't allow that anymore. She left, he stayed. Then he left. (Have found too many ice cream stains....) He came back asking for Spawn comics. He left.

1 lady, 35, bought used Adventures of Kavalier and Clay, really beat up, for 2.00.

1 guy, 70, "Just Cruisin'..."

Young couple, didn't see them until they were leaving because I was dealing with above family.

HOUR 5.

1 regular, bought 4 comics off his shelf.

1 guy, 40, looking at art books. Leafed through Dragon's Dream, Roger Dean. Finally asked for Hyperion, Dan Simmons. Sold him a new copy of the first book, and twisted his arm to buy the second book, Fall of Hyperion because "you're going to want it." Sold it to him for half of the usual half

Mom and kid, asked for Taming of the Shrew. Didn't have it.

1 guy, 60, looking at used books. "Just wandering..." Bought a new copy of Drawing of the Dark, Tim Powers. "This is about brewing beer," I tell him. "I really liked Anubis Gates." "This is just as good," I say. Best sale of the day. That's a book I'm carrying because I love it so much.

1 lady, 45, bought .50 book from sidewalk. Same conversation I seem to have no matter how I phrase it..."We carry used books on the other side of the store." Alarm in their eyes..."You mean this isn't .50?" "Yes, it's .50, but it's cheap so I can let you know I carry used books...." "Oh...." leaves. This information seems to work about a fourth of the time, but still worth it if they actually go over and look.

2 guys, 18, looking at graphic novels. Asked for Walking Dead volume 9, showed them 9 and 10. Bought both.

1 lady, 60, looking for Christian books, Andrew Murray. Showed her our shelf.

2 guys and 1 lady, 60ish, looking for "Plant Identification" book. Found the L'il Abner books, acted all nostalgic. "Don't find these around anymore." Put it down and left.

HOUR 6.

1 guy, 40, looking at comics. Left.

1 kid, 12, looked at Family Guy toys, dropped one, asked for Harry Potter, showed him. Asked how much 18' Harry Potter figure was, told him. Asked if I had any smaller toys, said no. Kid left yelling out the door, "Can I have 40.00 for a Harry Potter toy?"

Dad and kid, looking for books on CD. Showed him what I got.

2 girls, 15, looking for City of Ashes, Cassandra Clare, which I already have on order for next week, but which I don't have in stock.

2 guys, 20, wanted X-Men toys, and Sailor Moon?

2 girls, 15, asked for manga Sabrina, Teenage Witch?

Mom and Dad, and four kids. Bought Eclipse, 3rd Twilight book, new hardcover at 10% off.

HOUR 6.

1 lady, 55, looking for a Brian Jacques book, which I didn't have.

3 guy, 25, bought Grimm Fairy Tales 2 and 3, Walking Dead 7 and 8, some S.F. used books, and a used DVD. Yertle the Turtle and another kid's book. Told me they were from Portland and had bought Grimm #1 last time. Nice. Just went 15% over average...

1 regular. Bought 9 comics.

2 guys, 1 girl, 18, didn't buy anything.

1 guy, 21, looking for good Joker comics, bought Batman, The Killing Joke on my recommendation.

Couple, asking for One Flew Over the Cuckoo's Nest, of which I had an 18.00 new copy. Offered it to them for 15.00. Didn't buy it.


CONCLUSIONS;

If nothing else, it gives you an idea of the amount of detail I pay attention to. Also interesting how often my knowledge of the product helped sell it.

Notice too, the pattern that whenever I'm too busy to talk to people, they most often leave without buying....

Interesting that every time a toy was handled today, it was dropped. What's with that?

It being Saturday, had more 'young families' and fewer 'regulars' than usual.
This accounting doesn't really show how busy I was for most of the second hour, or how more paced (slower) the rest of the day was.

Shows how spread out the sales are; comics, games, toys, cards, card games and books, all sold.

It also shows how I sell a little bit of a lot of different things, instead of a lot of one thing. My combination is so unique, there is almost no way this information can be very useful to competitors, except as a curiosity.

I had 121 people in, and ended about 15% above average.

Store observations through the day...

You know how I always say that superhero movies do diddly squat for superhero comic sales?

Well, there was a recent, odd exception.

Out of the Wolverine movie came a demand for.....Deadpool.

Ironically, the Deadpool in the movie is nothing like the current incarnation of Deadpool, who is a crazy, goofy kind of guy, who can't stop talking.

The first issue of this Deadpool had a hilarious deadpan recitation of his history with all the changes and contradictions of a longtime superhero; he was born in New York, no he was born in Sante Fe, his father died when he was young, no his father was so and so..... It's true of all superheroes with any kind of history -- different writers and editors and so on....superpowers change, costumes constantly morph...

