When customers buy a transaction-builder item, they are required to purchase several more products. For example, if someone buys a gallon of paint, they’ll need to buy a brush, a roller, a drop cloth, and all the other accessories required to use the paint. Therefore, the store owner can give a huge discount on the price of the paint and rely on the huge margins of the accessories. Look for ways to incorporate more transaction-building merchandise throughout your store. And consider bundles for these types of merchandise as well to help maintain your margins. Training is a big part of making this type of merchandising work in your store. Make sure your employees know the strategy. Remember, an employee will sell the discounted paint and think they did a good job – after all they sold something. You need to educate them on the strategy and make sure they are using their selling skills to add on to the sale.
Please contact us to discuss your specific business requirements!