We are NOT tricking people. We are simply DOING A BETTER JOB AT ADDING VALUE. The ECONOMIC VALUE ADDED is driven by giving the customer MORE FOR THEIR MONEY. MOST IMPORTANTLY we make sure that we are delivering a solution rather than JUST a product.
Giving REASONABLE savings on the desirable and necessary accessories items while preserving the margin on the big ticket unit opens the door for more sales and increased profit
Transcript of "Accessory Selling Basics"
Accessorize Me!!!<br />The KEY to making more money in A/V<br />
Why Sell Accessories?<br />Increase you contribution margin<br />Increase revenue<br />If you DON’T your competition WILL<br />It’s easy<br />It’s necessary<br />
Contribution Margin and ASP<br />ASP for PROJECTORS will continue to DECLINE in 2011<br />Estimated $10 CM loss per unit @ the same CM%<br />ASP for FLAT PANEL DISPLAYS will also DECLINE<br />$5 CM loss per unit @ the same CM%<br />ASP for most accessories has remained FLAT<br />
Products vs. Solutions<br />Product = Classroom Projector<br />Solution = Getting children to retain more in the classroom and improve test scores<br />Computer, Projector, interactive white board, document camera, ceiling mount, cables, ceiling speakers, power amplifier, audio receiver, computer, presentation remote, BluRay disc player, CONTENT, TEACHER<br />
Products vs. Solutions<br />Product = HDTV for the Living Room<br />Solution = Enjoy life size entertainment with theater sound WITHOUT taking up a lot of floor space.<br />60 INCH 3D LED TV, flush wall mount, recessed wall kit for cable management, QTY 3 HDMI cables, BluRay player, cable/satellite receiver, 7.1 digital surround sound system, power surge protector, 5 year extended service contract on equipment<br />
Discount Merchant vs. Value Merchant<br />Most resellers simply CANNOT and SHOULD NOT try to compete with BIG BOX discount merchants on PRICE ALONE<br />Discounting product DIMINISHES VALUE<br />Providing a complete solution ADDS VALUE<br />
DISCOUNT Merchant Pricing Strategy<br />Discount<br />EXAMPLE – Receive $20 OFF your purchase of Brand X LCD<br />Decreased Revenue<br />Decreased Margin<br />Decreased Service (that $20 needs to be taken from somewhere!)<br />No SOLUTION was provided<br />
VALUE Merchant Pricing Strategies<br />Buying Incentive (non-linear pricing)<br />EXAMPLE – Buy Brand X TV and receive $20 OFF your purchase of any accessory item over $100<br />Increased Revenue<br />Increased Margin<br />Increased Service<br />We have ADDED VALUE to the sale <br />$20 and an accessory to help build the SOLUTION<br />
VALUE Merchant Pricing Strategies<br />Bundling<br />EXAMPLE – Receive over $500 in savings with the XYZ Home Theater Package<br />Package Includes<br />Brand X LED HDTV <br />Brand Y 5.1 Surround Sound System<br />3 HDMI Cables<br />Wall Mount<br />Recessed wall cable management kit<br />5 year service contract<br />Power surge protector<br />Increased revenue<br />Increased margin<br />We have ADDED VALUE ($500) and provided a COMPLETE SOLUTION<br />
I’m a PRO AV Integrator/Contractor…<br />Why do I NEED to keep accessories stocked on my trucks and/or in my warehouse?<br />REDUCE truck rolls<br />REDUCE INSTALLATION TIME by gaining learning curve benefits from go-to products<br />NEVER lose a sale to your competition (ie. BEST BUY) because you didn’t OFFER and/or HAVE the NECESSARY accessory item required to complete the solution<br />If you DON’T stock it – you WON’T “sell” it<br />
Stampede Can Help<br />The BEST Sales Team in A/V Distribution<br />Accessory Product Mix Consultation<br />Represents Over 100 ACCESSORY Vendors<br />Marketing and advertising support - BBOAV<br />Special programs and incentives (vary by vendor)<br />MUSTANG Inventory Management Program<br />
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