Retail Showroom Remodels: When to Know it’s Time
By Paige Wittman posted on May 20, 2019
Do I need to expand the retail space in my dealership? That’s one of the first questions we hear when we work with dealers. You realize that a first-rate retail experience boosts the customer experience, sales and even loyalty. However, you’re not quite sure when, why and how to modify your own space. If you are talking to me or one of our designers, we interview you extensively about this.
Tune in to Rural Lifestyle Dealer’s Dealer Success Academy for expanded comments from Ryan Dohrn, www.DealerSuccessAcademy. The summer issue of RLD will also launch a regular column from Dohrn. Watch for it and find new ways to improve your sales success.
A first step is to critically evaluate how you are using your existing space. For instance, what is occupying your showroom that is not generating revenue? Sales desks, customer seating and brochure holders may be necessary, but see about how you can unclutter them. For instance, family photos or stacks of files on desks shouldn’t block interactions with a customer.
Next, look at whether you have ample space to display “fast movers” like lubricants or accessories. Can you move out any non-revenue generating items to make room for these products and make it easier for customers to purchase them. Can you merchandise more effectively in the existing space?
Do you have the necessary space to display the current products for the lines you carry? Are you working closely enough with your manufacturers to understand what may be coming in the product pipeline so that you can prepare your space?
Are you thinking about carrying a new line or category? If you see opportunity for growth through line expansion, don’t let square footage block that opportunity. Start developing a facility plan along with the business plan to understand if this is the right opportunity for you.
Finally, what problems in your space are detracting from customer satisfaction or causing issues for your employees? How would you specifically fix those problems through an expansion?Click here to read the full article on Rural Lifestyle Dealer and to let us know what your building changes you are planning.
Increasing Sales with an Effective Retail Strategy
Retail design expert Paige Wittman shares how your showroom can highlight your professionalism and build customers’ confidence in buying from you.
Tune in to Rural Lifestyle Dealer’s Dealer Success Academy for expanded comments from Paige Wittman, www.DealerSuccessAcademy.
You have 7 seconds to make a first impression. Sounds harsh, doesn’t it? It gets harsher. One study shows that it takes just a tenth of a second to form an impression of a stranger from their face. Regardless of seconds or minutes, you don’t have long to win over the confidence of a customer and your retail showroom plays a critical role in that, says Paige Wittman, co-owner of Miller Wittman Retail Design Group.
An attractive and functional retail design can make you more money. “Regardless of your budget or where you currently are in your retail space, a good retail design will increase your sales and increase your profit margins. When we’ve done major remodels or major expansions with dealers, we’ve seen wholegoods sales increase by 40% when you track sales for a year after the remodel. We’ve seen parts and accessories sales go up in excess of 50%” Wittman says.
Your retail environment is an asset that must be carefully and continually monitored. “It’s very demanding to maintain a retail store. There's constantly something going on that is working against you in your store,” Wittman says. That could be bad weather that leads to slick, messy floors or damage done to walls and counters from moving inventory, along with the impact from people just working in the space.
- A retail showroom that is dirty, disorganized and cluttered erodes at your professionalism.
- Every dealership should have a retail plan, regardless of how much budget that can be allocated or the space available for retail.
- Simple maintenance tasks, such as adding or improving lighting, cleaning floors, or painting walls can have a big impact.
- Design your parking lot, outdoor showroom and indoor showroom so that a customer has a clear path and is guided through the store.
Each dealer’s store also comes with its own unique challenges, including working in older stores or facilities that have been converted into a dealership. “When a customer comes in, they expect you to look the part. They want you to be a source of new information. They want you to understand the features and benefits of the products that you're selling. They expect there to be a certain level of expertise that comes from your store. So, if you don't have a plan, your store can become dated or cluttered,” Wittman says.
Examining the Exterior
Wittman advises starting from the outside and working in when evaluating your retail environment. For instance, ask yourself these questions about your signage:
- Are the signs in good working condition, with all the lights working and operating at the same rate of light?
