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From the unveiling of the first "Food Processor" at the National Housewares Exposition in Chicago in 1973 by Carl and Shirley Sontheimer sprung the entire phenomenon. That first glimpse of the multifunctional small electric and its subsequent promotion by the likes of James Beard, Julia Child, Craig Claiborne, Jacques Pépin, and Helen McCully changed the food processor from a luxury item into a worthwhile investment for serious home cooks.

Not only did this simple product launch constitute the inception of Cuisinart, it was also the birth of an entrepreneurial gourmet spirit that has risen to ever-increasing technological heights fed by a consumer demand for more features, more functions, and more power.

Mixing It Up

Industry analysts predict stand and hand mixers, food processors, and blenders will generate brisk sales this year. The International Housewares Association's MarketWatch (Vol. 3, No. 1) selected those categories along with toaster ovens and automatic drip coffee makers as their top picks for generating retail dollar sales growth in 2002.

Creating the right mix of product options and educating your staff about the features and functions of each will provide your store with a better chance of garnering part of the IHA's projected sales.

The MarketWatch report examined emerging trends in the specialty channel to determine the forces that might impact housewares in 2002. One of those forces is that blenders, mixers, and food processors are among the leading kitchen appliance categories geared to sell well. According to the report, "Combined retail dollar sales of stand mixers, food processors, and toaster ovens grew at a whopping 70 percent-plus growth rate in fourth quarter 2001 compared to fourth quarter 2000."

Overall sales increases showed food processors were up 42.7 percent for the year, while stand mixers climbed 42.2 percent, blenders increased 19.1 percent, and hand mixers rose by 3.2 percent. The majority of those increases were attributable to fourth-quarter sales. Stand mixers, which traditionally have increased fourth-quarter sales, rose 90.9 percent in fourth quarter 2001 versus those in the same period of 2000. Food processors' sales were up 71.7 percent, blenders climbed up 27.5 percent, and hand mixers increased 15.6 percent compared with those of the same 2000 sales period.

Jerry Schmidt, coowner of Minneapolis, Minn.-based The Kitchen Window, saw his store experience those sales increases firsthand.

"Sales of food processors really jumped when Cuisinart came out with their new models a year ago," Schmidt said. "We saw a huge jump when they came out with those."

Chopping Margins

Specialty retailers know that small electrics are a category that consumers expect them to carry, but they also recognize it is one that leaves little breathing room. Small electrics margins are a sticky issue for many retailers. Regardless of the size or number of stores they own, most retailers said they're left with margins of 20 percent or less.

"Small electrics margins are still terrible," said Terry Monroe, partner in Stillwater, Okla.-based Murphy's Department Store. "Some of the stand mixers have less than a 20-percent markup, which is pretty marginal in relation to the other items we carry."

Willard Doxey, buyer for Chapel Hill N.C.-based A Southern Season, agreed.

"I hate it just like everyone. I am having trouble with the amount of shelf space it takes up for such little money. I guess that's why I don't carry more brands," he explained.

Combine the margin issue with the storage requirements of larger small electrics and the importance of creating the right blend of product becomes painfully apparent.

Schmidt notes that the margin issue makes the selection of the right products even more critical.

"It's a terrible category for margins. You couldn't stay in business if everything yielded the 20 to 30 points you get out of the electrics. My only advice to manufacturers would be to give us more margins or use map pricing so retailers like us don't have to worry about stores like Kohl's playing games," he stated.

Processed Blend

Most retailers said that when they discover the style of blenders their customers are comfortable with, they stick with it. Of the three aforementioned options that comprise these popular categories, the blender appears to consumers to be the one with the most limited scope of functions. Blender/food processor combinations are a great way of changing perceptions about the product; still, the resurgent popularity of cocktail entertaining may just breathe new life into the category all on its own.

Countertop blenders are still the best tool for liquefying fruit and blending the rum, lime juice, and sugar components of a daiquiri. They're also the best bet for concocting the popular and healthy fruit smoothie.

So, what features are important to customers who are searching for the perfect blend? According to The New Cook's Catalog (Knopf, 2000), the only features needed in a blender are high and low speeds, a pulse button, wattage between 350 and 500 watts, and a large-capacity container.

Doxey's customers seek power and durability to justify cost. The store stocks its featured blender in one key brand, and backs it with two lower-priced, lower-powered models of another brand.

"Waring blenders are the bulk of our business. Their power and durability are the key features that justify the cost for the consumer," Doxey explained.

Monroe carries two brands, but discovered that branding was not as important to his customers in this category as it is with stand mixers.

"I think we lose sales because we do not have a lower-end price point that many people are looking for in a blender. Apparently, many customers do not use a blender often and do not see the need for spending the amount required for a high-end machine," he explained. "We sell enough to keep some in stock, but we do not stock in any depth."

Food processors are another category in which Monroe is seeking balance. He said customer demand for food processors is low both locally and online, leading him to carry just one brand.

He added, "We do try to keep most colors in stock. Power is important to some food processor customers, and color also seems to be a factor in making a choice."

At A Southern Season and The Kitchen Window, sales of food processors tell a much different story. Doxey stocks two brands based on their functionalities and price points. Schmidt carries the entire range of Cuisinart products.

"We carry all four colors in the 11-cup. The 9-cup and 14-cup are only available in white, thank goodness," he said. "White always sells best. The brushed is the number two; anything in brushed stainless is hot."

Aside from color choices, food processor models should include design, weight, capacity, noise-abatement, power, speeds, cleaning, and attachment features that are important to customers.