Is he a hero or a villain? -- Yes.

There isn't much Deadpool material available, right now, especially compared to Wolverine. For several years his title was combined with Cable, and Cable was the headliner. (If the title had been Deadpool and Cable, instead of the other way around, we might have something...) There's a couple of old 'classic' collections.

But for a character that only had a few minutes of screen time, he has really taken off....

**********

Time to retire the Big Lebowski toys. Everyone asks, no one buys. I'm kind of tired of the noise, frankly. Suddenly, it's hip! Eventually I just wanted to pitch the old Austin Powers toys, (how many times would you like to listen to lousy mimics?) but the noise died down just in time. Family Guy is also very annoying; as well as being a theft problem. Who'd have thunk?

**********

The Powell's candy bags have me re-thinking the possibility of Pegasus bags. They are really noticeable and they stand out, and they have obvious promotion and advertising virtues. On the other hand, just had a customer with a bag of something colorful and I asked what it was and it turned out to be a Goody's bag. Not noticeable.

It's the square shape and the big bold and colorful letters, and the handles, I suppose. I suspect they are pretty costly, too.

**********

I got a bag of Cthulhu figures in, just for fun. I had a customer marvel over my little plastic Cthulhu on the register. "You like that? You can have it..." I give it to him.

Before I know it, we're talking Cthulhu and he buys my Arkham Horror boardgame for 60.00. All because of a cheap little tentacled 'old god' totem giveaway.

I wish I had more "Cthulhu for President" bumper stickers...

Somebody should write a Cthulhu and Hobbes story.

**********

What the hell happened? Another four groups in, today, wanting the base game of Settlers of Catan. Was it in the news or something? I'm trying to divert them to equally good games -- Ticket to Ride, Carccassone, but they are IMPLACABLE. They want SETTLERS!

I'll have copies in again next week, after which no one will want them, sure as day.

**********

Had a guy call me and ask where he could be an "e-book." You'd be proud of me. I simply said, "I believe either Barnes and Nobles, or Amazon."

Another guy asked me where the "big" bookstore was in town. "Barnes and Nobles?" I said. "It's out past Pilot Butte."

"Could you give me directions?"

"I could give you very detailed directions to the two independent bookstores...."

He didn't think this was funny, and started walking out the door. As he hit the sidewalk I snagged him and give him directions. It's not like I can change things....

**********

Make hay while the sun is shining.

I made it through the week without reorders. So I'm done with August. Next week, starting around Tuesday, I can start ordering with a fresh budget for September.

It was hard not to pull the trigger -- especially since I ran out of Settlers of Catan again. I resorted to selling my own copy; and I could've sold 3 or 4 more copies, plus extensions.

Meanwhile, I still have an adequate supply of 2010 magic, even though this has been sold out at the wholesale level for several weeks, even though the resupply is going to be heavily allocated, and even though many retailers are charging more than retail price.

I've kept the fact that I have them at regular price pretty much on the downlow. Another one of my sayings is, "It is better to have the product at a higher price than it is to not have the product at all."

But I'm really reluctant to charge more than retail for anything, anymore, no matter how short the supply. I will if I have to -- if I get to my last couple of boxes, for instance.

But I'm most curious as to why I haven't had a run on magic. I figure most of my blog readers don't play magic, and most of my magic players don't read the blog, so I'm safe musing about it here.

My sales are right on line with projections right now -- actually, probably 10% better. I'm hoping that August won't do what June and July did, and sag drastically in the middle of the month. In two or three weeks I'll know whether I succeeded at turning a good profit or not -- and I'm hoping that if I do, it will motivate me to continue the process on into the fall, and especially into Christmas.

We're at that wonderful part of summer where people are just buying stuff -- mostly tourists, for whom everything in the store is new and interesting. It's a good time to lay off the reordering, and make some money, and then sit down at the end of the process and decide what I really want to reorder and what I can do without.

Also, people are in a bit of a summer routine now, and we aren't throwing as many distractions at them -- fairs and festivals and what not.

I, too, have settled into a routine. Been getting along fine with the customers. Again, there has been a bit of damage -- my Kurt Cobain action figure has been dropped so many times that the neck of his guitar broke, several torn book covers -- but I suppose it could be worse. There is still a bit of price resistance going on that wasn't there a couple of years ago -- but when you get 135 people in the door, like I did yesterday, then you can watch the people who refuse to pay your price walk off with a shrug. I really can't do the price they're asking.

I still think it's a little odd that they won't spring for a 10.00 book that they are looking for. Even if they found it used, it would cost them 5.00 or more. And, I'm really not exaggerating when I say to them, "I carry this book new because I rarely see it used." Maybe it's the thrill of the hunt. But I unless they are extremely lucky, for most of these books they will have to visit a dozen stores before they find a copy, if that. Shrug. It's their time and money.