- Does your signage look permanent or temporary?
- Are you displaying current logos for the brands you carry and are you meeting brand standards?
- Are you maximizing what your city allows regarding signage?
She says a channel letter sign is a good way to maximize square footage because the size of the letters is counted as opposed to the diameter of any box around them.
“A good retail design will increase your sales and increase your profit margins …” — Paige Wittman of Miller Wittman Retail Design Group
Next, look at the condition and flow of your parking lot. Many parking lots also double as an outside display as well as loading and unloading zones. Make sure your customers have clear and easy access to the parking areas and front door.
Regularly change up the outside inventory to create ongoing interest from visitors as well as those that drive by. A good practice is to have several models equipped with attachments and to display from smallest to largest and be careful about how you displaying big equipment. “If you have a large tractor in front of your door, no one can see anything behind it and they have nothing to look forward to,” she says.
Clawson’s Motorsport of Fresno, Calif. highlights the beginnings of the family business as a gas station, conveying the message that the dealership has longevity in the community. photos courtesy of Miller Wittman Retail Design Group
And, make sure that your front door is clean of outdated or unnecessary stickers or fliers.
Examining the Interior
Continue evaluating by looking at the interior shell, which includes the walls, floors, ceiling and lighting. “Everything you sell can be hard on the floors and walls, so the first thing to do is clean, patch and paint the walls. It is inexpensive to do and it ties the space together,” Wittman says.
She advises against paint colors that are too bright or walls of different colors. You want your customer’s attention on what you sell, not your walls.
Lighting is another key component. Flickering, burned out or mismatched bulbs detract from your image and can be easily fixed. Adding spot lighting could help with dark corners or as a way to show off new inventory or special promotions. Customers may avoid areas they are dark and dingy and dark corners end up being areas cluttered with items that shouldn’t be in the showroom, such as boxes or supplies.
The showroom of Mies Outland of Watkins, Minn., leads customers through an outdoors-themed display of equipment, elevating models they want to promote. photo courtesy of Miller Wittman Retail Design Group.
Look down at the floor and up at the ceiling. Polished concrete is acceptable for dealerships. If you have vinyl or tile, make sure to replace any cracked or chipped areas. Think about warming up some areas with carpeting, like sales desks, where customers may be sitting and talking. “You don’t want damaged flooring to evoke a feeling that you’re not successful,” Wittman says.
Wittman says some retail spaces have exposed beams or pipes that have been painted gold or other colors as an accent, but those colors tend to show off dust. She suggests instead to use a technique called clouding, mixing two parts black paint with one part white paint to make dust less visible.
Clearing a Path
Ultimately, the goal of your retail space is to make it easy for customers to find what they want and discover new items. Organize clear paths to your parts and service counters. Make sure your seasonal displays are current and re-organize displays daily. Consider highlighting equipment by elevating it.
Find a balance at your parts counter between showing off supplies and collateral, while still allowing for ample work space. Here’s how one dealership set up its parts area. photo courtesy of Miller Wittman Retail Design Group.
“You’re defining a process and telling customers where you want them to be. Customers typically make a beeline to your parts and service departments, so add eye-catching displays on the way,” Wittman says.
Showing Your Strengths
Look for ways to add in elements from your unique brand. For instance, Miller Wittman Retail Design Group helped Clawson’s Motorsports highlight its family history and the start of the family business as a gas station by displaying vintage gas station equipment.
“It was important to them to show the family history, but it also evokes permanence in the community,” Wittman says.
Another client shows off their clean and well-organized service department through a window from the retail space. “Don't underestimate what it can mean for your consumers to see your shop and understand how you would treat their products,” Wittman says.
You may not be able to take on a remodeling project right now, but you can do a thorough clean-up to get started on a new look. Wittman says to watch out for the “messy desk syndrome” that erodes confidence in your professionalism. Free the parts counter of anything that is not needed regularly, like older catalogs, product information, etc. Clearing out some of those things provides more work space and you should plan for at least 5 feet per person. And, keep from view anything that is distracting from your business, such as take-out drink cups, personal phones, etc.
