Designing a point of purchase display (POP) – that works for you
Part - 9
By: Scott Buchanan
Wire to Wire Manufacturing Ltd.
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What is my budget for such a display? What can I afford?
Continuing from an earlier discussion we discussed how many dollars we are able to display. Using the scented soap scenario, we figured out that our capacity of the display rack is 288 bars of soap. The product is priced at $2.99 per bar so we determined that the display will hold $861.12 worth of product. With $0.99 profited from every bar sold then we further determined that upon sell through of the display, the total profit will be $285.12.
Given this information – many companies would budget anywhere from $142.56 to the whole $285.12 for the display. The display is then paid for after the first sell through of product. All restocking of the display after this point is increased profit for the vendor and the store.
The other questions to ask yourself is can you afford not to provide the display? If the display is going to enhance your company’s exposure and your product then what is the price that you put on that. The display is going to be a reflection of your product and your company. Do you want to use the best materials or the least costly? Do you want a display that in a month looks like it needs to be replaced? How about a display that leaves your product unorganized looking with merchandise falling to the floor? Is that the look you are after? Can you afford to give this image or more important what is the cost of the image that you and your product want to portray?
If designed, manufactured, and marketed well – you and your product will have gone from the stage of asking for floor space within a local store to being in demand at the larger retailers across the country and around the world.
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Please contact us at Wire to Wire with any ideas or questions you may have. Call us toll free in Canada and the United States at 1-866-760-WIRE(9473).