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Entrepreneur: Lynda Chapman
Company: FACTS
Business type: Merchandising, promotions and training
Turnover: $2M - $10M
Head office: North Melbourne, Victoria
Contact details: +61 3 9328 8377
The FACTS Story
“No increase in sales? Then don’t pay me.” That is what Lynda Chapman, 33, tells her clients. Chapman, who spent 11 years as a cosmetics and fragrance buyer for Target, started her own merchandising, promotions and training business called FACTS three years ago.
Chapman says she has set up a business that aims to fix the problems which plague manufacturers and distributors attempting to sell products through department stores, supermarkets and retail stores.
She warns that the reduction in floor staff over the last few years means that products are no longer looked after in a satisfactory manner. For example, when products are shoplifted or damaged, it is not registered through the computer system. The stock is therefore not reordered. Floor staff often do not notice. Chapman says: “You may think there are six units on the shelf when there are only two or in fact none at all on sale.”
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Key learning points:
- Packaging - Make sure that the boxes which arrive at a store are easily identifiable. A lot of people use recycled boxes and do not put the name of the company or the product on the outside. Second-hand cartons may be cheaper to use but they may sit in reserve for an extended period of time.
- Good labelling - When boxes arrive at the store they may get lost or go to the wrong section and not be located for a month. All boxes should have distinct markings. This should include a 1800 number, the sending company’s name, the products in the box, and the designation of the box.
- Product placement - Make sure your “planning gram” (a guide to the layout of the products in the store) is easy to use and has been approved by head office and the store staff. That way you avoid making the floor staff cranky.
- Sales environment - Understand the way products are purchased and the different ordering systems that operate, particularly when product is ordered through head office. Make sure bar codes work and that price tickets are in place and are scannable. Develop good relationships with store staff so that they may improve product location in the store.
- Product presentation - Ensure that someone is checking that products are in stock and on show. To present products to their best advantage, they must look clean and tidy, and be in the right place at the right time. Do not rely on the staff in the store to do this.
- Educating merchandisers - Use a merchandising team for regular in-store maintenance. Make sure the merchandiser is a strategic force in your business. They must understand the intricate processes of each store, and your products, and your goals.
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