Retail Observer

That shopper should sound familiar to you — it's the same customer that's looking for new appliances. LINDBLOM: Yes, selling is selling. It doesn't matter if you sell furniture, bedding or appliances; the important thing is that your staff is experienced at selling high-ticket items, and that really is all that matters. Once you know the product, the selling really isn't all that different. HECHT: To be fair, adding mattresses into your line-up will mean sales training for your staff. But while a major appliance can have thousands of component parts, mattresses have springs, foam layers and fabric. In mattress sales, "the feel is the deal," meaning your shopper can actually experience how the mattress will work for them. You can't get in that your showroom with a washer, dryer or a dishwasher! LINDBLOM: Yes, but if you can squeeze out 500 to 1,000 square feet of showroom space, you can put together a very respectable display of appliances. So, shove a couple of furniture pieces together; take off that dog of a sofa that's taking up 200 square feet of floor space; maybe stand up a few mattresses; and you'd be amazed at just how many appliances you can fit in a small area. HECHT: My math is a little different. Every mattress sale will get you gross margins in the high 40s to mid-50s, so 600 square feet of mattresses (about nine floor samples) can earn you the same dollars as 1,500 square feet of appliances. And AVB/BrandSource has programs to get you into the mattress business with less than 100 square feet of floor space. I know that you have room for that. LINDBLOM: I want to let you in on a little secret: There are margins to be made in appliances! In fact, margins in the appliance industry are as good as they've been in a very long time, typically running between 25 percent to 35 percent, and that is excluding back-end money such as advertising, volume rebates and merchandising allowances. From a warehousing perspective, appliances take up less room than most furniture and, depending on the product, can be stacked two- to four-high by hand or as high as you want with a forklift. The old saying in the appliance business is that you stock "one to show and one to go." And, from an advertising standpoint, the more products you offer, the more effective your advertising will be. Plus, you'll earn even more co-op dollars, allowing you to do more advertising. HECHT: Is the mattress business easy? No, but it's simple, profitable, appeals to your shoppers, and fits into your promotional and operational wheelhouse. You may be thinking that your market is saturated with mattress stores; it seems like there's one on every corner. Yes, there's competition out there, but every advertisement they run raises awareness for mattress products. What they don't have is your existing operations, loyal customer base and experienced sales team, along with the buying and marketing power of AVB/BrandSource. By adding mattresses to your name, you've given your existing customer base a new reason to visit your store and have given non- appliance shoppers a reason to see your white goods. LINDBLOM: Look, I get it, appliances might not be for everyone. But if you want to keep up the momentum we've all experienced over the past year and a half, maybe adding appliances to your mix is something you should give serious consideration to. OCTOBER 2021 RETAILOBSERVER.COM 55 RO Rich Lindblom, left, is a former longtime BrandSource member and Maytag Leadership Council officer. Rich sold his business, Advanced Maytag Home Appliance, after more than four decades in independent retail. Gordon Hecht is a business growth and development consultant to the retail home furnishings industry. Rich Lindblom, left, and debate partner Gordon Hecht

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