Retail Observer

RETAILOBSERVER.COM OCTOBER 2021 54 GORDON HECHT: Even in the best situations, retail is difficult — especially for appliance dealers. Many are dissatisfied with their current profit margins, store foot traffic, and the overall future of retail in their market. No need to live with basement-level margins in the high teens to low twenties. Now is the time to work on developing a new revenue source. RICH LINDBLOM: True, appliance margins aren't as good as furniture or bedding and I won't argue that point. But there are other reasons to consider appliances beyond margin: • Appliances deliver a very high dollars-per-square-foot return on investment of floor space. Why do you think the big-box stores are so heavily invested in appliances these days? Their appliance departments are among the stores' most profitable areas. • The typical U.S. home has somewhere between five and seven major appliances, vs. three to four mattresses. That is why there are nearly twice as many major appliances sold every year as there are mattresses. • Unless you're the rare example of a store that never has a moment without a customer in it, appliances can help bring more shoppers to your showroom and fill up that downtime for your sales staff. Simply put, more appliances sold each year = more customers walking through your doors every single day of the week. And isn't that the goal of every retail store? • And unless your delivery trucks are always 100 percent full day in and day out, here's another opportunity to send out a full truck daily. HECHT: Mattresses also have several advantages that you'll like. Size or "no fit" is rarely an issue. If the customer has a queen-size mattress now, the next queen size will fit just fine. Also, mattresses are flexible and have no hard corners, meaning less chances of scratch-and-dent, easier delivery, and fewer returns. Mattress deliveries can be as simple as drop-at-the-door, or at worst, some minor assembly and plugging into an outlet. Further, mattresses don't need a plumber, electrician or gas company to complete delivery, which reduces operating costs for you and means less hassle for your shoppers. LINDBLOM: Delivering appliances is really not all that different than delivering big, bulky, heavy pieces of furniture. In fact, if you exclude refrigerators, your delivery people might actually thank you for selling white goods. I know I'd much rather deliver a 24-inch-wide, 100-pound dishwasher than a 5- or 6-foot-long, 200- to 300-pound sleeper sofa any time. HECHT: The ideal solution is to get into the mattress game. Think about it: The target market for mattress products are shoppers who are: • Female, ages 25-54 • Homeowners • Earning between $55,000 and $200,000 or more • Fashion- and color-conscious • Willing to spend more on technology and innovation • Haven't bought a mattress in 10-15 years, expect to pay $600, and wind up spending $1,500 to $2,000. POINT/COUNTERPOINT: MATTRESSES VS. APPLIANCES The grass is always greener on the other side, right? But as we learn in this debate between two diehard mattress and appliance devotees, members of the AVB/BrandSource retail co-op can have the best of both worlds. Lindblom/Hecht Business Services Jane Curtin and Dan Ackroyd satirize Point/Counterpoint in a Saturday Night Live Weekend Update segment, 1976

• Cover