Page 83 - Lighting Magazine October 2018

the company operates in by growing sales. In the perfect world of vertical growth, we would see an increase nationally in the number of showrooms available to distribute products and vendors to ll them.
Yet, like everywhere in retail, the overall reduc- tion of showrooms and vendors available to sell products through that channel has ushered in the horizontal growth that seems to be the unicorn in the balloon factory.
The bene t of incorporating a horizontal growth strategy is that it can reduce competition from other channels and directly impact the vendor’s bo om line. This is because the work it takes to grow vertically and horizontally requires the same tools that other channels have been using to go a er the same clients.
It makes clear business sense to grow horizon- tally to increase pro ts and to exist. Distribution is then required to develop, and we all must break into new markets and do business in new ways. Instead of burning the energy, time, and money needed to build a new channel, horizontal growth allows a business to take control of a channel that is already in place.
It becomes easy to see why vendors in every industry are adopting this strategy to appeal to “D2C” Direct to Consumer — and the client loves it. Vendors started to build their brands to save their bo om lines. Looking for ways to increase revenue is every sales organizations directive. Is it yours? Do you have a plan?
Vendors in every industry that distribute through a retail model will continually seek new distribution channels and sales increases. Has this tactic led to the extinction of the showroom outlet?
No, it has not, but evolution for most showrooms has been a slow – or even a non-existent – activity that will lead to their demise. Some retailers are still waiting to resume drinking from the rehose that the housing boom provided, but it will be a long wait for many parts of the country — if it returns at all.
If it is your goal to be in business and be pro t- able in 2020, take the reins of change NOW.
a LeveL pLayInG FIeLD
So how do we, as showrooms and vendors, combat the relentless assault of the digital demons on our bo om lines? Begin with honesty. The transparency provided by the connected world leaves li le to the discounting imagination when it comes to dynamic
pricing demanding a level playing eld. We can’t put the pricing transparency genie back into the bo le. Without a level playing eld in price and delivery, the consumer will be tenacious in their pursuit of the lowest price — and that will hurt vendors and showrooms.
Another area that begs equality is the delivery of goods. Showrooms must be able to ship items that are not stocked as fast as any of the competition. Many a sale has been lost because of an additional shipping charge.
My crystal ball is telling me that the much-touted, two-day delivery process that so many showrooms are willing to speak about will soon be replaced by next-day delivery, and all that means is that same- day delivery is not far behind. This is a wonderful opportunity for vendors and showrooms to form a team! Showrooms are the physical “last mile” in product delivery. Companies like Amazon are ag- gressively moving forward to be the last link in the last mile. How will you put a speed bump in front of them?
With a good vendor-showroom partnership, providing the chance to deliver from a stocking showroom to a client near the store is a great win for the shopper — plus it supports the local distribu- tion channel.
How can this work? Vendors must assertively communicate the local option of nearby inventory. This plays well into the trial-and-test part of the client’s journey and provides the opportunity for showrooms to demonstrate their expert status face-to-face.
tHe new competItIve aDvantaGe
When virtual avenues are ge ing the “last look” at pricing and delivery of every project that may or of- ten may not come in front of a showroom’s team, it is proof that sales teams have go en lazy at selling. I will even go as far as to say that a selling activity has never ever happened.
We can’t put the pricing transparency genie back into the bo le.
on the mark
october 2018 | enLIGHTenment Magazine 79