A new study by the Russell R. Muller Retail Hardware Research Foundation reveals dump bins are the cheapest and most effective way to increase impulse buy among customers.
Conducted in the US, the study indicates sales increase by 427% when products are placed in a dump bin.
Dump bins are floor standing displays used for promotional, seasonable and clearance products in retail stores. Designed to increase product visibility, these dump bins also encourage impulse sales by creating a sense of urgency and by playing with the shopper’s desire for a bargain buy.
Dump bins are good for all slow moving products any time of the year except Christmas. The holidays are not a time to get rid of unwanted items but an opportunity to make as much profit as possible by using the dump bins to sell high margin products.
Dump bins are effective because they display a sense of urgency, create a perception of a bargain, focus on seasonal products that customers need now, and make shopping more entertaining.
To use the dump bin for maximum efficiency, position it in a high traffic area; leave at least 1m clearance around the display; make sure it does not clutter the shop; focus on one category of products but add different colours so that shoppers have to look through the display; focus on seasonal products; choose items that can be easily picked up; keep the dump bin full; don’t tidy up the display; change the product weekly; keep the life of the dump bin short as it will encourage people to come back for the next bargain; add signage to clearly highlight the discount; take the dump bin off the floor for a couple of weeks after 2 or 3 product changes; ensure the display is safe; and educate the staff about the product.
SI Retail is an established supplier of retail support solutions to retailers, designers and shop-fitters in Australia and New Zealand.