Category Archives: Retail

Challenge: Improving the buying process for retail

Retail

Customers buy what they can pick from the shop floor or online catalogue. Not what is “on its way from a warehouse” or gathering dust on our stockroom shelf. Stock not available to the customer is therefore waste. A waste of committed money (cash flow concerns and thus an introduction of risk) and a waste of space in our shop stockroom which in turns reduces overall shop floor space and slows staff looking for product.

Because “Buying” is the most critical of the four pillars of retail, it seems the sensible place to work on iterating to gain further improvement. I’m going to challenge ourselves to use 2017 to maximise our buying workflow.

At present we do our buying like any other retailer, we order by supplier when we feel or notice heavy product depletion. Furthermore we “hold” about 1/4 of our stockholding in our stockroom. If it is on the stockroom shelf it has zero chance of being sold. In addition to having a costly quantity of product hanging around, the space used to hold our product could potentially be converted into public shop floor space. For example at Bristol Museum and Art Gallery there is a false wall which conceals our stockroom which is about 8m in length with a depth of 1.4m. If we’re about to improve how we buy, it is possible to push this wall back further and gain that space as public floor space that could be used for 2-4 nesting tables worth £10,000+. The challenge of course is that would reduce our total stockroom space by 2/3.

If we can increase our understanding of what to buy and when this would unlock the potential to carry out operation “shrink the stockroom”.

The upsides would be:

  • move to a new process of ordering “just in time”
  • reduce stockroom size thus freeing up new floor space for customers worth £10,000+
  • reduce “out of stock” scenario by improving the buying process
  • order by need not assumption
  • reduce ordering time across the full year
  • reduce owning costly stock that may not sell which also takes up space
  • maximise available money set aside for buying products that sell
  • reduce time lost by staff who have to hunt around a big stockroom

The first major step forward has been moving to a fully digital ordering process to minimise the steps required for that particular part of the system. We use a combination of Shopify reporting and google spreadsheets to do this. Our internal system for generating purchase orders currently prevents us using automated ordering directly to the supplier.

I think the next step will be to understand the rhythm of how often each product is sold AND what minimum order size suppliers can accept.

Myself and the team will write about our successes and challenges throughout the year. It won’t be easy but nothing worth doing is!

The week our office turned into a photography studio!

Digital skills, Retail, Websites

With one of the main aims this year being to improve our online shop, myself and Darren decided to improve and update some stock photos. We enrolled in a crash course from resident photographer David Emeney and by the end of session thought we’d be able to do it, easy.

However, we came to find that photography is not as easy as it seems! First came the issue of space. Although David kindly allowed us to use his studio in the basement, with no computer nearby to check pictures and in fear of messing with any of his equipment, we though it may be best  if we set up a studio a little more close by.IMG_20170109_154103292_HDR

In true Blue Peter style Darren and I set about creating our own in-office photography studio by collecting bits and pieces from around the museum to mirror the one in the basement. Cardboard tubes were stapled together acting as a rod to hold the white background in place, this was held up by string wrapped multiple times around our window bars, counter tops were cleaned as to not make the paper dirty and even a staff noticeboard was used behind the paper to block out any natural light. Of course our office had to be rearranged first to fit such a project inside, a move which would have me non-stop sneezing for a few days as the settled dust was disturbed!

After a while of playing with the camera’s settings trying to find the right ones, we set to work to photograph stock. With thanks to Debs for letting us borrow geology’s light, the products came out well and the online shop now looks a lot smarter for it. Having this type of light was key to taking a good image, the close proximity between the product and source of light and changing the camera’s white balance when needed added extra quality.

It was a really good experience getting to know the manual settings of a camera and how each product requires a slight adjustment, also to be up to date with what products we currently have in store. I look forward to doing more stock photo shoots in the future and hope, at some point, to have all products photographed like this to keep a consistent look for the online shop.

£70 stoneSSGB edt 4559warrior duck 4857

Our shopify setup for running POS in our gift shops

Retail

Across our museums and archive we sell in-person using an iPad and Shopify app. I thought i’d share with you our Shopify point of sale (POS) set up seeing as we’ve now rolled it out to five locations. The setup cost is just under £1000 for the kit and running costs are approx £3000 per year for the Shopify software, reporting and add-ons. It is worth mentioning that originally we used the basic Shopify package which is $29 per month (plus $40 for retail pos) but once we started to get serious with our retail management we upgraded to the “Advanced Shopify” which is approx £2800 per year.

