Rebooting an LSS. Suggestions?

The problems with most small independent hobby oriented stores are lack of funding, lack of business acumen, lack of trust.
Lisa is right, what worked 10 years ago won't work today. You have to have a way to communicate with your existing customers and prospective customers. With the rate the small shops are closing it is a perfect time for the one(s) still standing to capitalize. There is one axiom that rings true; perpetuate or liquidate.

She definitely needs to have social media - when I travel to a new area, I tend to look up SB stores, and if they aren't active and online, I assume they are closed.
I don't know where you are located, but if you are in a touristy area, it would help if she had some local themed items or diecuts, as that it what a lot of tourists look for.

Classes would help move old product - design some pages with a few new items/techniques, but the core could be old products.

What about pre orders? If she has a supplier that can deliver the new products, maybe she could open up for pre orders at a discount of what she would normally charge for collections. Customers get new product. She doesn't have to gamble by ordering in stuff that might not sell. She may want to order in the more popular items on spec that other people will want to play with them once they see them in use.

She doesn't need to have an on line store or even be on facebook if she collects email addresses from people and then forwards group messages about possible new pre orders.

What gets me driving to a LSS is good, new product. If a store continuously has old product that I didn't buy the first time, I won't go back. I don't care so much for an online presence for local stores, just good product. And the employees don't have to be super-friendly, although that is nice, they just can't be rude.

I'm amazed the store is still around given what you've said.

It's a very hard business in which to thrive. Margins % might be OK, but in pure dollar terms, they're terrible because the items are so low cost to begin with. But the business's non-product costs are the same as any other selling higher priced merchandise - rent, insurance, admin, payroll, etc.

I hope she/they take some advice from you and make a better go of it.

Oh, and, if she can possibly do classes in the evening - not necessarily scrapbook related. Mixed media, watercolor, anything art related - I think that helps word of mouth spread.

The store I go to sends out emails every time she gets new product or schedules a class or crop. She also has a facebook page.

She runs crops and charges $10 but if you spend $20 your crop fee is refunded.

I would start getting some journalling and card making things in.  If there are church bulletins that run ads on the back, then place ads there.

So if it can be saved I would start scheduling crops every Friday night (at least) and I would send out emails and newsletters as well as facebook.

If most of her inventory is old, her ship might already be sunk unless she can pump more cash into new inventory. The problem is that she’s likely got a ton of money tied up in old inventory that no one wants. If she clearances out all the old stuff, it will be for pennies on the dollar and she’ll be taking a major loss on all of it. Even if she sold it all, she wouldn’t recoup enough money to restock her store with an equal amount of new inventory that people actually want.

ETA: I agree that classes, crops and other events that pull people in play a major part. She has to do what other retailers can’t or won’t to draw people in and keep them coming back, and that’s where having an online presence will be key. Unfortunately these days it’s the only way to advertise where it will really make any difference. If I were her, I would go through my list of vendors and get on as many retailer locators as I could. I’d set up an Instagram account and a Pinterest account and start posting projects there with links back to a website or at the very least a Facebook page for the store.

I’d also host a huge rummage sale where people could sell their stuff and give them store credit for whatever sells, and I’d put my oldest stuff in the sale and price it really cheap to move. I’d advertise the heck out of the sale to get the word out about the store and get people talking about it. Use whatever money she gets from the sale to bring in new inventory that people will want to pay full price for. Then have a lineup of crops and classes planned so when they come in for the sale so people will be enticed to sign up for those and come back.

I buy most of my stuff for 20% off online so to have instant gratification I’d be willing to pay msrp. But $10 for $5 thickers? Uh no.

I forgot to mention, when the convention comes, like CKC, I know some store owners who travel to the convention to talk directly to vendors who don't want to take their stuff back with them. For example, Echo Park has kits for a great price and I know at least one vendor who made a deal with them and brought all this great Echo Park into her store.

If her store is in an area where there are no conventions this would be nice for her customers who don't get to have them in hand. Also she could start doing personalized paper. There is a vendor at CKC Lancaster that has people email her photos and she makes them personalized pages on the spot by using online resources, ie college paper, team paper, whatever. She does paper for Broadway shows, etc and depending if they are full color papers she charges up to $7 for a page. She has a nice 12x12 printer.

What stae are you in? Can she drive to a competitor (even if it's hours away) to see what a successful store looks like?

There have been a number of them over the years. The main problem I had with all of them was that they wanted hundreds of dollars a month to participate and offered very little in return for that investment. I always felt my money was better spent on other things. IIRC Crafter’s Home was a big one.

