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OPINION: (Even) November Can be Noteworthy

A picture of NTP-Stag merchandising director Val Byrd

As we cruise into November, many of us are beginning to stress about the year-end task lists waiting for us. We are desperately trying to push thoughts of the holidays far out of our minds so we can focus on the here and now.

We are also experiencing election-year fatigue. (Don’t worry—it’s almost over!) Stress levels may be high. Although we might feel as if days are advancing in increments of two, we have time to conquer your 2024 retail to-do list, and we always have time to sell.

The good news from RVIA is that wholesale RV shipments have increased year-over-year. As you know, this is a strong indicator of downstream aftermarket opportunities.

The report states: Results for the RV Industry Association’s August 2024 survey of manufacturers found that total RV shipments ended the month with 29,105 RVs, an increase of 3.7% compared with the 28,071 RVs shipped in August 2023.

“RV manufacturers and suppliers continue to build RVs and components with new technology and features to appeal to today’s RV buyers,” said RV Industry Association President and CEO Craig Kirby. “With RVs available at nearly every price point, RVing remains one of the most affordable ways for people and families to travel and make lifelong memories.”

We sell vehicles, parts, accessories and services. However, consumers see us as helping them realize a dream. For them, we are selling a safe and healthy way to unplug from the hustle and bustle of life, giving them an opportunity to spend quality time with family, a way to see this beautiful country and a chance to relax and have some much-needed and well-earned fun.

We all need this more now than ever!

Rather than ending, the selling season continues through the last quarter of the year. I envision the RV aftermarket as an authentic player in the holiday gift market. The “category disrupter” trend is nothing new. The official “disrupter” definition is a practice (in this case, retail) that challenges previously held notions about, and established related to, consumer behaviors. A strategy of selling unexpected products in an RV parts and accessories store can be beneficial.

Drug stores sell Halloween costumes, and hardware stores sell pots and pans. Accordingly, RV parts and accessories stores can sell housewares and pet supplies, for example.

Distributors, including NTP-Stag, offer online marketing resources to help you build a cohesive holiday-themed promotional campaign using printed flyers, digital assets and social media support. The campaign must be supported by a limited merchandise stock worthy of gift-giving.

Bluetooth speakers, wireless headphones, backup cameras, Stanley-type cups, coolers, tents and gazebos are great choices. Suppose your dealership is in Florida, Southern California or another perennially warm territory. In that case, your Q4 stocking plan will still include major displays of routinely purchased items, seasonal merchandise and clearance items. Inspire snowbirds to stock up on staples by using price points to encourage multiple purchases. Creativity is key!

Now, about the wonderful year-end task list.

One common retail fall/winter activity is a physical inventory count. Traditionally, retailers and distributors conduct an annual inventory to determine or verify the goods’ value. A count is essential for operational and tax reasons. Recently, instead of doing a count once a year, some organizations have opted to conduct cycle counts throughout the year. Essentially,
a cycle count is the process of counting a subset of inventory on a cyclic basis.

According to APICS (American Production and Inventory Control Society), when compared with a physical inventory count, a consistent cycle counting program results in better long-term inventory accuracy because it identifies and corrects inventory inaccuracy’s root cause. The process typically involves counting on-hand inventory more than once a year, another cycle counting advantage.

APCIS recommends counting inventory four times per year. Whether you use a geographic or ABC method to count inventory, a pivot toward cycle counting can benefit your organization.

Another essential year-end activity is the inventory analysis and clearance process. This procedure should occur monthly or quarterly, but the fourth quarter is a great time to look at inventory numbers comprehensively.

The first step is to identify your underperforming SKUs—items with low sales. The most efficient way to gather this information is using point-of-sales (POS) reports from your dealer management software. Most programs offer canned reports such as aged inventory and sales history reports. Additionally, some software includes the ability to customize the reports by other fields, enabling you to segregate large data into meaningful pieces.

If your list is extensive, start with products that have only one unit in stock, then work your way down the list. You do not need to “clean house,” but starting is essential. Flag problem SKUs as discontinued in your POS, then slash the price to clear them out. Markdown amounts should begin at 30% to 40% and then be reduced weekly until the merchandise is sold. Dealing with problem items now will prevent accidental reorders and will sell these products before they become obsolete.

Now is also a great time to discard SKUs with damaged or distressed packaging. Items such as sealants, cleaners, chemicals and hoses can even be sold to the service department if the product is intact. Again, we recommend acting before the only option is the dumpster. This process can also benefit the organization by increasing inventory turns, freeing capital invested in merchandise, and simplifying off-season activities such as physical inventory auditing and planning for distributor show buys.

Tata Consultancy Services’ research found that up to 35% to 40% of the total inventory in the average business is stuck in slow-moving, underachieving SKUs whose cumulative contribution to sales is less than 5%. Think about that and act quickly.

Retailers of all sizes should review their operations regularly and plan for improvements. The evaluation should include the store’s look and feel and the facilities’ conditions. Complementary activities entail daily store walks, weekly meetings, monthly audits of operations, visits to competitors’ stores (and websites) and a mandatory store reset every five to seven years, to name a few. The goal is to view your store from your customers’ perspective.

By focusing on these areas, a retail store manager can create a strategic plan that maximizes sales opportunities and enhances customers’ shopping experiences during the holiday season and beyond.

 

Val Byrd is NTP-Stag’s customer merchandising manager. She has worked in the RV aftermarket for over 20 years and is a leading RV retail expert on store layout/design and aftermarket product display.

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