Memory matters: selling smaller devices for bigger margins

By Keri Algar

SYDNEY, NSW: In the era of consumer electronic discounting retailers can maintain margins by up-selling smaller devices, according to Richard Clarke, Lexar national sales manager for Australia and New Zealand.

“We’re working with retailers to actually show them that there’s actually a much better revenue and return on the products if they put the effort into focussing on them at a store placement level, like a stand,” said Clarke.

Clark was referring to the traditional place smaller devices like memory cards and USB drives often end up, a store’s bargain bins. Wall stands with memory solution information is a better way to drive sales in small devices, especially to accompany higher priced goods such as digital cameras and mobile phones, both of which use memory cards, he said.

“I tell retailers not to be afraid to up-sell a product. Many times the consumer doesn’t know what they want and it is actually fairly easy for retailers to gain more gross revenue and more margin simply by asking a couple of questions.

“A lot of the retailers think it’s all driven by price points, but it’s not. We’ve done test programmes in individual stores where we’ve actually raised the prices of products just to see how consumers react and the sell through numbers do not change.”

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