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

Text marketing from The Lott

The Lott sent out a text message this morning pitching their $30M draw this Saturday:

Mark, TattsLotto’s $30M Megadraw is this Saturday!
Grab an entry in-store, online or on The Lott app http://bit.ly/play-megadraw
Tatts. Play Responsibly. Optout?TXT STOP to 0429542184

While they will say they pitched in-store first, the link is for online purchase. They could have easily provided a link for finding my local retailers.

6 likes
Lotteries

Join the discussion

  1. Lance

    “”They could have easily provided a link for finding my local retailers””

    ……and did they…. ? NO

    Tells ya something about their loyalty to those who they expect to be loyal to them…

    0 likes

  2. Mark Fletcher

    If I was a lottery retailer, I’d be okay with their marketing that preferences purchasing direct from them if I had more freedom over my retail space than they allow retailers.

    1 likes

  3. rs

    We are a local community shop with limited customers, and the Lott approved a new outlet application which is 900m to our shop. They just like shite

    0 likes

  4. Mark Fletcher

    rs, ask for a review if you have not done so already. Also, reach out to local media. Plus, look at every non lottery part of your business and see what you can do about attracting new shoppers for better margin product over which you have more control.

    0 likes

    • rs

      Hi Mark, ALNA helped me to draft a letter, and was rejected by The Lott straight away. The new outlet was in a cignall, some people told me The Lott has a due with cignall, and they must accept any application from cignall.

      0 likes

      • Graeme Day

        RS- NOT TRUE
        Our experience is Lotteries take on thebest outlet that meets their criteria at that point in time.
        If the site suits they connect

        0 likes

  5. Mark Fletcher

    RS, I’d still complain. Do it yourself, to The Lott, to your state member of parliament. Plus, look at every non lottery part of your business and see what you can do about attracting new shoppers for better margin product over which you have more control.

    Graeme I don’t agree with you on this. I have seen locations approved where there is no economic case and where the retailer is not good at anything except selling tobacco produces. I don’t see how The Lott supporting any predominantly tobacco retailer fits with serving the community or fitting with reasonable core values.

    0 likes

  6. Jonathan Wilson

    The Lott doesn’t care about you as a retailer, they care about what will maximize their profit. They will always promote online over retail since online is more profitable for them.

    0 likes

    • Graeme Day

      Self interest is the name of the game -you care about your interest-they care about theirs.
      Mutual benefit is the criteria for a good relationship. If this does not exist don’t complain just move on until you find the ideal situation.
      Good Luck.

      0 likes

  7. Mark Fletcher

    And, of course, that is their legal obligation – to drive shareholder value. Where I think they are wrong is in their treatment of retailers, demanding things of them in a master / servant way. If they treated retailers as professionals and incentivised them for same store performance, they could achieve better results.

    1 likes

  8. Graeme Day

    Mark, as you well know The Lott is a public company and present to it business partners a “Host Franchise” agreement”
    This arrangement comes under the Franchises Act and the rules are what they are.
    Any Franchise from McDonalds to The Lott is a Master and Servant relationship.
    It’s the nature of the beast and the franchisee can relinquish there contract by giving certain notice.
    In profitable income producing relationships, which are by far the majority, over a period of happ50 years, I have not seen one such hand back happen.
    The incentivised relationship is that we are an agent and if we embrace the concept with promotion and positive action the results are considerable.
    This is borne out by almost 100% of newsagency prospective purchasers base newsagency values on the Lotto return versus the Occupancy cost of the total newsagency. If the lotto commission can pay the rent then the purchaser feels safer than the alternative.

    0 likes

  9. Mark Fletcher

    I am aware of newsagents who have sold off their lottery business to focus on retail.

    You and I will never agree on the lotteries part of business Graeme. For me, they demand more control than the return warrants.

    There is little upside to lotteries in physical retail.

    0 likes

    • Graeme Day

      It would be very few that have done this. I am aware of newsagents that have nothing to sell withouth lotto’
      It’s an integral part of the newsageny business. The rest is great business done right, howevr few do it right enough to make good money without the bonus lotto give them’ The figures and facts prove it Mark.
      I really don’t see the reason to bag this franchise every time. If it isn’t current news then you seem to create some adversion to lotto to prove a pont.
      Those that have it should enjoy it whilst they’ve got it, those that don’t have it, as you imply are already in heaven.
      So why comment? just enjoy your gain and leave them to suffer or prosper as is their choice versus yours.

      1 likes

  10. Mark Fletcher

    Graeme, I don’t make up the evidence of the migration of purchases from in-store to online, nor do I make up stories of The Lott approving outlets close to existing successful and well run outlets, nor do I make up the heavy-handed approach of enforcement against some retailers for minor use of space in The Lott’s ‘zone, now do I make up their referencing of their own outlets over their retail network.

    I had it for 15 years before selling that business.

    Any newsagent relying on revenue from The Lott products to make their business viable needs to act chasing viability elsewhere.

    In addition to driving the migration online, it feels like the company likes its products being sold in specialty tobacco outlets.

    1 likes

Leave a Reply

Your email address will not be published.

Reload Image