Food processors come in three sizes. Versatile full-size models will be the "Best" option you carry in your store, while your mid-size selection should represent the "Better" choice in the "Good-Better-Best" equation. Since margins are such an issue in this category, stocking a "good" option may not be within your means. A balance between capacities, attachments, and power capabilities will give your food processor department an even blend of features and price points.

Options, Options, Options

From stand mixers to stick mixers to hand-held versions, there are so many options for retailers and consumers, it's hard to know where to begin. One thing is certain — no kitchen is complete without at least one of these items.

Stand mixers can be a hefty investment for your customers so understanding their needs is critical. Stock the best machines — those that are equipped with a range of tools from dough hooks to wire whips. Be sure your staff knows the differences between the machines and can demonstrate each model so customers can determine what level is right for them. Know that wattage isn't the only feature indicating power. Cook's Catalog suggests checking for the maximum number of cups of flour or pounds of dough a machine can handle as an indication of its power.

Monroe said mixers outperform both blenders and food processors at Murphy's.

"We do a very good job with stand mixers from KitchenAid, and we also do pretty well with their hand mixers," he continued. "For other items in this category, we have not seen a lot of activity, except that the stick mixers are still requested during the Christmas season."

Much of Murphy's stand mixer sales — an estimated 25 to 50 percent — are online sales outside the state of Oklahoma. Accordingly, Monroe has been forced to offer a wide range of product.

"We do try to be competitive with other Internet retailers on each item, and that forces our prices below what we could get if we were just selling to our primary market area in the retail store. However, we feel that the volume we can get from Internet sales allows us to stock a much wider range of product," he added.

Schmidt is charged with searching out new mixers, blenders, and food processors for The Kitchen Window and determining the right inventory mix. Some of his product introductions, such as Bamix stick blenders, were selected to replace brands that changed their quality or appearance.

"We carry Braun and two styles of Bamix," Schmidt began. "Bamix is a super stick blender — the best I've found by far. We used to carry another line, but they dropped their stainless steel rod and went to plastic. We couldn't move them. It didn't look like it was substantial enough to do the job. We found the Bamix a little less than a year ago. They're pretty high end — about $100 for a stick blender, but we've sold over a hundred now."

Schmidt's examples prove simple design changes hugely impact retail sales. While customers sometimes need guidance, they often come into the store with standard measurements a product needs to meet in hand. Schmidt said most important to customers in the mixer/blender aisle is power and turbo action.

In the hand mixer category, The Kitchen Window carries five models between two leading brands. The store's eight stand mixer options are split between three labels — five KitchenAids, two Kenwoods, and one Bosch. Stick blenders are the top-selling item, while hand mixers outsell stand mixers two to one.

Though most consumers are familiar with the KitchenAid stand mixer profile and the store is stocked accordingly, Schmidt said he's created interest in other options by educating his staff and customers.

"There are certain people who know KitchenAid is what they want, so first of all, you have to listen to the customers. A lot of people don't have room for the KitchenAid on the counter because their cabinets are too low. The Kenwood models are sleeker looking and have a lower profile. Plus, Kenwood is more powerful with 650 watts; our customers really go for the Kenwood because of the power," he declared.

Monroe believes home chefs are leaning toward larger, more powerful models despite the prices of smaller versions.

"In addition to durability and power, they are also quite interested in color selection. We can sell a particular color mixer much better if it is in stock than if we have to order one. We do not stock very deep, however, as there are so many color and model choices," he said.

A Southern Season stocks two varieties of stick mixers based on two price points — $29.99 and $99.99. Doing so allows customers to be influenced by price or the best quality. While they don't stock hand mixers, they do bring in two brands of stand mixers based on price and quality. Doxey acknowledged that A Southern Season carries the standard stock of KitchenAid (its new Epicurean model), as well as a "more reasonably priced Krups selection."

He explained, "I really based everything on price versus the very best to give customers a choice of product style and price point."

Powerful Sales

The key to revving up great sales in this category is employee training. A well-educated staff is essential in any department, but sales staff with limited knowledge of the functions and features of small electrics discredit your store.

Employees must be able to discern what duties customers wish to perform in order to direct them toward the proper electric blender, mixer, or food processor. Make sure your staff knows the different functions of immersion blenders, bar blenders, stand mixers, food processors, hand mixers, countertop blenders, and stick blenders.

A Southern Season supports its staff with in-store displays, cooking classes, advertising, and sale promotions.

"Employee training is our key to sales," Doxey said.

Monroe agreed. "On mixers, blenders, and food processors, it's most important for our salespeople to be knowledgeable about how to use each item, and to be able to answer customer questions. Several of our managers and salespersons are particularly knowledgeable about the KitchenAid stand and hand mixers and attachments. Attachments sell well, although some are used seasonally, so it is difficult to keep them in stock at the right time for the demand. Attachments typically have a higher markup than the basic mixers, so having our salespeople know the attachments available and how they are used makes a difference in the profitability of the line," he said.

Murphy's recently changed its advertising message to provide customers with a reason to shop for high-end small electrics at their store.

"In our most recent advertising, our newspaper ad consultants have recommended that we emphasize the fact that these things will last 20 or 30 years or more, so the cost per year for the best is really fairly reasonable in comparison with other choices, which are cheaper initially," Monroe explained. "We have just started the most recent ad series, so we do not yet know how this approach will work. However, we did feature the six-quart Epicurean at a higher markup in the last ads, and we have been making sales of that item, so it may be the right direction."

The right direction is anything that points customers to your store. With the continued popularity of cooking within consumer lifestyle trends and the IHA's predictions of increased category sales, now's the time to make sure you stock the right mix of product blended with the best promotions and processed by an enthusiastic, educated sales team.