by Sally Bouorm | December 1, 2010 2:17 pm
By Mitch Smith
The end of the calendar year presents us with many opposites; much of the northern world is cold outside, but the holidays are heartwarming; schools and some businesses take a break, while others ramp up into high gear.
For a pool business, the off-season may be a time to take stock, literally and figuratively, of both inventory and business philosophy.
If selling swimming pools is the store’s primary business, the winter months are probably slower than spring (opening season), summer (swimming season) and early fall (closing season). In most of North America, the off-season is at least half the year—October through April—maybe longer. Unless a store also offers counter seasonal products (e.g. spas, billiards, etc.) serious thought should be given by owners as to why a customer would need to enter their store in December.
For example, a customer may come in looking to replace a storm-damaged winter cover, or for a replacement part for a pool cleaner that is showing signs of wear. In these cases, the customer usually waits at the front counter while a staff member searches the back room for what they need. At this point, the question every swimming pool retail store owner should ask themselves is, “What will entice them to look around?”
Accessories can be a great aftermarket profit centre, especially during the pool industry’s off-season, which coincidentally is also high season for holiday gift giving.
Fireworks or loud noises are not needed to catch the customer’s attention; something as simple as colour changing lights can do the trick.
Think of all the eye-catching products today that use flashing light emitting diodes (LEDs). For instance, accessories such as floating disco balls are great when displayed in a retail environment—not only for drawing attention, but getting the customer to think about buying something other than what originally motivated the trip to the pool store. The key to this type of accessory is that it can be used during any season—indoors/outdoors, in the pool, or on the deck. The following are some additional ideas for maximizing profit potential in the off-season.
A true ‘off-season’ for a swimming pool retail store means experiencing off sales, closing the store during the winter months and laying off seasonal staff. For some this is the intended business model, as they like, and have the luxury of taking a long vacation during the winter. However, for those who are primarily in the pool business and are aiming to maintain a steady year-round income, the time of year when pools are being closed should be thought of as the ‘counter-season,’ not the ‘off-season.’ As such, finding counter-seasonal items that will sell well when people are not swimming in their pools is important.
One obvious category during the holiday season is Christmas trees. This is an entire product category that will not only bring customers into a store, but give them something to purchase that is relevant to the season. As such, a holiday tree display can be used to show fun, shiny pool or spa related items (e.g. lighting and toys), which can serve as tree ornaments. A customer may discover an item because it is in a Christmas display; however, it can also be used poolside in the summer.
Many pool companies approach the counter-season with big-ticket items that can be used in cold climates or indoors, such as spas, billiard tables, wood stoves and rec room furniture. These items have a lot in common with their summer counterpart—swimming pools. First, they enable families to spend more time having fun together at home—a ‘staycation’ for the winter—and their use and enjoyment can be greatly enhanced with accessories. Also, the approach to marketing and selling counter seasonal items is quite similar to swimming pools because they are not a household necessity.
Too often, accessories are thought of as extra, unnecessary items. However, consider the word’s definition: “a supplementary part or object that can be added to something else in order to make it more useful, versatile or attractive.” This makes an accessory sound like a necessity. This is where smart marketing and merchandising come into play; accessories can make or break just about anything worth having. What use is a video-game system without extra controllers, a laptop without a carrying case, or a patio dining set without an umbrella?
For example, an electronic water chemistry monitor can help a pool owner save money by providing accurate water parameter readings so they know exactly, which chemicals are needed and how much to purchase. Not only are these devices fun to use, but they are succesful in helping pool owners maintain a consistent water balance, which in turn allows the pool to age gracefully, as water quality problems are less likely to occur.
Particularly in the weeks before Christmas, but really any time of year, pay attention to what is popular with children and the young-at-heart. Stock and prominently display toys, games and other items with fun as their primary purpose so they are readily available to impulse buyers.
If a particular pool toy was wildly successful during the summer months, make sure a few are kept in stock for the holiday season, as it could make the perfect gift. Similarly, if a successful toy from a season or two ago requires refills, or would be more fun with an extra ball, paddle, or other accessory, be sure to stock and display these add-on items as well.
Hot summer sellers have an increased chance of becoming a great stocking-stuffer come the gift-giving season if they are available and on display when customers are out holiday shopping. Likewise, toys that were slow sellers during the summer should not take up valuable display or warehouse space during the winter.
High-tech gadgets can also boost year-round sales because they make fun gifts. Lately, many ‘techy’ catalogues and websites have been touting slick, digital wireless devices (e.g. indoor/outdoor air/water thermometers, atomic clocks, etc.). These items make great gifts because a person who might enjoy the product most likely would not buy one for him- or herself.
