Inventory Special Part II:
Merchandising Madness
The plethora of frame products on the market today can be overwhelming for even the savviest of buyers. Here, a guide to sifting the wheat from the chaff and knowing how many lines to carry and when it might just be time to clean house.
By Erinn Morgan

In the first installment of this piece, which ran in the September 2002 issue of EB, we covered inventory management systems. Here, we explore merchandising techniques to ensure a successful inventory.

When it comes to product inventory assortment, some retailers recommend a focus on fewer lines and some stock up to 40 vendors. Your choice depends on your dispensary's focus, location, volume, and customer base. Sifting through the options in today's optical frame market make merchandising inventory a challenge.

"There is just too much product out there," says William Berris, president of Berris Optical, which has six locations in the metro Cleveland area. "Every year I hear that there are supposed to be fewer frame companies coming down the road due and then there are more."

While buyers must always beware of companies that cannot meet their needs, the real issue is the wealth of reputable, quality-driven frame vendors in today's market.

"It's hard because there are a lot of good companies out there," says Patricia A. Galko, director of retail operations for the 21-location Northeastern Eye Institute, based in Scranton, Pa. "You need to have an open mind."

Walking the aisles of an optical trade show can dazzle and overwhelm even veteran buyers. The frame vendors' booths are often packed with optical buyers and brimming with new eye-popping products. In fact, the rate at which products are introduced in this market can make a frame buyer's head spin and make the frames on your boards out of style in a short time period.

One of the best tactics buyers can implement to avoid product overload is to go into a trade show or vendor meeting with a clear view of their customers. "The ticket in our market is strong designer names," says Nancy di Cosmo, frame buyer at Au Courant, which has six locations on the East Coast from Michigan to Florida. "And we are always looking for those interesting collections from Europe."

The next point is to know your mix. Think about your customers' willingness to pay for premium products, moderate merchandise, or low-end frames. This knowledge will help you decide which products to purchase. "High end--over $150 to $200 retail--is about 10 percent of our assortment," says Berris. "Low-end--around $59--is at 20 percent. Everything else falls between $60 and $150."

Finally, it's important to make finding quality eyewear at all levels a priority. "We try to find the products that seem to be made the best," says Amy Block, frame buyer at Block & Zuckerman, West Orange, N.J.

IS LESS REALLY MORE?

So you have narrowed your product focus with an eye to customer base, price range breakdown, and quality at all levels. But the question lingers on the number of lines to offer. The majority believe that less is more. In her 21 locations, Galko works with only eight to 10 vendors. "If you have many vendors you can't do a meaningful amount of dollar volume with any one of them. To get the maximum discounts and the best service, it is best to commit to a few solid vendors. It is a partnership," she says.

Many retailers, in fact, strive to lower their number of lines simply to make inventory management an easier task. On the other hand, Block and Zuckerman's diverse clientele demands different products. "We have 30 to 50 lines at any time," says Block, who adds new lines at least twice a year.

Know your customers and their financial frame of mind. Understand the marketplace and all the products and lines available to your dispensary. And, keep the number of lines and products carried in check with your goals, limits, and expectations.