HHIQ_2Q_17_Complete-low

EDITOR’S MESSAGE
IT’S SIMPLE:
DON’T SELL PEGBOARD
Out of stocks are not only dangerous, they are completely
unnecessary. Don’t give up valuable space to empty shelves.
And don’t give your customer a reason to shop elsewhere.
MICHAEL McLARNEY, EDITOR
“
Are you managing
your out-of-stocks?
Are you financing your
inventory properly?
The downside is simple
and dangerous: a lost
sale one time, but a
lost customer over
the longer term.
”
I
n conversation with a contractor
friend recently, he explained why he
shops one local dealer in his small
town over the other, competing store. The
one dealer, he says, is often out of stock
on important items, such as anchors or
brackets in an adequate range of sizes. This
forces him to shop down the road.
“You have to have the product in stock
or it wastes my time,” he says, adding
the contractor’s favourite adage, “Time is
money.” Granted, the less-favoured dealer
is also more of a traditional yard, whereas
the competitor, a home centre, offers a
wider range of hardware and housewares.
However, a potential for a greater strength
in the back end at the building centre just
isn’t there. “Nope, in fact, both stores have
great quality lumber,” my friend assures me.
So just how is this building centre dealer
going to compete adequately if they don’t
stand out with their LBM? They can start
by being more diligent about out-of-stocks.
Even in the off season, there’s just no
excuse: “Don’t assume we won’t need what
you should be selling.”
Our NRHA Retail Advisor Bill Wilson
urges dealers to keep a full range of A and
B items in stock all the time (see his latest
column in this issue on page 46). Are you
managing your out-of-stocks? Are you
financing your inventory properly? The
downside is simple and dangerous: a lost sale
one time, but a lost customer over the longer
term. As Bill says, don’t sell pegboard. Every
square foot of your store, every lineal foot,
must work to maximize sales for your store.
The flip side of this equation, of course,
is keeping too much old or dead stock.
Maintaining proper inventory levels while
making room to drive best-selling items
is a balance every dealer must work on
continually. Like Bill says, walk your store
every single week and identify empty
shelves and hooks.
Spring is here and your business is picking
up. Now, more than ever, take the time
to ensure you’re getting the most out of
your shelf space. Remember, you’ll help
your customer get the best out of their
experience in your store. And you’ll keep
them from going down the road to shop
your competitor.
mike@hardlines.ca
www.hardlines.ca Hardlines Home Improvement Quarterly SECOND QUARTER / 2017 9