|
Retail SMART |
Package
Your Way to Higher Profits |
|
|
By:
Dennis A. Conforto
Chairman & CEO of A-Z Media Group, Inc. |
|
|
In my series on the retail grind, the fourth of ten ways for you to know you are no longer in the "retail grind" is when your average transaction is 25% higher than the national average.
The key to a higher average transaction is learning how to package sell. "Package selling" is defined as grouping or merchandising products into logical packages. The idea is to convince your consumers that if they buy a little they save a little; if they buy a lot, they save a lot.
Package pricing varies in its detail. It could be as simple as "buy one get the next one at 50% off", or it could be more intricate, such as a whole scrapbooking starter kit, complete with paper, adhesive, an album, embellishments, and pens. Remember to create packages for all levels of scrapbooker, not just the beginner. You could create a package option for intermediate or advanced level scrapbooker, complete with a rolling tote bag. When you create the packages, make sure you show the consumer the savings. For successful package selling, your packages should be a real value for the consumer.
How do I package? Packaging has many variables; it can be done by category, across categories, within one manufacturer, or across many manufacturers. You can package by theme, event, or color. The type and amount of packages you can create is only limited to your imagination as a retailer.
Create packages with the busy female consumer in mind. The easier you make it for your female consumer to shop, the more she will reward you with a higher average transaction. Your time-saving support will be rewarded with sales transactions much higher than you expect. In addition, you gain customer loyalty and higher average transactions.
Package selling requires some work on your part:
· Long-term merchandise planning
· Constant sales training
· Proper display techniques
· Great signage and price tags
· Knowledge of your consumer
· Planned buying
· Back up inventory to support the packages
· Regularly changing the look and feel of your packages.
Retailers are often looking to increase sales by increasing store traffic. Store traffic is important; however, increasing the sales of your current client base is simpler and more cost-effective. Increased transactions are the most profitable part of your business.
One thing is for sure: with some effort package displays and package selling will bring your profits to new heights. Package selling is a gift you can give to yourself which will cost you nothing but some time.
To learn more about packaging, become part of the SMART Group, an organization dedicated to educating you to succeed in your retail business.
Click here to learn more about joining the SMART Group.
|
|