Month: November 2014

Green Business: Federal Tax Incentives Impact Your Environment and Your Bottom Line

Posted onAuthoralice@specialtystoreservices.com

137590-Woman-recyclingThe concept of ‘going green’ has become more than a tagline. For businesses, there are some excellent advantages for choosing ‘eco-friendly’ as a method for cost reduction, while also reducing a company’s carbon footprint. The American Recovery and Reinvestment Act of 2009 was signed by President Obama and allows both residential and businesses to take specific energy tax benefits. Depending upon which choices you make, there can be long-term bottom line savings and escalation of the company reputation as a green business.

There is a distinct benefit to a tax credit as opposed to a deduction. A deduction reduces the total amount that is taxed, while a tax credit is a direct dollar-for-dollar reduction on the tax bill itself. This is not to be confused with Section 179 deductions, which typically have a percentage amount allowed based on the type of business and includes a per-year cap. Section 179 deductions have benefited business, but the amount available for reduction has been reduced year after year.

As a company makes decisions on the types of changes they will be instituting to become a green business, the tax credit dollars are becoming one of the largest incentives and are an encouragement for companies to select eco-friendly options. Many states are offering tax incentives, as well, so as to escalate the value of the investment choice.

Businesses have a unique opportunity versus residential, because of higher budgets and renewable energy grants available for businesses (Section 1104). Tax credit decisions can encompass a variety of possible changes and can include:

  • building structure;
  • renewable and/or sustainable energy sources;
  • replacing standard company vehicles with hybrid, electric-powered vehicles;
  • the use of alternative fuels.

There have been some changes in the requirements that now allow a 50% credit and an increase to $50,000 for the per-location limit.

Renewable energy selections can include a variety of solar, solar-thermal, biomass, wind, landfill gas, fuel cells, geothermal heat, solar-hybrid lighting, municipal solid waste, hydrokinetic power, tidal and wave energy, anaerobic digestion, ocean thermal, photovoltaics, micro turbines, fuel cells that use renewable energy, and geothermal direct use. When thinking about renewable and sustainable energy options, businesses will have the tax credit and a savings in overall energy cost expenditures that will be carried year over year.

If you are considering changing your business structure to accommodate ‘green building,’ you will need to work with qualified and licensed contractors. The United States government has strict guidelines and requirements with which a contractor will be familiar. To qualify for a LEED certification, 75% of the square footage of the commercial building will need to be compliant. The laws governing ‘green construction’ may also be different from state-to-state, and this is where your contractor’s knowledge will be of best use.

Making a ‘green choice’ is an excellent way to receive tax credits, but there is another uptick that the marketing team will love. Representing your company as an ecologically conscious organization is an attractive position for the reputation of the organization. Potential customers are now reviewing the businesses that they want to invest in, and a green certification is a competitive advantage.

While tax credits for smart ecological choices in business have stayed, it is important for any company to confirm the up-to-date tax requirements with a tax professional before making green business decisions.

To get you started, we recommend you check out the following information:

Leveraging Your Website Data For In-Store Merchandising

Posted onAuthoralice@specialtystoreservices.com

Beautiful woman smiling with her digital tablet and shopping bagsIn today’s net market, everyone has a website. For those that have a brick and mortar store or are a pure-play e-commerce company, a website can offer a plethora of information for an owner to ensure that inventory is available for sale. When used properly, a website can also be an asset upon which your customers and potential clients can rely.

Business analytics (BA) is a term that is being used quite extensively. Also known as business intelligence, BA is the ability to examine and analyze the information or data from a transaction list to determine future actions. The transactions can be tracked via a website and/or a point of sale. You don’t have to be a big corporation to accomplish business analytics, you just have to have access to (and be able to read and make use of) the technology at hand to see the signs.

There are a number of factors you need to consider for a product-centric website that can complement in-store merchandizing.

  1. You need to know what consumers are looking for and when.
  2. You need to have the items in stock when they want them.
  3. You need to be able to use the data from your website to anticipate purchasing trends.
  4. You need to stay up on overall net purchasing trends for your vertical.

