Competing Against Amazon

At last year's DPHA Conference, the Retail Profit Doug Stephens astutely observed that purchasing products from Amazon is the quickest route from wanting to receiving. There is nothing special or emotionally engaging by acquiring goods with a few clicks of a mouse. Yet that being said, Amazon is expected to be responsible for 80 percent of online purchasing growth in 2018 and commands 49 percent of all Internet searches.

 

What makes Amazon the most dangerous for brick-and-mortar retailers is their technological superiority and understanding of data and innovation, which enables the company to enter new categories easily. Additionally, through the creation and promotion of its Prime Program that offers free shipping and other benefits, Amazon has amassed an estimated 65 to 85 million members.

 

Amazon's innovation enables the company to deliver purchases to the trunks of customers' cars and inside consumers' homes through the Amazon Key Program. Amazon's goal is to make the lives of its customers as easy as possible. Walmart, not to be outdone, also is testing delivery services, and in certain markets will stock your refrigerator with groceries purchased online, reports the Retail Doctor and 2018 DPHA Conference speaker Bob Phibbs. It's a safe bet to project that most decorative plumbing and hardware showroom customers are Prime members. That makes it extremely difficult to charge for freight or delivery in your market. How would you respond to clients that say, "Why should I pay freight? I could purchase the same things on Amazon freight-free."? Manufacturers and brick-and-mortar retailers need to partner more effectively to have freight included in the purchase price so that all products can ship free just like Amazon.

 

Another Amazon hallmark is that it accepts all returns with no questions asked. This is more challenging for brick-and-mortar kitchen and bath showrooms because so many orders are custom or semi-custom. Perform an analysis of returns in your showroom. How many requests do you actually get? If they are few and far between, perhaps it's possible to differentiate your operations from the competition by implementing a more generous return policy.

 

Make more complete sales by taking a page from Amazon's messaging that identifies products that the customer might be interested in, pointing out that customers who purchased product X also purchased Y. This is an easy transition during the sale process, "That's a great choice. We had a client last month who purchased the identical tub, and they also purchased a great looking vanity outfitted with an industrial chic faucet, steam system shower and smart mirrors. They rave as much about the mirrors now as they do about their tub. Would you be interested in looking at similar solutions for your new bath?" The key is to train your sales staff to be aware of the technique and use it regularly, if not on every sale.

 

A decorative plumbing and hardware showroom has advantages that can't be replicated online. If you have the luxury of working displays in your showroom, leverage that competitive advantage by offering customers the opportunity to trial test products.

 

Customization is trending and becoming a big business. Nike, Adidas, Coach and others allow customer to customize clothing, shoes and handbags. Decorative plumbing and hardware showrooms have been customizing products for their clients for years. Leverage your experience with custom faucets, fixtures, hardware, vanities and other products to enable your customers to make personal design statements in their home, and understand and appreciate the knowledge and expertise of showroom professionals.