Stocking Similar Products at a Variety of Price Points
Sep 16th 2020
Introducing new products into your store can be intimidating. Ultimately, the hesitations you feel boil down to one question: What if it doesn’t sell?
Of the many considerations that drive consumers’ purchasing decisions, the price is likely the one you’ve heard come up time and time again. If that’s the case, you may think it makes sense to stock your store with only the most affordable options. However, there are a number of reasons why you should consider stocking similar products at a variety of price points. Here are just a few of them.
Attract Different Customers
One of the basic principles of purchasing is understanding that different products attract different types of customers.
Take snow removal tools, for example. A store that only stocks $5 snow scrapers is only going to attract impulse purchases. They’re not using that product to drive in customers, but rather, are attempting to build a bigger basket by presenting a cheap and accessible solution to a problem the consumer was not actively seeking out a solution for.
If that store were to carry a specialty product, however—such as the SNOBRUM—they would be able to attract the kind of customer who is looking for a specific solution to a specific problem that won’t need to be replaced every year.
Big box hardware stores have shown the importance of attracting this different kind of customer with the recent emergence of pro-programs. They are shifting their focus to commercial buyers rather than the layman consumer because they realize the greater revenue potential that this kind of customer offers.
A common reason that hardware stores, especially the smaller ones, are hesitant to introduce a new product is that they feel that the category is already too crowded in their store. They worry about investing in yet another option when it may not sell as well as the products they already carry.
While this is a valid concern, the reality is that having a stand-out product in a category can be a huge opportunity for profit. What makes a stand-out product? Well, “stand out” can involve a variety of factors, from price to bonus features to multi-functionality and beyond. The upside of having a product that instantly differentiates itself from the rest of the items on the shelf is that it can drive in some of those niche customers that were mentioned above.
Another benefit of carrying these kinds of niche products is being able to sell by comparison. A price-conscious consumer may be less reluctant to buy a product that seems more cost friendly by comparison to a more expensive version sitting next to it.
On the other hand, other customers may be able to be upsold to that more expensive product rather than buying the lower cost option. Either way, simply stocking products at a variety of price points presents your staff with a chance to engage with the customer and convince them to make a purchase that they’ll walk away happy with.
Beat the Big Box Stores
Big box stores tend to carry many different brands, but not the full depth of those brands’ product lines. This gap in product offerings presents an opportunity for local and regional stores to gain a competitive advantage.
Being selective about the products you carry in your local store may seem restrictive at times, but it can actually be advantageous when you have the opportunity to carry products that can’t be found in the national chains.
These products may sometimes come with a higher price point, but rather than hindering their sales, it can actually imply higher value and make attracting customers easier than ever. The exclusivity that comes with carrying specialty products can be a powerful selling point, as it gives your team members a very convincing talking point to present to your shoppers.
Low Inventory Commitment
There is always risk associated with purchasing a new product for your store. You may worry that you’ll purchase a pallet of what you think will be your next hottest seller, only for it to still be sitting in your stockroom months later.
Angel-GUARD Products understands how this risk can be daunting for small business owners. That’s why we offer smaller quantity minimums so you can test out our products with your customers before making a larger financial commitment. For example, our best-selling SNOBRUM comes in a case of twelve, and our heavy duty Wrecking Claw is sold in pairs of two. This way, you can make a low-risk investment as you expand and experiment with new products in your store.