Cashless sales cost
Check out this report from Finance Markets about cashless retail:
The days of scratching around for coins in your handbag or pocket to buy a newspaper or sweets could be numbered. 16% of people said they often do not buy daily items such as a coffee or a newspaper because they do not have change or do not want to break into a note.
Consequently, MasterCard has launched a new generation of ‘Tap & Go’ cards which allow people to purchase items costing under £10 simply by touching a chip card against a reader.
HSBC bank and retailers such as McDonald’s and Coffee Republic have already signed up to use the MasterCard system, which is called PayPass. It has been introduced in certain parts of London and will be rolled-out to the rest of the capital later this month with the remainder of the UK in 2008. It is expected that 5 million of the cards will be issued by the end of 2008 and will be recognised by 100,000 retailers.
Be sure to read the full report. This type of cashless trading is what the Myki system for Victorian public transport is/was being built on – the project is a year late due to technology issues. With major retailers signing up to support the UK MasterCard project it is afir bet it will come here.
Notice the first example in the story? Buying a newspaper. The risk for the retailer from cashless trading is the per transaction cost. While it will be lower than current credit cared costs, it will be interesting to see how it compares to the cost of transacting in cash.
Newsagents are at the end of the food chain on things like this. Our independence works against us because of what suppliers say are difficulties in negotiating deals with KPIs and disciplines built in. Maybe this is where the major software providers with 500 or more sites can help newsagents compete through a common platform.
Elevator magazine launches next week. It is good to see the publishers offering newsagents bonus commission for the launch issue. They have asked newsagents to place the title at the front of the store. I think this request is too vague. I would be more specific and request that Elevator be placed between Australian Women”s Weekly and Woman’s Day in the main women’s magazine display. I’d also ask that it be featured on on an aisle end – especially with the team behind Kath and Kim on the cover. Finally, I’d make sure all team members are aware of the magazine and its content so they can make comment as appropriate.
For around six weeks we have had partworks displayed on our dance floor in an area we use for promotional displays. Yesterday, we compacted the display and moved three titles into the location in the photo in front of one of our lottery counters. While minor in effort, it is moves like this which are important to newsagencies.
In rebuilding our stationery department we have chosen Duracell as our core brand of batteries. We have committed to a decent range. An unexpected surprise was the gift of the Duracell bunny in the photo. Given the
The Age 2007 Good Food Guide (and it’s Sydney cousin) provide newsagents an excellent opportunity to promote fresh product and drive some good impulse business. This year we capped a card aisle with this display prior to Father’s Day. Sales have been excellent – all included other product meaning it’s not a destination purchase.
We have redressed our Father’s Day magazine display with this display of magazines with a Spring theme. Usually we would be bigger and bolder with a Spring theme but space issues right now preclude this.
I picked up this gift at an Australia Post outlets yesterday. It was in a bright red envelope with a silver bow printed as if tied around it. Inside was this magnetised To Do List with a pencil. This is a brilliant giveaway – a perfect pitch for bill payment customers. It connects with the habit basis of bill payment and provides an excellent premium gift of value yet which perfectly promotes the brand. At each point – on the magnet header, on the pencil and on the pad the Post billpay message is loud and clear.