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Article 4-6 What The Customer WantsBy Tim Walker What do customers want? That question always comes to mind when evaluating new products. Will this new piece of equipment be in demand, or replace an existing unit? Will the price be in line with products that already are on the market? In my twenty plus years in horticulture, I have seen many fads and trendy products come and go. What are still around are the products that make retailers profitable! There are really
only three classes of products: consumables, equipment and add on or p.o.p
products. The first group is the products that customers in any store come back
for. This could be milk, coffee or yes even plant food. Customers run out and
out of necessity they order more. The second category is equipment where the
choice is made more carefully since it is often a one time purchase. Will it be
used just once like a special drill bit or be placed in a location for permanent
use like an inline fan. These are the questions the customer asks when
determining how much they will be willing to spend on this purchase. When deciding on product mix you need to determine what will keep your clients coming back to your store. Will it be the mix of product selection designed to prevent customers from travelling to your competitors store or will it be the sound advice and product knowledge that you provide to them? Possibly it will be the latest and most innovative products to help improve their garden or save them time. In either case the retail owner needs to do a balancing act between offering commodity products and specialty products. Commodity products while not giving the bigger margins usually sell by themselves without much effort and give minimum profit dollars. The specialty products may not provide the fast sale but once promoted and the customer understands the usage, will provide steady sales at better profit margins. Always keeping this mix in mind and selecting "target" areas in your store will bring about increases in sales and profit margin dollars. Watch out for
trends vs. fads. In the past a fad might be something like a "Tickle Me
Elmo doll" or colored jeans. Do you see them on the shelf today? No, but
you do see cellular phones and home P.C.'s. Look for new technology that will
potentially be here for some time to come and look for companies who can
consistently deliver these products to you the retailer.
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