Some newsagents like agency products because they attract traffic and traffic presents up-selling opportunities. Some suppliers argue that agency commission can be low because of up-selling opportunities for newsagents. I have created a two-question survey about up-selling and would appreciate your participation. Please click on the link to participate.
Your response will help inform suppliers about how important (or otherwise) up-selling opportunities are to you.
Almost any supplier that pitches their offering and wants us to give it space on the basis that it will get customers in to buy other stock is pushing a dead duck.
Low margin is fine if it can move big volumes, otherwise it should not get a berth in the modern retail environment. Every item should be able to pay its own way – IMO.
Glenn I share your opinion hence the survey. The ANF is pushing Hubbed saying it’s an up-sell opportunity. i suspect newsagents will say they want it but then they actually think about they don’t up-sell because there is no time in high-volume low-margin retail today.
Mark, the first question in your survey is not simply a yes or no answer. Do I have time to upsell? Depends on the day of the week and time of day. It also depends on what the customer has come into buy.
Given 90%+ of sales in bus tickets, newspapers, phone credit etc are single purchases, one would say we are not good at upselling. At Lotto the reverse is true.
The argument for upselling high-volume low-margin product falls apart the moment one points a) you can also upsell high-volume high-margin product and b) upselling is both difficult to do successfully and is unlikely to suit the customer interaction style of many newsagencies.
Bill that’s why I set it to accept Other as a response and you can type in that.
Jarryd I think the key for the newsagency channel is to configure the shop to do the up-selling – but that’s quite different to trying to up-sell to someone coming to the counter with a bill to pay.
Couldn’t agree more.