February 29 / 2012

Pink Flowers

Retail selling is a merchandising science

By Ron Pelger, RonProCon, Member of FreshXpertsRon Pelger Photo

Back in the day while working part time after school in a supermarket, I was told by my boss that there is nothing to selling other than putting the produce on display and just let the customers buy it. That may have been true then, but not in today's sophisticated retail world of "merchandising strategy."

Merchandising primarily consists of various techniques to maximize sales and generate profit. The best means of doing this is with display designs that not only stimulate shoppers into buying specific items, but also to buy more amounts of those items.

Design has proved crucial in selling produce to consumers today. First off, you must have the right equipment in the right location at the right time. Placement of display units in a retail store is all about "visual" impulse. Shoppers entering a produce section must be immediately smacked in the face with something exciting. That something is the trigger that needs to set them off into a "buying frenzy" that encourages purchasing other items not on their shopping list. This can easily be done by knowing the right formula of "merchandising science."

Anybody could open boxes of produce and merely place the product on a tabletop in a store. Then do the same with other items on the rest of the tabletops in hope that customers buy the product. After all, fruits and vegetables are very colorful and when placed alongside one another blend into a very nice arrangement similar to a floral bouquet. Therefore, it can be quite misleading if the displays fail to accommodate one another for reasons of capturing not only initial sales, but also incremental sales from shoppers.

Produce Department

So, what exactly is the "science" of produce merchandising? Simply put, it is getting shoppers to buy more produce with distinct ways to urge them into mixing their purchases together into a grouping of items that relate to one another such as lettuce, cucumbers, and tomatoes. If a shopper only buys the lettuce at a low price, the profit will be low. However, if he or she buys the cucumbers and tomatoes as well at a much higher profit, it will raise the overall profit on all three items combined. This is called "profit mix."

Many retailers do not know the realistic meaning of merchandising, let alone the methods of "merchandising science." This puts them at a disadvantage when it comes to making a profit. This is where there is a vital need for present day knowledge in the area of selling produce.

Merchandising is more than just a display. It requires a strategy to generate profit mix. If company employees do not understand "merchandising science," we at FreshXperts can help. Call on us for some quick results in giving you the knowledge and training in order to better comprehend all the different methods.

 

What We Do

Mike Chirveno, Member of FreshXpertsMike Chirveno

To build sustained competitive advantage, a business must effectively and consistently connect with its customers. As a FreshXpert, it's my privilege to work with our clients to help them do just that.

I have a framework that I follow as I work with clients, but I'd be hard pressed to identify a "typical engagement". That's because I practice what I preach. I spend a lot of time talking with clients about how they connect with new and existing customers. We examine their sales pipeline and their methodology for converting prospects into sales. We talk in detail about harvesting additional revenue from existing customers. We also talk a lot about earning the right to be heard by delivering value before, during and after the sale. In short, I build a relationship with my clients, so I can give them the tools to build relationships with their current and potential clients. Each engagement is unique because each customer is unique and each employee is unique.

Once we lay that groundwork, we explore the wide range of available tools to make it happen. Sometimes that comes in the form of training. Other times it comes in the form of technology tools to manage, encourage and facilitate communication with current and potential clients. We encourage the development of an effective online presence. Through my FreshXperts partner, Heidi Chapnick, we utilize experienced web developers who create high performing websites for both business-to-business and business-to-consumer applications. I work with clients to design and execute effective social media initiatives using platforms like Facebook, Twitter, Linked-In and YouTube. However, the secret sauce in social media is not just using the tools, instead it is figuring out how to listen, respond and build relationships inside an online community that shares a common interest. I show clients how to do that.

FreshTrack

In 2011, FreshXperts launched its first product, eFreshTrack (www.efreshtrack.com), a hosted Customer Relationship Management (CRM) application designed specifically for the fresh produce industry. We developed it jointly with Soleran, an experienced provided of hosted CRM software. I manage the product for FreshXperts. If any FreshXperts client needs to effectively manage their sales process - tracking prospects in the sales pipeline, giving owners and managers visibility into the performance of their sales staff and providing a central, secure repository for their customer records, this is the right tool. I conduct a thorough business analysis, manage the software implementation (including data conversion) and train users.

Finally, I'm a firm believer in data-driven decision-making. I help clients convert their transactional data into actionable information. Combining information from client's ERP and CRM systems and supplementing it with third party data can yield valuable insights that can increase productivity, reduce waste and improve sales.

In short, my job is to put our customers closer to their customers. I do that with training, tools, data and 30 years of experience in customer-facing operations and technology.

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Pink Flowers

Retail, foodservice, wholesale...no matter what sector of fresh produce you're in, we have the experience and expertise to help:

 
1. Identify and eliminate areas of waste

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3.  Develop long-range marketing plans

 
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For a fresh take on every aspect of your produce business, click on the link below to meet the FreshXperts and then contact FreshXperts today!

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Anthony Totta - Business Development and Marketing Expert, Lee's Summit, MO

Jelger de Vriend -
Retail Expert,
The Netherlands

John Shelford - Organizational Governance and Berry Expert,
Naples, FL  

Mike Nicometo -
Cool Chain Expert,
Iron Mountain, MI

Ron Pelger -
Retail Merchandising Expert, Reno, NV   

Tim Vaux -
New Venture and Product Launch Expert,
Fresno, CA

Mike Chirveno -
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Kansas City, MO 
 
Heidi Chapnick - 
E-Commerce Expert
Bedford, MA

George Seifert -
Quality Assurance Expert

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