I was working with a newsagent a couple of days ago, looking at the performance of some categories of stationery. They were clearly overloaded – the stock turn for this particular category was a third of stationery overall. The problem was with the buying, some very bad and expensive decisions had been made.
It turned out that the representative for the supplier calls on the newsagency every few weeks and does an order. The newsagent would have none of my view that the rep was part of the problem. “He’s a good bloke” , the newsagent said to me. Well, he is a supplier and only makes money when he does an order with you. We’re mates. Maybe, but he is a supplier. He wouldn’t do wrong by me. He is – you don’t pay his wage.
Too often reps overload newsagents with stock. The great deals are designed to shift product to the retail floor. Occasionally there is a flow on for the consumer but more often the deals lead to more stock and stock on its own does not move any faster.
I suggest to newsagents that they put a stop to reps calling unless the data the newsagent has supports regular visits and agrees with proposed purchases. Otherwise, you’ll end up like my friend – with boxes of stock which will need considerable discounting to move.
Sales reps are your suppliers first, chasing a buck, and your mate second.
Hmmm. GNS are our Mates. They are our partner in business. They overload us with Sovereign Brand product via Catalogue and cause our offering to be more $2 Shop than destination newsagent.
Thnx for the tip.
Couldn’t have said it better myself Lorraine. Love the $2 Shop reference – that is EXACTLY what their catalogues do.