
Should retailers get displays for free?
Displays are obviously the heart of any showroom – but should retailers get them for free or pay suppliers for the privilege? The happy medium that keeps all sides happy is still elusive for many…
For any kitchen and bathroom studio, displays are so much more than fixtures and fittings. They are tactile, interactive sales tools that practically demonstrate knowledge, skill, and aspiration.
But they’re also contentious. While showrooms clearly need them to sell to clients, suppliers clearly need showrooms to stock them – so who benefits the most from the arrangement? And who, therefore, should cover the cost of them?
At one extreme of the debate you have retailers being asked to pay for the privilege of putting the display in their showroom, and at the other you have retailers believing that suppliers should pay them for the use of their precious showroom space.
The reality is, of course, a wide scope of options and variations in between, but is there a consensus on what the best arrangement is? Is it possible for all parties to get what they want?
Many retailers do fundamentally believe that displays should always be free – it’s the levels of pragmatism and realism that vary. Equally, many feel that while a level of financial investment in displays is not an unreasonable request, it’s a step too far for those suppliers to insist that any agreement includes a prescribed amount of space.
From the suppliers’ perspective the motivations are clear – if they’re trying to build a retail network then free displays are an obvious foot-in-the-door. But for well-established brands, a financial commitment from the retailer is also a commitment of support and sales effort, as is the amount of dedicated space.
Ultimately, this is a debate about mutually beneficial loyalty – the disagreements come when asking who benefits where and how.
The vast majority of retailers who firmly believe that displays should be free are not looking for handouts, on the contrary as far as they’re concerned their showroom space has an intrinsic value that should be acknowledged – it’s their real estate that shouldn’t be free.
“While we currently purchase all of our display items at a discounted rate, we believe that display units should ideally be provided free of charge,” says Emma McLoughlin from Regal Kitchens in Chelmsford. “Those displays showcase our suppliers’ and manufacturers’ products.”
Stewart Woodruff from MBK Design Studio in Kent, shares this view. “Suppliers should still be giving displays for free, very few do, but they are renting a space in our showroom and with costs of running a showroom going up they need us to promote their brand and so they should be prepared to help us in any way they can.”
And it’s not just space, there is a tangible cost to installing or updating a new display that should, many feel, be factored into any discussion about charges. One retailer, for example, told us that a simple rule of thumb should be that displays are free if they have to fit them, and not if the supplier does it.
Lisa Kyme from Ripples London agrees: “If I am working with a supplier and want their product in my showroom then yes, I do expect them to provide the display for free. However, that doesn’t mean that I will take free products from anyone for the sake of it. There is no point having a product on display if it doesn’t sell as it ends up as dead space in a showroom, and zero sales for the supplier.
“However, the cost of updating the display doesn’t just mean the price of the product, there are also fitting costs to be considered as well as other aspects such as new tiling. Add to that the disruption to the showroom, for example we had to close for a week last year when updating the front window display.”
And this isn’t simply about taking on new ranges or brands, disruption can be caused through no fault of the retailer.
“A major frustration with some products is discontinuation,” says Frazer Goodwillie from Billingham Kitchens in Hartlepool. “This is an area where suppliers could be more generous and provide free replacements. Suppliers don’t factor our installation costs into the situation plus it’s also very hard to sell off displays so there can be costs associated with disposal too.”
Space
Assuming everyone agrees on the mutually beneficial financial nature of the display costs, should a supplier insist on a set amount of space in the showroom for their products?
Independent retailers are, by their nature, very proud of their independence and there are few who would happily let brands dictate what their showroom looks like, in fact it’s often given as a reason for rejecting a brand.
“I would not work with suppliers who told me how much space I needed to dedicate to their brand as this should, and would be, my choice,” says Tina Riley from Modern Homes in Leamington Spa. “Equally, we have always been quite strong-minded in the products we want to display – we know our market and client base better than the manufacturer and whatever their ‘best-selling’ range happens to be may never be ours.”
There is also a school of thought that suggests a brand insisting on a fixed amount of space doesn’t really understand the way many independent retailers work and how they sell to their clients.
“For me, I don’t often respond well to ‘you must have five displays…’,” says Adam Woollerton from Bathroom and Kitchen Eleven in Surrey. “I’m a designer and my whole expertise is creating a design scheme and making products look good. Sometimes that isn’t using solely one range from one brand.
“It comes from mixing suppliers’ offerings to create a more bespoke project so our displays are often a collaboration of brands and products that we feel create an appealing design and aesthetic. It’s not one size fits all so brands can’t expect every showroom to show a certain amount.
“If we get behind a brand, we will get behind it. So my advice would be to get to know the people behind the business and what they may bring to the table, rather than basing it solely on showroom space or bays.”
Kenneth Luck from Luck and Fuller in Billericay agrees, he monitors each brand in his showroom for value of sales, profit on sales and number of sales. If a brand isn’t pulling its weight he removes it and replaces it with something more profitable – sometimes a completely new brand.
“It’s our business and no one can make us present our showroom in a certain way,” he says. “However, we have a lovely showroom and other showrooms that are more trade-oriented may not have the same approach.
How we approach display deals...
