Showroom savvy

How to increase sales by focusing on product grouping, lighting and fixtures.

by Rich Vurva

When customers walk through your front door, what do they see? Is the will-call or counter area in plain sight? Are the aisles free of clutter? Can they easily locate the products they want to buy or rent from you, and do you show off items that customers might not know you carry?

Floor layouts planned to improve traffic flow, displays that draw attention to new products or closeout inventory and lighting that not only enhances visibility but highlights certain sections of your showroom can have a big impact on profitability.

Although distributors have a business model different from big box stores and retail chains, they can benefit by adopting tricks of the retail trade.

“The reality is this: A wholesale distributor showroom deserves the same kind of attention as a retail store. The reason is because it’s promoting your brand and the products you carry,” says Greg Gorman of GMG Design in St. Louis, an expert in showroom and retail design.

Where to begin
Start by determining the main focal point of the showroom. When a customer enters the space, specific areas should stand out above and beyond others. The eye should be attracted to those areas, Gorman says. “From a merchandising standpoint, those areas need to make major merchandising statements,” he says.

There are several ways to make merchandising statements, including grouping like products together, adding lighting to draw the customer’s attention to specific areas of the store, and utilizing fixtures, end caps and other displays to make some products stand out more than others. Here’s a brief look at some of the things you can do in your showroom to make it more effective.

First impressions count
It goes without saying that your showroom should be clean and well-lighted so customers feel welcome when they enter your door. “At our Greensboro, N.C., location, we have color-coded displays that make the place look really special. We also sandblasted the floor and refinished it with an epoxy coating to make it shine. It’s a very attractive site,” says Ensco Supply president Richard Crifasi.

Keep showrooms clean and free of dust, sweep and polish or vacuum the floors regularly. Also make sure your restrooms are maintained and properly stocked with soap and paper products. Replace burned out bulbs quickly, and keep displays fully stocked so customers don’t see holes where products are supposed to be.

Crifasi believes first impressions make a big difference in how customers perceive a supplier. That’s why he instructs his employees to wear neat looking shirts with the company’s logo or a manufacturer’s logo and won’t allow showroom employees or delivery drivers to wear T-shirts.

“Customers evaluate you partly on your appearance. If you call on a customer and you’re wearing a worn out T-shirt and driving a beat up pickup truck, your customers notice that. They either think you don’t spend any money on yourself or they’ll think you don’t care. I would prefer to have a good appearance,” says Crifasi.

Providing counter treats such as coffee and cookies in the morning and soft drinks, popcorn or pretzels in the afternoon is another great way to make customers feel special.

Group products to generate profitability
Lincoln Contractors Supply in West Allis, Wis., places popular items such as power tools and accessories in a “corral” situated in the middle of the store near the checkout counter. It has only one entry and exit point, which cuts down on shoplifting, but also makes it easier for customers to find what they’re looking for.

“You want to keep popular items visible and at eye level, and group add-on items nearby,” says vice president Keith Turtenwald.

Similarly, Ensco Supply displays rotary hammers on one wall, with hammer bits, anchors and other accessories nearby to boost add-on sales opportunities.

Good displays make a lasting impression even after the customer leaves your store. They might not buy something today, but a bold, eye-catching display will help customers remember what you stock when they’re ready to buy.

Use lighting to enhance visibility
Most retailers understand that lighting can complement price points of displayed merchandise, says Gorman. Three- or four-foot fluorescent light fixtures provide general illumination, but accent lighting such as adjustable track lights highlight focal points on walls and floors. “Then there’s path lighting in areas where a customer might sit to review something or interact with a salesperson,” he says. “Most retailers consider a lighting package to be more important today than in the past.”

When space is limited, carefully choose which items you want to showcase. Consider displaying items that the typical customer might not realize you keep in stock. Partner with manufacturers to take advantage of signage and other point-of-sale displays to freshen up the look of your showroom.

Mix it up a bit
Varying the types and sizes of fixtures can help draw attention to specific products. “You can do things with small platforms of varying heights starting with four to six inches off the floor up to 36 inches,” says Gorman. “It creates a museum effect to get products off the floor, which raises the level of importance and value.”

“We move things around constantly,” adds Turtenwald. “We try to keep our end caps as fresh as possible.” Lincoln Contractors Supply changes products displayed on high-visibility end caps at least quarterly, replacing them with promotional items or new products. “One of the challenges that you have is that customers start to learn where things are. You want to shake it up a bit so they have to wander your showroom. You want them to see everything,” he says.

Another reason it’s important to rotate inventory is so customers pick the oldest product first, says Jase Doane, senior market manager for Permatex, a manufacturer of adhesives and other industrial maintenance products. “This is especially important for products with a shelf life, or those where the packaging changes regularly. You don’t want to be stuck with old product or out-of-favor packaging,” he says.

Encourage impulse buys
As customers enter Lincoln Contractors Supply, the main checkout counter is on their left and the rental counter is to the right. The open floor space between the two counters is prime real estate for displaying large equipment, new products, or even closeout inventory to catch the customer’s attention. “A lot of customers come in just for rentals. If we didn’t place products here, they wouldn’t see it,” says Turtenwald. Small, relatively inexpensive accessories such as marking pens, drill bits and saw blades placed at the checkout counter also encourage impulse buyers. “We actually see our circular saw blade sales increase when we stack them on the counter,” Turtenwald says.

Ensco Supply ships slow-moving inventory from multiple locations to its Charlotte store and positions it in the front of the showroom in plain view. “We position dead inventory items out front to encourage impulse sales. When people come in, we want them to browse through the dead inventory,” says Crifasi. Signs also instruct customers to look for dead inventory posted online.

“The objective of a point-of-sale display should be to sell products to a customer that the customer didn’t plan on buying when they entered the store,” says Doane. “POS displays should be well-lit, well-stocked and in easy view of potential customers. Eye-level displays seem to work best at catching the attention of the customer.”

Pay attention to traffic flow
Keep aisles free from obstacles and try to position them so two people can move through the aisles comfortably. Provide enough room so a customer can examine a product after removing it from the shelf. Also strive for a traffic pattern that keeps customers moving from the front door to your most profitable items before they reach your counter.

“We want to design our showroom so customers can move through the store quickly and get back to the job site. We don’t sell products anymore, we sell time. He who wins the time game is going to get the customer,” says Turtenwald.

Gorman suggests placing your most popular items in the back of the showroom, which forces customers to walk past other products in order to get there. Customers already think of you in terms of your product specialty, so a good showroom design can boost add-on sales in other categories as well.

This article originally appeared in the November/December 2005 issue of Progressive Distributor. Copyright 2005.

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