It's beginning to look like my fall and Christmas budget will allow me to buy a few thousand dollars worth of new books, over and above the maintenance budget. I'm looking forward to picking the best books I can find. I'm a sucker for beautiful covers; even though once they reach my store I don't have enough room to display them, dammit. I still haven't run out of classics, cult, and quirky books to buy....not really all the much guessing, yet. There always comes a point when you need more product, but you aren't sure what's good and what's not. But I'm not there yet with books. Which is fun.

Got to go to work early for my last POS session. (That just doesn't seem to be happening -- my own fault and seeds for a blog another day...)

Pick on someone your own size.

One of the reasons I started writing this blog about Pegasus Books, is that several years ago, I got caught up about reading the rise and fall of a new comic store called Riot Comics.

I knew from the first entries that the guy was going about it all wrong, but I was fascinated by his bullheadedness. It was a disaster waiting to happen. Generally, it's not all that difficult to get a strong sense of whether a store is going to make it or not make it.

Talking about it on a blog just makes it all that much clearer. (There's a lesson there, I suppose....)

He was very disdainful of all the other comic shops, which is common enough among fans. But of course, these shops have been existing in the real retail world and it seems foolish to dismiss everything they are doing.

The guy had a vision, to be sure, and he was entertaining and candid in his lead up to the store. He designed a very nice looking store.

And then fizzled.

Because he went about it all wrong.

In fact, the most fascinating aspect of all was watching him change his mind about each of the things he had made fun of about other stores. He brought in back issues. He had to buy some more functional fixtures. He found that having an "anime" club didn't do a thing for his anime sales. And so on.

He forgot he was a store, and not a 'model.' He forgot he needed lots of inventory. He narrowed his focus to such an extent there was simply no way he was going to make money.

He come into retail as a purist with a vision, and left disillusioned that people liked the look of his store, but didn't buy anything.

He seemed to spend most of his time designing business cards, and logo's, and signs, and t-shirts. Describing the colorful Ikea furniture, and showing off the 'art' on his walls.

But nuts and bolts, you need inventory and lots of it. Design doesn't pay the rent.

Anyway, I've found two new blogs about start-ups, and they seem equally misguided and bullheaded.

One is called Rocketbomber. He's gained some notoriety for writing about his book customers in a mocking way. But he's entertaining to read. He certainly has put a lot of thought into his store.

But his 'vision' is fundamentally flawed. The 'vision' of a Graphic Novel store. No comics, no back issues, no toys, no cards, no books even, except as they tangentially relate to graphic novels.

The question is -- why would you cut off all possible revenue streams but one?

I started with comics -- and it wasn't enough.

I added sports cards -- and it wasn't enough.

I added games -- and it wasn't enough.

I added card games -- and it wasn't enough.

I added toys -- and it wasn't enough.

I added graphic novels -- and it wasn't enough.

I added used books -- and it wasn't enough.

I added anime and manga -- and it wasn't enough.

I added new books -- and.......well, I can't add anymore. I've at my wit's end in space, time, energy and money.

In the midst of all this trying, I also handled Beanie Babies, and Pogs, and gave up any idea of being a 'purist.'

Pogs are about as widgety as it gets -- if I'm willing to sell Pogs, I'm willing to sell anything.

The other start-up is Greenlight Bookstore in Brooklyn, N.Y. They got the go ahead on June 1 or so. A couple of days ago, they had a party in their still untouched store-space, for their friends and neighbors. Had a great time sipping wine and tasting cheese.

The architect's drawings were on the wall.

WTF?

An architect? You hired an architect? It's an empty space! Slap a coat of paint, scrounge up some bookshelves, but some damn books and get rolling?

You sign a lease on June first and you're still staring off into space six weeks later?

No, they've 'designed' some bookshelves. Custom made bookshelves.....

Hey, if I'm an investor, I'd be looking to get my money out of this disaster. They are going to sink a ton of money into this store, and it will be a marvel to behold, and it will even generate a lot of sales at first.

But they will spend most of their career trying to dig themselves out of debt. And if they are as pie in the sky about their day to day operations as they are in their planning stage -- their career won't be long.

But they'll leave a beautiful corpse.

No more putting off summer....

Day to day. Yesterday, Sunday, was another 4 hour day. I had about 20% less people than Saturday, and made 6 times more money again.

The lesson, I think, is to close the store on the 4th of July from now on. It was a complete waste of time.

Back on track for my daily average.

I think my diagnosis is right -- tons of product + tons of foot-traffic = average sales.

