We did $17,000 in plush sales for the three months to September 30, 2013, up 57% on the same period in 2012. We will easily pass $80,000 in sales this year, delivering more than $50,000 in gross profit.
The growth is a direct result of an ever changing mix of product, our commitment to known brands and excellent shop-floor engagement.
We have created this success for ourselves, growing revenue for the newsagency from a category the channel has been engaged with for years but one which we have neglected. From a small inventory investment and energetic shop-floor management we have made plush a destination product for us.
I mention this in the context of the promotion Hubbed by the ANF and the questions and comments I have published here. For the same amount of money Hubbed wants newsagents to commit to its new agency offering a newsagent can get into Plush and chase a far bigger reward.
It is analysis in to categories like plush the ANF should research consider as part of due diligence when recommending business development strategy to newsagents. Embraced nationally, plush could be more valuable in terms of new traffic, revenue and return on investment to the channel than Hubbed. There are enough newsagents embracing it to be able to harvest good data, current data.
Whereas Hubbed requires a technology platform, marketing to drive traffic, focus on a single supplier and does not fit with products we currently sell, a product category like plush requires no technology, can be sourced from many suppliers, offers the opportunity for local customisation and fits with existing products: cards and gifts.
In pointing these things out I am not seeking to be critical of Hubbed. rather, I am drawing attention to broader consideration newsagents and their representative bodies could take into account when considering any new traffic generator. Before you make any business commitment you should take your time and undertake thorough research.
In my newsagency, plush is proving to be a game changer. Our success with plush is encouraging us in other areas. The pay-off is considerably more than our plush sales.
$400 in plush sales today. Nice.
$200 for my little shop, I’m happy.
Can you recommend a good dog/cat (plush) supplier?
Korimco. If you’re in a marketing group check their deals first though.
Have you noticed that Korimco now charge freight no matter the amount ordered.
Where as when they were Skansen if you ordered the min $ order it was freight free.
Now around $35-45 per order.
Either they charge it or hide it in the price. I’m okay with it as their prices are excellent.
The Price of the Item has not changed so it was never hidden.
But the extra charge as I said above is now applied where as before is was free on the min order.
But hey excellent product why complain?
Because for the same reason we cry about Optus.
There Prices are fixed and on top we have the buy 10 get 1 free
So if you only carry the Bennie Kids range your Profit just took a BIG hit.
Optus has cut margin to 3%, it’s a 25% cut. They will dribble you more if you take on products that don’t fit in today’s modern newsagency.
The freight cost change is tiny – between 5% and 7% on a usual order. Plus you can set your own retail. Their products carry a margin of around 60%.
My view – these are quite different situations.