{"id":3773,"date":"2021-05-05T13:46:21","date_gmt":"2021-05-05T13:46:21","guid":{"rendered":"https:\/\/lsicorp.com\/jsi\/?p=3773"},"modified":"2024-06-19T09:56:28","modified_gmt":"2024-06-19T13:56:28","slug":"the-true-cost-of-unreliable-refrigerated-display-cases","status":"publish","type":"post","link":"https:\/\/lsicorp.com\/jsi\/the-true-cost-of-unreliable-refrigerated-display-cases\/","title":{"rendered":"The true cost of unreliable refrigerated display cases includes your store\u2019s reputation"},"content":{"rendered":"

Grocery stores deal with fragile inventory every day, such as fruit that quickly spoils and boxes and cans that are vulnerable to damage. In fact, the inventory shrink rate at grocery stores is more than double that of retail stores across the board. While inventory shrink may be considered the \u2018cost of business\u2019 and factored into overall pricing strategies, unreliable equipment including inferior refrigerated display cases can disrupt even the smartest business plan.<\/p>\n

The true cost of equipment breakdown has been estimated to cost as much as 15 times that of maintenance costs \u2013 including loss of immediate sales due to a product not being where a shopper expects it to be and the longer lasting expense of lost shoppers due to a bad experience which can turn into even bigger losses due to bad \u2018word of mouth\u2019 reviews.<\/p>\n

So, what does your refrigerated display case have to do with it?<\/h4>\n

Every second a display case is down, your store is losing money \u2013 lost production, cost of repairs or replacement, labor costs to relocate goods, substituting spoiled food \u2013 and it often happens without any warning.<\/p>\n

\"perishable<\/a>Fixing equipment means key staff or technicians are forced to stop what they are doing and manage the crisis. You need to order supplies, spare parts, tools and trained repair personnel\u2026 leading to expensive downtime. These costs can quickly add up in terms of materials and labor, as it takes workers from value-adding tasks. The result is lost profits.<\/p>\n

Notwithstanding downtime where you must replace the refrigerated display case altogether, consider the cost associated with sub-quality products as the equipment starts to fail. This could translate into spoiled fruits and vegetables, faster expiring meats, and botched cross-merchandising plans (imagine it happening the night before a holiday or your big Super Bowl promotional campaign).<\/p>\n

Poor quality can quickly erode customer trust in your products and brand, not to mention put you at risk of penalties and costly recalls.<\/p>\n

The cost of bad PR for your supermarket<\/h4>\n

It\u2019s difficult to determine a universal cost of a bad reputation, but one source estimates it to be more than $537 billion<\/a> in the United States alone. The magnitude of that figure illustrates how common the problem is, but how does it translate to supermarkets? Compared to overall retail consumers, grocery consumers tend to consist of a slightly higher percentage of \u201cloyalists\u201d, a slightly lower percentage of \u201cneutrals\u201d, and the same percentage of \u201croamers\u201d (check out this interesting study<\/a> on retail loyalty). But over time, poor quality products and bad shopping experiences can erode that loyalty and lead to lost business.<\/p>\n

According to a BrightLocal survey<\/a>, 93% of consumers read online reviews and a separate study found that 4 out of 5 customers won\u2019t buy from companies with negative reviews. Quantifying the impact of losing 4 out of 5 customers in a supermarket is relatively simple. The average grocery bill for a family of four is just about $800\/month, according to the USDA Cost of Food<\/a> at Home report. If you lose four of these customers, you\u2019ll miss out on $3,200 in sales monthly. This would add up to $38,400 in lost sales annually. That\u2019s a big price tag for a bad review that could have been prevented.<\/p>\n

Mitigate costly failures by being proactive<\/h4>\n

Preventative maintenance can help mitigate a lot of equipment failures \u2013 replacing the \u201cfail and fix\u201d approach with an alternative \u201cpredict and prevent\u201d strategy that includes:<\/p>\n

\u2022 Cleaning coils monthly
\n\u2022 Checking refrigerant charge
\n\u2022 Testing electrical connections and power draw
\n\u2022 Checking motor operations, drain lines, and gaskets
\n\u2022 Calibrating thermostats<\/p>\n

In addition to adopting preventative maintenance for longer lasting equipment, there are some key criteria you can add to your vetting process when choosing where your display case comes from:<\/p>\n

\u2022 Check that every display is accompanied by a verified and signed testing tracker. This will include the metrics from the testing and should be validated by a third-party lab.
\n\u2022 Make sure your suppliers have robust in-house lab capabilities to ensure faster service
\n\u2022 Choose self-contained compressors with raised air flow vents to help maintain critical temperatures while allowing mobility and maximum efficiency
\n\u2022 Order display cases that have slide out compressors for fast and easy service<\/p>\n

\"\"<\/a>The supplier who checks off all of these boxes is likely a partner who cares about your store\u2019s profitability, reputation, and compliance with important regulations. Learn more about some important compliance considerations here<\/a>.<\/p>\n

JSI provides the highest quality refrigerated displays that utilize industry-leading components and LEAN manufacturing principles to can ensure that each and every unit meets our strict quality guidelines.<\/p>\n","protected":false},"excerpt":{"rendered":"

Grocery stores deal with fragile inventory every day, such as fruit that quickly spoils and boxes and cans that are vulnerable to damage. In fact, the inventory shrink rate at grocery stores is more than double that of retail stores across the board. While inventory shrink may be considered the \u2018cost of business\u2019 and factored… Read more »<\/a><\/p>\n","protected":false},"author":9,"featured_media":3779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"footnotes":""},"categories":[89],"tags":[75,76,77],"class_list":["post-3773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","tag-refrigerated-display-cases","tag-grocery-store-refrigerated-display-cases","tag-merchandising-display-cases"],"acf":[],"yoast_head":"\nThe true cost of unreliable refrigerated display cases includes your store\u2019s reputation - JSI Store Fixtures<\/title>\n<meta name=\"description\" content=\"Unreliable equipment including inferior refrigerated display cases can disrupt even the smartest business plan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lsimultisite.wpenginepowered.com\/jsi\/the-true-cost-of-unreliable-refrigerated-display-cases\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The true cost of unreliable refrigerated display cases includes your store\u2019s reputation - 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