BusCom Proposal
- 1. Pielstick 1 Double Accessory Sales by Adding a Second Glass Display Case Executive Summary Adding a second display case to the women’s side would double our accessory sales; women’s accessories would be displayed in a more professional manner; and the checkout counter would finally be de-cluttered. Addressing The Situation A majority of our customers, and sales, come from the women’s side rather than the males. One-sixth of annual women’s sales come solely from the sale of women’s accessories. On top of that, last years accessory sales ranked among the top five categories for greatest number of items sold (behind women’s t-shirts, leggings, hoodies, and men’s t-shirts). Currently, we only have one display case showcase all of our men’s accessories (beanies, hats, watches, bracelets, jewelry, phone cases, stickers, etc.), but we do not have a display case for the women’s items. Most of our women’s accessories are either displayed on dressed up mannequins throughout the store, or they lay tangled together in our glass jars on the checkout counter. It’s not only annoying to the customer, who is trying to untangle a ball of necklaces, it’s also difficult for employees to point out women’s accessories to the customer, since they are not all in one, easy to find, place. The Solution And Benefits From Additional Display Case Adding a second glass display case to the women’s side would serve three purposes. The first and most important reason is to increase accessory sales to more than double what they are now. Currently, most of our daily sales come from the women’s side, and one sixth of these sales come from women’s accessories. Our store does not have a designated space for women’s accessories, besides the counters, but an additional display case would more than double the area to showcase our women’s accessories. We could then stock more women’s accessories, point the display case out to customers, and upsell them an accessory or two. Doing this would easily double women’s accessory sale, if not more. Secondly, the additional display case would allow us to display the female accessories properly and in a more professional manner than just on the checkout counter. The store would finally have a designated space to showcase the women’s accessories, instead of cluttering up the counters. It would not only look better, it would also allow the employees to specifically point it out to customers, and make that extra sale. Finally, a second display case would organize and clean up the checkout counter from cluttering jars full of tangled jewelry and accessories. This would take away the cluttered eyesore as well as make clearance for customers as they checkout. By having a well-stocked display case for the women’s side, women would have more incentive to come to back to Prestige for further purchase, rather than going to some other store like Francesca’s right down the way. Customers would no longer have a desire to go elsewhere to get that extra accessory to complete their outfit.
- 2. Pielstick 2 Statistics And Analysis (Benefits Of Investing Into Accessories) Last years accessory sales reached 1,200 items sold, which came out to be a total of $19,656 in revenue – nearly $20,000. If we doubled the space to display accessories, we could also double last years accessory sales to 2,400 items sold with a doubled revenue of $40,000. Not only that, the profit margin percentage for accessories is relatively high at 71.5%. This number basically means that for every $10 that is invested into jewelry, the company receives $35 in revenue, or $25 of profit. Possibilities To Consider Option 1 runs the most at $388 for this 4 ft. diplay, or for an additoinal $40, we can upgrade to a 6 ft. display. This option is the most identical display to what we currently have. It would function the best to showcase our women’s accessories. The dimensions of the smaller untit are: 4 ft. (48" W x 20" D x 38" H). Assembly required. (Jewelry Display Case Sale) Option 2 runs a much cheaper $169 and can upgrade the length to 5 and 6 ft. for an additional cost as well. Dimensions are: 4 ft. (48” W x 18” D x 38” H). This option also has the option to come with locks for only $20, lights for $95, and mirrored doors for $95. This is also the cheapest I have found to add in locks – other displays were $75-$100 for locks. Comes assembled for $45 extra and additional shipping costs. (ITEM#SC4W) Option 3 runs $298 and is a little bit different than what we currently have. It’s a 360-degree wrap-around view, which would be nice so that all the items are easily viewable to the customers. It would also allow us to display merchandise on both sides, the front and back, so that no matter what part of the store the customer is in, they can see the accessories. Dimensions are set at 4 ft. (48” W x 18.3” D x 38” H) – no longer. Assembly required. (Retail Counter)
