What Are Planograms?

If you have a brick-and-mortar store, then how you use physical space is one of the biggest factors to how successful your business will be. Most of the time, you’re paying for the space itself. That’s usually rent, and all of your customers will enter before they buy something.

However, the biggest problem that retail business owners have is how to set up the entire thing. You need to have the footpath of the customer in mind. This path needs to move them around in a way that maximizes their desire to buy something. Click on this link to read more.

There’s a reason why bubblegum is always right next to the cashier in every store. That’s a genius upsell, and even if you didn’t plan to buy a pack, you’re going to get one because it’s right there in front of you. Planograms are the primary tool that retails use to maximize the effectiveness of their space, and they also help gather data in the digital age, which will directly influence your sales.

What is a planogram exactly?

A planogram is a drawing that looks at your entire store from above. It looks like an architect design for the place, but instead of cupboards and tables, it displays the products. Its primary function is to maximize your sales, and it shows all the product placements. Of course, you can’t expect to succeed if you only use this tool because that depends on business to business. Large grocery stores wouldn’t be making as much profit if it wasn’t for this tool.

Can they maximize sales?

One of the most significant benefits that come from this tool is the amount of data you’re going to get about how your displays and products work. When you map out the exact locations on all of your shelves, it’s as if you took a magnifying glass and take a look to see optimizations and more opportunities for placing new products and hot offers.

As time goes by, you’re going to learn exactly how your choice to put a specific item in a certain place influences the behavior of your customers. That can easily be done by comparing previous sales records and seeing how your planogram has changed over time.

Which item performed the best, where did you put it, and can you do the same thing for things that aren’t selling as fast. Try changing the stock locations that are closing in on its expiry dates, and you’ll see where the highest performing areas in your store are.

That’s the hot spot, and planograms will allow you to create new strategies. Another genius trick that grocery stores play on you is the placement of bread. You always have to go all the way to the back of the store to get it, and in the meantime, you pass through different shelves, depending on the route you take.

This increases the number of impulse purchases, and no matter which route you take, you’re going to grab something. On the other hand, if something is already located in the back, consider moving it to the side to enforce your customers to pass through complementary products.

For the bread example, you can try putting some peanut butter and jelly right next to it. Chips and dips always go together, as well as sports drinks and nutritional bars.

Can they help in maximizing space?

The average gross-to-rent percentage could be anywhere from 1 all the way to 13 percent. That’s according to the Hartman property management company. Of course, depending on your lease term, size, and location, these costs can vary. View this link for more info https://www.thebalancesmb.com/retail-planograms-2890336.

But that doesn’t change the fact that retail space is quite expensive. No matter which percentage category you all into, if you maximize the room, that will help you clear up the clutter in the inventory. If you organize it better, then the staff will have an easier time staying on top of things because everything will be in order.

Finally, you should know that a proper plan is quite robust and detailed. However, some minor changes could prove to be more effective if you follow the main strategies and philosophies. You could either consult with an expert, use the software, or do it yourself. There are many templates online that might help you out.