For New Buyers #10

May 18, 2012

Buying looks easy. Go to market, select some furniture to set on the showroom floor, write the PO, and then wait for the merchandise to arrive so it can be displayed. Sounds simple, right? This description is...but it is not all the merchant's job description entails. Not by a long shot; and the best merchants understand there is a great deal more organization involved if a store is to maximize its potential.

Stepping Up for Sales and Profit

Ever since Antonio, the merchant of Venice sold his wares, one of the seminal concepts of merchandising has been the notion of ‘stepping up'. Professional buyers understand that sales associates should have someplace to go with a customer when presenting a more promotional piece of merchandise. If the promotional item is $399, should there not be a better quality, more appealing item, with superior craftsmanship at a price above $399 for the sales associate to step to.
There are a number of ingredients at play here.
1. The higher price must be warranted. It should be worth it. It may be a combination of quality, better craftsmanship, intricacies, tailoring, superior materials, greater appeal, size, scale or any number of other elements that justifies the higher price. There must be a reason that it is more expensive.
2. The step-up item should be priced at the higher level of what a customer might spend over and above the cost of the promotional item. The customer will probably not step up from $399 to $1099. He/she may very well step from $399 to $499 or $599.
3. Obviously, every item may not have a corresponding step-up item on display. The showroom might burst for lack of space. But, if a promotional item enjoys a significant draw of customer interest it may merit a step-up item.
4. One of the most commonly neglected actions on the part of some merchants lies in their lack of communication to the sales people. The merchant knows what he/she is thinking but fails to pass it along. The person on the front line needs to have a grasp of what the promotional item is, what the intended step-up item is, and how to sell it (i.e. all of the reasons and selling points to step the customer up.) This is perhaps the most critical component and in my view, it is part of the job.
If your company employs new buyers or buyers that you would like to see become more effective, I can help. Email me at furnindustry101@aol.com or call me at 727 347-1201.

Next Post: Knowing Too Much

Posted by Jim Green on May 18, 2012 | Comments (6)

Industries: Research / Analysis , Business News

January 7, 2013

In response to: For New Buyers #10
Santa commented:

i see it this way its all about Power to thee elitists no one rbreems previous failures by the bill and hill show on this subject in the years ive worked my best years have been under Reps tenure Reagan I made alot of money same with Bush and i used to be a demoncrat but i never voted a straight ticket look at the way Your world is being shaped and its funny dems controled last 2 yrs of bush yet all of this is his fault so they say . I may have the numbers switch as to population with no health care but then again Ive never depended on Govt and I dont intend to EVER its the lazy and treditional professional bums that want this plan

May 21, 2012

In response to: For New Buyers #10
Ronnie commented:

No need to be disrespectful even if it is not a profound piece.
I mean one can also have the most sophisticated furniture piece in the world but the client is looking for a square ottoman in brown leather.
If you can do better do so,you will get a few bites but thats a risk in itself isnt it.
Be a critic,there is less of an investment.

May 20, 2012

In response to: For New Buyers #10
Jim Green commented:

Dear Yuuup:

This blog is titled Furniture Biz 101. I write it for people that are new to the industry who may not have been trained as to the basics as well as you seem to be. If the blog is too elementary for you, I suggest that you simply refrain from reading it. In the meantime, I will continue to write the blog for those that may not be as educated as you or for those that may benefit from a little reminding.

May 20, 2012

In response to: For New Buyers #10
Yuuup commented:

Let's keep this series going...

#11 Water is wet.
#12 The sky is blue.

May 18, 2012

In response to: For New Buyers #10
im reen commented:

I know, Jon. My point was simply that I am certainly not offering up anything new or profound that has not been employed for decades if not centuries when I write about organizing a line-up with step-up merchandising. This message is clearly not fiction.

May 18, 2012

In response to: For New Buyers #10
jon commented:

The merchant of venice is a work of fiction.