Apart from the rest: focusing on a single product category can boost sales and credibility. See how three retailers get the job done

Pool & Spa News, Jan 17, 2005 by Shabnam Mogharabi

"Don't put all your eggs in one basket." It's common sense, right? Think again. In the pool and spa retailing industry, this old adage doesn't always hold true.

Retailing experts say concentrating displays and marketing efforts around a single product line can help distinguish a specialty store from the competition, regardless of industry. This doesn't mean ignoring other SKUs. Having a balanced product offering is crucial to protect against swings in the marketplace.

"We've always got to be looking for opportunities within our core products," says John Mosher, past chairman of the APSP Retailers Council, and president of Central Iowa Pool & Spa in Des Moines. "You need to expand to grow, but you also need to look at your market.

"What does your market need that you have the ability to provide? To give your best, you need to get every bit of knowledge [that] you can get about your bread-and-butter products."

In fact, numerous pool and spa retailers have successfully positioned their businesses as the premier experts of specific products. The following three retailers know that putting time and effort into a particular section of a store can boost a company's bottom line. Whether it's focusing on chemicals, spas or outdoor accessories, these veteran retailers have piled their eggs high and thrived.

A SPLASH OF CHEMICAL CREATIVITY

Contemporary Watercrafters Inc. Gaithersburg, Md.

Owner: Howard Weiss

Years in business: 22

Annual revenues: $3 million

Products: Chemicals, equipment, grills, and backyard accessories and toys

When the executives at Contemporary Watercrafters Inc. decided to expand and redesign their main 2,800-square-foot retail store, they were worried about only one element: the electric orange paint.

"With all the time and effort we put into building the new store, we fought with having to put up trendy paint colors, especially knowing that in three or four years we'd just have to repaint with another set of trendy colors," says Jeff Braun, director of retail operations at the Gaithersburg, Md., company.

"But now that it's all up, we've got a bright, autumn look. The orange is in our chemicals area, which opposes the bright whites of the chemical bottles and the blue shelving, and it looks totally revamped," he adds.

The primary goal of the new look was to implement the "store within a store" design concept. Devised by BioGuard, a division of Lawrenceville, Ga.-based BioLab Inc., it was unveiled in April along with an update to the company's second, smaller facility. The display now features deep shelves of various heights and unique water flooring, to create a distinct chemicals area within the store.

"By brightening up the chemicals area, which is what this program does, I definitely think it sets us apart from the competition. It lets people know where they can find the chemicals, the staff isn't restocking it as often as before and it decreased the size of our chemicals display area," Braun explains. He says chemical sales account for roughly half of Contemporary Watercrafters' retail business.

Customers respond to it, too. "They walk in and say, 'Wow.' They used to come in and ask for help right away. Now, you can see them stop and look at things more than they used to," says Kelly Reed, business manager for the retailer.

The changes in the company occurred several years ago. Owner Howard Weiss decided to shut down business segments that operated differently from the company's core business of aftermarket pool products and services. As a result, Contemporary Watercrafters stopped selling spas, shut down its renovations and replacement liners divisions, and focused on improving relationships within the aftermarket segment.

Innovative technology also has helped. A detailed point-of-sale system, free consumer seminars about water chemistry and a customer points program called "Splash Rewards" have helped track customer purchases and develop the company's reputation for aftermarket expertise. Even employees are benefiting from the restructuring. Braun says that since the opening of the new store, attitudes are more upbeat and positive, with each staff member taking ownership of numerous displays.

"We went to a lot of island displays and clean walls. This winter, we're going to concentrate on lighting and wall accents, and hanging large photographs of people having fun in pools," Braun says. "The fact is that it's a pleasant surprise for customers. People like shopping in a clean, fresh environment."

KING OF THE MOOD ROOM

Tony V's Sunrooms & Spas Clinton Township, Mich.

Owner: Giovanni Vitale Years in business: 36 Annual revenues: $14 million Products: Spas, sunrooms, chemicals, equipment and wicker furniture

Tony V's Sunrooms & Spas has a success rate that stands alone: 80 percent of its customers who test a spa will buy one. "We know that if a customer leaves, they might not come back, so we give them free bathing suits and towels just for coming in and send them into the wet-test mood room," says Robert Randall, retail sales director at Tony V's, which operates two stores in Michigan. "We don't ask if they're interested; we assume it every time. We've jumped from closing three out of 10 clients to eight out of 10. That's quite a return."