Tips and Takeaways for the Tech Section

A new year—and a new academic term—will be starting in a few weeks. You might be thinking about ways to improve your technology products section.

Consider borrowing some ideas that have worked for the UCLA Store, University of California-Los Angeles. In a CAMEX22 virtual session, Rick Crowe, associate director of marketing and computer store, shared some recommendations and tips for tech merchandise and operations.

Crowe has seen a lot of changes in tech retailing over the years, including the shift from desktop to mobile, the software resale model, and the emergence of new services. At one point more than 10% of his store’s sales were in software, then came school licensing deals, subscription models, and electronic delivery. His store currently stocks the full array of tech products: hardware, peripherals, accessories, consumer electronics, “and even a little bit of software” accounting for less than 1% of sales, he said in the session, How to Run a Successful Tech Store.

Campus stores can be successful in tech with a combination of price, service, selection, and something unique that sets them apart. “Really, you want to focus on value. Price, we always focus on that but that really isn’t the driver,” Crowe said. “It’s what you can bring that’s really unique to your campus.”

Some basic tips:

• Focus on products with higher margins.
• Carefully manage the life cycle of products you carry; don’t get stuck with product when a new version comes out.
• Pay attention to merchandising. “This is not a situation where if you stock it, they will come. They won’t,” Crowe said. Even if you’re only stocking one or two units, make sure it looks appealing in the store.
• A web and e-commerce presence is mandatory. Build in suggestions for other items they might need. “Keep that churn going. What else can you move?” he noted.
• Invest in fixtures and people. Good fixtures will show off the product and good training will ensure employees can provide the best service.

In tech sales, it’s not uncommon to bundle products to spur business. But be careful. As part of a vendor promotion, the UCLA Store acquired a slew of printers (normally $99) for $9.99. The store tried a variety of tactics to give the printers away to drive other sales. What actually worked the best, though, was pricing the printers at $29.99 but selling them for $9.99 with the purchase of a computer. “Free sometimes communicates ‘worthless.’ Value can be considered the price,” Crowe said.

Keep your eyes open to opportunities for providing value to the campus. One area might be niche software needed for certain courses; other consumer outlets don’t carry it and campus departments can’t provide it because they don’t accept credit cards. The store becomes the solution. When students had trouble installing Office on their machines, the UCLA Store offered to help get them started.

The store has also worked to build relationships with campus departments for sales, offering service advantages such as holding stock, delivery, and logistics.

In selecting products, go with a good/better/best variety from vendors who offer solid support for the campus store channel. Focus on the needs of your campus customers, rather than general consumers. Cables, connectors, and chargers are must-have peripherals but consider printers carefully; students might need supplies but not the hardware. UCLA has printing stations, but students have to bring paper. For consumer electronics, a variety of headphones ranging in price from $10 to a couple hundred will work, although keep your customer traffic in mind.

Market your tech offerings at campus events and to groups. “Just be out there. You don’t have to give things away,” Crowe said. “In our case, we can talk about the services we have. We understand what our students are doing and what our faculty and staff are doing.”

He suggested a number of tactics:

Marketing

• Bundling warranties as a “four-year solution,” at the right price point.
• Use calls to action and “save up to” messages.
• Set up tables outside the store to get the word out. Provide charging stations to draw prospective customers in.
• Post interesting content on social media and the web.

Services

• Find a way to say Yes to the customer. “You can’t always give the customer what they want, but you can find a way to get what they need,” he noted.
• Train employees in customer service and knowledge of product, using vendor resources and peer mentorship.
• Offer repairs, either on-site or through a third party. Possibly provide loaners for computers in service.
• Explore trade-in options with vendors.
• Provide financing for bigger-ticket items. “We found ways to work with financial aid, worked with the local credit union,” Crowe said.

Administration

• Know your store’s numbers. Develop trackers to give snapshots of current business.
• Watch category trends.
• Keep an eye on the aging reports, especially for products with batteries.

Resources

• Work with vendor partners to make the most of co-op advertising funds, product giveaways, and marketing collateral.
• Ask suppliers for their bestseller lists to see what’s selling elsewhere.
• Some vendors, such as Apple, Dell, and Microsoft, offer training online. “We give employees time to log in,” Crowe said. “It does pay off.”
• Talk to your industry peers to find out what’s working for them.