I spent my maximum budget for July by the first of the month, or halfway through the time period allowed. Well, to be honest, I spent over the original maximum and then spent the revised maximum. (I boosted the budget when I saw the 'Summer Sale' from my wholesaler.)

But no harm done if I reach my daily average, and I can avoid another week of spending money. (I made it through last week.) That is one of the gold stars I give myself every day I don't spend money.

One thing I would like to avoid is spending any of the next month's budget before the period starts. No borrowing a few hundred. That's cheating, even if it evens out in the end. It puts the next month at a disadvantage and I'd like the find out if I can keep a steady flow coming in under budget.

If I take the "Sale" product out of the equation, I was under my original budget. And it's just hard to kick myself over getting material at half the original price. It doesn't always show up in the short-run results, but I think it definitely helps the bottom line in the long run.

Sorry, but this summer is pretty much going to be a horserace, and my attention will be on that.

Status report.

Approaching the 4th of July weekend, I still don't know what to expect.

Usually by now, we would have seen an upsurge in tourist business. I don't think we've really seen it.

Pegasus Books is on track to my middle-case scenario, mostly because I was on track earlier in the month, and it has pretty much stayed there. Flat. Usually I would have seen a bit of a boost by now, what with the kids being out of school for over two weeks. (Not so much because of kids, but because people spring for vacation....)

Meanwhile, however, I'm pretty astounded by the foot-traffic count. I can see averaging 100 people a day in the door for the July and August period. When I last did customer counts a few years back, it was probably a third less (or more) than that. I attribute that to growth of retail around my store.

The books on the sidewalk are probably bringing in 10 or 20 extra people a day. I may only make a dollar or two off them, but I think it's really helped my book sales. I'm constantly getting the remark, "I didn't know you had books."

The biggest thing, the thing I'm most proud of, is the broad reach of the store. No one product is really carrying us now. All 8 product lines are producing. (Well, maybe not so much anime...) It makes the store very stable. Many more of the sales are to the over-twenty crowd, probably something like 90%, nowadays. Again, a relatively more predictable age-group than the old teenager/nerd/collector axis that the store used to be.

I get tons of people who once never would've stepped foot into my store actually being intrigued. "An interesting mix," the people who don't buy will say. "I love your selection," the people who do buy say.

My budget?

Well, um, you know.......err........I, ah,.......

Don't ask.

Actually, I haven't Quite Tipped Over yet, but I have used every bit of cushion I had, and the real summer hasn't really begun. I wouldn't fall into the red unless I was to fall back below my Jan and Feb levels, which isn't going to happen. That would be like getting snow in June, ....no, wait......

Anyway, I'm still optimistic. As opposed to having a certainty earlier in the summer if I'd just stuck to my budget better.

On the other hand, the store is and continues to be fully stocked. My reserves are untouched. I've actually turned a good profit in the first half of the year which almost never happens. (I spent years falling slowing into the red -- like a stretched rubber band -- from January through June, and then pulling back into the black in summer, then falling into the red in Sept. through Nov., then pulling ahead again at Christmas.) So I've managed to flip that around. Now, instead of having to constantly catch up, I have a cushion for the slow times. Which is a double improvement -- first I had to catch up, and then I had to pull ahead.

My other goal is to get through the rest of the summer without any conflict with customers. That'll be something like 6,000 people I'll be dealing with, all of whom I need to handle well, no matter what they do. Even one tenth of one percent of problems, would be too much. It's within my capacity, especially if I make it a goal.
I'm getting better at it. When I first started working everyday, I wasn't quite ready to handle it, I think. As the spring has progressed I've gotten a bit better at figuring out customer behavior; so what I want to do is refine that to a 100% success rate. It'll be a day to day thing. (Either allowing certain things to happen, or being the most diplomatic I can be.)

I'm going to just focus on the store for two months. Not worry about anything else. Just go to the store, and if I crash on the couch at night, so be it...

Terrific, (insert sarcasm.)

After a terrifically busy first six days of the month, I had a terrifically crappy next 6 days of the month (literally dropped in half in sales), for a terrifically average 12 day total. Still on track for my 'middle' case scenario, but can't help but be a little disappointed.

Blaming weather is lame -- weather always happens. Still, the last few days have been pretty barren once the storms started. Looking at the forecast, seems these storms are still a'comin'.

Oh, well. I've become reconciled to summer business not really starting until the second half of June. They keep the kids in school until pretty late, followed by what I think of as a transition week, where schedules change, camps get started, activities are begun, kids are traded amongst the families.

So, with any luck, the weather will turn more summery just as the new routines are established.

