Retail Observer

RETAILOBSERVER.COM OCTOBER 2023 48 A s an independent retailer, it can be frustrating to compete with the big box stores that offer a wide range of commodity appliances that seemingly always drive down the price. Instead of trying to compete with those margin-eating prices – what about looking in the other direction? Selling higher-end luxury appliances can be a game-changer for your business. Not only would this new vertical attract a new level of clientele to your business, it would also help drive profitability. First, it's important to understand what we mean by luxury appliances. These are high-end appliances that offer premium features, and that are built with high-quality materials. Examples include column or built-in refrigerators, professional-style ranges, high-design wall ovens and cooktops, ultra-quiet dishwashers, built- in wine preservation, built-in coffee systems, and undercounter beverage centers and/or ice makers. One of the biggest advantages of selling luxury appliances is that they offer higher profit margins compared to commodity appliances. With commodity appliances, retailers are often forced to compete on price, resulting in lower profit margins. However, luxury appliances are priced higher and can deliver as much as 10 percent more in margin. There is more time and expertise required for the luxury sale, but if you can increase your profitability by 10x, it is definitely worth it. Additionally, luxury appliances offer a unique selling proposition that can differentiate your business from your competitors. By offering high-end appliances with premium features, you can attract customers who are looking for a more luxurious experience. These customers are often willing to pay a premium for the convenience and luxury that comes with these appliances. Another advantage of selling luxury appliances is that they can help build brand loyalty. When customers purchase high-end appliances, they are often making a long-term investment in their home. By providing exceptional customer service and support, you can build a relationship with your customers that will encourage them to return to your business in the future for their appliance needs. Finally, selling luxury appliances can help you establish your business as a premium retailer in your market. By offering high-end appliances, you can position your business as a destination for customers who are looking for luxury appliances and premium service. This can help you attract a higher-end clientele and drive profitability for your business. To recap, selling luxury appliances can be a smart strategy for independent retailers looking to drive profitability. By offering high- end appliances with premium features, you can attract customers who are willing to pay a premium for luxury and convenience. Additionally, selling luxury appliances can help build brand loyalty and establish your business as a premium retailer in your market. As promotional activities of commodity appliances continue to drive profitability down, luxury appliances can offer a unique selling proposition that sets your business apart. John O'Halloran, Director of Luxury Appliances Nationwide Marketing Group STAND OUT BY SELLING LUXURY APPLIANCES John O'Halloran Appliance Trends RO

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