Every construction supply retailer has seen it happen. A customer walks in the store looking for a hammer — and walks out as the proud owner of the latest power drill, complete with a full set of new bits and other accessories.
Such impulse purchases can help make the difference between a business struggling to survive and one that is thriving.
Human psychology is on the side of the retailer. Some experts believe that between 60 and 70 percent of buying decisions are made after a customer arrives in a store. That means it is up to the retailer to find a way to make that first glimmer of impulsiveness happen.
How can a store owner make sure he catches the eye of customers, who may not even be focused on power tools when they walk in the store? The answer lies in a mixture of showmanship and research designed to maximize the impact of in-store display strategies.
Finding the right balance
Power tools are a great draw for construction supply retailers. Despite the lingering economic doldrums, market researcher Freedonia Group estimates that the sales of power and hand tools will rise 4.1 percent annually through 2014. The company’s experts further note that power tool sales will continue to outpace hand tools in this annual $9 billion industry.
These numbers tell us that consumers are interested in making a power tool purchase. It is up to retailers to make sure the decision to buy is made in their stores.
A creative mind could come up with a power tool display that would overwhelm everything else in the store, have bells and whistles too impressive to ignore, and draw customers simply from the novelty of the presentation. However, the best display in the world is not worth erecting if it does not meet the needs of all three audiences that are involved: the manufacturer, the construction supply retailer and the customer.
To begin with, the retailer may have limited space in his store or a configuration that is more suitable for one type of display than another. He will want a display that is in keeping with the rest of his store so that his other merchandise is not relegated to second-class status. He also will want a display that does not create problems — such as messiness when customers test the tools, or chances of people getting hurt, or the potential of theft presented by display models available for handling.
Similarly, the manufacturer is looking for a display that does not add to the retailer’s problems. He will want something that can be handed off with little fuss or added effort, erected with ease and designed to be sturdy over time.
Making up the third leg of the triangle of audiences involved is the customer. The customer needs to be drawn to the display with its eye-catching design. But he will only be convinced to make a purchase if the display offers him pertinent information, allows him to handle the product and gives him a reason to take action.
A construction supply retailer can work closely with tool manufacturers to satisfy the needs of everyone involved in this triangle by following a few simple rules of in-store merchandising.
Making a display work
What point-of-sale strategies and in-store merchandising work well for power tools? Experience has shown that displays need to use text wisely, have colors that are distinctive and provide a hands-on experience.
As customers walk by a display, it is important to give them an easily absorbed sense of the benefits the tools provide. No one is going to want to stop to read a multi-page manual about specifications, or a lengthy explanation about features in tiny, dense type. Displays should be designed to be read quickly, with large type and bullet points. The text should emphasize the key points that make the power tools stand out from other choices the consumer may be considering.
Colors on the display should help the tools stand out rather than blend in to the display backdrop. For example, if the tools are predominantly black, the manufacturer’s signature color can be used to help the tools “pop” and attract attention. This is especially important on store shelves that are often stocked with bland, similar products.
Finally, the hands-on experience is always a powerful selling point for consumers. Being able to hold a tool, heft its weight and understand how it will feel when used on the job is important for customers who are considering their options. If they can power it up and perform a test, it can be all the more compelling.
Partnering with manufacturers
How can a retailer — with other priorities for their time and money — maximize display opportunities? They can work with manufacturers in partnership to achieve displays that work within their specific retail environment.
Larger construction supply retailers may have merchandising guidelines, with specifications for display dimensions, restrictions on available space because of large inventories, or other rules that must be adhered to. Smaller construction supply retailers may have fewer restrictions but their space is often limited because of their size. Store layout may require a display that can fit comfortably on a shelf or a countertop, or be hung from a pegboard. Or they may have room only for a standalone rack or an end cap display.
Because each retailer’s situation is different, it is important for manufacturers to offer a range of display options that can be customized easily to meet the retailer’s needs. Retailers should work closely with manufacturers to make sure the display works for them.
Demanding value from the partnership
A retailer has a choice about the products they bring into their store, and they can use that choice to demand value from their partnership with power tool manufacturers. They should seek out partners who are willing to address their key pain points.
For example, theft may become a problem if a display offers models that can be handled and used. Tool manufacturers can provide innovative solutions, such as designing clasps that keep batteries attached to display tools while still giving the customer a full range of motion to try out the display model. Similarly, chances of potential customers hurting themselves during testing can be addressed by the careful design of the display and adequate warnings at the point of use.
Finding materials that can be used in a display by people testing a power drill, for example, can be a headache for the retailer. A manufacturer who builds test materials into the display for ease of setup makes the retailer’s job less difficult.
Sharing the burden
A construction supply retailer has many priorities to keep an operation profitable — hiring the right staff, stocking the right merchandise, reaching out with targeted advertising. But in-store merchandising does not have to be something a retailer tackles on his own. By forming effective partnerships with power tool manufacturers, retailers can tap into their expertise and share the burden of making the right point-of-purchase moves.