FOR PACKAGE STORE RETAILERS
One of the biggest decisions an off premise retailer can make is how to set his or her cold box. There a many ways to do it and most have a specific desired result. We will mention a few of the most popular here, to help you in making your decision.
Before we get started, let’s cover WHY you need a shelf set at all. Some might say if you offer the customer good, fresh, cold product, they will find it and they will be happy. Those of us who have been in this business for a while know that is just not the case.
A few months ago I wrote a piece on “the hardware store” analogy. In it I spoke of the confusion many customers experience when entering a package store. While most of us in the business are comfortable with various layouts, many customers look at the average package store the way I look at a hardware store…with total confusion and mystery.
In order to make your customers more comfortable and to give them a feeling of belonging, it is wise to set your store with a basic plan in mind.
Signs directing them to various parts of the store are a great idea. Even a “You Are Here” type of map on the wall works well. Anything to keep the customer happy and keep them in the store.
When it comes to setting your cold box, there are a number of ways in which it can be done. Here are some suggestions, along with their perceived benefits:
1) SET BY PRICE TO THE CONSUMER, BEGINNING AT THE LOW END …This set enables the customer to begin at the cheaper beers and move to the higher priced ones. The foot traffic pattern encourages the consumer to move down the cooler, checking out the various beers. He or she may see one preferred to their original choice and trade up to it.
2) SET BY PRICE TO THE CONSUMER, BEGINNING AT THE HIGH END…This set enables the customer to begin his trip down the cooler with your more expensive beers. The idea here is to try to catch the consumer’s eye early, with a strong-profit brand. They can, of course, continue down the cooler, getting into the lower end brands.
3) SET BY CATEGORY…This set is arranged by the types of beers offered. Premium domestic would all be together; all light beers would be in one group; all craft beers would be in one spot and so on. The benefit of this set is simplicity and comparison for the customer, as they can go to a section looking for a specific beer and see ALL the beers offered in that specific category. This set has the ability of encouraging the customer to trade up, within his category.
4) SET BY DISTRIBUTOR…This set is usually used to keep distributors from adding new brands and packages. Each distributor gets ca section and it must contain all their products. If a new item is introduced, an existing item must come out. This is not a good set. Its only benefit is to the retailer and that benefit has more down sides than ups.
5) SET BY RETAILER PROFIT…This set is a fairly new one. It is designed to place the most profitable beers in the most easily accessible spots. It is similar to set #2, but the beginning of the customer’s journey down the cooler is filled with different brands and packages. Their only common denominator is a stronger than average return for the retailer.
6) A BOMB WENT OFF IN MY STORE…This set is the “no set at all” version. It can be found in large urban areas as well as rural ones. These retailers are the ones who sit behind the counter and let the customer hunt for their items among disheveled displays and collapsing shelving. Unfortunately, this set is more common than one would imagine. Obviously this is not a recommended set.
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I hope this information continues to open your eyes to the positives of beer, as the driving force of your business. No matter how you look at it, beer has its place, as the foundation, in your formula for success. Beer is still America’s Beverage of choice.
We invite your comments, questions and/or suggestions. To add your thoughts, simply go to the end of any post and click on the word "comments," in comments links to this post. That will take you to a site where you can leave your comment, question or suggestion.
Training seminars are available to suppliers, distributors and retailers. Contact us for information on specifics, details, time lines and costs. We can help your business.
NOTE: For more of my posts, simply click on the month of your choice, listed to the right of the blog. Visit them all and pick up some great ideas.
Thank you for your continued support.
Don Apostolos
The Apostolos Pro Beer Post
973.692.9585
dapostolos@optonline.net
Monday, January 18, 2010
Tuesday, January 12, 2010
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
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
Wednesday, January 6, 2010
TAKE A TOUR IN 2010
FOR ALL RETAILERS
The new year is upon us. 2010 is aligning itself to be better than 2009. It shouldn't’ be difficult…2009 was not a very good year for the majority of industries. With the exception of only a few, the soft economy had a huge negative impact on most of us. Let’s welcome 2010 with open arms, hoping for positive trends, better consumer spending patterns and a return to a bit of prosperity for our industry.