Meanwhile, I've apologized to my UPS guy for the huge loads of products that will be coming in. Told him he might want to take his vacation. I'll be busy for the next few weeks just trying to make room for everything. It's lots of fun -- kind of like a birthday party -- opening up the boxes and seeing what I got.

Then I'll be into July. Like I aways say about Christmas, they haven't yet canceled it. Nor have they ever canceled summer. There will be an increase in business, even if it's down from last year.

I can't help my optimistic streak. I always think the worst is over, that we're going to turn the corner, we're on our way. But reality and logic tell me different. I'm sticking to my prediction that -- even when the rest of the country starts to recover -- Bend is going to be stuck for a couple more years.

Hugs and....yawn.....budgeting.

I have a little trick I pull, which is kind of fun. What usually triggers it is when a Dad or Mom or Granddad or Grandma or Uncle has finished buying something for a younger kid, and prompts, "Be sure and thank the Man."

To which, I always respond. "Thank you. But really, you should thank your Mom (or Dad or....). In fact, why don't you give her a big hug!"

Never fails to elicit a warm hug, and big smiles all around. It's fun to see.

(I'm probably just reinforcing the money=love equation, but it still feels good.)

**********

It's beginning to sink in what a change this new budget is going to be, for the next 28 weeks, or so.

I've gotten in the habit of constantly looking for opportunities, for experimenting, for tinkering with the mix. If I've seen a really good deal, I've jumped on it, even if it stretched the budget.

Now?

I want to maintain existing inventory. Turn profits into cash instead of more product. The store is full. It is stocked in every category. I want to maintain this level for the time being, and continue to replace everything that I consider to be 'evergreen' but let everything else sell out.

If I do that, I'll still have a constantly changing product mix, but it will be more replacement than addition.

The budget is sufficient to keep the store at a high level-- but only if I don't divert some of it into a sudden impulse buy.

If you've seen my store, you know it is time.

I know it is time.

My impulses haven't quit been retrained yet. You saw how sweet temptation came at me last week, with the "Appreciation Sale" from Diamond. I managed to restrained myself to ordering just the stuff I was going to order anyway...

It is very much like dieting; in fact I often combine the two, but not this time. This time it's all about the budget.

I'm going to try to turn my idle hands into other necessary activities. Spent a couple of days last week filing comics, for which I'd fallen behind. I have to learn my new POS computer, and enter my inventory. Everything always needs a good dusting and cleaning....

About as fun as listening to someone list their diet, but there it is. It's what I need to do.

**********

Budget game, continued. Wonky.

The following entry, (after the *****'s below), was written on Saturday. After Sunday, it became a moot point. I'm not doing any discount orders until the 19th of this month, at the earliest, and only if I reach a very high level of sales.

I was really steaming along in the first 6 days of the month, 25% higher than projections, then had a lousy day yesterday. One of those days I wish I could've stayed home. Sundays are so unpredictable. I can do a couple of small days, and then suddenly have a huge day. I just never know.

***********************

The way it's working out, I can't make anymore "Appreciation Sale" orders until Tuesday at the earliest. So that gives me a few days to see if the really good days I've been having continue.

I can't order from most of my suppliers for July until my credit card turns over sometime next week, so again, I have enough time to gather information and make allocations. If I come up short over the next few days, I may make the "Sale" order on the 19th, but only if I am significantly above projections.

I joked about finding a loophole in the budget, but it was always there, if not expressed. The reason is, the total retail of my orders are going to be below what I need to get to projected sales. That is, my markup from the product ordered falls about 20% short. I'm depending on the increased margins from 'sale' product and the usual summer diversity. (Stuff that doesn't sell most of the year, sells at Summer and Christmas because it's exposed to more outsiders....stuff that doesn't have to be, or can't be, replaced -- thus giving me a 100% profit margin.)

But it was always going to be a tight fit. And if sales were significantly higher than projected, I knew that my budget wouldn't be sufficient. So I made a deal with myself that I would spend half of the excess on the budget, thus keeping the same margins. That extra would be applied to the following month.

Where I may weasel out would be to use the full amount of the excess on product; which would leave me with about the same overall profits I originally planned. And to spend it within the same month, as long as I'm pretty certain I'm going to get to the overage.

I know, it's confusing. Without using real numbers, it's hard to explain. It may be a little clearer with made up, proportional numbers:

Say my margin is 50%.

Say my sales projection is a 10.

Say I'm ordering at a 4.

Obviously, double 4 doesn't get us to 10.

But it does if a significant proportion of the total is inventory that doesn't have to be replaced, or that was purchased at higher than 50% margins.

I think I can do that.

The problem increases, however, if I sell at over the 10 level, say a 12. Unless I take at least 1 of those points and apply it to my budget. So the 4 becomes a 5.

