Tag: revenue

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Optimize Your Website: Part Two

Website design

Last week we established website goals—including informing your customers and increasing revenue—as well as where to start. During part two of “Optimize Your Website” we’ll cover how to accomplish those two goals.

Inform your Customers

Customers come to your website for information. Feature what makes your business unique and what you do best. Further, on each page, ask yourself “What do I want my customer to do after visiting this page?”

That’s when your call-to-action comes in. Each page on your site should include a clear and concise call to action to encourage your customers to stay engaged. This can be as simple as: Shop Now, View All, or Sign Up.

Increase Revenue with Website Design

There are multiple ways your website can help you increase revenue. The first is through your website’s design.

The first piece of advice is to keep it simple. First, this makes information easier to find. Second, a simple website is easier to maintain. If a customer has to click on your site more than three times to find information they need, your design needs to be simpler.

Another way to have simple design is through maintaining branding. Colors should be similar to your brand, and images should be clear and clutter-free as well.

Other design pieces to keep in mind is your navigation. Navigation tabs should be organized from most-to-least important.

Another way to increase revenue is through conversation. Integrated communication tools help you answer Frequently Asked Questions at any time of the day.

And of course, your website should be responsive, meaning it should accommodate every device including phones, tablets, and computers.

Last but not least, include a search bar so information is even easier for the end user to access.

Inspiration for this post came from “Increase Your Website’s Value” by Brad Tanner of Rain Retail Software and was published in the April 2022 issue of American Quilt Retailer.

AQR Academy

One last thing before we go! The May AQR Academy workshop is right around the corner on Wednesday, May 4 from 11:30 a.m. to 1:00 p.m. CST. The event will be hosted by Beth Montpas, Lifestyle Coach, and the topic is Goal Setting – Setting Yourself Up for Success where she’ll cover how to both set your goals up and make them happen.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Know Your Break-Even Point

break-even point

Knowing your break-even point helps you to plan for the long-term. Plus, the more data you have, the better you can run your business. Check out the below to find out just how much it costs for you to keep your doors open.

Determining your break-even point

A break-even point tells how many sales you need to cover expenses (or where it breaks even for a given period). By knowing your break-even point, you can determine how viable your quilt shop is, and if it’s getting weaker or stronger.

The equation for calculating your break-even point (or really when your revenue equals $0 profit) is:

  • Revenue = Cost of inventory (goods) sold + Other expenses + Profit
  • For the equation:
    • Revenue = Sale price per unit x Number of units sold.
    • Cost of inventory (goods) sold = Cost of inventory per unit x Number of units sold (keywords are inventory and sold. Not what’s sitting on your shelves).
    • Other expenses = Sum of all non-variable expenses (or rent, utilities, payroll, insurance, taxes, etc.)

For break-even purposes, profit is $0. If you want a margin of safety, simply chose the number you want as a net and plug that into the equation.

Determining daily business costs

Once you figure out what your break-even point is, you can determine how much it costs to operate per day.

Most quilt shops separate this into two categories: fixed expenses per day and variable expenses per day. Some of these expenses include payroll, rent, utilities, and more. Knowing all of these equations will help you make smarter buying and selling decisions.

Inspiration for this post came from “Know Your Break-Even Point” by Jacob Curtis published in the June 2021 issue of American Quilt Retailer.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.