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Magazine Article

  

By Paul Bubny
Contributing Writer



Point of Sale Merchandising – WEB EXCLUSIVE FIRST-RUN!
Impulse and point of sale items can mean a lode of small-ticket profits


Wherever in your store it’s located, the checkout counter is the exit—from the customer’s shopping trip, even if not from the store itself. As the jumping-off point, the counter is your final opportunity to add a few more items to the sales ticket. If merchandised properly, the point of sale can be one of your store’s most profitable areas.

In fact, the POS can generate as much as 10% of your store’s total business. The items themselves may be small-ticket, but they add up, especially if a majority of your customers make last-minute impulse purchases.

Naturally, there are limits, notably the amount of space you have available. But it’s the choices you make within those limits that determine the ultimate success.

“Point of sale merchandising” can be defined differently depending on whom you ask. One fairly narrow interpretation is that it refers to the countertop displays and other fixtures associated with the POS. Although that’s technically correct, even more important is the amount of thought that goes into the merchandise itself.

Merchandising around and near the checkouts or cash wrap with the right items will increase sales. Most of the products located here are lower priced, rendering them quick impulse purchases. However, retailers often are unaware of just how successful this area can be in providing consumers with impulsive, seasonal or necessity items.

A customer may come to your checkout counter with the intent of paying for a single $40 item and leave with five more that cost about $7 each. That’s nearly double the sales ticket, and none of it involves any selling on your part—just intelligent display.

Because of that attention to display, your customer saw the items and bought them. He didn’t need to ask questions about features, benefits, sizes, compatibility or any other areas of inquiry he might need to pursue on a bigger-ticket purchase or accessory items for that bigger purchase. Impulse items should not be confused with add-on items. The difference is that add-on items may require some explanation before being sold; impulse items should not.

RULES OF THUMB

A good rule of thumb for POS items is that they be small enough to fit into the palm of your customer’s hand. The reasons are twofold: a smaller item has more appeal as an impulse buy, and from your viewpoint, it’s easier to display on the checkout counter.

Another watchword is variety. This means rotating the merchandise on a regular basis, especially important when so much of it is trendy or seasonal. Holiday-themed items are one category of seasonal point of sale items; products related to tourist or camping seasons constitute another.

POS merchandise can consist of novelty items, but it doesn’t all have to be frivolous. Products that appeal to the practical side—LED flashlights, multitools, tire gauges and first aid items among them—are excellent choices for encouraging last-minute impulse purchases.

Other categories that are fair game as impulse/POS merchandise include out-and-out gag gifts, political-themed bumper stickers or buttons and novelties such as camouflage keychains. Sourcing these products won’t be the challenge; deciding which best fits your own customer base will be.

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