Welcome to Curious Business
Every Friday, I post a small insight into running Curio City and/or Blue Hills Editorial Services. My most recent posts are directly below. You can also start with the first post, or use the subject labels to the right to home in on particular topics. Feel free to comment on anything that interests you.
Friday, July 26, 2013
The Dawn of the Tater Age
As of this morning, Curio City is the official online distributor of the Corn-n-Tater Microwave Cooking Bag. Yup, my on-and-off negotiation that began with last spring's Cavalcade of Crap finally bore fruit -- or vegetables, that is. The manufacturer's “Buy Online” link now goes to my page.
With the season’s bird kite sales winding down on schedule, lighted caps still moribund, and the new Switchables designs still a couple of weeks from release, the timing couldn’t be better. The Tater guy said that he gets six or eight sales on a typical day, which is a big nuisance to him – he wants to be a manufacturer, not a retailer. That volume would be perfect for me. I can handle up to a dozen sales a day without raising much of a sweat.
Will Corn-n-Taters reverse my slide? Stay tuned for next week’s post.
Friday, July 05, 2013
Slump & Slumber & Summer Numbers
First, let’s get June’s numbers out of the way. This was supposed to be last week’s post, after all.
June:
Total
income:
-27.1%
Total COGS: -47.9%
Payroll: -47.7%
Total COGS: -47.9%
Payroll: -47.7%
Marketing: -20.4%
Net Income (Profit): +295.6% (+$410)
Net Income (Profit): +295.6% (+$410)
Total
income:
-21.9%
Total COGS: -31.5%
Payroll: -19.7%
Total COGS: -31.5%
Payroll: -19.7%
Marketing: -24.4%
Net Income (Profit): +20.9% (+$307)
Net Income (Profit): +20.9% (+$307)
Things started to fall apart in the middle of July 2012, so my targets look easier for the next several months. “Look” being the operative word; the first week of July still managed to finish hundreds of dollars behind LY.
Maybe the Corn-n-Tater deal will still come to the rescue, or maybe not. The owner’s hour-long rambling telephone call led to nothing except an overage charge from Verizon and he didn’t answer my concise email followup. What we have here is a failure to communicate. Oh well...I can’t take over his sales until after vacation anyway.
Speaking of which, don’t be alarmed by the inactivity for the next two Fridays.
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Way back in May 2011 – at about the same time that Google Base became Google Product Search and started charging merchants to participate -- Google imposed new requirements on product feeds. (That’s the file that one must upload monthly if one wants one’s products to show up in searches, as this one does.) It started innocently enough with UPC and manufacturer product numbers. Sunshop didn’t support those at the time so I had exactly none in my database. Many of my offbeat products don’t have official numbers anyway. So I requested, and ultimately received, an exemption from Google.
I have been dutifully adding UPCs whenever I bring in new products or reorder them. After two years maybe half of my active products have these numbers. But Google keeps piling on more and more requirements. Sunshop is always a step or two behind Google, and I’m usually a step or two behind Sunshop, so my product feed is pretty lame. Only that long-ago exemption keeps me in the game.
Until now. “Account level exemptions for unique product identifiers will no longer be supported after July 15th, 2013 in the US…. After these dates, non-compliant items might then be disapproved and disappear from Google Shopping.” …which I guess is what the cool kids call Google Base nowadays.
BUT they threw me a lifeline! I can manually add a new column called “identifier_exists” to my feed and set the value to FALSE for products without UPCs. That’s a pain in the ass, but “Yay!”, I guess. At least they will still show up.
I gamely set out to do that and quickly hit another snag. Sunshop supports another requirement called “Google Type” – a list of broad categories for Google’s most popular search categories. Most of my stuff isn’t trendy enough to fit any of those so I leave them blank. But Panther Vision caps fall under “Clothing & Accessories > Clothing Accessories > Hats” and I duly designated them as such, thinking that seemed like a good thing to do.
Not so fast. Apparel requires a slew of other feed requirements such as gender, age group, color, and size. Sigh. I suppose I can add all that crap manually, too. But wait! My Panther Vision pages all contain multiple colors, and Google finally gets around to warning that “If you are trying to indicate multiple colors for multiple similar items (product variants), submit these as separate products each with the same item group ID and a different color value.”
OK, Google, you win again. I’ll bypass all that rigmarole by simply removing my caps from the clothing category. Not so fast! Sunshop did not include a “none” or null line in their category list. Once a product is assigned a category there’s no going back. I finally had to edit my SQL database directly to remove it.
All of that work serves to make my product ads invisible to searches. Thanks, Google!
So I’m left with one recourse: complaining to my blog. I’d love to storm off and stop paying for Google Base results entirely, but unfortunately they have come to account for half of my paid clicks. This is going to be painful no matter what I do. The only thing that would actually solve this is if Sunshop supported all of these requirements…and even then I would have to pay my developer to upgrade Sunshop again.
News flash: It’s a corporate world and the little guy just can’t catch a break.
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As long as I’m laying out new Reasons to Hate Google, I should note in passing the passing of Google Checkout. That payment method never accounted for even 1% of my sales and Sunshop’s integration was half-assed anyway. I’m happy to see it go away.
Friday, June 28, 2013
Dropships Drop My OTB
I’m selling so many bird kites as dropships this summer that my open-to-buy (OTB) is freaking out. For those who are just joining us, a “dropship” is not a cool planetary assault vehicle like the one pictured above, but the far more prosaic practice of having a vendor ship an order directly to my customer instead of to me.
A proper OTB calculation is a fiddly fussy formula that’s way more complicated than my low-budget one-man operation needs. My OTB simply tallies up the average cost of merchandise as I sell it and subtracts what I spend on orders. If I sell $100 worth of stuff in a day and my average cost is 50.4%, then that increases my OTB by $50.40.
My little formula includes the inbound freight charges that I pay to vendors, but not the amount collected and spent on outbound shipping to customers because those don’t affect the cost of replacing my inventory. But dropships are different. I still collect a shipping charge from the customer, but instead of paying it out as a postage line-item that offsets shipping income, I pay the vendor to ship the kite to the customer. That reduces my nominal shipping expenses while increasing the cost of the merchandise.
Things go out of whack when dropships become a substantial part of my sales. Everything’s fine if $100 worth of kites actually costs the average $50.40. But if I pay the vendor $50.40 for the merchandise plus $15 to ship it to the customer, my OTB gets reduced by $65.40. The more I dropship, the more my OTB falls. A lot of dropships in May and June drove today’s OTB to negative $293.
Now, this is just a bookkeeping problem; I did collect $15.60 from the customer to ship the kite. But that $15.60 gets added to my shipping income without a corresponding hit to my shipping expenses. Over the same six-week period in May/June I took in $914 in shipping fees and paid out $634 in postage, yielding a $280 surplus…which very nearly cancels the OTB shortfall. Zero isn’t exactly what I’m striving for here, but it’s better than negative.
After pondering lots of possible fixes, I decided that only adding a new column (“Dropship shipping”) directly into my OTB is going to work -- a disappointingly obvious solution, perhaps, but it’s a big deal to me. Every time I tweak my Accounting spreadsheet, year-over-year comparisons are compromised.
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