The fact is that is it is REALLY difficult to maintain a brick & mortar store these days. I was in our LSS last month when a lady came in and was chatting about various scrapping supplies, asked the owner lots of questions, then said she was going to Michaels' to see what she could get on a coupon. Earlier during the discussion, she was complaining about the prices at a local quilting/fabric store and declared she had "looked at the different weights of material, then decided I could just order on line from the US for much cheaper."

The one closest to me is more of a paper crafting store...lots of stamps, inks, mixed media techniques, and planners etc... It's a fun bright place, with a little bit of something for everyone. I think this is what helps brings in some foot traffic...

Old stock is a problem for any LSS. It needs to be cleared, but the owner has money tied up in it. They need to find a way to get rid of it but still get some of their money back, in order for them to be able to buy newer stock.

I used to live near a wonderful LSS. To get rid of older stock and make room for new, the owner of the LSS made up see through packets of older papers with coordinating embellishments (stickers, ribbon, flowers, whatever) for about $3. They sold fairly well, and she got rid of older stock. I don't know if the LSS made any kind of a profit, but it made room for new stock, and gave her a little money to buy the newer papers and supplies.

They had great classes and let the teachers determine their own fees as well as design the projects (class project did have to get approval from the owner). That brought in good teachers. The LSS got a set fee, which was built into the cost of the class, but kit materials were provided at a discount. (I used to teach there, which is why I know how it worked.) The classes usually did well, and class members sometimes bought more materials so they could make additional projects. The register was right at the front, near the door. The class projects were displayed on a wall right behind the register.

The employees were friendly and helpful. They neither ignored the customers, or hovered over them.

She offered weekly make and takes. I did those. I used older stock when possible. It was usually a tag, a card, or a small box or bag. I used her dies and tools, but I also often brought my own from home to use to make up the kits.

She also asked various employees (including me) to take turns creating a layout that used newer stock. That helped new stock sell fast, and it also helped bring people in every Wednesday, when the layout was first available. The papers and supplies used sold fast, so that got customers to come in rather than procrastinate.

She offered a punch key tag for $2, but when completely punched, the customer got $15 off whatever they wanted. She also had a coupon day once a week. She offered discounts to school teachers. I think she also offered a discount to military personnel.

She was willing to special order tools and supplies for customers, if they paid in advance. No refunds on advance orders.

She had a design team that came up with projects for display every month. Again, they used new papers, not old ones. They were displayed on a wall.

She had a play area in the crop room so that moms could shop or crop, and the kids were less likely to wander or get into mischief.

The crop room was free to use any time, as long as no classes or crops were going on there (or about to start). I don't remember how often they had crops, but a certain number of pre-paid customers had to be signed up. If they didn't get enough people, the crops were cancelled, and the money refunded. I think they had a basic, no frills crop every Friday night, and once or twice a month they had a regular crop with food, prizes, etc.

She eventually had to close her business to move to another state, but soon after, I discovered a paper arts store about half an hour away that was really nice. It had trendier paper arts and mixed media projects, but they also offered good deals in various ways. She had a punch card, but it was just a card, not plastic. It was free. Easier to lose or forget, since it wasn't attached to my keys. She discounted the most expensive item you bought, as if you had a coupon, but without a coupon. If you bought a bunch of paper, she counted it as your one item if that was the most expensive. It was a different feel from the LSS, but it always had customers. If I get back there to the area to visit, I will definitely make a stop at that store before I return home.

I moved from that area to the DFW area of Texas. Here there is one store that focuses on just about everything but scrapbooking. Their classes seem to be home decor, journals, mixed media, cards, and other stuff. None of the classes interest me, and I rarely find anything I want there. They used to be 30 minutes away, but then they moved. I don't know where the new store is, but it's an area where I never go. I haven't bothered to look them up. Another LSS in the area is more traditional. They are fairly new, not a lot of stock, and a 45 minute drive. I liked them, but they are also not in an area where I am likely to go. Then there is the really nice LSS. It is worth the drive, but it is an hour and fifteen minutes away. I have been there once since I moved here. They have the best of everything. Papers, stamps, mixed media, etc. I discovered Wink of Stella at that store. Even though I didn't need a thing, I spent a chunk of change the day that I went there with a former scrapping buddy who came to visit. If I had a smaller stash, I would probably make the trip from time to time by myself, but it's a long way to go when I don't feel that I need anything.

Online ordering is easier for me. I want to support brick and mortar stores, but it has to be really worth it for me to make a long drive. I might be more likely to go if they offered classes and projects that interest me. Newer stock is expected, but I need to see tempting projects online to make me inclined to make the drive.