Diversify Your Product Line As You Prepare For The Holiday Season



Posted: Wednesday, October 21, 2009

by Ron Pawlowski
The Retail Institute

Source Out Complimentary Items Under $20 That Sell In Any Economy

Even though we're less than two and a half months from Christmas, there's still time for the retail entrepreneur to diversify their product line and offer more opportunity for their customers to make a buying decision. Approach your current merchandise sources for new products that they may have neglected to show you, because it doesn't fit into your previous buying habits. Your current suppliers may even have a few pallets of merchandise they want to liquidate at rock bottom prices. If you offer these products at phenomenal prices, customers will overlook the fact that it doesn't quite fit your brand identity. To get around the brand issue, label them in your store as a "Special Purchase" and liquidate them through the holiday season.

If your current suppliers don't have any products that can help you diversify, make a few phone calls to other suppliers and see what merchandise they've got kicking around that they may want to liquidate. Special purchase diversification take a little "out of the Box" thinking. An auto parts supplier can bring in a rack of windbreakers at sell them at great prices and offer his customers great value. His customers will find a quality windbreaker very useful around their own shop in the winter months to come. A food store can diversify into small appliances. If you sell bread, a great toaster at a great price will appeal to this array of customers.

For the holiday season, consider stepping outside of your brand with special purchases and think about the diverse array of needs your customers has that you can fulfill. He may buy his hardware and tools in your hardware store, but what other things does he buy on a regular basis somewhere else? In this case, can you offer motor oil, office paper, washer fluid or a handy raincoat to this customer during the high traffic holiday season? By diversifying, you can convert this purchase into your store, and if lucrative enough, the product line can even be perpetuated after the holidays.

These days, in our challenging economy, consider the price points below $20. Impulsive and out of the brand buying decisions by your customers will appear justified in their minds if you stay under this price limit. In fact, diversification with pricing from $1 to $10 situated near the cash desk is a powerful strategy for add on sales.

Take Action Today:

1) Start your research NOW and source out some low priced products that diversify your product offering.

2) During the holiday season, capitalize on the increased traffic and think outside your brand. Offer price and great value, preferably under the $20 price point.

3) Consider the diversity of your customers' needs and convert purchases they make elsewhere into your store.

4) Contact suppliers that you currently do not deal with as well, and ask if they have merchandise they wish to liquidate and get out of their warehouse. Market these as special purchases at rock bottom prices. If you buy well, you'll still preserve solid profit margins even with these promotional products.

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