Robert Brink - Writer

Merchandising 101: Hardgoods

January 6, 2006 | Skip To The Comments (0)

Merchandising 101: Hardgoods
Simple ways to sell more.
By Rob Brink
TransWorld Skateboarding Business April 2004

Despite Element's Bam Margera pro models or Flip's Really Sorry DVD flying off the racks of skate shops around the world last Christmas, or a hot new colorway of eS Accels or DC A.V.E. pro model shoes blowing out the week they arrive in your shop, most items in your store aren't going to sell themselves. Particularly in this day and age when customers, especially kids, are far more sophisticated shoppers than they were fifteen years ago.

Today's skateboard shop merchandising is more than placing product in a case or on a rack or wall. It's not only how you place product, but where you place it and what you place it with. Good merchandising is creating an environment—a retail space that reinforces the brands' message while maximizing sales.

Even with kids in skate shops, studies have proven that sales can, and will be increased by creating a brand environment that is well defined and acceptable to the customer. When the customer is in this space, which creates desire, he or she will be more likely to buy. The key is to create space where it is hard to say “no” and the customer “has to have it.”

First and foremost, however, you must know your customer. Stanley Marcus (Neiman Marcus) said (when discussing the difference between consumers and customers), “Cows consume and customers have feelings just like you and I.” The point being—we can never take the customer for granted.

“My favorite skate shops—and I suspect the ones which do the most business, are the shops that tune into kids,” says Charlie Cotton, retail merchandising vice president of Quiksilver, Hawk and Roxy clothing. “The shop is more like a kid's room, an environment he/she is comfortable in, a place he/she can hang out. To the untrained eye this type of shop looks chaotic. The basic logic for our stores is as follows,” Cotton continues “If a customer walks into a store with the intention of buying only one item and he/she buys two items because of merchandising, the store and the company have doubled their business.”

Try not to stock only one item of any brand name (i.e. one Think deck or set of Destructo Trucks). It looks like it was traded in, is an unwanted straggler, out dated, or it seems like the store and/or the local scene does not recognize the brand as “cool” or high quality. Additionally, kids in the same skate crew or scene are often influenced by the same marketing strategy (i.e. two friends are both convinced they need Anti Hero decks immediately, but you only have one in stock. Sure, one guy might buy another deck, but will they be return customers?) So either stock at least a few or don't stack the brand at all.

Don't double up your in-demand or limited edition items on the sales floor. Create urgency by only displaying only one of the six exact same Eric Koston or Andrew Reynolds decks (graphics) that you have available to sell. Don't be afraid to keep back stock off of the sales floor, so you can refresh your stock daily or more often, giving your customers a reason to come see you more than once a week.

Decks sell best when they are made most accessible to the customer. “Let them paw ‘em, stand on ‘em, rip the plastic, who cares? You don't make much money on decks unless you move a decent volume. The ability to view the item in person is what separates you from mail order or online shops, regardless of price,” says Robert Buckley, assistant sales manager of AWH Distribution.

Hang your decks so that they are easy to remove and replace on the wall. Remember, much of your customer base is trying to look cool, and not sorting through awkwardly hung boards is less risky than dropping decks all over or having to ask the shop guy for help. This may explain why leaving overstock or new arrival boards on the floor makes them sell well at some locations. Move the decks around every few days to switch up the look of the wall, keep all the same brands together so the Alien Workshop fiends can find every deck they are craving. Sometimes writing the widths of the decks on the shrink-wrap helps save the customers from asking to borrow your tape measure.

Another hint is to make deck graphics visible through the window, if possible as well as one of the first things you see in the store. Remember that colorful skate graphics are what gets the younger skaters hooked on skateboarding in the first place.
For trucks, pick a variety of brands and colors and put them in a big glass case. Keep them neat and organized so people looking in can see what's what. Remember that trucks get replaced the least of all skateboard parts and therefore usually generate the most brand loyalty. “Lately, the world of truck colors has been expanded to include a palette that would rival Michelangelo's,” says Buckley, “so including the hot or strange new color choices can stimulate the customer to buy new trucks for reasons beyond needing them.”

