I was talking with a newsagent yesterday who was surprised to hear that I treated ink as part of the Back to School offer. Given the volume of printing at home for almost all levels of schools, ink is a natural focus for any Back to School campaigns. Now is the time of the year to help parents stock up.
We are enjoying an excellent boost in ink sales thanks to our price competition with the majors – while still maintaining a good margin. We are promoting ink by offering a good range of brand name ink on display in an accessible location with easy to see pricing.
I’d encourage every newsagent to include an ink offer as part of their Back to School pitch – but don’t do the usual drop your pants approach to margin.
Mark,
when you say ‘display in an accessible location’ does this mean that behind the counter is not as good?
Thanks
Tim, I’d always have ink in the body of the store where customers can easily make their own selections. I see behind the counter as a barrier for ink.
Our used to be behind the counter through fear of theft and the expectatin that it was a prime spot for customers to see them. When we moved we placed them adjacent to the counter and sales are much stronger. Regular customers thought they were a new line which just shows that they are store blind to displays behind the counter. I think this are is better for displays that are constantly changing.
i envy you guys to have soooo good customers. my shop in upper middle class area, but the thieves here mostly ladies with gucci bags and gold plated sun glasses or some snobby looking business men
i have lost $1000s in Derwent pencils and street directories, no way to put ink jet outside counter especially you need to sell 3 to break even .
So what approach should I take to MARGIN guys?
It seems that 33% may be too high, with the competition a short drive away.
Bruce, if you are in a marketing group, use their suppliers – the prices and marketing support should be good. If not, shop around with suppliers. You should be able to make between 30% and 35% without much trouble while beating the majors. The key is to invest in good marketing to find customers.
Thanx Mark, I am in a group and am lookin really hard at ink right now. I am prepared to work hard and spend $$ promoting it.Thank you for your help with the margin guidance.
Do you think between 50 to 80 facings is enough to make me a serious player?
Bruce, I would say at least 100 if you want to cover the top sellers from Canon, Epson, HP, Brother and (maybe) Lexmark. To and have a look at the printers the printer retailers near you push.