I recently sat down with Mike Lauber, Owner of Tusco Display. Tusco Display is a permanent point of purchase display manufacturer located in Gnadenhutten, OH. Primarily they produce the displays that are found in retail locations worldwide but also manufacture original equipment for various industries. You never see their name, but they in fact represent major products for widely recognized labels. I had a few questions about how social media has impacted his business.
You can visit them on the web at: www.tuscodisplay.com
MM: Mike, just how many companies are in the point of purchase display business?
ML: Broadly defined, there are thousands – from screenprint shops to multi-million-dollar fixture conglomerates – around the world.
MM: How effective is point of purchase?
ML: Consider that the average shopper makes 70% of purchase decisions in-store and you cannot avoid the fact that it’s essential and effective. Effectiveness varies by category and brand, of course, and shoppers exhibit differing responses to POP advertising by gender and age but, overall, research time and again points to its power. That’s why more than $20B is spent on in-store advertising annually just in the US.
MM: With that being said, would you feel that point of purchase is still an effective medium for marketing at retail?
ML: If you’re inferring that consumer behavior has changed during the current economic downturn, Michael, the answer is clearly still “yes.” Part of the issue is that other forms of media have been shown to be less effective. A TV ad, for instance, may reach 10MM people but a sign in Wal-Mart may be viewed by 100MM people in a week’s time – for a fraction of the cost.
MM: As Web 2.0 emerges to Web 3.0 and websites offer an even greater functionality and more rich user experience, do you believe we will ever move away from a brick and mortar shopping experience?
ML: I envision of merging of technology with the in-store experience. Just look at the use of at-retail interactive technology growth in the last five years. As the equipment becomes less expensive and more robust, we’re only going to see more because (a) consumers are more comfortable with it, (b) retailers will become more comfortable with it, and (c) it works.
MM: A recently Google search reveals that malls and “big box” stores are losing ground and main street was gaining. Do you agree with that assessment? Will shopping in smaller downtown stores as I remember as a kid make a comeback?
ML: There’s been a massive consolidation in retailing power to the very largest players over the past several decades. They have the advantages of scale. Yet, barriers to entry for someone to open a shop are fairly low. Niche players and “mom’n’pop” stores won’t be back like you remember them but, those that survive will overcome the big players with extreme customer service and attentiveness.
MM: Recently Procter and Gamble dove into the social media craze, as well as the fact that, yeah I’ll say it, “Dude they are selling Dells on Twitter.” Has Tusco Display adopted any social media to promote itself or cultivate new business relationships?
ML: We are finding success with the social media, sometimes in unexpected ways.
MM: What kind of results has it yielded?
ML: From finding a new supplier to reconnecting with a client who has moved twice since we last worked together to digging deeper within an organization to meet people to simply letting people know that Tusco is here, we’re appreciating what SocMe can do for us.
MM: Given there is no such thing as a free lunch, social media if you manage it yourself cost you time and effort. How much time do you spend on social media to promote your business, make contacts, and be an active member of the social media community? Would you recommend “farming” this out to a third party? Why or why not?
ML: We’re a fairly small company, Michael, so I’m very hands-on and encourage our associates to participate, learn and explore ways in which it can help us. Though calling on experts to help us can make sense, we stand to benefit from doing much of it ourselves.
MM: Along with that then, is social media a tool or time waster?
ML: Yes and yes. Like wine, a little is good for you but too much is deadly. You should manage it, not the other way around.
MM: Mike, finally would you recommend someone wanting to get started on social media to promote ones business, product, or persona enlisting some help or just dive in? We all know the water is warm, but what are the potential pitfalls and struggles of not having a “swim buddy?”
ML: There are lots of free or low-cost opportunities to fast-track your fundamental learning. With a little training, you can ramp up much faster. We used a training offered through Kent State University Tuscarawas to learn how to walk and we’ve been running ever since.
MM: Thanks Mike for taking time to answer my questions. I am excited to see that social media has been a positive thing and hope that you will continue to build your contacts and foster great relationships that assist you in building your business and professional network.
Mike Lauber has owned Tusco since 1979. Past chairman of the Point of Purchase Advertising International (POPAI) trade association, Lauber was inducted into the Point of Purchase Industry Hall of Fame in 2008. Tusco is a leading designers and manufacturers of custom permanent displays and store fixtures in N America serving brands’ at-retail merchandising needs.
