Success Through Diversification

SUCCESS THROUGH

WHY IT’S IMPORTANT FOR RETAIL

In any business, diversification means branching out into other product categories, industries or marketplaces. While this strategy does present some risks for a business, diversification is often viewed as a safety net against downturns in a single industry, or a way to grow your business.

“During the last 24 years, it’s became apparent to us that our brand of customers would buy other things from us if we offered them in our store,” he says. “We then added billiards to our lineup, bringing in pool tables and billiard supplies.”

Along the way, Master Z’s slowly added poker tables, bars, barstools, air hockey, ping-pong, foosball, arcade machines, shuffleboard tables, artwork, sports memorabilia, pool table lights, and more.

“We then realized that our demographic was too small. We believed we could find maybe one pool table per square block in our area, but realized that every one of those homes had a patio in their backyard,” Kahler says.

“If you aren’t going to finish the basement, then you can ‘deck out’ your outdoor entertainment,” he says. “We knew again it was time to diversify. Same homes, same customers. We then added casual outdoor living furniture and accessories.”

Audra DelConte, owner of Royal Billiard and Recreation, Hatfield, Pennsylvania, says her store uses diversification as a sales tool all the time.

“Letting customers, designers and architects know that we can be very diverse in our offerings of products and types of styles is important. It’s basically saying that we will cater to anyone’s needs,” she says. “We also use it in our product offerings to cover different seasons of selling. Along with all of our game room products, we sell hot tubs and grills.”

“They also offer an opportunity for fun spring, summer, and fall promotional events such as cookouts, hot tubs in the parking lot and more,” she says.

The one big lesson Kahler has learned from his almost quarter century in the business when it comes to diversification is that you must know your customer.

“If you sell high-end products already and people love them, sell something else that is high end that you know they can afford,” he says. “It’s never a price issue from your brand of customer. If they want it, they will buy it. If your customer is family-based homes, sell family-based products that complement the home experience that they want.”