From data I am fortunate to see from a range of newsagencies, photocopying revenue is falling in our channel. It was down year-on-year in two thirds of newsagencies participating in the recent sales benchmark I undertook. The average fall was 20% with the lowest 5% and highest 48%. I put the fall down to the lower cost of computer printers, the lower ownership cost of copying machines and more players offering discounted copying.
For newsagents, the copying service is all about convenience and the personal service many of us provide. These are reasons why we can charge more than Officeworks and others. In my newsagencies we have established a common price list at the higher end of the usual newsagency offer. While it may seem counter intuitive to charge more for a service people are getting elsewhere based on price, we need to consider the cost of having the service and the reason people come to us.
In addition to the pricing issue is the efficiency of the product. Around 75% of copying in newsagencies for which I have data the service is provided with nothing else in the sale. This is what I mean by it being inefficient. You’d think that a service which usually involves conversation would result in up-sell. No, it does not in the majority of newsagencies.
We will watch the return achieved and if we don’t make what we need per square metre we will re-think cutting the service altogether.
‘Around 75% of copying in newsagencies for which I have data the service is provided with nothing else in the sale.’
Ouch, I agree without the service being part of a larger basket a photocopying service does not make sense. Unless the retailer uses the machine for their own business.
We have been leafleting our village community with a regular promotional flyer for 12 years. I produce it on a Friday afternoon/evening and it goes our with the Saturday papers.
We know it has worked the business has grown and more importantly the local groups that we find space for on it tell us the difference it makes to them.
But, yes our customer useage of the copying service is falling so it is interesting to hear that it is not just us.
Steve
We gave away our old copier to the local church (they were very grateful) and had a good look at what we could do to fix this issue. Our solution was to upgrade to an all singing all dancing copier, colour, with scanning capability. We are tracking 400% growth in copier usage. We still have not solved the basket size issue however.
Steve,
I too am glad it’s not local. We have tried all sorts of things to improve the basket when copying is involved and have failed. I hope people reading this have some ideas.
Mark
I think your idea of return on floor space is the most valid idea. With cheap home printers/copiers, cheap printing at Officeworks etc, and even many useing their bosses copiers and printers, this is possibly something you would only keep if you are doing like the UK chap and printing your own fliers. Then you need to be sure that it is not more economical to pop down the road and get the cheap copying and free up your floor space.
It hadn’t occured to me actually that those in for copying and faxing do rarely have any other purchasing. Often they are time consuming and space consuming at the counter.
At our store we do more than just copying we use it for photo restorations , flyers , booklets ,ticket books ,wedding invitations etc.The money that can be made from a good copier is huge .