Sales of Higher Margin Add-on Items Can Be Tacked Onto In-Demand Commodities, A Strategy That's Worked in Arenas From Retail to IT to Gaming.

In an effort to educate RTO dealers and store owners on new profit opportunities, D&H Distributing is asking RTO customers to try boosting their rentals through add-on electronics items and accessories. The strategy of enhancing margins through the sale of add-on products has been a successful tool for D&H retail and CE dealer customers, even extending itself into the computer products market. For example, it wasn't long ago that a drop in PC profit margins inspired computer resellers to start thinking about add-on sales and turn-key solutions as a strategy to recoup some of those shrinking revenues.

The benefits of the add-on strategy become more pronounced when RTO dealers and store owners can acquire both the major sales items and their margin-boosting complements all from a one-stop resource such as D&H Distributing.

Consumer electronics items such as digital cameras, video camcorders, MP3 players, GPS navigational units, handheld devices such as PDAs and smartphones, and portable DVD players are all still in-demand categories, although they don't necessarily offer a tremendous profit point for the typical RTO shop – by themselves. Yet depending on the individual store's business model and niche, these electronics might offer an opportunity for more attractive margins through add-on sales of accessory items.

Add-ons could include decorative skins for portable devices, noise-canceling headphones (sometimes a large-ticket item, depending on the status of the brand), car adapters, multi-unit chargers, docking devices, power protection solutions, wireless adapters, extra gaming controllers, back-up solutions, HDMI cables, TV mounts and more.

"In challenging times, owners and dealers have to think strategically about how to optimize all types of sales. We've seen customers in various markets find success by cross-selling add-ons along with popular merchandise, leveraging accessories that range from specialized home theater remotes; to customizable MP3 cases; to solar charging units," said Jeff Davis, senior vice president of sales at D&H. "As a broad-based distributor with experience in CE, IT, small appliances, retail, gaming and more, we've seen how easily high-end products become commoditized. We want to share ideas on how to combat that with RTO customers, based on our cross-market experiences."

About D&H Distributing
D&H Distributing is one of America's oldest and largest wholesale distributors of computer and consumer electronics products, with an impressive 90-year history serving as a consultative partner and trusted advisor to RTO dealers and owners, CE dealers, custom installers, integrators and retailers in the channel. More than just an all-around source for Digital Home products, D&H helps its customers identify new growth opportunities and assemble unique solutions to help them become more successful purveyors of the Total Digital Lifestyle.

D&H distributed the first color television, the first-ever home computer, and even the first gaming system. No other distributor has a greater depth of experience as a one-stop resource for consumer electronics and PC-based solutions. The company's multi-market expertise, dedicated account reps., sterling service and ongoing educational programs empower D&H's customers to become pioneers of the newly-converged technological landscape. The distributor won first place in five separate categories in the 2007 CMP Channel Sourcing Study, including Ease of Doing Business, Product Exclusivity, Total Solutions, Financing, and Emerging Market Expertise.

D&H ships out of five separate locations, including its Harrisburg headquarters, plus warehouses in Jacksonville, Chicago, Dallas and Fresno, CA. Call D&H toll-free at (800) 340-1007 or visit www.dandh.com.