Almost 30 years ago, Wendy Haldeman and Corky Harvey met as Lamaze instructors, developed a Baby Care class and found themselves renting breast pumps out of their homes. They then trained at UCLA in one of the country's first clinical lactation consulting programs and finally opened their first little breastfeeding center, the first new parent resource center of its kind. Many of their clients wanted products to help them with breastfeeding and parenting, so they responded by carrying nursing bras and a selection of high quality baby care items. They outgrew that first space and moved to their current 3200 sq. ft. location in Santa Monica twelve years ago, and in July 2005 opened their second location in Hollywood with 2300 sq ft.
Cheryl Petran is the COO for Pump Station and spoke to us recently about how they continue to expand their business, despite the changing economy.
How did you arrive at Pump Station?
I was originally a lactating mom with a history of retail behind me. I love the people here and love the business model. Los Angeles magazine in 2006 named Wendy and Corky two of LA’s most influential people!
What was the store using for POS and inventory control before installing their system from One Step Retail Solutions?
Handwriting and they had a little cash register, but the business was growing and there was a need to get the info and be able to track things better.
How have you financially benefited from this system? Can you give some specifics in terms of growth percentages or the like?
The Hollywood store opened 3 years ago and has gone up 83% in sales. Santa Monica, as a more mature business, has gone up 20% in last three years. Our POS system has allowed us to better forecast our sales, to forecast and manage our inventory, and to survive.
In the last year we have maximized the use of our POS system more than ever before. When I first came on, because I used to work for a large retailer, I showed them how to manage mark-downs, etc. I knew the possibilities and introduced these to everyone here, teaching them how to check inventory and use the POS system more efficiently to make better business decisions.
What specific features do you find are particularly valuable for your business?
Right now the min/max system of generating orders is replenishing the stores more efficiently. One of the scariest things in bad economic times is that your inventory will run away with you; open to buy is important, not buying stupid, we’re not going to come out of this year overstocked, and we’re managing markdowns very well.
What have been some of the long-term benefits of this system?
Better financial planning and profit goals. I can figure everything out in it. I create reports to give me what I need, setting goals that are reasonable because they are based on history. And the interface to Quickbooks is huge for me.
How do your employees like working with the system?
They really like it; they feel that it’s a good system. It works the way it’s supposed to, and if it doesn’t, it’s because we didn’t put something in correctly.
How has your One Step Retail Solutions system consultant been of help since installing the POS system?
My system consultant understands all facets of the business from SKUs to PL and balance sheet; he’s got a broad understanding from micro to accounting. I tend to think beyond just the report I’m in and he sees it the same way.
How are you outpacing the economic downturn?
By forecasting smart and managing the inventory to my forecast. If you can really look at where you think you’re going to be and be realistic about it, then you can survive. I have a POS system with history that I can use for expansion. For example, we were over-SKU’d a year ago, 80/20 rule, we got rid of the underperformers and kept the best performers. With our POS system we can quickly evaluate if our decisions were good or bad.
I learned many years ago: manage your inventory smart and manage your vendors smart. I can do both with my POS system.
What advice would you give to other retailers looking for a POS system and retail technology provider?
One Step Retail Solutions has very good systems and the service is very good. And very responsive! I also like the fact that they understand retail and things beyond what’s going into the POS.
While others are holding still, you are expanding. What do you see in the future for your company?
We plan two new stores in the very near future for 2009. Being proactive means forecasting, facing the reality of it and dealing with it.
www.pumpstation.com
