Storing vendor information in one database can be a powerful tool for pool/spa retailers

by Sally Bouorm | December 1, 2012 11:34 am

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By compiling all business information into a single database, owners/operators can generate financial reports, sales figures, inventory analyses, and marketing return on investment (ROI).

By Christina Braks

Most specialty retailers use some type of business management software. Whether it is a pool and spa, backyard living, or hearth and home business, almost all have a point-of-sale (POS) and/or accounting program. Unfortunately, not all companies have taken the time to find a software program, which integrates all aspects of the business into one place. Owners/operators who have employed this type of software have discovered they can spend less time working ‘in’ the business and more time developing the business by expanding their product and service offerings.

Time is money

The most effective business management software is one that integrates every department of the organization. This not only creates an environment where key information is immediately available to employees, but it also allows business owners to strategically analyze the company’s performance without spending hours sifting through paperwork and compiling data.

Chuck Shabsove at Capital City Appliance and BBQ in Ottawa is a prime example. He owns two stores—one in Ottawa and one in Hamilton—and since investing in an integrated business software program his business has grown exponentially.

“Using an integrated business software program has been a massive time saver for our company,” says Shabsove. “We used to sell 1,000 barbeques per season prior to implementing the software. Now we sell 3,000 barbeques per season. Without the software program it would have been impossible to schedule the assemblies and installations, stock parts, etc. The time we saved allowed us to triple our business.”

Integrated business software programs save companies an enormous amount of time, which not only allows them to expand, but also enter new markets.

“The software program we use has completely revolutionized and streamlined our business practices,” says Rebekah Decker of Spring Dance Hot Tubs Inc., in Jamison, Pa. “Prior to this, we had multiple databases, which required double or even triplicate data entry. Now it’s all in one place.”

Real time data

Specialty retailers need accurate, up-to-the-minute knowledge of their business operations if they are to succeed in today’s retail environment. By compiling all business information into a single database, owners/operators can generate financial reports, sales figures, inventory analyses, and marketing return on investment (ROI). This allows the business owner to quickly identify problems and areas for improvement as well as opportunities for growth or expansion.

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By incorporating the right software system, specialty retail stores can better determine what products are selling.

Further, integrated business software helps owners/operators to reduce costs, eliminate confusion, improve the customer experience, empower employees and strengthen the information behind key business decisions.

For example, Vance Neely, owner of Emerald Pool & Patio, which has three retail locations in Eugene and Bend, Ore., says he owes his success to integrated business software.

“We started with an accounting software package,” says Neely. “The first program we used was known to be a great program, but when it came time to make daily business decisions it was difficult to extract reports from the system.”

However, after Neely switched to a software package that allowed him to run various reports in real time, he was better able to track what was happening in his business at any given time, thus allowing him to make smart business decisions.

“This software guides our ship on a daily basis with quantitative data, not just a gut feeling,” he says. “In the 1970s we used to make decisions on ‘gut feelings’ that were often incorrect. There were always moments in which we would ‘freak out’ and adjust our plans. Today, you can’t afford to operate that way as competition is fierce.”

For companies like Spring Dance Hot Tubs, which operates more than one retail store, business management software has assisted greatly in marketing efforts with its large, pre-existing customer base.

“We do a lot of marketing to our current customers for new business,” says Decker. “And, to make this easier, we use integrated business software that houses all of our sales and service data in one place, which allows us to really drill down to communicate with our customers.

“For example, it’s easy to know who hasn’t purchased chemicals lately, who hasn’t had a service call, or who has an older model spa. Once we know the target audience, we use direct mail, e-mail, and social media to reach out and bring these people back into our stores.”

Controlling inventory

Reporting and inventory control are two of the main elements that allow specialty retailers to grow and become more profitable. By focusing on the products and brands that sell, business owners can target their efforts. This is important when specialty retailers are competing against big box stores and online retailers.

