SELLING LIGHT BULBS

AN IDEA FOR PACKAGE STORES

One of the most difficult businesses to successfully manage is a grocery store. When operating on just a few percentage points, every decision counts and every possible effort must be given to making the monthly G. P. goal.

With this in mind, these retail experts are always ready with a trick or two, come month’s end.

One of the best is "the light bulb sale." Whether you realize it or not, your friendly grocer seems to always put light bulbs on display near the end of every month.

The strategy is sound and it usually accomplishes the intended goal: incremental sales and profit.
Here is the theory, in a nutshell:
1) Light bulbs are an impulse item. Most customers do not go out looking to buy them.

2) Because they are not an item which is bought on a regular basis, the typical consumer is unaware of their price or what a good, "sale" price should be.

3) The typical shopper sees a display and immediately thinks “sale.”

4) Most shoppers are unaware of their current home light bulb inventory and will nonchalantly toss a pack or two into their cart.

5) By erecting numerous displays of light bulbs throughout the store, the grocer gains sales on an item on which he makes full mark up.

Those of you in the package store business can learn from this idea:
1) Take an item that has brand recognition and is thought of as "main stream" in their mind.

2) Pick a package of this item which is not normally promoted (6 pack NR’s are usually good.)

3) Create displays, in key areas, featuring this item at FULL PRICE. The general public, noting the display, will assume the item is on sale and you will be the beneficiary of an incremental “impulse” purchase, at full price.

Enough of these types of displays and you will see your G. P. improve dramatically, by month’s end.

We invite you to leave your comments, questions and/or suggestions. To add one, simply go to the end of this, or any post and click on the word "comments" in current links to this post. That will take you to a site where you can leave your thoughts.

Remember, we also offer training seminars to suppliers, distributors and retailers. Contact us for information on specific details, time lines and costs.

Thank you for your continued support.

Don Apostolos

The Apostolos Pro Beer post

973.692.9585

dapostolos@optonline.net