Lowe’s is a home improvement store that started in 1946 and sells approximately 35,000 items from different brands. The company analyzes customer satisfaction and enables customers to give their honest opinion through a lowes survey. The platform gives the store a reputation from its customers’ surveys.
In 2020, Lowe’s brand value raised to 30.4 billion U.S. dollars, this is an approximate 5.6 billion increase compared to the 2019 year. Despite this, the company has overcome several challenges despite its closing several branches in Canada and the U.S.
Lowe’s operates with two types of customers
Commonly known as do-it-yourself customers. This is the type of customer that basically purchases products and modify them personally. Often, they purchase products in small quantities and are offered assistance and guidance by associates available in store
On several occasions, the company holds clinics that assist the customers in any inquiries they have and help them build sustainable models. The clinics are majorly done online by associates due to the Coronavirus. This is encouraged by income stagnation among middle-class customers. The wholesale prices are most convenient to them.
These customers are professionals in their areas of career such as painters, plumbers, interior designers, repair and fixtures specialists among other house renovation careers. This type of customer mainly purchases goods in bulk to be used at work. Their places of specialization include offices, schools, stores, large homes, healthcare facilities, and commercial facilities. Huge discounts are awarded to such customers due to the purchase they make in bulk.
Direct merchandise from manufacturers
The other way Lowe’s makes money is through direct merchandise from manufacturers. They purchase goods directly from manufacturers and pay them on a sales basis. However, this method is not as effective because it might be time-sensitive and the purchase of goods might not meet the manufacturer’s requests.
Lowe’s takes advantage of holiday sales such as memorial day, Christmas, and independence day. With discounts on almost every product, the company can make huge sales that can cater for days the sales are quite low or not as high as expected.
Purchase of goods in bulk from their manufacturers directly allows the company to eliminate middlemen ensuring the larger profit goes to the company. Bulk purchase also enables them to acquire the goods at quite a low price hence sell it to customers at a wholesale price compared to retails.
All goods under one roof
An extra advantage Lowe’s has is the availability of all goods under one roof. A client does not have to worry about the movement around town looking for essential things they need. However, this is not such a huge advantage as its competitor Home Depot offers the same services. The difference comes in when the company weighs its customer satisfaction through Lowe’s survey.
In conclusion, running such a huge store requires quality leadership services and customer satisfaction. For the company to also boost its revenue, it has to know the value of products in the store and the returns expected.