Hardware

We purchased our kit from POS hardware as a bundle for approx £455 (ex vat) excluding the iPad and card reader. Most small merchants skip on getting the receipt printer and prefer to use “email this receipt”.

  • iPad air 2 – £379
  • Bluetooth barcode reader
  • Standard till drawer
  • Receipt printer
  • Contactless Credit/debit card reader with Applepay (approx £20 per month rental)
  • iPad secure stand
  • Router to avoid public wifi and maintain security – fitted by IT services

Software

A good thing about shopify is that you can scale up your options with the click of a button to install new features. Once you pay you can also install it on as many devices as you like which is great for pop-up shops.

– Shopify retail $40 per month and is essential for turning your standard shopify account into a retail POS
– Advanced Shopify £2800 per year which we use for the “reporting” features
– App – ALT Text FREE used to automatically generate image ALT text for our online shop
– App – Low Stock Alert FREE sends us an email warning which products are running low
– App – Profiteer $15 per month used to add the cost of goods to all products so we can understand our profit
– App – SEO Doctor FREE used to improve our online shop
– App – Shopify Theme Tool which we use for our custom online shop theme

Top tips

Updating shopify or iOS. It normally takes about 45mins to update the app shopify AND update iOS so never do this during hte business day..also avoid Friday or weekends if you have IT support who work Mon-Fri

If possible it is worth having a second iPad in case the primary device falls over for any reason. I’d also suggest you upgrade the software and test it using the second device before unleashing the latest version on the primary device

Shopify has 24/7 support so when I hit a snag I normally use their live chat to help get it resolved

100 days of using Shopify POS tills

Digital services, Retail,

We’ve just passed our 100 day mark since the introduction of Shopify till system in our retail shops. In case you don’t intend on reading the whole post, i’ll tell you now that we’re still using Shopify and i think it’s safe to say it is a success.

In this post I want to cover us going live, what features we use at the moment and what our next steps are.

Choosing Shopify

Our previous system was never properly setup and as a team we didn’t take advantage of its potential. I could of stuck with it but I saw this as an opportunity to explore using the latest shopping cart technology from the web. I’m a big fan of popular tools that I’ve seen ‘scale’ regardless of the sector. I had heard about lots of arts/museum sector specific approaches which quite frankly scare me. As a sector we aren’t really all that ‘special’ when it comes to doing normal things like running a shop. So instead of looking at any of these potentially risky solutions where the market is small and we can get tied to one small supplier I just went straight to looking at what local shops and market stalls were using as i’m treating our retail as a small business so what better place to look. All of these were using web services via tablet or phone. Having attended a Shopify workshop back in June 2014 run by Keir Whitaker I felt that it had what the other systems had to offer so why not use this – no long spec document just a nose for good software and services.

Fast forward to launch

After an initial alpha use of Shopify using the free trial (tip: use the 7 day trial as your alpha test so you have no money to front) I felt happy to use Shopify with the public. Our fallback was to keep the old system plugged in and as we use a separate card reader, we could easily manually take orders with that and a calculator if we really got jammed up.

We decided to launch in early May at Bristol Museum & Art Gallery. We decided to do one shop first and then if all went well we’d do live at M Shed, followed by our tills used by the exhibition team.

As Shopify is pretty user friendly we showed Helen how to add products, how to make a custom sale and how to cash up at the end of the day in less than 20mins. It turns out that Helen had never used an iPad before, let alone Shopify. But within minutes Helen was comfortable enough to plough on with only a little arm twisting from me.

Rather than add 100s of products to the inventory we decided to use the ‘custom sale’ option on the first day and then add any purchased products to the inventory retrospectively. As a word of advice, i think this approach makes the most sense instead of committing many hours to adding products to the Shopify inventory which you may or may not run with. Instead, add as you go.

On the first day I made sure that we had both Zahid and myself available. I spent the first ‘live’ hour down in the shop. Within an hour it was clear that I wasn’t needed. By the day of the first day Helen and Zahid knew way more than I did – in this type of case i’m glad to be made redundant!

