While your new coffeehouse may be larger than a store that was built 10 years ago, space may still be at a premium. In addition to the espresso/beverage equipment, there's the food preparation, cash register and seating areas, not to mention the display cases, condiment counter and perhaps even a stage for live performances. All this means that any room left for highlighting menu selections or showcasing merchandise really has to pack a lot of punch.

Merchandising your products, or how you package, display or otherwise "advertise" your specialty coffee drinks, whole-bean coffee, mugs, t-shirts, or any other related products, can have a direct impact on sales.

Successful retailers use techniques that maximize the sales potential of their products and help grab the attention of busy customers who might not otherwise think of buying a chocolate truffle or travel mug if it weren't for the attractive display. Using colors that complement each other, maintaining consistency of design elements and employing creativity are a few techniques that work well.

MAKING DOLLARS BY MAKING SENSE

Retailer Scott Blackwell says the first part of his merchandising strategy involves choosing products that fit into his overall business philosophy. That's the way Immaculate Consumption LLC has grown from a restaurant/café, to a roaster and tea company, and finally to a merchandiser of related products such as French presses, espresso machines and even books on coffee.

"The idea is that everything had to fit our philosophy of the company. It had to make sense," explains Blackwell, founder, president and CEO of Immaculate Consumption, based in Flat Rock, N.C. "It wasn't just about, `Gosh, this is really popular, let's just try to sell a bunch of them.'"

Retail space at the two Immaculate Consumption stores is less than 100 square feet--not a lot of room to push product. So, Blackwell uses creative packaging and fun signage to appeal to customers. For example, Immaculate Consumption offers packaged cookies, scones and Mojos (bite-sized pieces of biscotti) that are baked by Blackwell's baking company, Immaculate Baking Company, based in Hendersonville, N.C. The packages for these baked goods feature American folk art designs. Through a foundation set up by Blackwell, some of the proceeds from the sales of the artistically packaged products go to the artists who designed them. While Blackwell's supporting the arts, he's also making his products more eye-catching.

In addition, for in-store signage Blackwell uses a graphic artist who repeats certain design elements, such as color and fonts. "There's kind of a set set of colors that we use and a set set of fonts that we use," he says.

If there's no consistency and all different colors and lettering are used, "It looks hodgepodgey," Blackwell adds.

Blackwell also uses signage that's fun. For a promotion that offered customers accompanied by a friend menu products at half price, the artist drew a sign depicting two goofy characters to convey the sales pitch to customers. "That image got their attention," he adds.

Cross-selling is also a good merchandising technique that works by offering the product both behind the counter and in front of it. For instance, some of Immaculate Consumption's menu products, such as mocha mixes and scones, in addition to the espresso equipment the staff uses, such as tampers and steam pots, are available for purchase. Blackwell says he doesn't sell these products every day, but their availability makes a good statement about meeting customer desires. "You love scones, you want to take them home, there you go," he offers. "You got the retail pack."

TOUCH, FEELY

Making the products available not only for purchase, but also to look at and actually touch is another important part of merchandising. So, perhaps, displaying an espresso machine out of the box to see how it works may persuade a customer to purchase it. "I think that's really important," says Anya Davis, whose duties handling special events at Chicago-based Intelligentsia Coffee and Tea were recently expanded to include directing the coffee company's merchandising efforts.

Davis says her plans include promoting various coffees and teas by creating strategically placed displays. In July, she promoted a new tea blend by creating a display suggesting an occasion, such as a picnic or outdoor entertaining, to drink the tea. The display was located near the front door and cash register in order to make it one of the first things that customers see as they enter the coffeehouse.

Putting specialty items or new products at the front of the store is a good way of capturing attention, Davis says, "'Cause not everyone walks over to the merchandise shelves."

Davis plans on using the space in the back of the store for regular merchandise, such as mugs, T-shirts and coffee equipment. The products that will be promoted during monthly specials will be displayed upfront.

Along with having equipment available for purchase, it's also a good idea to let customers know that the cream or milk pitcher they're using and like so much is sitting on a retail shelf just a few feet away. Wholesaler Byron Stanger says some of his coffeehouse clients place small cards next to equipment letting customers know that what they're using can also be purchased.

"In other words, instead of just having products in the available retail area, (retailers) use them for commercial purposes," explains Stanger, director of marketing and product development for the Woodridge, Ill., office of Trudeau Corp., a Montreal-based manufacturer and supplier of such coffee-related products as pitchers, carafes and travel mugs.

