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Custom Corner: Preparing for the Holidays

Lee Distad


Published: 11/10/2009 05:34:46 PM EST in Retail & Events

1 comments

Suddenly, it's mid-November and the Holiday selling season is about to kick into gear. Some retail business analysts have been predicting a stronger December than last year, based in large part on positive economic indicators. Numbers certainly do increase for the traditional retail sector, but what about the custom channel?

First, let's examine "traditional" retail. Veterans of CE retail know well that the holiday season can be a real Gong Show, but in a good way. Long store hours, lines of customers, and product piled high and deep. Back in my retail days, one of my old employers used the following yardstick to judge its holiday sales: The first three weeks of December were expected to equal the total sales volume for November; The third week, except for the final weekend, were then expected to equal all of November's sales; and the final Saturday plus whatever odd days remained before Christmas Eve were to be, once again, an entire November's worth of business. And then, of course, there's Boxing Day. While we weren't expected to hand in an entire month's business in one day, the budget was still a large one!

But is Christmas as big a deal for custom dealers, or is it just another month on the calendar? Talking to dealers across the country, it seems the answer depends on how focused a company is on the custom side of the business.

For Evan Moorhouse, Owner of Ottawa, ON-based Moorhouse Home, December is just another month. Being a pure custom installation company with no retail presence, it's business as usual. The focus for Moorhouse during this tie period is to finish up prewires for new homes that have November or December closing dates.

Given that company's custom focus, Moorhouse Home also doesn't load up on inventory for the holidays. "Because we only buy for projects on a just-in-time basis, we don't get the volume savings of ordering fifty TVs at once," he advises. That said, Moorhouse does expect to see a few quick projects from clients who absolutely need them installed before Christmas. Consequently, Moorhouse Home endeavors to maintain some flexibility in its installation schedule in order to accommodate rush jobs.

On the other hand, for Bryan Taylor, Owner of Edmonton's Gramophone, a three-part hybrid HiFi, custom installation, and record shop, the coming holiday season is especially important. His company is just finishing up a major move and renovation to a new, higher traffic location just south of the Whyte Avenue shopping district. But on top of that, as a hybrid retailer with few staff, Taylor acknowledges that for the next few weeks, retail will be at the forefront of his attention. "We're fortunate to have three pies that we've got our fingers in: HiFi, music, and custom," he explains. "I expect someone will want a new home cinema installed before Christmas, but most people don't want that kind of chaos in their house just before the holidays." In the meantime, Taylor and the Gramophone's staff will focus on selling retail HiFi as well as CDs and vinyl to its discerning clientele.

In contrast to The Gramophone, Fergus, ON's Station Earth, another hybrid custom/retail dealer, views Christmas as business as usual. With the company's setup, retail and custom are two distinct business silos, each with their own staff. That way, the retail staff focuses on holiday selling, and the custom staff focuses on designing and installing custom systems. Like Moorhouse and Tayor, John Stumpf, Manager, expects a few quickie projects, and his custom staff maintain some flexibility in their schedule.

In terms of holiday preparations for retail selling, Station Earth isn't the kind of place to stack $29 DVD players to the roof. But the company does bump up its inventory, within reason. "If there's a must-have 42-inch flat panel," Stumpf advises, "we will buy more in order to meet increased demand." However, Stumpf reiterates that December isn't the "make or break" month for Station Earth like it is for many other retailers.

It's clear, then, that the impact the holiday season has on dealers in the custom channel depends largely on their participation in the retail trade. Regardless, the dealers I spoke with all take steps to tackle the holiday season according to their priorities.





Article Tags:  retail, custom, holiday, moorhouse, business, staff, company, december, season, november, christmas, month, dealers, selling, taylor, projects, sales, gramophone, hybrid, earth, station, installation, stumpf, focus, expected, three, first, schedule, final

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Custom Corner: Preparing for the Holidays








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1 comments »


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BarryH411 November 12, 2009, 16:00 pm

Christmas does help for the drop in sales, but you have to be able to have the customer leave with the product (even though the margins get slimmer) and the add on items to complete the sale!

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