PROFITABLE B-BQS

(Continued from page 8) center, it's important not to confuse the public with too much choice. Although manufacturers offer many models of gas grills at all price points and models, it is not necessary for the home center to stock all of them.

While it may be heresy for a manufacturer to say this, some home centers have too many models, and try to out-inventory and out-display the competition. Instead, a tight and well-conceived display with three or four models uses less floor space, and makes it easier to train salespeople on the features of the models that the home center does carry. With manufacturers coming out with new models annually, it's hard for the sales staff-and more importantly, the customer-to keep up with all the changes. We recommend that a home center carry a standard size and a large size since these represent 8590 of the industry's business. The home center then has the option of choosing in addition a super size model, or alow end model. This becomes merely a pricing decision, based on knowledge of the market.

For example, 720/o of all gas grill sales industrywide range between $100 and $299 at retail, and cover the basic one or two-burner models. To stock much more than that is simPlY not a good use of sPace.

Gas grills are particularly in demand, and represent a growth segment of the barbecue market. A group of Western retailers experienced an increase of some 5690 in total sales in 1982 as opposed to l98l in Western states alone. This is dueto heavier promotion in California and Oregon home centers and specialty stores.

In the South, where 219o of all gas grills are sold, stronger, earlier promotional efforts realized a 640/o increase in gas grill sales during 1982, according to a select group of retailers.

It should be emphasized that gas grills represent only a part of the total outdoor cooking market. As a Percentage of all grills sold (both charcoal and gas) gas grills made up only 15-1690 of the 12 million grills sold during 1982, but in dollar figures, gas grills represent fully 54q0 ofthe total barbecue industry dollars. In fact, the low end price of gas grills has met or crossed the high end price of a charcoal grill, broadening their appeal.

While gross margins for gas grills should be comparable to other seasonal merchandise, one of the most effective means of enhancing outdoor cooking profits is to display accessories around the grills. There are cookbooks, rotisseries, grid cleaning brushes, grill covers, and lava rocks. (Lava rocks are the second leading accessory. Although theY are not necessary to replace, gas grill owners feel they have to replace them as part of a spring cleaning program.) With the exception of the lava rocks, and possibly the rotisserie, these accessories are applicable to charcoal grills as well as gas grills, and they have high gross margins and high volumes-an increase of some 5390 alone in 1982, with even greater volume expected during 1983.

The home center retailer will note that the barbecue cooking industry is one of growth-the opposite of the trend in many other home center product lines. As an example, Arkla gas barbecue volume increases have ranged from 2390 in 1980 to 28t/o during 1982, as homeowners demanded more home entertainment items during the recession.

Hardware Sale Kick-Off

The Great All-American Hardware Sale will begin March I with participants from all levels of the hardware industry.

National advertising including tv and consumer magazines will ballyhoo the promotion and highlight tools which will be offered at special prices.

Instore kits, local media ad slicks and other dealer tie-in material will be available to hardwares and home centers.

Crescent-Lufkin. Black & Decker. Vise-Grip Tools and Bernzomatic are among manufacturers participating with the National Retail Hardware Association as the coordinator.

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