2016 Kalmbach Feeds Agribusiness Conference Merchandising your business with Larry Belluscio, Director of Equine Business

2016 Kalmbach Feeds Agribusiness Conference Why merchandising? EASY ANSWER: Shopping environment Satisfied, loyal customers

2016 Kalmbach Feeds Agribusiness Conference Don’t be an “inconvenience store” The key is: MERCHANDISING

2016 Kalmbach Feeds Agribusiness Conference Today, we’ll review: How merchandising increases sales potential Why image matters How to perform audits and surveys to evaluate your customers and priorities The different types of merchandising displays and their effectiveness How to include and encourage your employees

2016 Kalmbach Feeds Agribusiness Conference Overall Promotional Strategy Incorporate merchandising in your overall promotional strategy: Presentation of products and services Outside appearance Store organization Displays Personnel (expertise, helpfulness) Economics

2016 Kalmbach Feeds Agribusiness Conference Getting Started with Merchandising Remember there is no “right way” The goal is to project the high value of your store Think about your store’s image

2016 Kalmbach Feeds Agribusiness Conference Projecting HIGH value The goal of merchandising is to project the overall high value of your store. Including: Outside appearance In-store salespeople Displays, promotions, inside appearance

2016 Kalmbach Feeds Agribusiness Conference What is image? Your store’s image is two-fold: 1)The IMPRESSION your customers have about your store when they walk in 2)The MENTAL picture your store brings to mind when customers aren’t actually on-site Are your customers’ actual and mental pictures the same?

2016 Kalmbach Feeds Agribusiness Conference ECONOMICS “How much am I willing to pay?” “Am I being charged a fair price?” “What are other stores charging?” “What does this store offer that I can’t get elsewhere?” TRAFFIC PATTERNS “I’m glad I saw these shoes, I really need a new pair!” “One thing that’s nice about this store is you can always find your way around.” “The kids always want to head for the animals in the back room.” SPACE ALLOCATION “They’re never out of the products I like to buy.” “I always know where I can get a cup of coffee and doughnut in the morning.” “No matter what season it is, I know they’ll have what I want.” IMAGE “I really enjoy shopping here.” “This store has everything I need, I can always find what I want.” “There’s always someone willing to help me.” MERCHANDISE PRESENTATION “These rabbit starter kits are a great idea; it’s nice to find everything I need in one spot.” “I like the displays here; there’s always something new to see.” “I like those new bins for bird feed; I can measure out exactly how much I want.” “That new warehouse is really convenient; I can pull right up to the loading dock.” SIGNS, LIGHTING, PROMOTION “This place is always bright & cheerful looking.” “I hate having to hunt for something. The new aisle and department signs are great!” “It sure is nice to be able to see the price, especially if they’re having a sale.” “I really appreciate that they let me know about sales and give me coupons.”

2016 Kalmbach Feeds Agribusiness Conference What is your store’s image made up of? Physical appearance Merchandise presentation Cleanliness Product Selection Service Personnel Price

2016 Kalmbach Feeds Agribusiness Conference Performing a Self Audit Need Outside Help Customers Other Business People Can be done in-store Who is your customer? Monday-Friday? Where do they live? What do they buy from you? Why do they buy? How would they improve the store?

2016 Kalmbach Feeds Agribusiness Conference Performing a Self Audit What do non-customers think of you? Do they know what you do? Why don’t they shop with you? Employees How would they improve the store? How well trained are they? Strengths/Weaknesses Create competitive advantage List of improvements

2016 Kalmbach Feeds Agribusiness Conference Performing a Market Audit Who are your competitors? What do they look like? How do customers feel about them? How are they priced? Hours? Go shop competitors What is your market? Demographics Traffic patterns Local sources will have this Make a list of areas you can capitalize on Related areas New departments

2016 Kalmbach Feeds Agribusiness Conference Performing an In-Store Survey Be sure to have a county map near the survey table.

2016 Kalmbach Feeds Agribusiness Conference Let’s Get to Merchandising Setting up your merchandising displays

2016 Kalmbach Feeds Agribusiness Conference Consider Impulse Buyers Impulse buyers tend to: Stay in the store 30% longer Buy half again as many items Spend about 27% more money

2016 Kalmbach Feeds Agribusiness Conference Humans are TACTILE We like to TOUCH the fruit before we buy.

2016 Kalmbach Feeds Agribusiness Conference Get Attention Eye catching, unusual displays Live animal exhibits Veterinary days Customer appreciation days

2016 Kalmbach Feeds Agribusiness Conference COLORFUL Price Tags Price Tags, Labels and Colors are IMPORTANT! Price tags should be: On every item In the upper right hand corner Bright colors, easy to see Price tags increase profitability. Customers don’t need to wait on a salesperson. Check out is faster and easier. Sale prices can be clearly marked by item. Sale tags can be removed.

2016 Kalmbach Feeds Agribusiness Conference Department Signs EQUINE CATTLE FENCING MEDICAL BEDDING SMALL ANIMAL

2016 Kalmbach Feeds Agribusiness Conference Lighting Your lighting should be bright enough that customers can easily see merchandise. Better lighting can reveal “trouble spots” that can be improved, such as: ‐ Dust ‐ Worn or dirty paint ‐ Broken tiling or linoleum ‐ Damaged displays Keep a watchful eye out for these trouble spots and FIX THEM!

2016 Kalmbach Feeds Agribusiness Conference Sales Increase from Merchandising Techniques

2016 Kalmbach Feeds Agribusiness Conference End Cap Displays Feature new products Seasonally correct merchandise Discount promotional items Sales can increase OVER 500%!

2016 Kalmbach Feeds Agribusiness Conference Vertical Displays Provide a uniform appearance Enhance the selling experience Makes it easy for your customers Makes it easy for you!

2016 Kalmbach Feeds Agribusiness Conference Recognizing Hot Spots Hot spots deserve merchandising ATTENTION Prime source of impulse purchases Should be spotless Should be well stocked Should be changed regularly (every 2 weeks) Salespeople should be prepared to assist customers By the counter In the drive-thru Center of the store

2016 Kalmbach Feeds Agribusiness Conference Shelving Locations MATTERS! Most Effective: Eye Level 74% as Effective: High 57% as Effective: Low

2016 Kalmbach Feeds Agribusiness Conference Sell Product, Not Pegboard

2016 Kalmbach Feeds Agribusiness Conference What about feed? Feed lives on the retail floor Must be allocated space The product must be signed and priced Big displays = big results Wimpy = wimpy Placement of displays is critical

2016 Kalmbach Feeds Agribusiness Conference Face to Face Merchandising May be one of the most important tools in your merchandising toolbelt

2016 Kalmbach Feeds Agribusiness Conference Printed Promotions Prioritize the information 1)Product Name 2)“Special” “Sale” 3)Amount or size (50 lbs.) 4)Price Add a benefit: it can increase effectiveness of the sign/flyer by almost 100%! Be sure your designs are BALANCED

2016 Kalmbach Feeds Agribusiness Conference Making it all happen Knowing and doing are often a few steps apart Use the Image Checklist Decide who is responsible for what Devise chore lists Develop performance goals Set up a competitive atmosphere between departments Make sure that employees know what is expected

2016 Kalmbach Feeds Agribusiness Conference Recommended Reading 1,001 Ideas to Create Retail Excitement By: Edgar A. Falk 1,001 Ways to Reward Employees By: Bob Nelson