A wide range of merchandising activities needs to be considered, including determining the amount of space to dedicate to fasteners and related hardware and developing the layout and setup inside the store.
A visual layout, or planogram, is helpful for placement of hardline products on shelves in order to maximize sales. This planogram can be developed in conjunction with a dealer’s distributor and manufacturer partners, and takes into consideration existing demographics of the local market, the target customer and complementary products offered. An effective planogram will visually support a successful merchandising strategy, including shelf placement that will impact sightlines as well as lighting and signage that put a spotlight on fasteners, tools and other hardlines being displayed.
Setting price is critical to optimize revenue/ margin mix and lumberyards can separate themselves from the box retailer by pricing up to the value received. While builders, contractors and DIYers will expect narrower product offerings than big box retailers, they’ll also expect to find the right product for the project and materials being installed. These customers will also expect a higher level of service in terms of product knowledge and training on proper installation and use, especially on newer specialty products. For this, customers will pay a slightly higher price than what the big boxes charge, but it will be worth it if they perceive value.
The roadmap will vary for each dealer based on product and customer mix, regional construction methods and code requirements, among other factors, but suffice it to say that fasteners can be a profit lever for a dealer even if it’s just icing on the cake.