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What the Law Says About Retailers Who Say They’re Selling at ‘Wholesale’ Prices and More Questions for March

Unless it’s true, it might be a criminal offense in your state.

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How can I improve the open rates on my email marketing bulletins?

A few years ago, MailChimp.com did a survey of some 40 million promotional emails and found that those with the highest open rates (from 67 to an amazing 80 percent) were the ones that were — surprise, surprise — the least promotional. Typically, they had subject lines that told the recipient what was inside (they didn’t confuse e-bulletins with promotions or vice versa), they used the company’s name in the subject line, and had straightforward subject lines — they weren’t too “salesy” or pushy (this also helps you avoid spam trigger words). Most email providers will allow you to write subject lines of up to 60 characters but you should try to keep it short and to the point, between 30 and 40 characters and no more than five to eight words.

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Constant Contact, another service provider, recommends you state a clear benefit to opening the email. Email messages that have an “exclusive” offer in the subject line, such as “Private event” or “For select customers only,” can generate an additional 24 percent open rate, according to its studies. Of course, you don’t want to be too dry. Your content should be as friendly as possible. Open with the recipient’s name, use a tone that reflects your personality and end with your signature line. Most important, give them something they want. If they’ve opted in and you are responding to their interests, you too might be able to get super-high open rates.

One of the questions I always get, and hate, is “Do you have to charge sales tax?” How should I answer this?

Here’s a simple way to defuse this sneaky discount ploy. Look at the customer directly, smile, and say, “Actually, I don’t charge sales tax. I collect it.” They’ll get the point. And while everybody wants the best deal possible, they’ll probably trust you more for it. Because if you’d cheat on your taxes, why should a customer or patient trust you to take care of their vision?

My store seems like a reality TV show: unnecessary drama. Addressing it only seems to add fuel to the fire. Is there a way to bring it under control?

You’re not alone. After profitability concerns, this is the No. 1 headache of business owners, says business coach Lauren Owen. Drama and discord create stress and hurt productivity. There is no quick fix but there are a number of things you can do, starting with regular meetings. “Scheduled, well-run meetings are essential to clear communication and team building and addressing potential conflicts,” says Owen, adding that such meetings are conspicuously absent at stores with drama issues.

Other steps include confronting your drama queens, addressing your underperformers (there is often a hidden cost in the resentment they cause), performing a cost-benefit analysis on your high performance/maintenance employees (sometimes they just suck all the energy out of a store), and finally taking a good look at yourself. “Some people actually like drama, despite what they say,” Owen says. “If you were really honest with yourself you might understand that the drama is satisfying some need of yours. Attention? Power? Control? Do you avoid all conflict, even healthy conflict, at all costs?” And are you giving your staff a clear sense of purpose — that eyewear is about something much bigger than business?

My practice has never grown the way I had hoped … or hired for. To keep going, I feel we need to downsize. How can I do it without destroying staff morale?

Layoffs are tough. You can’t have high productivity without good morale, and you can’t have good morale unless people have confidence that the company has a future and that the business is going to treat them fairly if things get worse. Employees need to know that you respect and value their contributions and don’t just view them as a resource.

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Sometimes, however, you have no choice but to order layoffs. In that case, remember three rules.

1. Do them all at once. Dragging things out will destroy morale.
2. It’s better to cut too much than to cut too little.
3. Make sure all remaining employees understand that what you’re doing is saving their jobs.

Since launching in 2014, INVISION has won 21 international journalism awards for its publication and website. Contact INVISION's editors at editor@invisionmag.com.

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Ask INVISION

How to Get the Best Employees and More Questions for May

Plus, how to get that chatty, great employee to actually close the sale.

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What’s a good way to sell our company to prospective employees — particularly top salespeople?

Just about the most valuable skill a businessperson can have is the ability to recruit and retain good people and yes, it all starts with that job posting. “When the right people read your ad, their hearts will whisper, ‘These people are like me, and I am like them,’ says Roy H. Williams, author of the business bestseller The Wizard of Ads. Bullet point what the job entails, what kind of inventory they will be handling, and the benefits, but the core message should be about who you are as a company, your reputation and your goals. The best salespeople often don’t have a sales background so go easy on the requirements. Your message should be more about culture than qualifications.

Podcast: What the Heck is Marketing? And What Should ECPs Focus on to Attract New Clients?
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Podcast: What the Heck is Marketing? And What Should ECPs Focus on to Attract New Clients?

Podcast: More Ways to Motivate Your Own Eyecare Business Team
INVISION Podcast

Podcast: More Ways to Motivate Your Own Eyecare Business Team

Podcast: Why Can’t We All Just Get Along?
INVISION Podcast

Podcast: Why Can’t We All Just Get Along?

