We caused a frenzy unlike anything I have seen before at our new Frankston store on Thursday when we decided to quit manynitems we will not carry in the future. We have making some serious brand based moves and needed to quit masses of cheap non branded product imported from China. This photo is toward the end of the sale when things had calmed a bit.
Current research indicates that consumers think newsagencies are expensive places to shop. My view is that we ought to embrace this, or part of it at least, and not fight it by going down the $2 or Reject Shop path. That bottom end of the marketplace is well served and I see no reason to take the newsagency shingle there. Maybe for the odd short term sale but not as a long term ranging option.
I totally disagree with this comment (with your opinion and not with the current research info which doesn’t surprise me at all).
Before the advent of Chickenfeed in Tasmania I had to always buy birthday cards and gift wrap at newsagents and always begrudged paying almost $10 just to add a card and some paper to a gift. Now I go to Chickenfeed (your $ 2 shop equivalent) almost every time I need a card and paper. Those Hallmark cards are ridiculously priced ($ 4.95 and up). Now I can buy a cheap card for $1 (they have much improved in quality from the early days). Let’s face it how long do they stay on the receiver’s mantelpiece before being tossed in the bin ?. I can also buy 4 sheets of wrapping paper of equivalent quality to those in the newsagent’s along the road for
$ 2. If the card is for my daughter we design and print one on the computer and is more personal anyway. Judging by the popularity of the stand in the Chickenfeed shop there are many other like-minded people.
I think you should try carrying those budget card and paper lines and see how you go as an experiment – I bet your sales would increase considerably once people realised they could buy reasonably priced cards and wrap. Of course you might lose a few sales of the higher priced goods but think how many more might call in on their way past you to the supermarket once they realise you offer a real alternative for those on a budget (most of us).
Or have Hallmark got you contractually where they want you …… ?????
Adam,
The budget space is well catered for across Australia. It has been my view for many years that newsagents are better off not trying to compete in this space.
While you are entitled to your view, you are wrong to bring Hallmark into this. My views are mine alone and based on years of looking at data from successful and unsuccessful newsagencies.
Mark
Adam
I happen to disagree with your comment as well. There is a market for people who don’t want to spend $2 on a cheap and nasty but rather add something to their gift with a quality card. We actually asked Hallmark to put in more of their higher price point cards as we find these moving alot quicker than their core range. Although our store is small and doesn’t have the range that Mark might they come to us for a quality card that is going to be different to your standard $2 shop purchase.
Mark
I agree with your observations, we carry Hendersons cards here and receive a lot of compliments.
I love people who make their own cards and paper as it means the people receiving them have to either make them as well or they buy quality cards
in return.
For people who complain at the cost of cards I usually suggest they write a letter to the person they are buying for as a letter is always received better then a cheap card.