Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

A word of warning re $2 card spinners

Mark Fletcher
February 11th, 2021 · No Comments

Some card companies push $2 card spinners aggressively to newsagents, claiming excellent sales numbers.

My advice is ask for the evidence, ask for more than the anecdotes of sales people. Anecdotes are easy. Evidence does not lie.

Looking for data in one newsagency recently, a $2 card spinner generated 15% of greeting card GP whereas a smaller, less stock heavy, spinner generated 16% of greeting card GP. Considering the space and carry stock weight, the second spinner is the better investment for the business.

Sure, $2 cards give you a product with which you can compete with discount variety stores. To me, the big question is do I want to compete with discount variety stores? My answer to that is no … because if I do so, I set shopper expectations in a way that means selling gifts priced at $200 and more is challenging.

I get that sales reps are paid to sell. The thing is, that puts their needs ahead of yours. Data is key. In all the data I have seen from newsagencies for years, cheap card spinners, like $2 card spinners, do not serve newsagency businesses well. There are far better uses of floor space and inventory investment.

This all comes back to Blue Ocean Strategy. Swimming in the blue ocean is more enjoyable, healthier and valuable. Swimming in the red ocean is bloody. For me, $2 cards are a red ocean product.

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Category: Greeting Cards

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