on top of current trends and the latest product introductions. He explains: "Each year about one item in five
that I sell are products I wasn't selling the year before.
You have to be ahead of the curve with all the new products that are constantly coming out, in every category."
Inventory is a key component. "I manage my inventory similar to a hedge fund where I am investing a lot
of money, seven figures, into my inventory." That
investment means Santelle can buy at a good price, sell
the product three to six months later, and still make
decent margins, even with his aggressive everyday low
price strategy.
The retailer takes extensive advantage of the public
warehousing available in New Jersey through the key
wholesalers, gaining the benefit of bulk discounts for
products that he knows he can move with his customers.
He also takes advantage of Retail Incentive Programs, in
which suppliers and wholesalers supply display materials
and additional discounts. "It works if those are items I
feel I can do well with, that my customers will buy. That
goes to that 'hedge fund,' and how I invest my money
and get a return on that investment. You need a combination of factors, the right price, the right RIP and selling product through in a certain time frame."
The everyday low pricing technique was developed
through hard experience. "Back in the day when a lot of
us were starting out in discounting, you had customers
programmed: they would stock up on sale products, then
you wouldn't see them again for a few weeks until their
bottle was on sale again," Santelle explains. Now he
prices virtually all products just a dollar or two above the
sale price, and thus experiences more consistent business
week in and week out.
The reward is that customers will come in to buy
several different items: not just a case of beer, but a case
of beer with a couple bottles of wine and a bottle or two
of spirits, not just what's on sale. "I like to see customers
with full shopping carriages, not shoppers that are doing
the one-dimensional cherry picking."
One big advantage that Santelle counts upon is that
he owns the real estate on which his store sits. That has
allowed him to expand over the years, and appreciate its
value. "At the end of the day, I am my own landlord, I
don't have any partners, that makes it a lot easier.
Because the margins I work on today are half what they
were 20-plus years ago.
"If it wasn't for being my own landlord I don't know if
I could make sense out of this business, when you look at
its competitive nature," Santelle continues. "If all you're
making is the revenue from selling alcohol, that's only a
