Lend a brand

How lesser-known brands help win customers’ trust

JUNE 1, 2005

This story first appeared in the June 2005 issue of Entrepreneur. 

Brands like Nike and Adidas might get customers in the door of Kiddles Inc., a sporting goods store in Lake Forest, Illinois, but it’s the brands no one has heard of that keep customers coming back.

“After a while, you don’t fall in love with the razzle-dazzle of the big names,” explains owner Jay Shlifka, 52. Instead, he’s impressed by the better quality and service some smaller manu-facturers offer, such as a sock company that once “sent a representative to drive overnight to fix a mistake on an order.”

Plus, the lesser-known brands are often more flexible on pricing, says Anne M. Obarski, executive director of Merchandise Concepts, a retail consulting firm in St. Louis. That can mean better prices for customers–and more profit for you.

“If you have a big-name brand, you’re in competition with everyone else,” Obarski explains. “Educate the customer about a brand that’s better, and you’re creating value.”

Obarski says retailers can do this by merchandising lesser-known brands near better-known counter-parts or offering samples. Supplementing an inventory of well-known brands with unique items from small manufacturers can also set your store apart.

“Use signage that says, ‘If you like this, then you’ll love that,'” Obarski suggests. “By offering a better product at a better price, you build trust.”

Gwen Moran is a writer and consultant specializing in marketing.

https://www.entrepreneur.com/article/77862