A lot of factors must be considered when buying new merchandise to stock a retail establishment. The experts at FJC can help you successfully navigate these factors, but in the meantime here are some considerations to get you thinking strategically.
Generally speaking there are two contrasting Mechandising Strategies: whether to carry a large inventory of a relative few items, or to carry a smaller inventory of a wider variety of items. Carrying a large inventory of specific items is not for the faint of heart. It means the retailer must determine what the public wants and invest heavily in that hypothesis. Conversely, carrying fewer of a broad range of products allows consumers to actively demonstrate to the retailer what they want or need. It also ensures that large quantities of less-than-popular items will not go to waste. At FJC we offer merchandising displays fully stocked with our most popular items to help eliminate guesswork.
Some brands are so powerful that retailers stock merchandise simply because of the brand name. When done correctly, these brands can actually drive traffic into their stores. Conversely other brands, even if popular, may hurt a store. Customers may not accept the brands, or the brand may not complement the brands customers do like. So, branding is an important consideration when stocking a store: Does the quality and price point line up with existing merchandise? Will adding a specific brand bring additional business, or might it potentially cannibalize existing product lines?
Vendor Relationships and Policies
Thoroughly understand the policies and processes of the vendor so you can set yourself up for success. Consider vendors who have readily available merchandise. By focusing on these vendors, you can have a broader assortment of products at your disposal with less on-hand inventory. Look for vendors who value your business to ensure the best customer service and partner for your success.
The Ability to Maintain an Appropriate Markup
Let’s face it, the purpose of your retail establishment is to earn a profit while also providing needed products. Many retailers stock their store with merchandise they’ve chosen for reasons other than price, such as “loss leaders”, customer acceptance or even personal preference. While factors other than money can (and should) go into selecting some merchandise, purchase price—and the ability to subsequently sell at a profit—must be top of mind for most merchandising decisions. That means buying intelligently, and selling with an appropriate markup.
A good buyer always considers which products are consistent performers, as well as which vendors are most responsive to their needs. Intelligent merchandising decisions help create a unique retail experience which positively differentiates you from your competition.
Finding the successful balance between all these considerations is a sure-fire recipe for success. To that end, FJC strives to be a partner in your success. We understand you have many companies from which to choose your air conditioning products, tools and accessories, and we work hard to ensure your trust in us is well placed and deserved.