Home Center Merchant

Bill Fishman

Bill Fishman & Affiliates

11650 lberia Place

San Diego. Ca.92128

ER.OBABLI' the most often menF tioned column that I hare ever rrrilten is the one entitled "Hos to Practice Self Deception." As more and more *arehouse operators open around the countr!'rre are again listening to independent dealers talk of their customer base as being secure because thev offer service.

It's time to reprint this article: Hou To Practice Self Deceotion

Do I'ou \\'ant to hide from realitl? Join the crosd of building material retailers *ho find comfort in the big lie thel tell themselves about their competition. Thel' recite the rhltoric shen thel"re asked if the competition is affecting their business. The phrase goes something like this:

"Thel don't give anl service."

It's usualll' preceeded rvith: "Heck no. . .the1' don't bother us. Their customers are not our customers." Then the big clincher. "The1' don't give an1' service."

I'r'e heard those uords from presidents of retail chains, operations officers, merchandisers, store managers and department mana,eers. The "the1'" thel're referring to are the Builders Emporiums, Ernsts, Crossmans, Handl'man's, HomeClubs, Home Depots, Ole's, Pa1''N Paks and the other mass merchandising chains, eren the K marts!

Another comforting but deadly' device ernplol'ed bl some retailers is the "ue can price l0ro higher than our competition because thel' don't offer anl' service." But let's compare these services and conveniences from the consumer's point of vies.

Location:

The chain is probabll' located on a main traffic arter)'near the heavill'populated residential area. The "Full(?) Service" operator is possibly in the industrial part of tou n or next to the railroad tracks on Depot Street.

Store Size:

Most home center chains boast 50, 60 or over 100,000 sq. ft. units. Many "Full(?) Service" stores try to compete in as little as a 2500 sq. ft. showroom.

Selection:

The "Full(?) Service" store offers their cusromers 1200 SKUs against the chain's 22,000 or more.

Store Hours:

Compare the chain store's 80 hours per seek to the "Full(?) Service" store's 39 hours.

In-Stock Conditions:

The sophisticated chains no* use EDP to maintain a constanr srock vigil. How man)- customers does the poorly run "Full(?) Service" operator turn away because he's out?

Parking:

480 nell-lighted spaces vs. 20 spaces. 'Nuf said.

Shopping Ease:

During peak hours the chain offers 8 ro 20 (or more) manned checkout counters to ring up the attractively displayed self selection merchandise. And at rhe "Full(?) Senice" store. . .*'ell, how do 1ou think customers feel about having ro *ait for a ticker ro be u'ritten for a can of paint when the customer in front is having his takeoff list priced?

Visual Merchandising:

Sorry, too many of the "Full(?) Service" retailers feature dusty endcaps with leftover merchandise. The chains merchandise and sign their store fixtures for excitement and change their displays frequently.

Instruction:

I'll give the "Full(?) Service" store lots of brownie points for individualized oneon{ne selling and how-todo-it information. But it's the chains who fill their aisles and activity rooms by offering clinics, demonstrations, and well-stocked literature racks.

Sales Help:

You'll probably find from 15 to 50 green but aggressive young store employees at the chain store. The "Full(?) Ser- vice" store will boast four veteran countermen.

(Ray Kroc of McDonald's fame said, "As long as you're green, you're growing. As soon as you're ripe you start to rot. ")

Credit:

If Visa and MasterCard aren't enough, then score one for the "Full(?) Service" store,

Pricing:

At the "Full(?) Service" store the customer is exposed to pricing that includes delivery and only sees the lower prices on

What Do Customers Want?

Quality, good price, energy efficiency, attractiveness, easy maintenance and fashionable appearance are important considerations when consumers go shopping for their home.

Joan McCloskey, building editor of Better Homes snd Gardens, has compiled the following list of what today's consumers are looking for, based on her participation in the MlT/Harvard Housing Futures Study, the BH&G Consumer Panel and judging the NAHB/BH&G Best In American Living Contest.

(1) Quality and value for dollars spent: Consumers want good design at an affordable price. They have no interest in a no-frills house.

(2) They want a warm, comfortable

Home Center Show Headliners

A line-up of speakers to meet the specialized needs of home center and do-it-yourself retailers, their wholesalers and suppliers has been engaged for the 1986 National Home Center Show, March 9-12, at McCormick Place, Chicago, Il.

"We are pleased to mark the beginning of the show's second decade of service to the home center industry by providing an extensive array of major speakers, who can help show attendees keep pace with our expanding, competitive industry," John Berry, director of the trade show division of Vance Publishing Corp., show sponsor, said.

Jim Pence, a specialist in smallbusiness financial management, personnel development, sales and marketing training and compensation,/incen- advertised "cash & carry" merchandise. The chain prices low initially and then makes delivery available at extra cost when requested. home where they can enjoy their family or their away-from-work hours in a relaxed atmosphere. They're hungry for sunshine; they look for skylights, Palladian windows, sun scoops, and clerestory windows to bring light into their home. tive programs, will be the first speaker on Sunday afternoon, March 9.

You're missing my point if you take my argument as a hopeless case for the independent. It isn't. My intention is but to illustrate the fallacies of the false comfort behind the shield of "Full(?) Service." Poor facilities, poor operational procedures and incompetent merchandising cannot be overcome by a copywriter's catch phrase.

Actually a good independent merchant can run circles around a chain store competitor.

(3) They beg for easy maintenance surfaces, both on the exterior and interior of their house. Yet, they often must trade easy maintenance for what is "real and natural" such as ornate millwork, moldings, carved furniture, hardwood floors.

(4) They want their house to be an expression of their personal style. How their house looks from the street is very important. It should fit well into the neighborhood. But on the inside, it should have a floor plan meant for 1980s lifestyles.

Jack Trout, president of Trout & Ries Advertising, New York, is scheduled for Monday morning. Wally Lynch, president of Builders Express, Inc., Dallas, Tx., a columnist for this magazine and a leading specialist in helping companies reduce their delivery costs, will be the afternoon speaker.

Roger Blackwell, professor of marketing at Ohio State University, will open the Tuesday session. Frank Abagnale, described as "the greatest con artist of all time, who has gone straight," and Jack Henry, nationallyknown loss-prevention specialist, will be the Wednesday morning speakers, talking on loss prevention and inventory shrinkage.

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