In order to be prepared for whatever 2010 has in store for us, we must be prepared for all possibilities. One key thing for all retailers is to know their competition. January is a great time to take a tour. Visit your competitors. Take the time to actually understand what they are doing.
No matter what the economic environment, it is imperative the small business owner know what his competition is doing. In excessively trying times, such as those we are currently experiencing, it is even more important to “know thy competition.”
Many on and off premise accounts think a mere perusal of the newspaper will inform them as to exactly what other accounts are offering the customers you all share. Nothing could be further from reality.
In the off premise, many of the items designed to impact the consumer are in-store…not advertised at all. These could be the re-alignment of the store, altering the store’s traffic flow. There could be great, creative displays and food tastings in all aisles. While I am not a big fan, there could be a huge wall of holiday baskets.
If you own an on premise account, look for things that stand out. Things that interest you. New brands, new dispensing devices, new and different menu items. Anything that stands out. Look at pricing…everyday prices on the menu as well as promotional prices on table tents, placemat, signs or menu boards. Take it all in. Take notes to help you remember who had what and for how much.
Experiment with the ideas you like. Copy and improve on the best ideas. Be creative.
In order to be the smart retailer, you have to “take a tour.” Decide who your key competitors are and physically visit them all.
This type of tour is done for one basic reason. To copy the good ideas you see and to improve on them. There is absolutely nothing wrong with copying a good idea. Remember, imitation is the sincerest form of flattery. The only negatives are not making this competitive tour or not improving your marketing because of what you find.
Every individual retailer has good ideas. By visiting your major competition you can use the combined creativity of a number of retailers to make your place #1 in 2010.
NOTE: For more Pro Beer Posts simply do one of the following. Either click on the line, "Older Posts" at the bottom of any page or click on a month in the column to the right of the current post. Either one will take you to previous posts.
The new year is upon us. 2010 is aligning itself to be better than 2009. It shouldn't’ be difficult…2009 was not a very good year for the majority of industries. With the exception of only a few, the soft economy had a huge negative impact on most of us. Let’s welcome 2010 with open arms, hoping for positive trends, better consumer spending patterns and a return to a bit of prosperity for our industry.
In order to be prepared for whatever 2010 has in store for us, we must be prepared for all possibilities. One key thing for all retailers is to know their competition. January is a great time to take a tour. Visit your competitors. Take the time to actually understand what they are doing.
No matter what the economic environment, it is imperative the small business owner know what his competition is doing. In excessively trying times, such as those we are currently experiencing, it is even more important to “know thy competition.”
Many on and off premise accounts think a mere perusal of the newspaper will inform them as to exactly what other accounts are offering the customers you all share. Nothing could be further from reality.
In the off premise, many of the items designed to impact the consumer are in-store…not advertised at all. These could be the re-alignment of the store, altering the store’s traffic flow. There could be great, creative displays and food tastings in all aisles. While I am not a big fan, there could be a huge wall of holiday baskets.
If you own an on premise account, look for things that stand out. Things that interest you. New brands, new dispensing devices, new and different menu items. Anything that stands out. Look at pricing…everyday prices on the menu as well as promotional prices on table tents, placemat, signs or menu boards. Take it all in. Take notes to help you remember who had what and for how much.
Experiment with the ideas you like. Copy and improve on the best ideas. Be creative.
In order to be the smart retailer, you have to “take a tour.” Decide who your key competitors are and physically visit them all.
This type of tour is done for one basic reason. To copy the good ideas you see and to improve on them. There is absolutely nothing wrong with copying a good idea. Remember, imitation is the sincerest form of flattery. The only negatives are not making this competitive tour or not improving your marketing because of what you find.
Every individual retailer has good ideas. By visiting your major competition you can use the combined creativity of a number of retailers to make your place #1 in 2010.
NOTE: For more Pro Beer Posts simply do one of the following. Either click on the line, "Older Posts" at the bottom of any page or click on a month in the column to the right of the current post. Either one will take you to previous posts.
We invite your comments, questions and/or suggestions. To add one simply go to the end of any post and click on the word "comments, in comments links to this post." This will take you to a site where you can leave your thoughts.
We also offer business consulting and training seminars for suppliers, distributors and retailers. Contact us for information on specific details, time lines and costs.
Thank you for your support.
Happy New Year.
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