In response to queries here and privately, here is a quick overview of how we do Syndicates. The photo (click for a larger version) shows the syndicate wall for tonight’s $20 million draw. It is deliberately not too slick. My view is that if it is too slick it loses the value of being fresh or immediate – a key factor in syndicates for our customers at least as we have people who watch our syndicate wall daily.
We start syndicates for superdraws two weeks out – we used to start them earlier but found two weeks works better for us. We offer a range of prices from $10 through to $100. We have tried higher values but they did not work so well.
The A4 sheets promoting each syndicate list the numbers – we found this to be very important. The sheets are white for Saturday, blue for Thursday, Green for Tuesday and pink for Monday / Wednesday.
We played with naming the syndicates but found that our customers like a straightforward offer. We number each and this is how customers ask for them.
We track sales in folders at the counter – customers provide their details on a master sheet for each syndicate. Staff selling a share sign on the sale. Customers sign for winnings when they collect.
We got into syndicates around seven years ago. Significant growth came once one of our syndicates won $11 million two years ago.
There are others who are far more professional and sophisticated at syndicates than we are. The key is to start slow, be careful and talk to your customers about what they would like.
We have done a similar approach with the exception that we have a market for the large punter and we have a great network of stores to share the risk of high end syndicates. We have also found by naming some syndicates after long time customers/ sporting teams, events/ race horses we get people asking for them by name. It seems to stick with not only our customer but the network we are in. If people in qld are keen to run big syndicates I have no problem giving details.
newsXpress does this too – it is easy in QLD with the Golden Casket software which makes it very easy to spread syndicates across a group of stores.
Brad, how big’s big?
We do system 20’s at 450 odd a share. Gives us 51 shares. We do this every super draw, but we have found the 14 million Val day draw is not worth the trouble. If we get a 60 million jackpot we are looking at a system 15 or higher. Really depends on how big Monday/Tuesday are. We also do a heap around the $100-$150 mark on jackpots above 15 million.
This is done through our Lucky Charm network and open to anybody who wants to run bigger syndicates without doing it themselves. Had to give it a plug since Mark named his. And is yes Golden Casket are very good with this.
Mark,
I find it interesting that you do not name your syndicates but give them numbers instead.
All the outlets I have checked give them names. When we purchased our business the old owner gave them numbers. We asked our customers about changing. They were adamant that they wanted the syndicates to stay the same.
I guess it just shows you have to cater to your local market.
Mark, we all all have our own programs for syndicates and our book of valued customers. The problem with a week such as this is which draws do we target. We obviously need to reduce our exposure to unsold syndicates. In our situation this week we have opted to target mid level syndicates for Saturday and the larger ones for tuesday. Today we could probably have sold 3 or 4 $500 per share tickets. The industry is crying out for a central database that offers shares to agencies in live time for large syndicates. That way an outlet who can’t normally sell a large share can promote a share at no risk and perhaps get a sale. Maybe there is a marketing group who may consider this as an opportunity to add value to members. Imagine a small outlet being able to offer a syndicate of $1,000 per share with no risk. Huge growth opportunity here.
CraigL we already do this in our group. We have members in small outlets that would never be able to offer system 20’s but have the opportunity to do so and only risk taking 1 share. We have been doing this for 2 years now.
is that just a victorian thing, not having access to network syndicates? i know qld can do that, and i think nsw has it too?
It can’t done in Vic and i think retards the potential of the network. Let’s hope that this blog advances the cause. This is a real win-win. Mark any comments on how to advance the concept?
Genevieve,
Thats correct, NSW has access to network syndicates and can easily share custom syndicates between selected stores. Those features have been available as long as I can remember.
Craig, as newsXpress and Lycky Charm are showing, marketing syndicates across marketing groups is the smart way to go. In Queensland, newsXpress offers group-wide syndicates and stores also create their own. I’d prefer to see marketing groups continue to drive this and not have a national approach – those days are over.
The fact that there are several lottery owners throughout the country it is impossible to have a national approach. For states that don’t seem to have a simple system or you just simply want to offer group syndicates ask other agents.
This is but one example as to why you need to set up networks around your business. Go to a conference, any, and meet other agents. Then through that network form a syndicate group. Or look into the groups that do this type of thing to support members.
What does it mean for the newsagent should some shares in a syndicate go unsold?