A gift supplier asked me yesterday why their sales to newsagents were falling yet gift sales in newsagencies were increasing. I explained the simple answer – newsagents want a point of difference as suppliers not offering this may get business early on but lose it as newsagents want to enhance their offer.
In a country town a couple of months ago I met with a newsagent who got into gifts a while back, they arranged for a supplier rep to call on them – it was their first visit to the town. Two years later the supplier rep had three accounts in the town and was disappointed when the newsagent said they would not order from them again.
While I understand suppliers want volume, there are other alternatives. As many newsagents themselves are showing, they can make more money out of fewer, more valuable, customers than out of higher volume lower value customers.
To gift wholesalers concerned about declining sales to newsagents I say look at how you sell. If you are opening accounts in locations competitive with the newsagent then either rely on those locations or place product with the newsagent who supports their desire for a point of difference.
Another factor is in the buying by the wholesalers themselves. It is frustrating to see the same range from three different wholesalers. Differentiation is vital today.
The longer a newsagent is in the gift space the more discerning their buying becomes. Wholesalers need to understand this.
I would also like gift supplier’s send invoices electronically in .ddo or .dd2 format. This way data entry is reduced to zero. There are some that do and they get more of my business than those that don’t.
I agree Dean!