The photo is of Time magazine featured on the counter at a coffee concession at Singapore airport. I took the photo because I was taken with how strong the pitch was for Time. While the collateral was created for a specific issue, it could be developed to work across several issues of a title. We could also create something generic – magazine of the week or the like.
My point is that the stand caught my attention – and we have nothing like it on newsagency counters. However, with the visual noise in our shops maybe it would not work as well as it does at a coffee concession. I do want to find a way to make something lik this work.
The other aspect of this display which caught my attention was how easy it is for the coffee business to offer a magazine – a category in which they do not usually play. While I am sure they got the magazines for next to nothing – even though coffee is high margin and they could fund at least part of the deal.
Thinking along these lines, of add on deals to high margin sales of items which are not core, I wondered what newsagents could offer. Then I recalled that we don’t have any high margin products which we control like coffee. I wish we did. I wish we have coffee or bread or something else which we made in-store off of which we could leverage other deals.
I know this is one of my more rambling posts. These matters are on my mind because every retail business I see I look at from the view of what can I apply to the newsagency model for a healthier future. The coffee concession in Singapore took me down that road.
We were tired of coffee shops offering newspapers and mags to customers so we struck back. We now have a top line coffee machine next to our main newspaper stand and offer $2 coffees. Seeing as the average coffe shop cup is around $3.50 we are seeing good numbers of sales of both coffee and other items, which is increasing our basket total. Newsagents shouldn’t just sit back and allow other retailers to steal our business, we should be looking at what we can do better that others are now offering. our customer service and range put us above and beyond most other retailers so we should be looking to increase our business even if it means the expense of others. We have been the whipping boys for too long.
Hi, Luke.
Can you suggest a good coffee machine supplier? Do you get a automatic or manual machine?
Cheers,
Sunny
We went through a mob called coffee machine express http://www.coffeemachine.com.au. We chose a fully automated machine that had a coin operator attached so it is totally customer operated, saving our staff loads of time. It also gets the customer involved so they get a kick out of making their own coffee. It’s also a great reward for staff as we allow them to make their own coffees as needed on a busy day.
Good stuff Luke, are you still making money on the coffee?
FYI- I had a former small business / Newsagent have a chat with me this week and she said she was making up and selling these petite plastic type flower arrangements with a bow and wrapping around the base and said they were a good seller as customers often going to places such as hospitals, lunch etc.
Yes we are making money on the coffee. We chose a 2 yr lease that works out at 10 coffees per day to break even, so far we are way above this. An average cup of coffee including cup with lid, suger, milk works out at around 35c per cup so we are making good margin as well selling at $2 because there is no wages required, it is self serve. Plus we are getting upsells on other lines, health bars, cookies, mags.
Hi, Luke.
How about the energy and water consumption with the coffee machine?
Cheers,
Sunny
I’m running a paper shop in a railway station in sydney and would like to install a self-service coffee machine. Please help.