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5 Reasons to Invest in A Merchandising Services Group

Paul Crawford • Mar 01, 2021

1) Visual Appeal


Do you know how your product is presented in the stores today? Is the store set to your best practice plan-o-gram? Is the set attractive, with no torn or broken packaging, are your displays clean and functional? Are your point of purchase (POP) materials, such as signs and headers in place and providing the customer with the type of information to help make that sale?


A Merchandising Services company can set your mind to rest. They will ensure all these important things are looked after and should provide you with photographs viewable through a web-based portal to prove it!


2) Empty Shelves Mean Lost Sales


Isn’t it frustrating when there is no stock on the shelf for your best-selling items?

During the COVID-19 pandemic, stores ran out of stock of many key items and with a lack of staff in the stores coupled with shipping and logistical issues the stores may still not have your best-selling items on the shelf.


Compounding the problem is that most orders are now generated by a computer, not a person. We have seen that computer on-hands may not match the physical on-hands so unless someone is physically checking the shelf, orders may not be generated for items that are out of stock.


A Merchandising Services company will conduct cycle counts on a regular basis to ensure computer on-hands match the physical on hands. Then they will then make the necessary system changes to correct the stock counts and then ensure orders are placed for missing products.


3) Optimizing Product Visibility


Are the stores merchandising your products on endcaps, stack-outs, wing panels or clip-strips? 


These are prime selling positions in a store. Because Merchandising Service Company reps have already developed relationships at the store level, they are able to negotiate and procure off-shelf positions for your products. Why not gain an unfair advantage by increasing the space for your product listings in store? More orders will be generated to fill these off-shelf positions and sales will increase as a result.


4) Product Knowledge and Training


When you introduce a new product do you have a brand advocate in the store talking about the exciting features of that product?


Merchandising Service representatives will provide store staff product knowledge on all visits. These can be impromptu reminders of key selling features and benefits or a fully planned in-aisle demonstration.


Knowledge is power and an informed staff member will gladly pass on that newfound product knowledge to customers. This will give your product a distinct advantage over a competitor’s product. 


5) Reducing Return Rates to Save Money


Are you aware of what is being returned to the store as “Defective Merchandise”? Reducing return rates by even a small percentage can result in many thousands of dollars of savings in defective allowances.


A Merchandising Service Company will check the returned products to ensure that the product a customer has returned to the store is actually “defective” and not just an item that was used for a weekend project. Quite often the product returned may not even be your product.


Brands who work with a Merchandising Service have the advantage of a set of eyes and ears at the store level ensuring customer returns are legitimate.


Merchandising Service companies charge a modest fee or a small commission on sales in providing these services.


For more information and to receive a complimentary store audit please complete the following information and then start seeing how your products look in the stores today.