The first move a savvy web owner makes is installing Google Analytics. This offers an opportunity to examine when consumers are viewing your site, what pages they are landing on, and how long they are staying on them. Your traffic patterns will give a bird’s eye view for popularity, elevation in searches and can allow you to make any adjustments to the site for increased traffic.

Most website platforms have a dashboard that is a goldmine of information. You probably have a list of the top 10 (or 20) search words and possibly the most viewed pages. Each of these areas are a priority to help you to understand what consumers are looking for and allows you to have the products in stock. Take heed of items that may be special or seasonal items.

Another recommendation is to use a product ordering technology. These include smart scanners that:

  • keep track of your inventory
  • automatically link to the manufacturer
  • keep track of the timing and amount of your past orders
  • prompt you when there are additional ‘deals’ available

Smart scanners can also link to your website to update inventory and set alert flags for products that are not available or are no longer offered, as well as those with a status change to available.

Depending upon what products you carry within your store, you will want to examine popular websites from your competition, social media search topics and the hot trending searches as they relate. Combining the technology tools for your own business analytics with the results from the Internet will give you a gauge for what will need to be on hand and in stock at the store.

Making use of your website data and the Internet to ensure the right products are available and the marketing message displayed can be an easy process, once you have all of the tools and steps in motion.

Addressing the Challenge of Holiday Demand versus In-Stock Merchandise

Posted onAuthoralice@specialtystoreservices.com

holidayFor most retailers, monthly volume doubles or even triples during the holiday season. It also seems that every year, retailers are scrambling to make sure they have the items consumers want in stock. This is very apparent in the toy industry when every child wants that ‘special’ toy and hardly anyone is carrying it. There are a few guidelines retailers can use to help to ensure shelves are stocked during the oft-chaotic holiday season.

Preparing for high volume purchasing times, such as the holidays, requires a bit of analytics and a touch of luck. Every retailer should begin preparing at least eight months before the season. This may sound like it is too far ahead, but if you look at when the trade shows are held, you’ll see preparation is the key to success. If you have a trade show in your particular vertical, use some of their analytics expertise. In many cases, they already have some of the data that demonstrates the increase of specific product purchases in your industry.

A second rule of thumb is to use the Internet analytics to see what which products you carry are trending. What are some of the latest upgrades to newer technologies or the latest craze in flavor or color? These will be major factors for decisions in consumer purchases. Some items may have been experiencing a slow increase in popularity, while others will probably be favorites for just one season.

If you have a website that lists products, make use of your platform analytics to see what the most popular items were last year, as well as those that have maintained high volume over time. Remember: Gift buying is on everyone’s mind, but consumers will also be purchasing mainstay items they would normally buy. Use the search statistics from your website to view what consumers were searching for on your site and do an in-depth review of what some of your top competitors are carrying.

Preliminary review should be eight months before the season. Purchase decisions should be at least six months prior, with a final review and additions at the three-month mark. You will also want to contact your manufacturers to get confirmation on potential shipping delays that are almost always attributable to the holiday. If there are any items that have had a history of being out of stock, order these at the six-month review. Communication with your vendors will be most important three months prior to the onset of seasonal buying.

If your industry involves merchandise that has a limited shelf life, such as food, you will need to work with your manufacturer to place orders at least six months in advance, with guaranteed delivery one month before the launch of the holiday.

Once you have a majority of your product decisions and orders, begin focusing on your marketing. Work with all of the people involved in your in-store and website marketing to craft the messages, signage and special discount deals you are offering. This is the time you can get ahead of your competition through special incentives, such as free (or flat rate) shipping, gift wrapping for in-store and complimentary items for purchases over a certain amount. Typically BOGO’s do not do well during the season as consumers are usually buying gifts for others and do not need two of an item.

With just a few easy steps, a bit of planning, and a lot of observation, every retailer can establish a routine to reduce the stress of the season while helping to increase margins.