TL;DR
Get pool and patio gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
Mike Aylen, an industry expert and NHPA strategic consultant, argues that hardware retailers should build manageable contractor customer groups and tailor discounts by department, class or product. His article is industry advice, not a report of measured results; it gives examples of how blanket discounts can cut into margins or leave a retailer underpriced.
Hardware Retailing has published a pricing advisory by Mike Aylen, an industry expert and NHPA strategic consultant, recommending that hardware retailers group contractor customers and set discounts by product category rather than apply one blanket rate. The proposal is intended to help retailers pursue more sales from professional customers while avoiding unnecessary margin losses; the article presents guidance and examples, not independently verified performance results.
Aylen’s article is the fourth installment in the “Inside the Margin” series. He recommends limiting a new customer-group structure to about 10 groups, with separate plans for exceptional high-volume accounts where needed. Groups could reflect a customer’s trade, such as plumbing or painting, or separate sales tiers within a trade. One retailer he worked with, Aylen writes, divided plumbers into large, medium and small groups using monthly sales.
Before assigning customers, retailers should define the criteria for each group, including the customer’s work and purchase volume. Aylen says retailers can use sales reports to review assignments and recommends doing so at least twice a year. Those reviews, he argues, can help identify declining purchases, recognize loyal customers and prompt conversations about which products a customer is not buying from the store.
For discount setting, the article advises against a single rate across all departments. Instead, retailers should examine prices and margins department by department, then adjust at the class, fineline or individual stock-keeping unit level where necessary. Aylen says retailers can use pricing tools such as Margin Master or Epicor Pricing Planner, or build calculations in Excel. He also advises putting expiry dates on SKU-level exceptions and avoiding fixed-price exceptions without an end date.
How Category Discounts Affect Margins
The central business concern is that one discount rate can have different effects across a retailer’s inventory. Aylen gives the example of a 15% discount applied to plumbers and painters: he says it could leave little profit on low-margin, high-value plumbing products such as hot-water units, while potentially putting ladders sold to painters below cost. These are examples from the author, not audited figures, but they illustrate why department-level review matters to the proposal.
More targeted plans could also give retailers a way to connect customer benefits with purchasing behavior. Aylen suggests considering a customer’s potential monthly spend and the share of its routine purchases made at the store. For professional customers, that makes pricing a tool for both retention and sales growth, rather than a discount granted without a defined basis. Whether the approach improves results at a particular business would depend on its costs, prices, customer mix and execution.
Products Worth Considering
Dyson V8 Cyclone Cordless Vacuum
eufy Security Video Doorbell E340 Kit with Chime, 2K Resolution and 8GB Local Storage
Samsung 85-Inch QN70H Neo QLED 4K Smart TV (2026)
As an affiliate, we earn on qualifying purchases.
The Advice Behind the Pricing Plan
The article frames category pricing as part of a wider effort to grow sales and protect margins among contractor and professional customers. Its focus is practical: establish customer groups first, set transparent qualification rules, then decide discounts for the products those groups buy. Aylen says retailers should use their current customer base and local market to determine which trades and segments merit separate plans.
He also cautions against giving new customers the strongest permanent discount immediately. Instead, he proposes a 60- or 90-day trial group while the retailer explains the requirements for a lasting plan. The customer can then demonstrate whether its purchasing meets the criteria. The article does not say that every retailer should use the same thresholds or discount levels.
“I recommend limiting your customer groups to no more than 10.”
— Mike Aylen, industry expert and NHPA strategic consultant
Results and Pricing Thresholds Remain Open
The source is an industry viewpoint, and it does not provide a controlled comparison, quantified margin gains or sales results showing how the proposed plans performed. It also does not set universal sales thresholds, customer eligibility rules or discount rates; Aylen says retailers should develop those around their own markets and product economics. The examples in the article do not establish how commonly retailers use blanket discounts or what effect those practices have across the industry.
It is also unclear which software functions or data quality a particular retailer would need to implement the approach. Aylen names two pricing tools and Excel as options, but does not compare their capabilities or provide a detailed implementation guide. Retailers would need to validate their own costs, competitor prices and customer purchasing patterns before changing prices.
Retailers Would Set Their Own Criteria
Aylen’s article does not announce a deadline, new industry standard or follow-up action required of retailers. Its proposed next steps are for businesses to define customer groups and qualification rules, analyze pricing by department and review customer sales regularly. Retailers applying the advice would then need to track sales and margins to determine whether their plans are achieving their aims.
Aylen says the “Inside the Margin” series will continue with a subsequent article, but the source does not specify its subject or publication date. Until further details are available, the recommendations remain guidance for individual retailers to test against their own data.
Key Questions
What is the main recommendation?
Aylen recommends grouping professional customers using clear criteria and setting discounts by product category instead of applying one rate across every department.
How many customer groups does Aylen suggest?
He recommends starting with no more than 10 groups, while allowing for separate plans for certain high-volume customers. This is his guidance, not a stated industry rule.
How often should retailers review customer groups?
Aylen recommends reviewing group assignments at least twice a year using customer sales information.
Does the article show that the approach increases profit?
No. It offers examples and recommendations but reports no quantified test or verified profit results. Retailers would need to evaluate the effects using their own sales, costs and margins.
Source: hardwareretailing.com
