Independent and effective

The DIY retail sector has expanded considerably in the shape of large-format stores, especially in northern and central Italy. As a result, many traditional, independent businesses have had to close over the past decade. Businesses that had neither the strength nor the means to reposition themselves so that they could face their increasingly demanding consumers with a new image.
 The product mix of individual Punto Brico members varies according to region
The most important element for customer satisfaction is a competitive price:quality ratio. And so cooperatives and buying groups have been established in Italy, where independent traders join forces in order to boost the negotiating power of individual members when dealing with suppliers.
One of these cooperative groupings is Punto Brico, which has its administrative headquarters at Acireale (CT) and in 1999 achieved gross external sales of approx. 59.4 mio euro (ITL 115 bn) with ten verall volume, which at that time consisted of 20 firms,” explained Sandro Argenti, a member of Punto Brico’s board. “The initiators of the new cooperative wanted to keep faith with a group philosophy which leaves all concerns free and independent, and not obliged to tie themselves to a brand name,” continued Argenti.
 The retailer determines his own product offer: the services at Hobby & Legno in Villanova include customer advice and a customised cutting facility .
A 16-page brochure is published four times a year. Eight pages are devoted to the products stocked by the individual outlets and presented on the other eight pages are the products common to all the Punto Brico stores. A total of 2.25 mio copies of each issue is printed and these are distributed within the catchment areas of group members. A considerable financial and organisational effort, which certainly reflects the desire of the individual businesses for independence. There are some products which can only be sold in certain regions: for example, noone in Palermo is interested in heaters, whereas they sell very well in Trento.
“Our most important aim is to increase the volume of business in general, not necessarily our total number of members,” Argenti added. “Only by this means can we develop an optimum relationship with our suppliers, who will in this way be able to keep their costs down and grow their sales from one year to the next. We are very choosy when it comes to admitting new members. The first criterion is the size of the business: it must not be…