Everything must go! Why should discounters have all the fun? You can beat them at their own game, and generate excitement about your store at the same time

Pool & Spa News, Jan 16, 2004 by Bob Dumas

Sales aren't what they used to be. "There was a time when sales used to mean something. Now, when you say '10 percent off,' [the customer] just laughs in your face," says Rick Segel, retailing guru and author of the book, Retail Business Kit for Dummies.

"The majority of sales don't mean much anymore because there is always someone discounting something somewhere."

The advent of the Internet hasn't helped either. "The Internet has become the biggest discounter," Segel says. "There is an abundance of people willing to discount things on a regular basis."

Does that mean the traditional concept of a "sale" is going by way of the leisure suit? No, not necessarily. You just have to have a good reason for holding a sale by making it mean something special to the customer. Then do whatever it takes to make sure they know about it.

"You need to have goals," Segel explains. "Is it a promotion to make a run for new merchandise, or to raise needed cash, or something to edge out the competition? Sometimes you may want to do it just [to gather] names for your database."

Eyes on the prize

By setting goals--which products you want to move, how much revenue you want to gross and so forth--you'll help yourself establish an approach to the sale, according to Segel. They will help you decide on themes to incorporate and how to promote them, and measure the sale's success.

For example, set two sales goals: one that might not be the most realistic, and another that you might actually reach. Chances are, the figures will fall somewhere in-between.

A sale brings people into the store, which increases database lists for future mailings. It will form the bedrock for future promotional mailings.

Sales also deplete overstocked inventory, which is something car dealerships are known for when the new-year models hit the showroom floor. "We handle Coleman spas and the 2004 models will be available in January, and we'll need to prepare our inventory to be ready for that," says Frank London, sales manager at Classic Pool & Spa in Gladstone, Ore. "So, it's 'the 2003s must go!'"

With older spa models, some retailers reduce prices or offer free merchandise. One option is to promote a free spa with a particular gazebo, instead of a dollar incentive.

Timing is everything

Many pool and spa retailers say the season often dictates when they'll hold a sale. In the spring, with the swim season just kicking in, retailers may hold a promotional sale to introduce new lines of products and get people thinking about pools and spas again. Conversely, they may hold a sale at summer's end to rid themselves of excess inventory that they don't want to keep over the winter.

But you don't have to wait for these moments to have a sale. The calendar has built-in themes: Valentine's Day, the Fourth of July, Halloween and Christmas.

Or, as Segel suggests, promote any day of the month that comes closest to your average daily revenue. Then all the people who buy merchandise on that day get it discounted. If you run the sale once every 30 days, it will bring people in and get them talking about your products.

During these monthly sales, try to be clever. Think of offbeat ways to get the fickle consumer's attention. "We like to have a 'Christmas' sale in August,'" London says. "It's a jokey kind of thing. We'll have specials on [aboveground] pools and chemicals, which is also because we're getting near the end of the season. We ask customers, 'What will you be putting under your tree? How about a nice Doughboy pool?'"

Tying a specific product into a theme also helps move merchandise, say retailers. "We have a Valentine's Day sale, and we call it 'Warm Your Heart,'" says Debbie Adkins, co-owner of Duran Pools & Spas in Lufkin, Texas. "We reduce the price of the spas to get some activity. It's worked well."

Splashy, thematic sales give retailers the opportunity to dress up the store and their employees. Some try to create eye-catching displays that go with the theme--even if they have to shut the store down for all or part of a day to prepare for it.

"On a number of occasions, we've had a holiday open house the weekend after Thanksgiving," says Kathleen Hertzog, vice president of Apollo Pools in Reading, Pa. "It's a Christmas theme. We'll have Santa out by the highway waving to cars. We'll have some of our employees in a hot tub filled with water outdoors. It's steaming, and people will say, 'My God, what are they doing?' and stop in. [This shows] that spas are not out of the question in the wintertime."

Hertzog takes the same approach for other holiday-themed sales. "For the Fourth of July, we'll have bunting and flags [around the store], and hot dogs and soda," she says. "Typically, the employees will dress in red, white and blue. For the Christmas sale, our employees dress up as elves."

Music can add to the ambiance of the sale, too. "Seasonal music plays through our store and on the phone system as well," Hertzog notes. "We try to do it up big."

To help level the playing field, you might want to have your sale coincide with that of a competitor. For example, David Herforth, purchasing agent at Aqua Spas & Pools in Gig Harbor, Wash., says his store must deal every year with a fair that features spas.