Is it legal for retailers to say they are selling at wholesale prices?

In short, no — unless they really are. Many states including Arkansas, Georgia, North Carolina, Kentucky, Texas, California, New York, and Michigan have strict laws prohibiting the use of the word “wholesale” in retail advertisements. In some states, this is a criminal offense, due to the word’s ability to mislead consumers. Basically, if you advertise you are selling at wholesale prices it must be “the real wholesale price.” Some states define this as the price paid for the item from the supplier. Other states and the federal government say the price must be lower than the average price retailers would pay in the area.

We have a small store that is growing quite nicely. In fact, juggling rosters to avoid paying overtime is increasingly becoming an issue. I understand it can be tricky, but can we just move several employees to salaried positions? No more messy rosters. No more overtime. Right?

Likely very wrong. This is a strategy that “has been used so often to avoid paying rightful overtime, that it is written into the law through the Fair Labor Standards Act,” says Scott Clark, a lawyer and founder of the HTC Group. Yes, there are salaried positions for which there are exemptions from overtime rules, but they tend to be “true” management roles and jobs that require a college degree or technical training. They must also pay more than a minimum of $455 per week, and the salary must be the same every week (so if your employee wants time off to see the doctor you still have to pay his full weekly salary — no more docking wages for hours not worked). If it seems that the government is uncharacteristically protective of lower-income workers in this instance, never fear, it really isn’t. On the contrary, the government is very particular about all the taxes and Social Security that get paid on overtime. We’d say a better approach is to view your employees as an asset who make you money, not as an expense. Invest in your employees to make them more efficient, and they’ll make you even more money. Or hire the staff you actually need.

Where can I get hold of a good employee evaluation form?

As you’ve no doubt discovered, there are scores you can download to use as a model or template. Some, like those from educational institutions, are really quite detailed and cover every possible aspect of a job, while others are very basic. Our only advice when it comes to employee evaluations is that you not spend too much time on the whole process. While you may want the paper trail to protect yourself against lawsuits from former employees, there’s a growing view that reviews don’t really achieve much. Mary Jenkins, a co-author of Abolishing Performance Appraisals: Why They Backfire and What to Do Instead, advocates designing a system in which employees can seek feedback from people they work with, then draw up a skills-development plan with their manager — or you.

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Ask INVISION

How to Attract Top Salespeople and More Questions for April

Also, how to structure their compensation to remain competitive.

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We have a very young-looking salesperson who worries people don’t take her seriously. We’ve styled her in planos but what more can we do to make her look more professional?

“Professionalism is really about projecting confidence,” says Anne Sowden, managing director of image consultancy Here’s Looking at You. “And confidence is reflected in clothing and body language. As a general guideline, dark colors — black, navy and charcoal — convey authority.

A jacket automatically makes someone appear more professional. Pair it with a light-colored blouse (conservative neckline), knee-length skirt and she’ll look professional but approachable. And ensure the clothing fits properly, is not wrinkled and she will feel comfortable in it.

“If you’re comfortable, you’ll automatically be more confident,” Sowden notes.

When it comes to greeting customers, remind her of Mom’s dictum: Stand up straight and don’t slouch. “This will indicate that confidence and approachability. Add to that eye contact and most importantly, a smile and she’ll make a dynamite first impression,” Sowden says.

I have an employee at my high-end eyewear store who makes $16 an hour and commission based on gross profit. She earns close to $60,000 a year but feels underpaid and that paying commission on gross profit is contrary to the industry standard. How can I convince her she has it pretty good?

She does indeed have it pretty good, says industry consultant Andrea Hill, owner of Hill Management Group, noting that her hourly rate is almost 50 percent higher than the average for retail sales people of $11.50 and even more than the average of $15 paid by very high-end luxury retailers.

As for the commission, Hill says you are very much on the right track and your employee will probably have to get used to it wherever she decides to work; “wise” businesses are increasingly moving away from a commission based on the retail price to a portion of the gross margin. “In this way, sales professionals are challenged to balance the need to get the highest price possible with the need to close the sale,” Hill says.

“When commissions are paid out on total sales only, then it becomes very easy for the salesperson to sacrifice profits for the easy close,” she says.

While exposure to such numbers should mollify your associate, what you really want to do is excite her about the potential of earning as much as $100,000 a year — which is what top luxury salespeople make — although that requires building a “strong book” of customers through active networking, clienteling and prospecting work.

Keep in mind, however, that even the most generous commission rate won’t help if you’re not on top of your game, meaning advertising intelligently, keeping up with changing retail trends, providing the right technology for how consumers today want to shop, and maintaining an exciting inventory that reflects current tastes, says Hill.

