The importance of merchandising

HDAW 2016 Coverage

Rick Weber
APR 05, 2016

MERCHANDISING is becoming an important—if not the most important—

sales tool used in the heavy-duty industry because it allows distributors to
implement new market strategies via store layout and visual display applications,
according to Butch Hill, president of Hill Diversified Group LLC.

He said a company can increase its business $500 to $1200 in its showroom just
by merchandising. And it applies not just to companies with big stores—stores
from 400 square feet to 18,000 square feet can experience the boost.

“Even if you’re good at it and have a great showroom, every

day it’s a full-time job, putting a showroom together,” he said. “The sales floor
layout is the key to it all—displays, signs, category management.”

In his presentation, “The Importance of Merchandising,” Hill said HD

distributors have discovered the importance of these strategies and
opportunities, especially when learning the money they are leaving on the table.

Over the years, he has worked with many companies, including NAPA, AutoZone,
and O’Reilly, learning their store merchandising needs. In 1999, he created the
industry’s first heavy-duty merchandising seminar and has visited distributors
across the country, helping them with their store merchandising.

“I guarantee you if you took a poll of your customers, they have no idea of all the
products you have back there,” he said.

“You hide your product in this industry. But it’s very easy to merchandise it. You
can put it into your showroom right now. Just go study what the automotive
industry does. It’s very simple. All the products are out where you can see them.”
 Butch Hill, Hill Diversified Group LLC

Merchandising is important because: a new look attracts customers; current

customers buy more; and it increases impulse sales, the average dollar
transaction, seasonal items, the number of products stocked, market share, and
customer awareness of product lines.

“I get pushback from this industry all the time: ‘Oh, I can’t see how doing this is
going to get more people into my store,’” he said. “You’d be amazed at how
merchandising bleeds through your region. You don’t hear it with your ears but
your customers are talking to their friends and people they work with. Your
traffic flow in your store will increase.”