MEGA Group Works With Members to Increase TV Sales

Dealers say 3D and IP TVs will drive traffic and sales

September 1, 2010 By Jeff O’Heir

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The MEGA Group, made up of appliance, consumer electronics and furniture retailers serving secondary and tertiary markets, is working to increase TV sales among its members by about 50 percent in the next 12 months.

Other initiatives highlighted at MEGA Group's national convention in Louisville, Ky., include increased training on selling and merchandising consumer electronics, more web-based and regional vendor training for specific products, and a push for more aggressive advertising.

Consumer electronics (mainly TVs) currently account for about 10% of the $3 billion that the MEGA Group's 1435 members generate in annual sales out of their 2,500 storefronts. About 500 of the MEGA Group members storefronts carry consumer electronics, but Rick Bellows, the group's president, believes that number can more than double during the next year, given the right merchandising, sales training and advertising.

"CE is where we feel our biggest growth opportunity is," Bellows said. "Once we get it on the floor, once we do the training, they'll realize the type of additional pull it will have."

The biggest growth opportunity for CE sales is through the MEGA Group's furniture dealers, many of who also carry appliances, he said. While Bellows and group members realize TVs no longer generate strong profits, they can drive good customer traffic.

"If you can cross merchandise and bring in as many categories to support your overall offering, than you win," Bellows said. "It's about the demonstration, it's about the experience. You go into the custom showroom of a CE store and they’ve got the bed-sofa, they’ve got the cocktail table, they’ve got the lighting, they’ve got the motion furniture in there. Heck, our dealers already have that stuff. We might as well bring CE into the mix."

Many MEGA group dealers have carried CE but had dropped the lines 10 to 15 years ago as the technology and supply chain changed. Many of the members that still carry TVs need help in refreshing and merchandising their lines to meet today's consumer expectations, Bellows said, adding that the group will host more online and regional training, mainly through distributors Almo and DSI, during the next 12 months to bring the retailers up to speed.

"Many of the furniture and appliance dealers will have a small electronics display, but the products are still displayed the way they were 20 years ago, as opposed to the vignettes, setting up the home theaters …,” Bellows said

Rob Hawkins of Hawkins Home and Lawn in Mountain Grove, Mo., is one dealer who said he's ready to bring back TVs. He’s currently searching for a manufacturer with a strong value line of sets. "Our customers ask us for them," he said. "They're also a good traffic driver."

Richard and Gayle Allen of Allen's Furniture, with three stores in Virginia and West Virginia, already carry TVs from Panasonic, Samsung, Sanyo and LG. But, after sitting through the "Total HD Experience" session, given by Almo’s Jack Halperin, the Allens are thinking of carrying more advanced sets.

"Now I'm really beginning to wonder about the opportunities with 3DTVs," Gayle Allen said. "It will be something to watch out for."
The Allens are also excited about the new IPTVs on the market, saying the instant access to movies and TV programs through connected services such as Netflix is something their customers will be interested in. "To me, that technology is valuable," she said.

Rod Randall of Randall’s Home Appliance and Electronics in Arthur, Ill., is another dealer who’s ready to beef up his line up with 3DTVs. Even though there’s a lack of 3D content in the market, Randall said the quality and features of the high-end sets – particularly Samsung’s 2D to 3D conversion – gives his customers plenty of incentives to invest in a new TV today.

“This gives me a reason to sell the TVs now,” he said. “There are always customers who are ready to buy the newest products.”

To get even more customers into member stores, Bellows is urging them to use MEGA Group advertising and marketing tools to advertise their companies as aggressively as possible, especially around the key holidays such as Memorial and Labor days, July 4, Black Friday and the week after Christmas.

“We're not as aggressive in those time frames as we should be. Our message is you can compete. You've got the tools to compete. You've got the advertising support to compete,” he said. “Just get out there and make it happen.”