Innovation #1
OPP (Opening Price Point) Garden Trellis
Can you answer these two questions:
- How much air did you ship last year?
- Does the trellis in your store look like the ones to the left?
| Theirs | EDIA | ||
| Units Purchased | 70,000 | 70,000 | |
| Purchase Price | 25% Less | ||
| Distribution Cost | 80% Less | ||
| Store Landed Cost | 35% Less | ||
| Retail Sell Price' | $12.44 | $10.57 | |
| Margin % | 39% | 54% | |
| Annual Revenue | $871,000 | $740,000 | |
| Annual Margin | $343,000 | $397,000 | |
| Investment (Purchases) | $497,000 | $343,000 | |
| ROI | 69% | 116% |
OPP Trellis represents the single highest-volume L&G item but is at the same time the most problematic (high damages from transit and handling and low ROI)
The above is based on actual historical information comparing a high volume trellis item in a major home improvement (big box) store and the eye-opening results possible with our EDIA OPP trellis.
(The model does not include store operating costs, merchandising costs, or sales allowances)
Another EDIA win-win: the consumer enjoys a lower retail (15%) and the retailer enjoys a much higher ROI—you spend less to make more. With the lower retail, it would also be reasonable to expect unit volume to increase.
Damaged/Shopworn
Merchandises poorly