Wireless pool-monitoring systems, for example, are a great swimming pool-specific variation of this theme. These monitoring systems take the guesswork out of maintaining healthy pool water by constantly transmitting water chemistry data (e.g. pH and chlorine levels) to an in-house receiver, which eliminates the need for frequent manual water testing. New and unique high-tech products in any industry, including the pool industry, make fantastic gifts for gadget lovers.
A store may carry and prominently display particular items, such as a patio light in the summer because they are perfect for outdoor, warm weather use. However, that same patio light can also come in use inside the home, as an indoor party accessory. Today, several lighting products are available, which work in and out of the water. These and many other items are multi-seasonal and can be sold that way.
The same can be said for many toys marketed for the pool industry, as most can also be used in a backyard without a pool. Some water toys work just as well, and sometimes better, with a garden hose. Sprinklers, water balloon fillers and ‘splasher’ games are some examples.
To capture retail dollars in the off-season, when there is limited foot traffic through the store, a proper display is vital. A key strategy for a successful display is to change it often so the store always looks new and fresh.
In ‘big-box’ stores, and even some grocery stores, most customers will notice there is always something a little different every time they walk in. In a grocery store, the freshest seasonal produce is likely to be front-and-centre, while mass retailers swap out back-to-school supplies for Halloween costumes and then Christmas decorations amazingly fast.
In a pool store, the change can be less dramatic and still be successful. Although customers are not likely returning as frequently as they may to a grocery store, the theory is still the same. Change what they see when they drive by, when they first enter and when they walk through the store. This will draw attention to the store and convey it has a variety of items and product categories.
In the height of summer, a store owner wants customers to easily find what they came in for, as such, an easy-to-find chemical display may be used in the store front, while less necessary items can be tucked in the back. During the winter, as a majority of swimming pools are closed, customers are less likely to come to the store looking for chemicals and maintenance accessories. At this time of year, items that can be used year-round or sold as gifts should be moved to the forefront.
Always make sure attention grabbing, saleable items are in the customer’s immediate view upon entering the store and create fun displays that will catch a shopper’s eye. In the summer, do something creative with the water noodle display, as this accessory is a fun item that is not typically what brought the customer into the store, but could easily be a mid-summer impulse buy.
In the winter, a display filled with light-up water toys, plastic playing cards, dive sticks and other similar items can harvest the same results. The key is to display accessories that can just as easily be played with in a bathtub, as in a swimming pool, or simply purchased as a fun stocking stuffer.
One critical area in most pool stores is the cash wrap or counter. Take a good look at this area at least once per week. In the winter, clear out items that are used only during the summer, scum discs, test strips and other pool maintenance accessories and replace them with items that have crossover potential as gifts or can be used year-round.
Similarly, look at the store’s window displays. If it is wintertime in a cold-weather climate, and the window display comprises pool floats, the message sent to customers is “Come back and see us when you open your pool.” If the window display contains counter-seasonal and year-round products, a better message can be conveyed to potential customers such as, “Hey, did you know that we have just what you’re looking for, even though your pool is closed?”
Print, broadcast, Internet and other forms of advertising reminds consumers there is an opportunity to find things in a particular store—no matter what those things are. If the business plan is to provide a variety of accessories for backyard fun, then make sure to advertise a broad sampling of the product categories being offered and switch them frequently to convey variety.
A pool store’s ‘off-season’ advertising push should be focused on items people need for swimming pools other than their own (e.g. a health club or vacation destination). Remember, swimming does not necessarily stop when the weather becomes cold, it just moves indoors.
Part of this strategy means quietly advertising items such as swimsuits, goggles, aquatic exercise equipment and water toys during the summer when the store is busy with chemical sales and scheduling service calls. Then as the pool season ends, a bigger push on the items listed above should be made to remind customers to visit the store to purchase these accessories in the winter, too. This can be especially profitable because ‘big-box’ stores will have stopped carrying these seasonal items.
For those pool stores that do significant business with winterizing products and services in late summer and fall, customers who are closing their pools are the perfect audience to provide with coupons and other incentives, which will entice them to visit the store throughout the winter to buy accessories, games and other items.
Send a postcard or e-mail to everyone whose pool was closed this fall and wish him or her happy holidays. This lets them know the store can be a fun place to shop for gifts and items that can be used during the winter.
As a final note to remember, a customer coming into a specialty pool store at almost any time of year is ‘item-motivated.’ They came in because they are out of something they need (e.g. chemicals), or something they use regularly has worn out or been damaged and needs to be replaced. If the store’s product mix and displays lead a customer to purchase something they did not know they needed, like an accessory or gift, then it was a success—both for the customer and the business.
Mitch Smith is the national sales manager for GAME, a swimming pool and spa accessories manufacturer in Scottsdale, Ariz. He has been in the pool and spa industry for almost 30 years, having worked with Muskin, Zodiac and Vogue prior to joining GAME. He can be reached via e-mail at mks@game-group.com[5].
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