Retail Observer

MAY 2014 RETAILOBSERVER.COM 53 Corey McMullan Merchandising Manager, Appliances & Bedding Cantrex Nationwide original builder-grade range hood that came with their home. If counter space, not ventilation, is a priority, suggest an over-the- range microwave instead. I always ask my customers whether they can smell bacon and coffee in their bedroom when someone is cooking breakfast in the kitchen. If so, their range hood is not doing its job. When cooking odors travel throughout the home, particulate from frying pans is also being deposited on curtains, wall coverings, nick-knacks, etc., causing odors and attracting more dust and dirt. • Before you finalize the sale, confirm that your customers understand the benefits of counter-depth refrigerators and the space they can save. • When you uncover such upselling and cross-selling opportunities, offer a consumer financing solution that lets them bring home those additional products originally beyond their budget. Employ these techniques and your invoice could look like this: Refrigerator ......................................................................................$1,499 Range ...................................................................................................$999 Range Hood ........................................................................................$499 Financing Admin Fee $29 Subtotal .............................................................................................$3,026 Cost of Goods ................................................................................$2,275 Profit .......................................................................................................$751 Margin .................................................................................................24.8% Profit increase .............................................................................. +277%! But you can do even more: You can take the worry out of this major purchase for years to come with the next step: STEP 3. SERVICE PLANS • Dedicate time to learning the benefits of extended service plans and offer them on every sale. Extended service plans (ESPs) are the best way to help your customers feel happy and secure about their purchases. And you'll feel happy too, when your invoice looks like this: Refrigerator ......................................................................................$1,499 Range ...................................................................................................$999 Range Hood ........................................................................................$499 ESP x 3.................................................................................................$229 Financing Admin Fee $29 Subtotal ............................................................................................ $3,255 Cost of Goods ...............................................................................$2,389 Profit ......................................................................................................$866 Margin .................................................................................................26.6% Profit increase ............................................................................. +335%! One customer. One invoice. One delivery. 335% more profit! STEP 4. OFFER AND CHARGE FOR SERVICES • Delivery, removal, set-up, installation, etc. Customers appre- ciate the convenience and value of such services and are willing to pay for them. You'll build loyal and repeat customers, and differentiate yourself from the big box stores. STEP 5. ASK FOR MORE BUSINESS • Follow up with your customers, make sure they are happy, and ask for a referral. • Maximize every customer. Ask for an email address and start compiling your customer email list. Even if you are not doing digital marketing right now, having a list will help you hit the ground running when the time comes. Maintaining a dialogue with your customers ensures repeat business and referrals. BONUS STEP • Price all your items to end with .99 or .95, never .00. Why? Let's say you process 5,000 SKUs per year through your points of sale. Those extra 99 cents would produce $4,950 of passive, incremental income for your business every year! When you change your store culture to view the appliance as only the first step to a complete sale, your bottom line will quickly see results. RO

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