Kris Tolbod, Premiere Klasse, Basingstoke
Over the years, we’ve learned the importance of establishing clear, mutually beneficial terms for showroom displays. Initially, I invested heavily in displays to secure accounts, only to be let down by suppliers who couldn’t deliver the promised quality or service. That’s why we now ensure both parties have a vested interest in the relationship.Before installing any display, we place at least three orders with a supplier to assess their service, efficiency, and product quality firsthand. If we invest in a display, it must meet our team’s standards, not just what a sales rep promotes. If it fails to meet expectations, we expect a full refund. Additionally, our trading agreements hold suppliers accountable. If their service or product quality falls below a 20% failure rate, we expect compensation, and continued issues may lead to closing the account.We’re open to free displays with clear terms. For example, if a supplier offers a free display, we agree on a sales target for 12-24 months. If we meet 90% of the target, we’ll cover only 10% of the display’s value. After that period, we reassess the partnership.This approach fosters commitment from both sides and has helped us build strong relationships with smaller brands that provide attentive service and take a genuine interest in our business. Ultimately, our showroom reflects our brand and values, so we partner with suppliers who respect that and are equally committed to success.
Rebates
“I understand that suppliers want a collection on display to give different ranges the best opportunity to do well, however some brands require too much commitment and this may take away from brands we already are doing well with. In all, we only have three displays per brand – any more commitment than that and we feel the brand may not be right for us.”
So what is the best compromise? What needs to be in place for both retailer and supplier to feel they both come away with a reasonable outcome?
The answer is, of course, rebates, discounts and incentives of some sort.
The retailer gives the supplier the commitment they are looking for to go and sell it and the retailer knows that eventually the overall cost to them will be minimal if they hit the targets. Everyone wins.
So what do retailers think is a good deal?
“We propose a compromise of a reduced initial cost for display items, coupled with additional ongoing discounts on orders for the displayed ranges,” says Emma McLoughlin at Regal Kitchens. “This approach would demonstrate that the displays are effective in inspiring customer interest and driving sales.”
Kenneth Luck from Luck and Fuller, on the other hand, believes that displays should be free for the first year: “Then put a target in place and once it’s hit the invoice gets screwed up. This worked really well for one of our brands when we first opened. The other option is that if it’s free, it must remain on display for a certain period of time. I feel 18 months is a good compromise. Displays aren’t the issue, it’s getting designers turned on to them. No customer ever points at the exact products they want and we ask the right questions to get a feel for the customer’s vision and specify the product accordingly.”
For Julian Stammers from JS Designs near Milton Keynes, it’s about a level playing field: “Displays should be subsidised fairly for everyone committing to the product and the discount should be the same regardless of whether you have one display or five. Kitchen showroom retailers should also have better discounts than internet retailers so that they can do what they do best and provide a complete service to the client.”
Display and supply agreements are, of course, about so much more than just the monetary commitment from either side. True partnerships between retailers and brands should obviously be fair and equitable financially, but their long-term effectiveness has so many more factors at play.
“The algorithm needs more than cost of display versus return on investment, it needs to include less measurable aspects that can only truly be understood by two parties who work hard to know each other well,” says Ripples managing director Paul Crow. “How committed will the customer be to promoting the products? How hard will they work to understand them, promote them, keep them looking great in the showroom and to provide the end consumer with the full support that the manufacturer would seek from the customer.
“Likewise, what effort will the supplier make to help the retailer benefit from the product on display. Can they generate leads, provide regular local support with training, CPD events, useful and relevant literature and web pages that give answers to questions at 10pm when you’re doing a quote. Are they on design software packages and listed on mainstream quoting systems? Do their products turn up on time and do they have a positive attitude to customer care challenges when fault is often not known.
“But, most importantly, is the product on display going to make a difference to sales? If it is, then it should be paid for. However, if there are other products available that are offered on the same support basis and at no cost, then the supplier must also compete with that in order to gain the advantage and the sales.”
The supplier's perspective...
Gary Nolan, owner of KBB sales and marketing agency Pure Visibility
As a former area sales manager, I’ve experienced the pros and cons of offering free-of-charge displays to retailers. While it may seem like an easy way to get products into showrooms, suppliers need to weigh the benefits and drawbacks before deciding on free displays. Understanding these factors and exploring flexible alternatives can lead to better outcomes for both parties.A key advantage of free displays is increased visibility. Retailers are more likely to feature products prominently when displays are free, boosting brand recognition and consumer interest. This can be especially helpful for new brands. However, the downsides include a lack of retailer commitment. Without a financial investment, retailers may not prioritise selling the product, leading to slower sales. Additionally, the cost of supplying free displays adds up for the supplier, creating financial strain if retailers don’t actively promote the product. In some cases, retailers may even use the free display to promote competing products.Rather than offering displays for free, suppliers can consider flexible options. Conditional rebates, where retailers receive a rebate after meeting sales targets, ensure mutual commitment. Deferred payment allows retailers to pay later, with the opportunity for credits based on sales performance. Offering discounted displays instead of free can also encourage retailers to dedicate space while allowing suppliers to recover some costs.While free displays undoubtedly have their advantages, exploring flexible, commitment-driven alternatives can create a stronger partnership between supplier and retailer - and that’s more likely to ensure long-term success.
purevisibility.co.uk