Is Your Store Losing Money and Not Even Knowing It?

In a past article, “Give Them Something Alexa Can’t”, we talked about why people are buying from Amazon and some strategies to combat them. But during these times, people have had a lot of time to reflect on the future of their business. Let’s identify the one thing that Amazon does well, products for every customer, and price point!

But That’s Not my Customer…

I sat in on a recent industry Zoom call regarding “Identifying Holes in Your SKU Selection in Your Store” by Ben DelGrosso. He has an interesting take on inventory management. He asked store owners/managers to look at each category i.e. subwoofers, and identify the retail prices of the product. Here are some quick examples:

Subwoofer A @ $99.00

Subwoofer B @ $149.00

Subwoofer C @ $229.00

Subwoofer D @ $349.00

 

This shows that you have holes at $199, $249, and $299, something Amazon does not! You can simply discount the subwoofer to meet my customer’s budget, but then you are losing profitability (something that is very important these days).

I Don’t Need Any More Lines in My Store!

Maybe it is time to reevaluate your current lines or explore new ones. Amazon does this passively because it is consumer-driven. If you could increase profitability by adding subwoofer SKU or two, wouldn’t that be a smart decision? Amazon has woofers from $39-$799…if you don’t have a subwoofer at $199 (using the example above), essentially you are telling the customer to shop on Amazon, another retailer or online. Why would you even chance this?

Every Customer That Visits Your Store – Visited You for a Reason

Years ago, people would come in asking to upgrade their vehicle from a tape deck to a CD player. You would take them over to your display board, find out their budget, and then demonstrate a CD player that would work for them. Fast forward to today, have you ever noticed that customers ask “Do you have a JVC123 and how much is it?”? The difference today is customers have already done some sort of research online via Facebook, forums, website or reviews. Our job is to make sure all of the customer needs are taken care of. Bluetooth, Android Auto CarPlay or Dual Phone operation, etc. If we can identify an important feature to the customer, we can up/down-sell a customer into a different price point – Amazon cannot.

Could You Have Picked a Worse Example – Subwoofers?

Vehicle radios are more of a “check the box” kind of product. Does it have this Apple Carplay “check”, does it have this…you get the idea. Subwoofers are a very different animal, and we all agree the wrong application will have a huge impact on performance. Would you sell a 1000-watt subwoofer if the customer has a 300-watt amplifier? Amazon would! With simple math, the subwoofer would only be utilized for roughly 1/3 of its performance (it would barely move). This would equal very little bass performance, and this would equal an unsatisfied customer. “That’s an Amazon customer not mine”, but this would be an incorrect statement. This was a Car Audio Customer! In this example, two 150/200-watt subwoofers would outperform a 1000-watt woofer with output and response. What about impedance, can their amp handle 4/2 ohms bridged?

Mysteries of the Subwoofer – Decoded

Subwoofers’ application is important when upgrading or replacing products as well. An example of this is changing a factory subwoofer. Here is a few consideration:

Impedance

Power Handling

Size 

Depth

Matching the Amplifier 

By using the examples above, your SKU selection should accommodate all your customer needs. By doing so, the price point of the application can dictate the sale price! 

During these unique times, take a few days to look and your store’s selection of product, ask yourself why would a customer shop on Amazon when we are here to service them and offer the same or better products? Changes, as outlined in this article, can only add to the profitability of your store.

“If you don’t shoot the puck, how are you going to score?” 

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CanadianCarStereo.com

 

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