For instance, a company’s inventory purchasing department needs accurate information with regards to what product is in stock as well as the quantity of product required to fulfil both customer orders and general inventory needs. By centralizing orders and implementing an integrated software system, businesses can save money each year by tightly controlling the inventory replenishment process and ultimately reducing inventory on hand. There is little worse than sitting on $100,000 worth of product that is not moving or is not needed and should have never been ordered.

By incorporating the right software system, specialty retail stores can better determine what products are selling, which in turn will save time to allow managers to focus on expanding the business and finding new opportunities.

“The business management software I use enables instant access to every detail of my company’s operations,” says Jason Miller of A-1 Pool Inc., in West Bend, Wis. “It also allows me to maximize the follow-up of every lead, provide the highest level of customer service, as well as creating various other efficiencies which save time and money.”

Expanding the business without fear

Once specialty retailers have better control over their current inventory, they can easily consider expanding their product and service offerings—even into new markets.

For example, Capital City Appliance and BBQ has more than 15,000 items available in its database, and according to Shabsove, the company stocks 3,000 of them. Prior to implementing business management software, his staff had to flip through various manufacturers’ catalogues and price lists to get the products they wanted to sell.

“Now, not only does the software program make product and price searches quick and easy, it also makes the addition of new items and product lines a breeze,” Shabsove adds. “The software we use also allows us to create ‘kits’ within the program, which enables us to pre-populate the sales process. When you are busy, in part to the short season, the sales team can sometimes forget the specifics of a recently added product, so these ‘kits’ make it easier to maximize the sales potential by listing product add-ons, accessories and even options for up-selling.”

Emerald Pool & Patio is another example. When the company first opened in the 1970s it sold only above-ground swimming pools and chemicals; however, it now offers everything from inground and above-ground swimming pools to hot tubs, custom outdoor kitchens, barbeques, and fireplaces.

“Being able to offer new products and services has enabled us to smooth out much of the seasonality in our business,” says Neely.

How to achieve integration

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When selecting a business management software program think outside the box and imagine what could be accomplished in having access to information that is not currently available.

Business integration can be a difficult process requiring considerable research and dedication; however, the rewards are more than worth it. The place to start developing internal integration is the business owner. If the owner believes in the principles of integration and sells the benefits to employees, then the process of integration is substantially easier. The next step is identifying and understanding the information that is required for each department to be successful.

Businesses should not limit themselves by what tools are currently available in the organization. Owners/operators need to think outside the box and imagine what could be accomplished in having access to information that is not currently available.

What is that information? How can it be used? Why is it important?

Once the inner workings of each department are realized and the information requirements of each group is understood, owners/operators should research the various business management software packages available and select one that best suits the company’s needs.

This decision should not be made lightly and it is important that research is thorough. It is also a good idea to create a list of ‘must have’ and ‘nice to have’ features that are important to the business. Ask software companies to review the list and indicate which features they provide. Also, use any business connections as an advantage. For example, ask fellow dealers or industry vendors for software recommendations and always obtain a list of referrals from the software companies being considered. The road to business integration can be long, but its infinite benefits will be the ultimate reward.

 

Braks_HeadshotChristina Braks is the vice-president of software products for Evosus Business Management Software, a software package designed specifically for the pool and spa industry. Braks can be reached via e-mail at cbraks@evosus.com[4] or by visiting www.evosus.com[5].

Endnotes:
  1. [Image]: http://poolspamarketing.com/wp-content/uploads/2012/12/Photo_5_Rose_City_Pool_Service.jpg
  2. [Image]: http://www.poolspas.ca/wp-content/uploads/2015/05/Photo_1_Rose_City_Pool_Service.jpg
  3. [Image]: http://www.poolspas.ca/wp-content/uploads/2015/05/Photo_9_SpringDanceHotTubs.jpg
  4. cbraks@evosus.com: mailto:cbraks@evosus.com
  5. www.evosus.com: http://www.evosus.com

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