Why Big Box Stores Have POS Representatives

POS Representatives in Retail Stores, what are they and why should you be aware of their effectiveness in driving new traffic?

You’ve seen them for years in the grocery stores like Costco’s and Sam’s Club, people who are at the end of aisles, serving samples of a new product, offering information and advice about it, as you shop. For the most part, they don’t work for the store but they definitely help with sales for the store. So it would make sense that the “Big Box” stores would do the same thing. Here are a few reasons why they jumped on the bandwagon of POS Representatives.

Why Big Box Stores Have POS Representatives

The first, and most obvious, is if the POS representative works for someone else, the big box store doesn’t have to pay them directly. No wages, no employment taxes, no benefits. The rep is paid by their company in whatever format or agreement they may have. At the most, the big box may have to pay the company directly for having the rep come in, but that would be a contractual thing handled differently from an expense perspective. It’s a big win in that department for the big box because employment expenses can be a large item on the profit and loss statement and balance sheet for even a part time employee.

 


 

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The POS representative is there to talk about a product that is already on the big box store’s shelves.That is a big win because it spurs impulse buys by customers, making their actual purchase larger than they planned.

Another plus from the customer’s point of view is that POS representatives are independent from the big box store. They will have more specific knowledge about the product. The rep would have been trained by the company who makes the product and can answer most questions on the spot. This means that the customer isn’t getting the run around from the store employees who may not be, or probably are not qualified to answer. It gives the product, the rep and the store credibility. Credibility will turn into higher sales as the customer comes to know, like and trust the Big Box store on a person-to-person level.

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