Point-of-sale merchandising adds more profit to your bottom line during a sales transaction when you present customers with product displays at the checkout. Point-of-sale displays are those bins filled with candy bars or ice and soda that entice customers while waiting in line. Almost every business uses some sort of point-of-sale merchandising campaign, whether it is the rack of jewelry at the clothing boutique or the signs at the bank teller’s station that say to ask about a new service you can add to your checking account.
The Plan
The concept is designed to take advantage of impulse buying. The plan is simple in design; Set up a display that offers the customer instant rewards for making a purchase. Online businesses are cashing in on this type of buying when they offer instant downloads or provide a “click and purchase” button at the end of a product description.
The Product
Customers enter the store with a particular purchase in mind. Once in the store, the business has the opportunity to increase the sales ticket with creative merchandising techniques. As an example, a paint store may offer a wide selection of paints and wallpapers along with a variety of tools used during the application. A point-of-sale display set up at the register allows the retailer to show off new tools or those needed items that are often overlooked until the customer is in the middle of the project. Drip rags or utility knives are two such items that work well in this case.
The Profit
The point-of-sale merchandise increases the store profits. For instance, a paint store may sell 50 gallons of paint in a day at $23 a gallon for a total gross profit of $115. A point-of-sale display offering paint tape, edging tools or drop cloths entices the customers to buy and the gross profit increases by $25. This could mean a yearly increase of $7,500 to the gross profit.
The Perks
Besides an increase in sales, other perks exist for businesses who use point-of-sale merchandising. For instance, small items are within view of the employee so the customer is less likely to steal the product. Another benefit is that the displays entice those customers that overlook or forget certain items such as breath mints, chewing gum and individual rolls of antacids. The displays can assist businesses in promoting a new product, such as a new flavor of cola or candy bar. Discontinued merchandise sells quickly through point-of-sales displays.
Purchasing Power
Wholesale manufacturers may offer a discount for bulk purchases of some merchandise. Other times, merchandise that comes prepackaged may also be available at a lower price as a bulk purchase without the packaging. Take advantage of the lower price and move the product quickly through point-of-purchase displays. You can take advantage of the savings or pass those savings on to your customers.
If you are a business owner, consider using these types of selling techniques to increase the profits for your store and provide a service to your customers.
This post is brought to you on behalf of Counter Intelligence, your source for top merchandising services. http://www.counterintelligenceinc.net