Or, as I'm planning, spending the entire excess, thus the 4 becomes a 6. Thus maintaining both margins and profits. Actually, I make the margin a more realistic 50% again, and still end up with an extra point. If I could pull that off, I'd make more profit, and yet have even more product at the end.

Does that make any sense?

But I'm somewhat gambling that the current sales will continue at this pace. That the 12 actually becomes a 12, instead of a 10. Because if I spend a 6, and it comes in at 10, I've wiped out all profits.

So the trick will be to delay as long as possible to get a good read, and yet not so long as to miss the opportunity of the 'Appreciation Sale."

Chances are good. After all, Summer business doesn't really start until the second half of the month. Normally I'd be expecting an increase, not a drop, but if we can even maintain the current sales it's good.

***********

O.K. I think I really need to use real numbers here, even if they aren't my actual numbers. (Real/fake numbers? Fake/real numbers?) If I was writing this for publication, I'd probably delete the above "proportional" example, and substitute the example below. But, hey, if you're with me this far, you're a glutton for punishment. I know MY eyes would glaze over.....

Examples, we'll call them.

Case study examples.....(Note: I may have a few math errors, here. As my C.O.C.C. business adviser said, I have a "primitive sophistication" when it comes to numbers.)

So, for the sake of illustration, let's say that my sales projection is $10,000.00. I want to make clear, my sales are much higher than that or I wouldn't be surviving in downtown Bend, but 10,000.00 is a nice round number.

Through the course of the year, I strive mightily to keep my profit margins at 40%. That is, for every 10.00 worth of product, 6.00 is Cost of Goods (C.O.G's) and 4.00 is gross profit.

40% pays my overhead, plus a small profit.

Most of my buying is at about 45% to 50% margins, meaning that 5% to 10% is added to inventory, wasted, discounted, or destroyed.

My goal this summer was to raise my operational margin to 60%. I was going to do this by trying to maintain evergreen inventory, selling off non-evergreen inventory, and buying as much viable discounted product as possible.

Mostly, to be blunt, I was going to do this by sticking strictly to a 40% budget. I was going to spend 40% of what I considered a very conservative projection.

So, let's say that projection is 10,000.00.

That gives me 4,000.00 to spend on C.O.G's. Like I said, I'm hoping to make the sales level I want through turning 1,000.00 of that 4,000.00 into 4 times the product.

3,000.00 at 50% = 6,000.00 in sales. 1,000.00 at 75% = 4,000.00 in sales. Total 10,000.00 in sales.

If I do 12,000.00 in sales, my spending won't be sufficient to keep up the inventory. Therefore, I intended to spend half 1,000.00, to keep it up. Or 1,500.00 if I do 13,000.00 in sales, and so on.

But if I spend the full amount of the extra, say the 2,000.00 extra at the 12,000.00 projection, and I spend it all on legitimate discounted product, I can turn that 2,000.00 into 8,000.00 in inventory, which actually increasing the likelihood that I'll hit the higher projections and actually increases the inventory at the store, hopefully helping out the next months.

But...it's a gamble to do it before the fact.

My dilemma, as usual, is that the deals are available now, not later.

For me to take the chance of waiting for the 19th (much of the product will be gone) and to set such a high standard, is showing great discipline on my part. At least, compared to my past behavior.

It really, really hurts to let it pass. But there it is. Now is the time to stick to my guns.

Two new stores downtown.

Seemingly overnight, a couple new businesses are situating within a hundred yards of my store.

After watching UP, (the movie made me tear up twice, and had me belly laughing at the Alpha Dog's voice) Sunday night, I popped my head in the door where they were repainting the Treefort space. If I got this right, it's a spin off of Angel Kisses, and will be called Honey, subtitled A Better Alteration. Basically, an alterations and clothing store.

They asked me, "How's the foot traffic?" Which seems to me the right question. I told them I thought it was as good as any place in town.

While I was talking to the Honey people, I looked over and saw Azura Studio, on Bond next to Luxe, a new salon. I mean, it seems to have popped up overnight.

Pretty amazing that people just keepa comin'.

I see this as a good thing for my store. My lease is done, so any downturn won't help in negotiations -- which would've been a pretty stupid thing to wish for in any event.

Empty spaces aren't healthy, but most are being leased before the old stores even leave. When the Oxford Hotel opens, I believe we're going to have a great flow of foot traffic.

Except for the spaces where the Olive store and the old location to LuLu's, most of my street has filled up. Wonder what will go into the Luxe space? In my daydreams, I win the lottery, and turn it into the showspace bookstore.

Even in the midst of a slowdown, I seemed to have lucked out in my location. The neighborhood around it has changed constantly for the better.

