Most newsagencies have excellent foot traffic. Challenges we read about in the comments on this blog and at newsagent meetings are not related to traffic. Margin is what many complain about. Slim margin on lottery, circulation, mobile phone and some other products is what I hear complained about often.
The question we have to ask ourselves is are we leveraging our excellent current traffic to build a better future margin dollars story?
Too often we look at a newspaper sale or a magazine sale or a lottery ticket sale in isolation.
What if the newspaper sale today led to a greeting card sale tomorrow? The newspaper sale becomes more valuable, it delivers to us better margin dollars than the newspaper sale itself. This is what our competitors are doing. While they chase today’s sale, manyn of our competitors work hard to get that person back to bring more value to the business.
What are you doing, consistently, to bring newspaper, magazine, lottery, mobile phone recharge, transport ticket and other slim margin business back into your shop to purchase other products? Consistency is key here – having a structured approach that every team member engages in.
Here are some ways we can do this: with loyalty cards like the magazine club card or the greeting card loyalty card or a business wide points based loyalty program or coupons that are dated to get people back within a certain time. Whatever you go for you need to ensure it is pitched across the counter regularly to invite and entice shoppers back sooner. The indirect message is that you are asking for their loyalty.
If you do nothing to entice shoppers back then you will not achieve the maximum value from the traffic you have today.
We are using loyalty cards, should have years ago, they are graet for bringing customers back. That and taking time helping customers with their purchases rather than just serving them at the till, and encouraging putaways all helps.
But can you please give some tips on competing with a stall set up outside of my shop on Friday, probably there for the 2 or 3 weeks selling giftware. Nice, not crappy giftware – baby, wedding and xmas, all the stuff we sell.
Did not sell any giftware yesterday, sold Christening, wedding and engagement cards, but not a single gift item. Today will probably be the same unless we get a few early sales before they open.
I find this frustrating, they do the same at Easter, Mothers day and Australia day.
Will speak to centre management about it but don’t think they will care as I guess it brings more shoppers in.
Jenny I have had this happen a few times and centre management moved the outpost away from the front of my shop each time. I follow up a complaint in writing, explaining the impact on my sales of their decision to allow such an outpost close to me shop.
That said, with an outpost like this right out the front, do better than them. At one of my stores I have a permanent ink outpost out the front. It’s a franchise group. Ink continues to grow for us partly because we realised their weakness.
Thanks Mark, will follow it up in writing.
Let me know how you do. Depending on your state you may have some other avenues to encourage the landlord to your view.
newsagents ON AIR- The radio station for newsagents is very acive in the area of creating ‘hook’s for the customer to come back in store next day. For example, this afternoon our announcers are talking up tomorrow’s magazine releases. The weekend breaking story of Justin Beiber and Selana Gomez is sure to translate to this weeks front pages. Suggestive selling to create companion purchases is a key feature of the program. Aside from increasing stock turns, your customers retail experience in your store will always be greatly enhanced with newsagents ON AIR. We know our current subscribing newsagents are fans!
Good advice here Mark. I think many of us ignore maximising the traffic opportunities. We spend too much time chasing cents and not enough on dollars.