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Working with a wholesale club store means you must abide by their specifications. And the sales you can see at club stores, it seems obvious why you'd want to sell your products there!
And with total revenue at $592.3 billion in 2019 (average sales being $99.1 million at each location) and a 4.9% growth over the past three years, the wholesale industry is undeniably strong. Costco, in particular, enjoyed average sales per location of $182 million in 2019.
Before you begin brainstorming your bulk selling strategy, it's important to know that wholesale clubs such as Costco and BJ's Wholesale Club have rigid in-store display specifications. While this can create some complications and challenges, we have insights that can help you out.
Wholesale clubs are the go-to for selling products in bulk — but be sure to get your display right.
Display Specifications
Costco and BJ's Wholesale Club have more in common than being the largest wholesale clubs in the country; they also have the same store display requirements: pre-packaged pallet displays of 48" x40."
Note: Even smaller warehouse retailers tend to have the same requirements.
In order to relocate or replenish product pallets quickly and with minimal effort, wholesale clubs are serious about the restrictions they put on manufacturers and vendors displays.
For example, if you want to sell in Costco, you should know that they must pre-approve your display-ready packaging (including graphics) before production.
Additionally, when trays are needed to transport products, Costco requires that they be "useful in every way…." This includes functional boxes that members use to carry their purchases from the store.
Here’s detailed information on Costco’s display specifications.
Costco also conducts random audits on compliance to make sure that your point of purchase displays and packaging meet their specifications.
Ensure Your Wholesale Display Is Approved
Warehouse clubs generally have low gross margins. For instance, Costco’s median gross margin over the last 13 years was 12.88%. That said, membership retailers tend to make most of their profit from fees paid by their members.
In exchange for those membership fees, members expect high-quality merchandise at low prices.
This means the products that are sold at club stores must be high quality and discounted while being clearly and effectively displayed.
To grab the attention of bulk bargain shoppers, your display must broadcast the value of your product and effectively catch their eye.
Your goal, then, is to stay within club store display guidelines, provide value, and make your display pop.
Display Placement Tips In Wholesale Clubs
Did you know a Pallet Skirt can serve as a billboard — one that conveys information that influences shoppers to stop, look, and consider purchasing your product? Or that a Dump Bin can drive impulse purchases?
From placement recommendations to design suggestions, here are more display ideas to explore.
Front of the Store
Higher ticket items tend to be placed in the front of membership club warehouses. That said, a pallet skirt as a front panel with branded messaging and eye-catching visuals is a great idea.
Take advantage of the marketing space: use the pallet skirt to capture attention and inform buyers of your product even when they're standing yards away.
Middle of the Store
If you sell household items, chances are good the warehouse club will place your items near the store's midsection. The store could stack your product top to bottom on exposed pallets or shelving, in which case your product packaging will need to speak for itself.
Remember, the design rule of thumb is to tell your story in five seconds, from five feet away.
Back of the Store
The rear of a warehouse club is often where shoppers find food and other perishables. Many products are displayed in corrugated shipping cases, some of which are somewhat hidden on a shelf. Another challenge is the freezer's foggy glass.
All these challenges make it all the more critical that your designers optimize the packing or corrugated bins or displays to capture shoppers' attention and showcase your product.
General Tips
Packaging and the displays should be simple, yet bold, with contrasting colors so that your items stand out. Hiring a company that designs and manufactures retail displays is ideal. These displays can really increase your sales when used effectively.
They can create a great design, build the display to the correct specifications, and deliver the display to the club store, eliminating all stress on your end. Look for full-services companies and companies that offer contract packing.
At Bennett, we aim for an award winning display every time. And you deserve to find a packaging manufacturer who feels that way.
Bennett Specializes In Club Stores
Our team at Bennet handles every aspect of retail displays. And our printing and production capabilities meet warehouse clubs' strict display specifications for pallet displays, pallet skirts, corrugated packaging, and more.
Our design team knows all these retailers' specifications, so you won't have to figure it out yourself. As for the look of your displays, our award-winning graphic and structural designers will work with you to create retail displays that adhere to store requirements and capture shoppers' attention.
