June, 2004

How to Sell Through a Showroom

The Times, They Are A-Changin'

By Mary Shafer

These days, all but the most hardcore pro dealers have a showroom of some sort. This means that at some level, you're dealing with - and trying to appeal to - retail customers. Just because your particular consumer segment is primarily interested in home improvement products and services doesn't mean you can't take a page from retail merchandising that caters to other market segments.

Change is good.
It's usually true that most people resist change, but there's at least one glaring and important exception: retail showrooms. By and large, retail industry studies show that shoppers not only like, but expect changes in the showroom environment. They want the excitement of newness: new products, new displays, new activities and events. Contemporary attention spans are shorter than ever, and this means your job as a show floor merchandiser will necessarily include re-merchandising at regular intervals. So commit now to the idea that your floor is never really "finished," but is always a work-in-progress.

Change alone won't keep your showroom inviting and profitable. As a shopping experience (and this is what you're creating), the change must be well planned, substantially meaningful, and executed with an eye toward reinforcing your corporate "brand." In other words, a bit of superficial "fluff" isn't going to cut it. And it must begin with a sound idea of what you hope to achieve; the more specific the vision, the better.

Fundamentals of Modern Merchandising
Begin your plan with the basics of retail merchandising. Consider your target market, what their needs and desires are, and then figure out the best way to put your products - the answer to those needs and desires - in their path in an irresistible way. There are several considerations to make about designing your ideal showroom:

YOU

• What is your corporate "brand;" the personality or image you'd like to project?
• What kind of security do you require?
• How can you design your floor for the easiest maintenance and cleaning?
• What is your budget for re-merchandising?

YOUR BUILDING

• Are there any local building or fire codes you must be aware of before beginning?
• Do you have any new commercial neighbors whose presence has increased drive or walk-by traffic in front of your store?
• How can you make the most of your available configuration to guide the shopper through your store in a convenient and enjoyable way?

YOUR CUSTOMERS

• What is the average economic and family status of your customer, and what does that mean for the kinds of products they'll be looking for?
• Do you talk with your customers about what kind of TV programs they watch, what magazines they read, and what else might influence their tastes?
• Have you noticed any trends in what kind of products are moving fastest, what kinds of things people are asking about?

It's all about you. Well. not really.

It's actually about what potential customers think of you.

Even the smallest, family-run dealer needs to be aware of their company's corporate image. If you think you don't have an image you're in trouble, because your competition definitely knows what it is from what their customers say about you. It's your job not only to be aware of your public perception, but to be the one controlling that image. The biggest danger is in trying to be all things to all people. Decide what you're best at, and build on that.

For instance, Rick Baumgarten, second-generation owner of Chicago's Lee Lumber, took a look at his company's traditional niche serving remodeling contractors. After more than half a century, their two city locations were still doing well in that niche, but growth opportunities just weren't there. "Lumber is a commodity," he says. "The markups are low, and the competition's fierce."

Over the years, Lee had grown to produce much of its own millwork, and in 1988 had opened a window specialty shop in Merrillville, Ind. In the course of this branching out, they had gained experience in serving a more affluent, custom clientele. It was the answer they had been looking for in their search for growth into more profitable market segments. "We decided to emphasize what we're best at, and to concentrate on the high end," Baumgarten recalls. "The return on the cost of building a new showroom is greatly improved when you can realize better margins like we have."

He refers to the new 2,400-sq. ft. "Spaces and Views," an elegant storefront showroom in the upscale neighborhood of Highland Park, which they opened in 1998. "Windows and cabinets are fifty percent of our business," he says. Knowing their service and product strength and the new niche they wanted to serve really focused Lee's showroom design. "We did an excellent job of integrating windows and doors into cabinet vignettes," he admits, "until it came time to make changes. You have to deal with finishes on both sides of a wall in this situation, so now we keep that in mind when building new displays."

It all matters.
Everything about your store has a bearing on your public perception, and your showroom atmosphere is a big part of that.

Starting from the outside, your customer notices everything: the cleanliness of your parking lot, whether it's convenient and safe to use; the condition of your storefront, whether it's bright and well identified with signage; if your entrance doors are clean and working properly, and the entryway beckons or discourages. If you have exterior display windows, are they up to date or do their contents look like leftovers from the Korean War era? First impressions count. Make sure yours says, "We care."

Is your interior well lit, with ambient lighting that's bright enough but not overwhelming? What about the "temperature" of the light - is it warm (yellowish cast, as with incandescent bulbs) or too greenish-cool, as with poor quality fluorescent tubes? Consider using color-corrected bulbs that simulate natural light. Their full-spectrum light is not only more accurate for judging colors in paint, siding, flooring and other materials, they also offer significantly longer service lives for the slightly higher bulb cost. Make good use of dramatic spotlighting on "hero" or featured products, and always provide good task lighting for your employees and customers to focus on paperwork, samples and catalogs at service stations on the floor.

Make sure your layout allows for your particular security needs, taking into account your location, the kinds of materials you handle, and providing safety for your customers. Also, designing for easy upkeep now will pay off over and over again in the future with lower ongoing labor costs.