I've included the Comings and Goings list, again. The Comings list is started to get closer in size to the Goings list, so a kind of equilibrium is taking place.

The dates are turning out a little strange, because I include them when I hear confirmation of their coming or going, not when they actually come or go (because I can't be sure I'll catch that.) So we have Comings like High Desert Gallery, which won't actually open until the Oxford Hotel opens, and so on.

Still, the dates are going to prove really useful information in the long run, to someone. Seems no one really keeps this kind of information.

P.S. Someone mentioned Periwinkle closing. To be honest, I didn't know they were still around. Does anyone know about this?

NEW BUSINESS'S DOWNTOWN

Altera Real Estate 6/9/09
Honey 6/7/09
Azura Studio 6/7/09
Mary Jane's 6/1/09
c.c.McKenzie 6/1/09
Velvet 5/28/09
Recession Pies 4/11/09
Bella Moda 3/25/09
High Desert Gallery (Bend) 3/25/09
Joolz
Zydeco
900 Wall
Great Outdoor Store
Luxe Home Interiors
Powell's Candy
Dudley's Used Books and Coffee
Goldsmith
Game Domain
Subway Sandwiches
Bend Burger Company
Showcase Hats
Pita Pit
Happy Nails



BUSINESS'S LEAVING

Micheal Cassidy Gallery 6/15/09
Luxe Home Interiors 6/4/09
Treefort 5/8/09
Blue 5/2/09
Volcano Tasting Room 4/28/09
Habit 4/16/09
Mountain Comfort 4/14/09
Tetherow Property 4/11/09
Blue Moon Marketplace 3/25/09
Plenty 3/25/09
Downtown Doggie 3/25/09
Santee Alley
Bistro Corlise
Made in Hawaii
EnVogue
Stewart Weinmann (leather)
Kebanu Gallery
Pella Doors and Windows
Olive company
Pink Frog
Little Italy
Deep
Merenda's
Volo
Pomegranate (downtown branch)
Norwalk
Pronghorn Real Estate office.
Speedshop Deli
Paper Place
Bluefish Bistro

I'm Tevya?

Fact is, I'm enjoying the store a lot, right now.

I never thought I was one of those people who would find the bright side in every situation they were in. I see it in Linda, I see it in my family. But not me. I mean, I enjoy reading the grumps more than the fatally optimistic, and like to think I'm a cold, hard businessman.

But reading this blog, I realize I'm like Tevya in Fiddler on the Roof, with his big plans that always get waylaid by life. A handy attribute for a small business owner, I guess. "What could possibly go wrong? I have this figured out this time! The Acme Co. assured me this contraption will work."

"Dear God, you made many, many poor people.
I realize, of course, that it's no shame to be poor.
But it's no great honor either!
So, what would have been so terrible if I had a small fortune?"


You are forewarned:

I thought when the year started that working every single day would wear me down. That it would become pure drudgery. If it got to be too much, I intended to hire a part-timer.

Instead, I'm feeling revived. I'm enjoying it. I feel an anticipation every morning about the store, wondering what the day will bring. (Every new store owner knows how this feels. And -- apparently -- every long-term store owner whose establishment is doing well...)

Here are some of the reasons I feel recharged:

1.) Part of the reason I'm enjoying the store so much, is because it's operating at such an high level. It's become very efficient, and cost effective, and I just love watching my long running plans come to fruition. There is also something pleasant about staying dry in the storm, about feeling strong in the disaster.

2.) I've actually been able to relax more than usual. I have a plan in place, I'm doing as well as I thought I'd do, and I need but show up every day and do my job.

3.) I'm a workaholic. That sense of virtuous industrious nose-to-the-grindstone working man feel. (I've got a new saying: even the stupidest businessman will learn something after 30 years....)

4.) I'm a bit of a loner, and like my time to myself. I don't have to confer or confab or explain or worry about anyone else. It's good to be be King. Duncan's Kingdom.

5.) I've learned to pace myself, to take care of myself. I'm pretty regular in my habits in every way. I'm completely boring.

6.) Fact is, I really didn't make very good use of the time off when I did have time off..

Except for the vacations. Those 3 and 4 day trips were lots of fun, but you know what? Our little trip to Ontario felt pretty much the same, and it was only a day and a half. Just getting out of town felt good.

I may just push through to the end of the year. I don't think I'll go much beyond that, because I do think it's important to get away once in a while, not just for relaxation, but also because of the danger of losing perspective.

************************************************************

Speaking of losing perspective.

Recently, I've had three or four guys come in all concerned about me, because they heard that the competition was taking all my game sales away.

I looked at the first two in shock. "Look around, dudes. Do I look like I'm having trouble?"