Wheels are the cheapest new item that you can buy for your skateboard that can be noticed as “new” from afar. Keep then within eyeshot of the register in order to remind the customer of how nice new wheels look and feel. Offer more selection and colors in more popular sizes, right now being 51—55mm. “Wheels with elaborate boxes or packaging seem to sell better during the holiday season,” says Buckley.

Put the bearings near the wheels so that people realize the combination of purchasing new bearings and new wheels simultaneously is somewhat logical and a treat for any skateboarder. Using the P.O.P. that comes with bearings is usually very helpful than just loose or random packs of bearings floating around the display cases. Kids love to assume they need new bearings, especially the skaters who ride in the mud and puddles all day, so don't slack on giving the bearings the attention they deserve.

Accessories are one of the hardest areas to merchandise. But treat them like any other category—neat, organized, and visible. Place accessories like wax, risers, hardware, patches, Ollie Pop, stickers, etc. neatly displayed in a glass case and near the register for impulse buying. Some of these are the cheapest items in the store that kids can buy with the change in their pocket or the lunch money they didn't use that day. Or better yet, when they realize they have change left over from the purchase they might have just made before they leave the store. Most shops know how much kids love to regrip their boards too, so keep your grip selection and all the colors you have visible to remind them how new grip will make them ollie higher.

Also, for most accessories, but especially things like belts, wallets, sweat bands and other items of flair keep the similar items together—try to go with the strength of a single classification. If you have a shelf with just wallets or just belts, you will more sell wallets and belts because it will appear to the customer that these items are important.

Aside from giving the shop the amount of audio-visual stimulation it needs, you should be playing videos and DVDs constantly so that the customers get amped and want to own them, because not all of them can stand in the shop for 45 minutes to watch the entire thing. And usually, what the shop thinks is cool is what the kids want, so even playing a video that may be dead stock will help move it, or the hardgoods associated with it, faster.
The shoe area should, like all other areas, be well lit and clean. A nice display is inviting. For the shoe wall, ideally you should have a row for each brand, starting with a header (branding sign) if you have one, and make sure the shoe shelves all match. All shoes should be laced and stuffed properly to enhance the look and appeal for better sell through. Keep a consistency in the size of the display models (all size eight, for example) and don't use overly large sizes as display models. A size seven looks far more appealing and takes up less space on the wall than a bulky thirteen.
“To incorporate P.O.P. into the shoe area,” says Bill Conrad, visual merchandising manager for Sole Technology, “retailers should use floor mats, benches, mirrors, shoe sizers, slat wall signage, if offered by the vendors. It's also important to have separate men's and women's sections, kid's shoes normally should be with the women's. Keep in mind, women shop head to toe and buy for the kids as well.”
Pro models should be grouped together, from the highest price to the lowest, shoes that are slow moving should be rotated to the top or at least to eye level, to try an increase interest. Be sure also to rotate the wall for a new look every few weeks or less. Try not to place shoes too high or low on the wall where customers cannot see or reach them. Additionally, it may be helpful for the customers and employees to sticker the bottom of the shoe with the shoe's name, price, and size availability.

“Custom build outs, if used, are ideally, the most beneficial to one brand,” say Conrad. “The shop will sell through more merchandise than when using a basic small display. A custom rack creates a ‘shop inside a shop.'”
Be sure to keep footwear related items like laces, insoles, Shoo Goo, and socks on or near the show walls and displays. Even hats can sell well near the shoes for the customers who like to match them with their kicks.

The goal of merchandising is to get the eye to stop, then linger and in that same moment, have the mind be reinforced positively by what it sees. “It is not about selling one item,” says Cotton, “It's about the customer relating and wanting to buy it all because it's presented for him or her to have it all.”

These are by no means all of the “sure fire” ways to sell merchandise, but more of a general overview of basic merchandising techniques for a skateboard shop. Every shop, area, and customer is different, and merchandising techniques may vary, just as certain brand sales vary per region. However, by using the methods mentioned, you are surely on the way to a shop that customers will enjoy visting and shopping in time after time.