11 March 2014
All retail or storefront businesses today must carefully consider their long term asset investments and ask the simple question: Will this investment reduce my costs or increase my revenue? If it does neither, than you must really consider why you would make such an investment at all. Display cabinets are often considered a method to increase merchandise sales, so lets consider how you can quantify the potential sales increase(s).
Lets consider that a smaller, 1,000 square foot retail storefront could require a substantial showcase structure featuring new displays and cabinets to fully outfit the store, ranging from $10,000 to $60,000 in price.
Interestingly, even larger customers that are retrofitting dozens of stores have this common approach, and while the overall expense is larger, it is, by and large, similar math per location.
Consider how long you will expect the new floor plan and design concept to be followed. A good guide is 10 years.
Fun Fact: SO Showcases display cabinets are engineered to last much longer, with some products still showing off customer products after 25 years!
The longevity of the products is a function of the components used in the build. Lower grade (ie: cheaper, lower quality, less durable) aluminum frames and extrusions will simply not last the riggers of years of retail wear and tear. Thinner glass will over time stress and crack with thousands of openings and closings. The lighting should be capable of easy bulb replacement.
Sure, there are certainly less expensive options for your cabinets, such as flat pack offshore products that have a lower up front cost (“Some assembly required.” Alan key, anyone?) However, these types of cases will simply not last beyond a year or two, at best.
Assuming you invest in a customized design unique to your products, your interior space, and color scheme, that investment can be viewed over time. Consider that 10 years is also 3,650 days. So what you really need to ask yourself is, are you willing to spend $4 or $5 a day to improve your stores visual appeal and potential profits?
To answer this question, we turn to our large multi-location partners as examples.
Consider the likes of the Hudson Bay Company, or Canada Post Corporation. HBC has been in business since 1670! They know a thing or two about longevity. When they approached SO Showcases to design some of their shop-in-shop displays, they knew these cabinets would need to last years and stand up to ongoing usage stress.
With volumes such as these for multiple locations, they could have looked offshore to source their cabinets. Instead they have worked with and entrusted us to design a unique system, beyond simply an aluminum and glass showcase structure.
HBC and Canada Post Corporation could have found lower cost solutions elsewhere, but for companies like this, the old adage reigns true:
“We are not so wealthy to afford cheap things.”