“You have to be constantly thinking about your featured areas. Just for a minute, pretend like every day is your first day in the dealership,” Wittman says.
An experience that’s less than what it should be can have a big impact, “It all adds up to a customer thinking that maybe you’re not doing as well as you could be and maybe you won’t treat them well either,” Wittman says.Click here to read the full article and other Dealer Success Academy seminars at Rural Lifestyle Dealer
The Dealer Success Academy Delivers What You Need
98% of those who attended Rural Lifestyle Dealer’s first-ever virtual conference would recommend the event to others.
Rural Lifestyle Dealer’s Dealer Success Academy — an online, on-demand event held on March 7-8 — drew more than 750 registrants from across North America.
The interactive virtual format featured top experts offering strategies to help dealers meet the challenges of today. Attendees are now putting to work revenue-boosting strategies for their sales, parts, service and rental departments as well as their digital and video marketing programs. They’re also implementing better employee management skills and retail store practices and cost-cutting measures.
“There have been a lot of great things brought to my attention and I am hoping that I can implement some of the things I have learned. It’s always great to have a new perspective or to just be reminded about something,” says Dawn Hooper who is the marketing director at Surry Equipment of Surry, Va.
Another dealer commented: “The wide array of guest speakers was second to none. It’s very hard to get away from the dealership to shows and meetings. It was great to have all these speakers in one place that was easy to access.”
This issue of Rural Lifestyle Dealer highlights several of the presentations and upcoming issues will highlight others.
All of the Dealer Success Academy presentations can now be viewed online at www.DealerSuccessAcademy.com. Watch them when you want, where you want. Perhaps you may want to make them part of your employee training programs.
Here are a few highlights from the presentations featured in this issue. Steve Shankin, president of Seizmik, a manufacturer of UTV accessories, says, “Recent data from CDK Lightspeed, an analysis of 172,000 new unit invoices, shows that the average spent on UTV accessories at the time of the vehicle’s purchase is up to $1,716 from $1,098 just 2 years ago. That’s a 56% increase in dollars spent on accessories.”
Bob Clements, president of Bob Clements Intl., says, “To find good A-level technicians, you need to be willing to pay $25-30 an hour, plus bonuses. Rural equipment dealers should be charging $120-$130 an hour and OPE dealers should be in the $85-$95 range.”
Paige Wittman, co-owner of Miller Wittman Retail Design Group, says, “Regardless of your budget or where you are in your retail space, a good retail design will increase your sales and increase your profit margins. When we’ve done major remodels or major expansions with dealers, we’ve seen wholegoods sales increase by 40% when you track sales for a year after the remodel. We’ve seen parts and accessories sales go up in excess of 50%.”
Patrick Richardson, Sherwood Tractor’s IT manager and digital marketing specialist, says, “Your website can help you reach customers earlier in their buying journeys, even before traditional advertising reaches them. This idea of ‘multi-channel’ retail is the new normal.”
Read on to learn more and earn more. Here’s a quick-start guide to the Dealer Success Academy coverage that follows:•
- Increase UTV Revenues by Knowing These Facts
- 6 Steps to Increase Service Department Profits
- Increasing Sales with Effective Retail Strategies
- Turn Your Website into a Virtual Location
- Finding Ways to Cut Costs, Manager Better
- 6 Field-Tested Ways to Grow Sales
Grapevine Powersports might soon be the biggest dealership in Texas
Read more about Grapevine's expanding business and dealership in Fort Worth Star-Telegram's article below:Click here
Registration is Open for Rural Lifestyle Dealer's 1st Dealer Success Academy
Paige Wittman will be one of the experts featured at the two day virtual event that will focus on all aspects of your business — sales, parts, marketing and more. Learn lessons “from the field” that can earn you more sales during the first ever Dealer Success Academy.For more information and registration click here