Why Retail?

Since nearly half or more of PC-related purchases are made via the retail channel, any vendor with goals of becoming a top tier player needs a retail presence.

The halo effect from increased consumer visibility can help drive volume in all channels, thereby reducing per unit costs and increasing economies of scale.

Keys to Success

There are many keys to success in the retail market. Execution from cost reduction to delivery and responsiveness is critical, but it all begins with commitment.

Commitment

• Understand market dynamics and economics
• Top management must view retail as strategic market
• Hire or team with experienced retail professionals

• Competitively priced product line
• Compelling product/service proposition
• Clearly articulated "why to buy" for retailers and consumers

• Vendor advertising/PR program
• Retailer ads and/or sales floor push
• Well designed POP material for increased "sell through"

• Timely delivery and order status
• Prompt billing, credits, and collections
• Efficient returns management process

• Market changes and pricing
• Constant ongoing training
• Service and support

Vendors can either hire or use their own retail sales force or utilize a network of independent sales representatives to sell and market their products. Most vendors entering the retail market select the latter for the following reasons:

• Retail is relationships and the reps you want have those now
• Reps are paid on commission; eliminates fixed costs and reduces risk
• Reps have lower overhead and can more cost effectively perform the training required at the store level that is so critical to your success