With the high's and lows' that come with the U.S. Retail industry it does not take a super analyst to see where most of the fault and blame lies for their failures. Having had the privilege of working directly with some amazing retail rep's and buyers, I can tell you they are just as frustrated.
I will explain in more detail later, but between the MDF costs and the inability to cross market products between departments is a "company crippler" and a real "sales prevention philosophy". How much sense would it make to mingle products together that may not technically be in the same category, but are an ideal match for one another? Crazy talk? Amazon is doing it, they are charging a premium to cross market, but it is working.
A few years back when the former Circuit City stores were still in business, I repped a software product for the PSP, Circuit City put it in the PSP accessories dept and it started selling almost 5k units a week! Then some genius said, "Hey, this is software". It was a great decision as sales instantly dropped to less than 50 a week. What a surprise that Circuit City went under. Hmmmmm.
The real problem is that this same mentality and business philosophy continues to exist.
I will explain in more detail later, but between the MDF costs and the inability to cross market products between departments is a "company crippler" and a real "sales prevention philosophy". How much sense would it make to mingle products together that may not technically be in the same category, but are an ideal match for one another? Crazy talk? Amazon is doing it, they are charging a premium to cross market, but it is working.
A few years back when the former Circuit City stores were still in business, I repped a software product for the PSP, Circuit City put it in the PSP accessories dept and it started selling almost 5k units a week! Then some genius said, "Hey, this is software". It was a great decision as sales instantly dropped to less than 50 a week. What a surprise that Circuit City went under. Hmmmmm.
The real problem is that this same mentality and business philosophy continues to exist.
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