Stanger also encourages clients to use point-of-purchase materials that in some way promote a product. For example, Trudeau has posters that explain the company's guaranteed leak-proof lids. Some retailers display these posters near the mugs and carafes that they're selling and that helps persuade customers to buy the merchandise.

"Capitalize on vendors' point-of-purchase materials and that will improve your sales," Stanger says.

CREATIVITY SELLS

Whatever the style of merchandising, it's important to use a lot of creativity. Coffeehouse customers may be especially appreciative of catchy displays that appeal to their curiosity and sense of style.

Retailer Keith Herbert says that detailed product descriptions are an essential way to capture attention. "So, to sell whole-bean coffee, what we've found works the best is descriptions about the roast, descriptions about the kind of coffee, where it comes from," explains Herbert, one of the founders and president of Ink! Coffee Company, a chain of four coffeehouses, located in the Denver area and Aspen, Colo.

The stories are presented in various ways--either on a piece of painted sheet metal, a computer-designed piece of art or simply a handwritten sign. The varying kinds of displays are a way to keep ideas fresh and make products more appealing, "Especially (for) your everyday customers," Herbert adds. "You want to give them something different to look at all the time."

Ink's whole-bean coffee is also packaged in color and design-coded themes. The single origin beans are in a blue bag featuring a yield sign, the blends are in a green bag with a merge sign, and the decaffeinated beans are in an orange bag with a stop sign. Herbert says the unique packaging helps to educate customers on the various kinds of coffee and encourages them to try new types.

The coffeehouse chain also has a signature line of merchandise called Ink!ware that includes such items as sweatshirts, sweatpants, T-shirts and the very hip-to-have Ink! coffee mugs. Some of the Ink! locations use handmade merchandising racks made out of plywood, plumbing pipes and corrugated metal to display the items, Herbert says. Other stores simply use tables. The displays are strategically located near where customers have to spend time, such as the line at the cash register or the condiment bar. "So, they're always in a place where we might have a capture moment," says Herbert, referring to the chance that the customer will notice the item and decide to purchase it.

While the styles of the displays vary from store to store, one element that stays the same is the menu board. No matter the store, Ink's five menu boards (main menu, bagel board, hot drink specials, cold drink specials and smoothies) use the same colors and images. Herbert says the uniformity of the menu board styles lets customers know that they are in an Ink! coffeehouse and can get their favorite drink.

"The menu boards are very recognizable," he says.

LESS MAY BE MORE

When it comes to merchandising, some retailers, however, believe that less is more. Simple designs, uncluttered space and clean looks are what works in some stores.

Greenberry's Coffee & Tea Co. stores feature old-fashioned chalkboards, neat display cases and merchandise that serves more as decorative elements than as products to buy. "Our stores look like an upscale, chic country store," says Sean Simmons, president of Greenberry's, based in Charlottesville, Va.

A few years ago, Simmons got rid of most of the ancillary merchandise in his stores because it wasn't selling very well. As places such as Williams-Sonoma, an upscale housewares/kitchen gadget store, and mega discounter Wal-Mart, began carrying similar products it became too hard to compete, Simmons says.

Currently, Greenberry's carries some high-end merchandise, such as hand-painted coffee mugs, but ancillary items account for only about 3 percent of revenues, Simmons says.

What it really comes down to, he believes, is knowing your customer/location demographics. Simmons says his baby boomer customers appreciate Greenberry's style. "They love the low-key atmosphere," he says.

He says customers also appreciate the simple but stylish décor. Greenberry's stores are adorned in wood finishes and slate countertops, for example. "To clutter them with all this POS stuff would make them look tacky," he says.

Much of what a retailer should carry, however, depends on the store's location and even the season, according to Simmons. Greenberry's stores are generally located in suburban areas near retail shopping, meaning there's a lot of retail competition.

There are some instances, however, when merchandising does help move product. Simmons says the fourth quarter can be lucrative for selling holiday-related items, such as boxed chocolates and treats. Even taking existing products and decorating them for the occasion in tissue paper and a bow is a good technique. At Greenberry's, for example, during the holidays, Simmons will fill a latte cup with chocolate or coffee beans, put a card on it and wrap it up to look pretty.

"Those you can sell," he says.

Of course, knowing your customers well enough to determine the kind of products that will sell and what kind of displays move product may be a little tricky for new retailers. Matching your merchandising techniques to your store's basic design theme, whether it be classy, country or quirky, will convey the same message so customers won't be confused by what the store's all about. Whatever you ultimately decided, creative merchandising will help the store look better and hopefully make your customers buy more.

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