I was surprised to see a newsagency selling calendars at 75% off earlier this week. We have the majority of our range at 50% off (in my stores where we still have calendar stock) and they are selling very well. The only exception is a range of calendars we purchased at $2 and we are selling these at $4 – their RRP is $24.95.
We plan to keep our main calendar range at 50% off through January. For us, the decision to go beyond a 50% discount is more to do with quitting the category. Once we get below 25 calendars we will want to be out of calendars so we can use the space for something else.
Our diaries remain at full price.
We’ve been at 25% New Years Day and are just thinking about 50% now. Probably next week before we increase the discount. The amazing thing that happens every year is the number of customers asking ” is that all the calendars you have? “. I’m sure these are the customers who hang out for the discounting and still expect a full range to be available.
Are we not just training people to wait until the new year to buy calendars as that is when they will be discounted, and in doing so training them to never pay full price..
If you do your homework you should not need to discount, we have not discounted any diary or calendar for years now and we always sell out by mid January.
By discounting every year at the same time only the dumb customers would pay full price and you are seen as expensive if you dare sell at full price but if you do it right you sell out at full price and customers do not feel they are being ripped off.
Just because every one else does it is not an excuse in my view. It is the same as TV’s ( no one ever pays full price as they are always discounted)
No discounts here yet, but the only calendars I have left are mag company ones. Some diaries left but these usually move in the next month at full price.
Luke, it all depends on how many calendars you have left over, your buy price and your willingness to take up space with what will be redundant stock in another month or so.
Last year we were too bullish and gave away to local kinders and schools more 2011 calendars in November than we currently hold for 2012.
With back to school, Valentines and then Easter, we can use the space better than on calendars so it’s worth quitting the stock by mid to late January. We also nned to be responsive to what other nearby retailers are doing or we won’t clear old stock in a reasonable time.
No Luke. Been at calendars for severn years and excellent growth each year. I think if you discounted prior to Christmas you would risk educating them.
our calenders sold out before even 50% off. i think buy 2 get 1 free work very well this year
We get customers in regularly asking when seasonal stock will be discounted even though we never discount seasonal stock but others do. It may be the old wog in me but I would rather store it and sell it next year then have my customers think I over charge. My customers respect that if they buy something today they will not have someone else buy it cheaper in a week or so.
I work hard to get just enough stock in each year to allow me not to have to have a fire sale at the end of the seasons.
Look at the way boxing day sales are taking off and almost eclipsing xmas week sales, it is happening now that people are giving gift cards so they can buy cheaper after xmas and retailers are risking losing the season.
In my view it will be the death of us all we have to discount to make the sale because someone else can always offer it cheaper and I’m not just taking retail but every industry.
Luke, you are lucky to have such loyal customers who are willing to pay more. i am not that lucky , ther richer they are the more tight ass
Luke, good luck selling a 2012 Calendar next year, I don’t think we are good enough sales people here to achieve that.
As for ordering just enough stock to see the year out, this means your range will be very limited right on Christmas and virtually non existent after that and common wisdom is that too little stock prevents maximum sales being achieved.
That may be the problem Brendan, maybe people are relying on discounts instead of being good retailers. I thought the whole point of retailing is that at the end of the season you had little to no stock left so you do not have dead stock, by understanding your market you should be able to have enough stock to maximise sales without being overstocked enough to discount.
As for common wisdom, well JB hi fi thought by relying solely on discounts they had the game won and laughed at other retailer last year, until someone came along and sold it online cheaper, now they are downgrading profits and looking to overseas in order to keep customers.
But both comments about discounting to hold customers lend towards my argument that more and more customers are becoming trained by us retailers to wait until things are discounted before they buy.
We complain when magazine companies offer cheap subscriptions, or newspaper offer discount deliveries because it cheapens our product but then we do a similar thing.
But each to there own, we are celebrating 23yrs in the newsagent business this year so what would I know.
Luke,
I agree 100%. We are often our own worst enemy.