2021 Our Leaders Predict with Paul King
07 Apr, 2021
Paul Crawford, King Marketing's President offered his predictions for the home improvement sector for Home Improvement Retailing's Annual Leaders Predict Report.
By Paul Crawford 26 Mar, 2021
When one of our reps walks into a big box home improvement retailer to check on our manufacturers’ products, listed below are the top 7 deficiencies they typically find: 1) Empty shelves. The product is not stocked on the shelf. 2) Uninformed staff. Floor staff have no information about the products. 3) Opened packaging. A product has been opened and left on shelf. 4) Product is hard to find. Product that is displayed is hard to locate in the store. 5) Displays that are broken, dirty or missing parts. 6) Use of “Tear Pads” or “Pick Cards” instead of actual stock. 7) Off-Shelf displays like stack outs and clip-strips that are untidy or empty. Any one of these problems is a frustration for the customer and for you, as the manufacturer. Improperly display products cost you money. 1) Empty shelves. The product is not stocked on the shelf. Isn’t it frustrating when you go into a store and there is a gap on the shelf or an empty peg hook where the item you intended to purchase should be stocked? You made that special trip to a store and now you wish you had ordered the item online. However, an empty shelf does not necessarily mean the item is not in stock. Most stores will carry overstock either above the area where the product is usually located, or they might have stock in a back room or a warehouse area. In this case the problem is usually the store staff have not had time,or are even aware that they need to “down stock” product to fill that empty space. An empty shelf or peg hook can also be the result of the store computer system being out of sync with the actual physical on-hands. This can happen when items have not been scanned probably when sold, items have been stolen, or are mistakenly listed as a different item in the store. Stores conduct physical inventory checks about once per year but what happens between those inventory checks? Since most orders are auto-generated by the stores computer system, that out-of-stock item will not be re-ordered until the adjustments have been made to the computer system. 2. Uninformed staff. Floor staff have no information about the products. Many people want to go to the store to find out more about the product they intend to purchase. This can quite often be the case with an item that is mechanical in nature and retails for more than $50, like a power tool. The consumer wants their “hand-held” before making that more significant purchase. This information can be obtained from an informed member of the store staff or from point of purchase materials. But isn’t it aggravating when the store staff member cannot provide you with even basic information on that item? They obviously have not received any specific product knowledge training and worse still, they might just guess and “wing it” with an answer that is not based on facts at all. 3) Opened packaging. A product has been opened and left on shelf. Open, torn or broken packaging is another frustration for consumers. Most customers will try to find an unopened carton or package but sometimes this search can be fruitless because the only item or items on the shelf are broken packages. How do you know if all the parts of the product you are about to purchase are in the box? Why has the package been opened? Was it returned by another customer? You do not want to purchase a used item. The store could very well lose that sale because the only item or items in stock have been opened. 4) Product is hard to find. Product that is displayed is hard to locate in the store. You love the look of that light fixture hanging in the “light cloud” of the box store you are shopping in, but what is the price of that item and where is the stock of that item located. The item should have a price label and a location label clearly fixed on the display or hanging from it, so you know the retail price and the shelf location the stock is located in. Think of the Ikea system which provides you with the location for the stock on that item. 5) Displays that are broken, dirty or missing parts. Doesn’t it drive you crazy when the display item you want to touch, and feel is missing important parts? It doesn’t make customers happy either. A faucet without a handle, a drill with a missing chuck, a light fixture that has a burned-out light bulb. How can you make an informed decision when you specifically wanted to see that product displayed in all its glory? 6) Use of “Tear Pads” or “Pick Cards” instead of actual stock. Another problem at the stores is the use of “Pick Cards” or Tear Pads”. Costco has used this system for many years, as you take the pick card to the cashier and after paying for the item, you go to a lock up room at the front of the store and a member of staff collects the item for you. Recently we have seen more box stores use this system. Of course, the main reason for using this system is to reduce the theft of higher priced items. But what do you do if the Pick Card / Tear Pad is missing? Customers make the assumption that there is no stock of that item. In most cases this is incorrect. Quite often the item is securely located in the lock up at the front of the store, but the Pick Card / Tear Pads are all gone. Many sales are lost because these cards are missing. 7) Off-Shelf displays like stack outs and clip-strips that are untidy or empty. Stack outs which are usually used for sale items providing the store with another way to get that product into the view of their customers as they walk the aisles of the stores. If they’re messy or empty, the customer walks right on by your product. Clip stripped items are usually located close to products that are associated with that item. For instance, batteries might be located on a clip strip beside the flashlight stock. It’s a reminder to the customer to add that product to their shopping basket to compliment the purchase. It is a wasted opportunity when the stack out or clip strip is empty or has other products stocked there. Retailers often rely on these off-shelf positions to move additional stock, and sales can be compromised if these locations are not maintained. Free Trial A group like King Marketing will be checking for all these deficiencies and more, so why not take up King Marketing’s no obligation free trial offer and see what can be achieved by a dedicated sales and servicing group. Choose from a list of services, pick some test stores, and then see what goes on everyday through a transparent web-based portal.
By Paul Crawford 23 Mar, 2021
Over the past number of years, we have seen some of the larger home improvement box store companies implement a program where they use their own dedicated staff to replace vendor sales representatives. The box stores charge vendors a fee, usually a percentage of sales, to cover the cost of this program. The box store retailers have suggested that vendors no longer need in-store representation as their own dedicated teams can provide most of the services and functions that the vendor sales reps once provided. This is simply not the case.
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