“If the retail business owner does not ensure that they are running a strong merchandising and marketing operation, then even the best sales person in the world will not be able to turn the promise of commission into actual earnings.”

I still can’t get my head around kelvins and color temperatures. Can you help?

It probably helps to think of the original theoretical model that underlies the index — that of a black metal radiator, whose color changes as it is heated, from black to orange to red to blue to white hot.

Similar to Celsius and Fahrenheit, the Kelvin scale marks different degrees of thermodynamic temperature, but it is the association with color change that makes it useful as a way to designate light bulbs.

Where it gets confusing is how at the lower end of the scale, from 2000K to 3000K, the light produced is called “warm white” and ranges from orange to yellow-white in appearance. Meanwhile, color temperatures further up the scale, between 3100K and 4500K, are referred to as “cool white” but the bulbs are emitting a brighter, hotter light.

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Ask INVISION

Finding the Best Tax Professional for You and More Questions for February

Getting a head start on what could be a volatile year, and more advice for February.

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2019 seems like it’s going to be a volatile year. What should we do to get ready?

Eight years of economic growth and cheap credit allowed many business owners to gaze far into the future and craft successful, long-term strategies, but it does seem those times are coming to an end as trade wars, rising interest rates, political turmoil, spooked financial markets and ongoing technological change cast a shadow over what otherwise is still a strong economy. In such a shifting, unstable environment where visibility is low, Donald Sull, a London Business School professor, recommends “active waiting.” Contemplate alternative techniques, explore likely scenarios and focus on general readiness. This is a time of threat but also opportunity. “Keep your vision fuzzy and your priorities clear,” Sull says. “Maintain a war chest and battle-ready troops. Know when to wait — and when to strike. When you grab an opportunity or move to crush a threat, amass all your resources behind the effort.” At the same time, continue making routine operational improvements such as cutting costs, strengthening distribution, and improving products and services. “Though mundane, these initiatives foster efficiency, which can position you to snatch a golden opportunity from rivals’ jaws,” Sull says. It all sounds rather dramatic, but then high drama surely awaits.

Podcast: What the Heck is Marketing? And What Should ECPs Focus on to Attract New Clients?
INVISION Podcast

Podcast: What the Heck is Marketing? And What Should ECPs Focus on to Attract New Clients?

Podcast: More Ways to Motivate Your Own Eyecare Business Team
INVISION Podcast

Podcast: More Ways to Motivate Your Own Eyecare Business Team

Podcast: Why Can’t We All Just Get Along?
INVISION Podcast

Podcast: Why Can’t We All Just Get Along?

The sales experts you quote often recommend role-playing exercises. But my sales staff always slinks away when I suggest them. How can I get them to play along?

That may be because the focus is negative, says sales trainer Dave Richardson. Make the role-playing positive and fun. First, play the role of the salesperson and let your salespeople critique you. Then, when it’s your turn to play the customer, instead of saying, “Here’s what you did wrong,” start off by telling the person what you felt they did well and what you would change if you had the opportunity. Always finish on a positive, encouraging note, Richardson says.

Our marketing team’s images were recently lifted and used by the vendor for their advertising without crediting us. When I contacted them, they said, “We’re sorry; it was the intern’s fault.” How should I handle this?

If it was “the intern’s fault,” who approved the final vendor layouts? But regardless of whose fault it is, you should get some compensation for the use of your images, says business management consultant Kate Peterson. The vendor would have paid for the images had they used any other marketing professional to create them, so they should have no issue with paying your in-house team. “I would suggest that the retailer assign a fair price (what she typically pays her team per image) and send an invoice directly to the head of the company with pics of their ads and an explanation. If applicable, tell them you will apply the amount of the invoice against an outstanding balance,” says Peterson. “The key here is to remain positive and confident, as opposed to challenging. Assume they are expecting to compensate, and communicate in a tone that expresses confidence in their interest in doing the right thing.”

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My business is only four years old and up until now I’ve done my own taxes but now I’d like to find a tax pro. Where do I find a good one?

Online directories such as CPAdirectory.com, Accountant-Finder.com and AccountantsWorld.com are a good place to start. Most will allow you to search by name, location and industry focus. The National Association of Tax Professionals also offers an online database of tax preparers, and the American Institute of CPAs has one for CPA firms. If you do contemplate hiring a tax preparer you found online, request referrals to past clients so you can ask about the quality of the service they received. A possibly better strategy is to ask people in the industry. This is because your ideal target should have some experience doing returns for vision-related businesses as every industry has its own rules and deduction options.

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