But when a couple of more guys came in asking the same question, it became too much of a trend to ignore.

I think this is one of those cases where I've probably been too honest for my own good. Especially because I didn't bother to put things into context.

That 47% drop in Magic sales from last year sounds very dramatic. But to put it into perspective, even if I'd had those sales, it would've added all of 6% to my total sales. Even that isn't really getting to the crux of the matter. By applying the money I saved on cost of goods to some other product, chances are I made the money somewhere else.

Also, when I compare my situation with my compadre in Ashland, who is even more of a game store than I am, he says Magic sales are down -- period. Nothing to do with competition.

I think it's O.K. for me to be forthright, but I probably also need to explain the context.

My fault for not making it clear.

Perhaps people are so used to business's not admitting to any weakness, that they inflate the importance of any admission. Whereas I can see it as a strength.

I've enjoyed being able to say to my customers, "We're doing fine. We're doing really well, actually. Sales are down a bit, but our store is probably more solid than it's ever been."

And to say it without a hitch in my voice, with obvious authenticity, which I think people can pick up. Harder to judge tone and body language on a blog, I guess.

If I ever do go through a bad stretch, I'll probably have to quit blogging, because I don't think I could help myself -- I'd have to tell everyone. But even then, it wouldn't necessarily mean the worse. I've had some dire times over the years, but I was always going to hang in. Whereas, I can't tell you the number of businesses I've heard tell me they're doing "Great!" only to see them fold shortly after.

My candidness is more in the nature of airing the simple ups and downs which all businesses endure, but very few admit to.

*******************************************************

The Budget Game.

O.K. You have to trust me on this.

I had already thought of this loophole in the Budget Game. A sort of "Get out of Jail Free" card.

No, really.

I know it looks like I'm just making up the rules as I go along, but I knew going into summer that it was going to be difficult to keep the store stocked if sales were too much higher than my projections.

I had decided that I would spend half of the total of any sales above a certain amount.

Come back here!

I'm not joking.

I really had already thought of this. Trust me!

O.K. So maybe I was thinking I'd apply this money at the beginning of the following month, but what if it's completely obvious I'm going to overshoot my projections, and the sale I want to take advantage of is going to be out of date by then?

Hmmmm? What then?

I'm running 20% above my best-case scenario. So...it's only 5 days so far, but it shows every indication of being a new norm. But....I've been fooled before.

If I take advantage of the "Appreciation Sale," and we have a sudden dropoff later in the month, will I be able to hold back ordering the Evergreens? And if I do, won't that defeat the purpose?

Or, can I make the case that the profits are going to be enough to divert a portion of them to making the store stronger?

What you're seeing here, my friends, it the constant dilemma I feel between making the store as strong as possible, and actually pulling cash out of the place. It's also a matter of feeling engaged in the business, and enjoying it. (See above.) But I also very much enjoy the cash reserve in the bank.....

I'm fighting it. I'm fighting it.

But, you know....... One little puff wouldn't hurt.....

Budget Game, turning the first card.

So I wake up this morning, and go to the Diamond site, where they're announcing a waving of the 3% reorder fee for the next two weeks in "appreciation" for our "patience" over the warehouse move.

I guess it's a good thing the never heard my cursing and stomping, or they wouldn't have used the word "patience." Then again, maybe they did.

Anyway, no 3% reorder fee wavier. O.K. That's nice. Nevermind that not one other supplier I deal with charges a 'reorder fee.' Nevermind that it would seem to be counter-productive. Nevermind that most of my suppliers actually pay shipping, too.

At least they're making the gesture.

Oh, look. They're having an "Appreciation Sale." I'm sure it's all junk which I can safely ignore. I click (turn the first card)....

DAMN YOU DIAMOND!!!!

So...first off, they have all the Lone Wolf and Cub graphic novels at a discount. I used to carry the full run of Lone Wolf and Cub, and I'm currently sold out.

What to do, what to do.....

Do you see now? Do you see the temptation?

I look further down the list, and Marvel has the Ultimate line on sale. The wife of one of my best customers has just discovered the Ultimate Spider-man graphic novels. "I had no idea they were this good," she says. "I've wasted time not reading these!"
-- I love it when that happens. -- She's bought the first 3 books, and there is every chance she'll want the rest.

And there they all are, all for sale at a discount....

What do I do? Are you getting how hard this is?

Upshot:

I ordered everything on the list that I would've bought at full price, or was planning to buy at full price. So, just expended another 11 points.

Later....I'm going to go through the list and order the stuff that I wasn't worried about it selling out right away. Last summer's sale, I missed, because by the time I was ready all the good stuff was gone....

I think this Budget Game is going to be every bit as hard as I expected.