- 3. Pielstick 3 Analysis Of Costs And Possibilities The first option is the most expensive at nearly $400. This may seem like a lot at first glace; however, after looking more in depth, we see that it will pay for itself in less than a month. As of the 17th of this month (October 2014), profit from accessory sales reached $387 (not even three weeks time and the most expensive option would pay for itself). This option is the most identical to what we currently have on the men’s side, but it’s also the most expensive of the three. Nevertheless, going with a cheaper option may be more suitable for financial reasons. The second option is reasonably priced at $169 and has three levels to display the women’s accessories. It also allows for additional features like key locks, lights, or mirrored doors, for an additional cost of course, but these options, along with the price, is what caught my attention. Finally, option 3 is something a little out-of-the-box. This 360–degree view display case would be an edgy way to show off the women’s accessories in a different fashion than what we’ve previously done on the men’s side. These three cases above are simply options for you to consider, you may have your own ideas, or would like to do some research yourself. Revenue From Additional Display Case Last years accessory sales were $20,000, or 1,200 accessories in total – just coming from one display case on the guy’s side. But if we had two display cases, by doubling the area for accessories, we can also double the number of accessory sales altogether. Yearly accessory sales will increase from a previous $20,000, to a heavy $40,000 in revenue, or 2,400 accessories sold each year. The additional display case would pay for itself by bringing in an extra $20,000 per year. 1200 2400 $20,000 $40,000 0 5000 10000 15000 20000 25000 30000 35000 40000 One Display Case Two Display Cases Yearly Accessory Sales Items Sold Revenue Generated
- 4. Pielstick 4 Sources Option 1: "ITEM#SC4W-W RETAIL GLASS DISPLAY CASE FULL VISION WHITE SHOWCASE WILL SHIP." EBay. AllansFixtures, n.d. Web. 19 Oct. 2014. <http://www.ebay.com/itm/ITEM-SC4W-W-RETAIL-GLASS-DISPLAY-CASE-FULL- VISION-WHITE-SHOWCASE-WILL-SHIP- /121449642727?pt=LH_DefaultDomain_0&hash=item1c46f67ae7>. Option 2: "Jewelry Display Case Sale, Glass Display Cases - Full Vision Classic C Series Showcase." Discount Showcases. Discount Showcases, n.d. Web. 19 Oct. 2014. <http://www.discountshowcases.com/Full-Vision-Classic-C-Series-Glass-Showcase- p/c-series_full.htm>. Option 3 "Retail Counter W/ Frameless Tempered Glass Design, 2 Fixed Shelves & Black Base." 4' Glass Counter. Dsplays2Go, n.d. Web. 19 Oct. 2014. <http://www.displays2go.com/P-14383/4-Glass-Counter-with-Black-Melamine- Base?st=Category&sid=26889&position=153>.
- 5. Pielstick 5 2) Overview:Problems, Three Options, and Benefits. 3) Currently: One display forMen’s. Women are our main customers, but we don’t have an accessory display of their side. Women’s accessories are scattered/all over– Clutter, Counter space, Difficultto locate. 7) It Would: Organize counter space, Easier to locate/Pointout, More professional, Double area foraccessories 8) It Would Also: Designate area for women’s accessories. Then increase stock/inventory > double. Sell > double accessories. More customers would return backto Prestige. 9) Option 1 runs the most at $388, 4 ft. diplay. OR +$40, can upgrade to a 6 ft. display. most identical display to what we currently have. Assemble required. Option 2 runs cheaper $169 can upgrade the length to 5 and 6 ft. for additional cost. option to come with locks for only $20, lights for $95, and mirrored doors for $95. This is also the cheapest I have found to add in locks – other displays were $75-$100 for locks. Comes assembled for $45 extra and additional shipping costs. Option 3 runs $298, in-between the two. 360-degree wrap-around view, all items are easily viewable to customers. Could display merchandise on both sides, the front and back, so that no matter what part of the store the customer is in, they can see the accessories. No upgrades Assembly required. 10) Pays ForItself: ProfitOct17th was $387, most expensive display was $388. Twodisplays would pay itself off even fast, especially at this time of the year – Holiday season. 11) Double Accessory Sales: designated area, increase inventory,point out the new display, upsell with outfits. $20,000 into $40,000, 1,200 items sold into 2,400 annually