Shareholder Question: In-store demos

QUESTION

  • Do-it-Best sounds like a really great opportunity, but obviously you can’t get out to all 4000+ Do it Best retailers in short order. So, how to you plan to bridge the gap between the strength and effectiveness of the in-store/person-to-person demos and the stores you can’t get to in practice?

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ANSWER

In-store demonstrations are not the most efficient advertising on a dollar-for-impressions basis.  A typical 4-hour session can cost $80-$100, taking travel time into account.  Since most stores are not super-busy, compared to a “Home Show” for example, the in-store demonstrations do not typically result in dozens of bottles per occasion.  Therefore, the number of consumer impressions created for the investment is low relative to the cost.   This is by contrast to the reach of conventional advertising, where a single commercial in this price range can reach a few thousand people.   Nonetheless, some product is always sold, and for the store considered in isolation, 12-20 bottles that day would be considered nice lift.  So with instore demos, the immediacy is good, and the store specific benefit is good, but the “reach” to new consumers is limited.  That’s why in-store demonstration does not replace other forms of marketing, regardless of how much money would be available.

Therefore, we consider in-store demos as a form of relationship-building with the retailer and the store staff, as much as a product sales exercise.  Fortunately, the Do-it-Best organization provides several means to connect to store staff, including the fall and spring markets, wherein a good percentage of member stores come together in one place.  The cost of attending the markets as an exhibitor, amortized over the expected number of attendees, is a very good investment.  This permits us to at least deal with one of the important goals of the in-store demonstration program – exposure of the product and illustration of its use, to store representatives.

A second consideration is the use of video, and continuous play technology that is less fussy today than in the old days with tape looping around.  Now with DVD’s or embedded video play, the use of video demonstration is becoming increasingly attractive.  The Do-it-Best community of stores has many members who are willing to participate in programs of this type.

A third consideration is that many stores are in clusters around population centres.  That makes sense of course, because that’s were the consumers live.  This means that it is feasible, today more than ever, to build a team of demonstrators would would like to have some part time income, just chatting with people and being themselves.  For the right person, it’s fun and easy money.  We are designing an on-line, back-office function, that will let our demonstrators log-in to provide their reports and generate their compensation.  With e-mail, video conference, social media, etc – operating a team like this is not so complicated.

There are many other specific things that we can, and will, do – but this is not the place to discuss it all of course.   Some things we’d rather keep to ourselves for competitive reasons. 

Ultimately, the best demonstration of all is the sight of a store employee using the product themselves.  In the Do-it-Best environment, word will travel fast within the stores themselves about something that is so useful.  Therefore, the day will come soon enough when store personnel and customers in many of the Do-it-Best stores will just naturally fall into conversation about 1000+ Stain Remover.

Cheers.

P.S.  One retail banner asked us, on their own initiative this week, for several hundred Demonstration DVD’s – so that every store can be equipped with one.  That request came from the head office.   It was not so long ago that we’d have been dreaming in Technicolor to imagine such a terrific request.  Now, such little (big!) affirmations are starting to crop up more often.

Picture:  Use of DVD’s of Winning Colours 1000+ Stain Remover in stores is increasing

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