A Pet Store Success Story
| Business Name: |
APet |
| Location: |
Annapolis, Maryland, Unites States |
| Operation: |
Two small pet stores selling reptiles, small animals, and pet supplies. |
| Owner: |
Roy Wood |
| Number of Employees: |
16 |
| Gross Annual Sales: |
$1.3 million US |
The Problem: Poor Inventory Control
When Roy Wood took ownership of a small pet store a few years ago, he soon realized it was on the verge of bankruptcy. Faced with the marketing muscle and inventory advantages of big competitors, APet had more than its share of woes.
"When I took over this business, it was dying," he says. "The anchor was going down and I had to figure out a way to pull it back up."
For starters, inventory management was out of control and it consumed a huge amount of employee time. (Wood estimates the store lost about 28 hours a week working with salespeople from four primary vendors.) Chaos reigned when ordering supplies, stocking shelves, and chasing down errors—daily occurrences that created a lot of aggravation for Wood.
"I was aghast at the amount of labor time it was taking to order products," he says. Moreover, what little money he had to spend on advertising was largely ineffective. "We were advertising to a bunch of people who couldn't have cared less," Wood adds.
The Solution: Software Designed for Small Retailers
The first headache that needed addressing was poor inventory management, he says. He tried a local company's software package, but it proved so cumbersome that he eventually discarded it.
"It was a disaster," Wood says. "Even though we spent a great deal of time and money, it was difficult to use. The company who sold it to me stopped returning my phone calls."
Wood then tried Microsoft Dynamics Retail Management System (RMS) (formerly Microsoft Retail Management System). The system worked the moment it came online.
"It was like a miracle," says Wood. "Everything worked. The data entry and tracking systems were incredibly smooth.
"Automation really turned a company that was going down the tubes, into a profitable one," Wood says. "Our gross sales have tripled in seven years."
Emboldened by the greater efficiency gained from using Microsoft Dynamics RMS, Wood eventually bought a second pet store in suburban Elkridge. Today both stores are thriving.
The Benefits: Better Inventory Management, Marketing, and Customer Service
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1. |
Savings in inventory management. Microsoft Dynamics RMS allows Wood to keep an ever-present eye on inventory levels and place necessary orders quickly and efficiently. He estimates he saves about 24 hours a week—or roughly $10,000 US a year—because of the system's efficiency and reliability.
"Our inventory problems were instantly solved," he says. "We order what we need quickly, and the items arrive priced and ready to go on the shelves." He adds that he loves the "color-coding system that identifies exceptions. That way, we're able to instantly identify when we receive an incorrect quantity."
The system's capacity to automatically identify the lowest-cost suppliers has also slashed Wood's purchasing costs by about 10 percent. "Now," he adds, "we have vendors fighting against each other for our business." |
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2. |
An advantage in customer service. Any business the size of APet needs to latch onto every advantage it can get in order to hold its own against better-financed competitors.
In APet's case, that means customer service—yet another area where Microsoft Dynamics RMS comes to the fore. When a customer buys an item, the system flashes a note to the cashier allowing him or her to pass along specific, hands-on advice that has been entered into the network.
Case in point: The system warns cashiers that certain aquarium heaters shatter if plugged in outside of water. "If a heater is on the sales ticket, the cashier gets a message on the screen to tell the customer not to plug the heater in unless it's immersed in water," says Wood. "A lot of these get returned because people don't know this. Our customers do." |
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3. |
More focused marketing. Like many other retailers, APet offers customers discounts in return for personal information about themselves and their buying habits. Using the detailed customer information capability in Microsoft Dynamics RMS, Wood can tailor highly focused marketing and advertising campaigns that aim at specific consumers.
"It's really reduced our costs and increased our returns from things such as direct mail campaigns. Before, we used to get a one percent return. Now we get anywhere from 12 to 15 percent. That's just huge." That sort of return is particularly important to APet. Since both stores are stand-alone operations located away from malls, it's essential to target those customers who will take the time to make a special trip. |
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4. |
Greater internal security. Thanks to the system's capacity to show inventory irregularities, Wood has reduced employee theft. For instance, the system quickly identified an aberration when an employee was misidentifying returns and pocketing the cash. Notes Wood with a laugh, "The police were dumbfounded by my extensive forms of proof." |
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5. |
Standout customer service. Wood says he values the reliability and integrity that Microsoft places on service after the sale. "You just can't do any better than Microsoft for support—although I must say that I've had to use them infrequently. The system takes care of itself." |
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6. |
The intangibles. Says Wood: "I know that my employees count on Microsoft Retail Management System to work. We hire a lot of teenagers and they're all very comfortable with it." Plus, he now gladly takes his work home—and away from the office.
"I have high speed internet connections at home and the stores," he says. "It allows me to spend time at home with work, write sales reports, and look at progress at the stores and the problems."
For More Information
For more information about Microsoft RMS, Point-Of-Sales software and other hardware, call American Retail Supply Computer Solutions at 800-426-5708.
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