After two days Helen asked us to remove the old system as she was very happy with how things were progressing. We have a small retail team of four part-time staff and a small bank of casual staff. Within 2-3 weeks I was getting staff thanking me for introducing the new system. In my previous two years I’ve never had such positive feedback. After the third week we also replaced our M Shed till too. On week six we also used this for our third till which is used to buy tickets for our exhibition (William Hogarth: Painter and Printmaker).

Helpful documentation and support

One of the things I love about modern day web services is that they normally offer good documentation and Shopify is no different. This not only helps us to learn about how to best use the service but saves any of us having to write lengthy support documentation. I’ve since used their live online chat a few times when i’ve got stuck and it’s 24/7. A service i’m sure many of the museum POS vendors can only dream of offering. You can ring, live chat, email or use the forums. All of which help staff when none of us digital types are around, which is the way it should be.

Mobile app for the win

I have a great retail team led by Helen Lewis. In theory I just need to know our current financial position. The mobile app lets me see live sales income for the last 90 days. This alone is a leap forward for POS and i get ‘POS envy’ now by all other retail managers whenever I show them. Furthermore I can see what product inventory level is is at anytime and i can scan barcodes to make sales if i really wanted to. I’m currently keeping an eye on our Hogarth mugs, scarfs, a book by Louise Brown and drinks. All new products that I like to track.

Reporting sales

To keep the cost down there a number of features which don’t come as standard and reporting is one of them. We have paid for the reporting features which we mostly use for splitting vat/non-vat and exhibition tickets at this point. In the next few months we will really get our head around what reports we want.

A few problems and issues

We’re very happy so far with our shopify service but there have been a few teething problems worth mentioning.

We hit our first major technical snag – till drawer says No!

Our exhibition till has a unique challenge compared to our retail shops. We have over 50 visitor assistants. For each day of the exhibition we may have any one or more of them on the till. This poses a few challenges, mainly around processes and training. Some people had no problems but others really struggled with the idea of an iPad for a till. Nothing too bad. But then it happened. I got a call to say that the exhibition till wasn’t working. I went down and sure enough it was working. False alarm right? Another call 30mins later. This time I could see the problem. Although we could use the Shopify app, the till cash drawer refused to open. Turn it off, turn it back on. Boom. Fixed…. so I thought. This kept happening, time after time. Anyway it turns out that although Shopify will run perfectly happily offline, the cash drawer NEEDS wifi to be triggered to open. A major problem that made lots of visitor assistants quite reluctant to use the till. The problem only occurred on one of the four tills. Zahid tracked down the issue to the router. Apparently there is a known issue with some routers – despite it working fine with the same router elsewhere. Zahid swapped out the router and the problem hasn’t come back. Luckily for us we could use the shop as a fallback till but this wasn’t the best customer service period.

Costs of goods isn’t standard

By default there isn’t a feature to include the ‘cost of goods – COGS’ which are essential for knowing the price you paid against the retail price and thus your profit margin. How did I miss that in the alpha! Luckily one of the reasons I chose Shopify was for its adaptability. Shopify has a useful feature to allow them or third parties to make apps for beefing up the default service. One of these, deepmine looks like it has COGS so we’ll be trialling this very soon.

Not many hints and tricks yet

I haven’t found much information about using Shopify POS as it is still quite new. This means that it hasn’t been super fast to find answers to some of our issues. One of the reasons i’m writing this is to increase that information pool. Oh and there is no public roadmap for what’s coming so follow the blog to stay in the loop

What’s coming next

Now that we’re comfortable with Shopify we’re starting to turn our attention to the next phase of work.

  • Trial deepmine app to get COGs and deep reporting
  • Setup better custom reports to help staff
  • Offer group workshops on basic training and reporting
  • Add inventory levels to all products
  • Add photos to all products
  • Explore email upsell and sales offers

Get in touch

I’ve had several chats with other museums who spotted by last blog post asking about Shopify. Please do get in touch by phone 0117 922 3571 or zak.mensah@bristol.gov.uk if you want me to help you with anything around our use of Shopify. We’ll also be happy to be paid consultants to set up your service if you need a proper hand.