In the retail world, impulse buys represent an important revenue stream that cannot be ignored by small business owners. Paying close attention to product placement and creating eye-catching displays will pay off with an increase in impulse sales. It’s also essential that you identify products that lend themselves to a quick purchase decision. These items are typically smaller and less expensive, but still provide a reasonable profit margin for the store.
How Common Is Impulse Buying?
“According to a new CreditCards.com poll, 5 in 6 Americans say they have made impulse buys, most commonly in person, most commonly for ourselves. While most of the splurges are inexpensive, more than half of poll respondents say they have spent $100 or more on an impulse buy (54 percent) and another 20 percent said they've spent at least $1,000 on impulse.” In that vein, it is important to consider if your business is making the most out of this cash opportunity by choosing the correct products, putting them in the right locations in the store, and even the right displays.
Choosing The Right Products
When picking items to use for your impulse buy areas there are a few things to keep in mind. You want to make sure that it is smaller in size and self-explanatory. Having items that are too large might cause too much of an inconvenience for the shopper and ultimately make them decide to walk away from the product. For example, if you are trying to target a healthy minded individual, large workout mats or heavy workout equipment probably isn’t the way to go for your impulse display. Rather, go for something simple, yet satisfying like water bottles with unique designs or headphones.
Like we mentioned, you don’t want something too complicated either. Things like candles, body sprays, and lip balm are simple straight forward products. Try to avoid Items that require assembly.
Now that you have a simple product, you want to make sure that it is not a boring one! Things that are colorful, sparkly, furry, or make noise are all very enticing to the eye. A big reason that you want your product to have these qualities is that it will likely queue the shopper to pick it up, push the try me button, or feel how ridiculously soft that keychain puffball is. Often times once a customer has picked up the impulse product they won’t put it back, so you want them to have this “connection”.
A final and slightly obvious note on choosing the right products is capitalizing on opportunity. Every holiday presents an opportunity to put out a unique impulse item. Capitalize on Valentine’s Day by displaying stuffed animals and sweetheart candies, and take advantage of Halloween by placing fun decorations out. Things like travel size sunscreen during the summer and umbrella on rainy days are also great capitalizing opportunities.
Choosing The Right Location
When you think impulse purchase displays your mind likely goes right to in the point of sale queue. While that is the most common and typically yields good results, you want to think “outside the register area” if you will. You can place strategic impulse items around a main larger item of relevance. For example, if you have purses, you could have a small eye catching display of things someone would keep in their purse. These could be things like Lip balm, glass cases and small perfumes. The psychology behind it is pretty simple. If someone is buying a purse, there’s a good chance they’re looking for things that go with it.
Another location to consider for your display would be the front of the store. If the buyer comes in and is drawn in immediately, they may be more inclined to get something extra. If you decide to have a striking display in the front there is something to keep in mind, you’ll need to rotate new products as well as change up the display itself slightly from time to time. Doing this will ensure that someone who might visit the store regularly almost always has new impulse items to draw them in.
With over 12 years in the business, Quikstone Capital Solutions has proven to be a trustworthy and knowledgeable lender specializing in small business funding. Over 60% of our clients are renewals looking to continuously grow their business. Whether you need cash for emergencies, cash to cover unexpected costs, or if you’re looking to make long overdue improvements, Quikstone Capital can help.