Your re-merchandising budget should allow for regular updates, new product introductions and rotation of merchandise that's not moving. Plan for versatile fixtures that can be used in a number of configurations, and that offer visual excitement through a variety of finishes and styles.

Physical plant considerations
Local building or fire codes aren't just something you need to pay attention to if you're building a new location. Remodels often require similar permits and inspections, so be sure you're doing it right before you invest the time and money.

If new businesses have moved in nearby and traffic has increased, take advantage of it. If you haven't catered much to the consumer before, now's your chance to give it a shot. If you have realized some profitability in making your showroom a pleasant place for your pro customers' clients to see their options, the new volume might be a reason to add some front racks of impulse items. TruServ CEO Pamela Forbes Lieberman recently reported that two-thirds of what consumers buy from a well merchandised store is purchased on impulse. By the way, TruServ members don't have a monopoly on that statistic. Make it work for you.

Home furnishing giant Ikea's stores are a great example of configuring your space to guide shoppers through the store conveniently. They position full- room vignettes one after another in a floor plan that encourages one-way traffic to flow from categorically grouped scenes to related accessory displays. Though it is all very intentional in design, shoppers are pleasantly surprised to find that the idea that "just happened" to pop into their heads two steps back now appears in front of them in multiple options, just waiting to be browsed. Cha-ching!

No reason you can't do the same by accessorizing your vignettes; towel racks and wall cabinets in bathroom scenes, ornate lighting, upscale appliances and plumbing fixtures in the kitchen. What? You don't sell appliances? Do what Newton, Mass. National Lumber does on their Kitchen Views showroom floor. Co-CEO Margie Kaitz involves local "showroom partners" who specialize in the products that enhance the reality factor in their vignettes. Result? You don't charge a finder's fee for sending your customers their way, and they don't charge you for the floor models. Your merchandising budget gets a break, your cross-town colleague gets some business, your customer gets all the products she wants, and everybody's happy.

There is some danger in product displays becoming over-crowded, however. A good rule of thumb is that if you can't easily turn a baby stroller or wheelchair around in your aisles, they're too tightly packed.

Who it's really all about
If you've done your homework about the average economic and family status of your customer, you'll know what kinds of products they'll be looking for on your showroom floor. Dealers Lumber of Columbus, Ohio knows that 98 percent of their business is contractors. They also know that those pros serve an upscale client base, so that's what they stock, concentrating on unique items for restoration, since theirs is a community filled with historic homes.

"Anyone can sell the cheap stuff," says Special Project Representative Doug Dowd. "We try to aim at the top 20 percent of the market." He reveals that lumber and windows share the majority of their volume with outdoor decking products. They choose what they'll merchandise in their 1,000-sq. ft. facility based on "what shows well." Dealers Lumber has large walk-around displays outside and several smaller ones on the floor. The showroom is an unusual half-octagon shape with an uncluttered, open air concept that allows lots of natural light to illuminate a constantly changing array of new products.

Their showroom also functions as a meeting place for their pro customers and their clients, which Dowd says is especially appreciated by contractors who work mainly out of their trucks and can't offer their own meeting space to affluent homebuyers. It helps make a professional impression for the contractor, provides hands-on product education for the buyers, and creates multiple add-on sales opportunities for Dealers Lumber (not to mention the goodwill factor on everyone's part). Another function is served when the company holds installation schools for contractor crews right on the show floor with technical reps direct from product manufacturers, which is appreciated by their contractors.

Another important factor in making the shopping experience pleasant for adults is providing an area where children can remain occupied while their parents make important buying decisions. Create a bright, warm area with a TV and videos or DVDs and a few well chosen toys for younger kids. You'll score major points with appreciative parents.

Also, don't let all the "reality" home improvement shows on HGTV and other cable networks be just another boob tube offering in your mind. Pay attention to what they're showing, because chances are whatever new product or technique is on this week is what your customers will be asking about next time they come in. Use manufacturer signage and laminated magazine pages to prominently show you're really "with the program" in offering the brands and models they'll want to see. Such displays will inspire confidence in consumers that you're the "go to guy" (or gal) when it comes to knowledge of current trends. That reputation as an idea source or product consultant is priceless, especially when it comes to word-of-mouth referrals.

The human factor still rules.
Product mix is critical, and you should provide enough literature at your reception desk and on the floor to help shoppers compare apples and oranges. On each vignette, post descriptions of each product in detail, and break out separate costs. But don't expect the printed material to do all the work. Make sure trained sales professionals are within easy access (but not hovering) on your sales floor, ready to elaborate on any point of interest. National Lumber provides a full time decorator on their "boutique" show floor to make design suggestions, and finds the investment worthwhile in building customer confidence that results in more sales than they'd make without one.

This last point really speaks to what we know is the long suit for independent dealers: that soothing, informed human presence that manages to bridge the gap between inquiry and sale. Providing a visually stimulating, easily navigable, product-rich show floor for this interaction is akin to offering a well-appointed stage for an impressive performance, except the standing ovation is replaced by a ringing cash register.