IT’S ENTERTAINMENT SHOPPING!
By Vending Times, Vendingtimes.com
Page 1, 2, 3
A group of items need not include 20 variations on a theme to create an effective display, Gitler said. Three or four Pokémon items arranged together with a large Pokémon poster behind them will effectively generate a themed effect.
Elaborate POS displays in lavish redemption centers can emulate the McDonald’s approach by mounting high-end prizes (or even TV monitors that showcase in-house advertising) where they are visible by customers standing in line to redeem their tickets at the prize counter. This technique can be used by large and small centers in low-cost or lavish variations, and generates a noticeable impact on redemption merchandise selections made by customers.
Even if children enjoy selecting their own merchandise in redemption centers, their parents still have the final say. Effective prize display strategies can be geared toward parents as well as children, Gitler said.
Noting that the average American woman is 5 ft. and 3 ins. tall, Gitler recommends that low-cost merchandise (in the $1.99 to $3.99 range) should be displayed on the wall behind the prize counter. This approach is widely deployed in Chuck E. Cheese’s sites.
Gitler calls this strategy putting items at “Mom’s eye” height, and said it serves to bring the items highlighted to the attention of the person who may make the final selection.
Another key difference between retail-store merchandise and redemption-counter merchandise, said Gitler, is that trends can last longer for redemption. Older characters whose TV shows and movies have come and gone may no longer be hot retail store sellers, but redemption prizes based on them may have a longer shelf life, she explained.
“I would not go knee-deep into buying [previously] trendy items,” she said, but products that reflect recently passed trends should definitely be considered and possibly purchased (in judicious quantities).
The reason trends last longer in redemption centers than in retail, Gitler said, is that many parents who take their offspring to a Toys “R” Us may typically say: “You have the PoweRpuff Girls already; I’m not buying you any more of them.”
However, children often retain fondness for previously hot characters and may still desire to expand upon their collections. With tickets in hand, a child has the power to do so despite the parents’ views.
To get the best deals on prizes, redemption operators should build a relationship with a sales staffer from a trusted merchandise supplier who will keep them informed of what trends are hot and what items are on sale or closing out, Gitler said. Operators should also attend at least one redemption-merchandise, toy, party or gift show per year, she said.
Owners of large centers may find it worthwhile to attend one or more of several close-out shows that are held annually in Las Vegas, New York, Los Angeles, Chicago and Orlando, Gitler said. These events can help redemption operators learn about merchandise trends and upcoming products.
Gitler advised that slow- or non-moving items in a redemption center should go “on sale” by being offered for reduced ticket values. Moving less-popular items around the center or within the display case can also help draw attention to them, she said.
Seasonal merchandise should be purchased six weeks before a particular holiday, in quantities that experience with that specific FEC’s clientele has demonstrated will move quickly. “Get in and get out, and always buy short,” said Gitler. “You don’t want to hold inventory; that’s holding money.”
The Internet is a powerful tool that redemption operators should take full advantage of when searching for and purchasing prize merchandise, Gitler said. This means not just checking online catalogs and browsing email-based special offers, but also sourcing sports memorabilia and other goods from eBay and other online suppliers and brokers.
Negotiating for better prices with redemption merchandise suppliers is not restricted to owners of large FEC chains, Gitler said. Mom-and-pop operators can negotiate as well. Using multiple shipments to obtain extended terms is a trade-off that operators large and small can take advantage of, she explained.
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