Hardware Retailing The Industry's Source for Insights and Information
When you think about boosting your transaction size, it’s easy to think first about bringing more impulse items into your store. But increasing transaction size has to do with a combination of thorough employee training, effective merchandising and, of course, the products that will appeal to customers. There are many ways to increase transaction size, but here are a few easy ways.
Find the Projects You Can Own
You don’t have to be a large home improvement center to excel in project sales. There are likely a lot of projects around your store you can sell; you just need to find them. Identify at least 10 projects that naturally fit into your store’s product mix. Common examples include weatherstripping, toilet repair, lawn care, drywall repair or refinishing a deck. Develop project lists for each of these and check your inventory to make sure you are never out of the items on that list. Then, make sure every employee knows how to complete those projects and can answer any questions customers may have about them.
Have a Plan to Rotate Endcaps
Endcaps can be an effective merchandising tool for driving additional sales, but only if they’re used effectively. To make the most of your endcaps, have a plan for rotating them often so the products on them don’t get stale. If the same array of products has been on an endcap for too long, customers will stop noticing them, and you’ll lose your opportunity for a sale. Some retailers will rotate endcaps as often as every month.
Distract the Children
If the children who come into the store have something to keep them busy, parents may be more tempted to stay longer and buy more! This is an indirect way of trying to increase your sales, but it also sends the message that your store is family friendly. Having something for the children to do can be as simple as having a kid-sized table and chairs with some coloring books. Or, have a few square feet dedicated to a play area with a few toys.
Sell Locally Made Items
Look for local vendors or artisans who would like to sell their products in your store. Whether it be food or crafts, these items often attract impulse sales. They also do double duty in that they let customers know you support other local businesses. Around the holidays, you can promote them as stocking stuffers.
Get a Dollar Aisle
Having a selection of low-priced items continues to be a big hit for retailers who try it. Even for customers who generally prefer to have high-quality products, sometimes they are looking for those dollar items to fill a particular need. Dollar items are often impulse items. If you brand an entire aisle or section of the store as the dollar area, this will raise its visibility and might even attract a few new customers.
Try a Flash Sale
Promotions and special sales can raise your transaction size. But think beyond just the regularly scheduled circular promotions. The flash sale is a limited time offer that encourages customers to make an impulse decision to buy a particular product. One way to do it is by handing out coupons to customers in the store and explaining that for the next hour, they get a discount on certain products in the store. This will create excitement and customers may end up buying more.
