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One of the most significant advantages enjoyed by the large discounters and big box merchandisers are their economies of scale. By buying an enormous volume of commodity products from their vendors Dele Alli England Jersey , they can drive prices downward on those items. As a result, the megastores can charge less for basic items than specialty retailers can profitably charge.

Having said that, independent shop owners can find their opportunity in niches. If online retailing has made one thing clear, it is that consumers will easily gravitate toward products they want to buy if they are only given the option. Below, we'll explore the long tail of retailing in the context of how small shop owners can profitably cater to niches.

Using News As A Retailing Model

To lay the groundwork for this discussion, consider the evolution of news distribution. Years ago, there were only a few channels through which you could receive the news: newspapers David Beckham England Jersey , network television, and radio. To be sure, consumer choice was severely limited. Today, in addition to those choices, people retrieve current events from cable television, blogs, and thousands of other online sources. In effect Danny Welbeck England Jersey , the number of choices from which consumers can select has grown exponentially.

Many of these news sources cater to specific demands. Some are conservative and others are progressive. Some offer a broad swath of topics while others provide updates on certain industries or sectors. This is a perfect model for the future of small, independent retailing. Local merchants need not compete with mass merchandisers for a share of the market on basic commodity items. Instead, they should carve a niche for themselves.

Why Independent Merchants Should Carve A Niche

With the debut of online properties such as Amazon, eBay, iTunes, and Netflix, consumers have grown accustomed to having access to niche products. Were they to buy a package of paper towels Danny Rose England Jersey , any brand might do. On the other hand, their tastes in books, movies, electronics, and hundreds of other retail categories has expanded into specialized areas. Therein, lies a small retailer's opportunity.

Independent merchants can more easily attract a loyal customer base by catering to niches that are underserved by the megastores. For example, an astronomy enthusiast may be able to purchase a telescope from a mass merchandiser. However Danny Drinkwater England Jersey , the selection of mounts, eyepieces, and different optical designs will be severely lacking. By contrast, a small retailer who specializes in that niche can better accommodate that market.

Limitations Of Inventory Management

In any physical retail setting, merchants must cope with limited cash flow and struggle with efficient inventory management. After all, there is only so much cash and floor space and both must be used productively. Meanwhile, having cash flow tied up in merchandise is a balancing act; there must be enough merchandise held in stock to satisfy customers without unnecessarily tying up limited resources.

Catering to a tightly defined niche makes cash flow and inventory management simpler. The wide variety of assortments are targeted to a similar audience. Average ticket prices increase Daniel Sturridge England Jersey , customers return more often to purchase additional items, and if demand is forecast properly, inventory turns over more quickly.

The Value Of Long-Tail Retailing

What I've described above is not to suggest niche retailing eliminates the need for tight controls. You should still keep your inventory as lean as possible, negotiate favorable terms with your vendors, and watch your cash flow. Furthermore, you should avoid sporadic expansion into unrelated assortments (unless you have identified a clearly defined demand) and focus on providing the best experience possible for your customers.

That said, long-tail retailing is a strategy to leverage the growing trend toward specialized niche products. Small retailers can use that strategy to avoid competing with the big box merchandisers on commodity items. Everyone loves the ambiance of a fire; nearly any time of year Chris Smalling England Jersey , whether in winter or in summer, the romance of a fire holds a special allure. In the heat of the summer, the fire is a gathering place where friends gather and good vibes reign. In the dead night of winter, a crackling bed of embers is a reassurance against the gloom outside and brings strength back to a weary heart. With so many different options for your den or backyard, from pits to stoves, all in gas, electric Charles Barkley England Jersey , and wood, there is something for every setup. Whether you need the function and traditional grace of a wood burning stove, or the poise and attractive lines of a gas pit for the outdoor bar, there are endless options to incorporate the beauty of fire into your gatherings. For the sleek appeal of the newest trends and ultra-modern style, look for Outdoor Linear Fireplaces. Joining the functions of warmth and light with sleek lines adapted to slim spaces designed to accommodate hosts of people, a linear fireplace just might be the perfect compliment to your outdoor bar and grill space. When you’re ready to see what’s available for your use, Embers Living is your go-to for all of your heating solutions.

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