A few weeks after we opened a newsagency in a shopping centre almost five years ago, an ink kiosk opened out the front, less than three metres in front of us. The landlord had kept this from us as we negotiated the lease.
Over the years our ink sales have been good. Now the kiosk has closed, ink sales are enjoying a boost.
Competition is tough across most product categories. Sometimes, being the last man standing can give you the win you have been hoping for in a category.
The key to outlasting competition is tight cost control, a relentless focus on efficiency of stock (stock turn) and achieving the best possible margin on everything you sell.
Single category shops like the ink kiosk will always struggle because people shop with them for one purpose. These and type types of businesses we are better positioned to ultimately beat thanks to a more diverse mix of destination purchases in our businesses.
The base traffic we have in our businesses today are a competitive advantage over narrow focused businesses. This gives us better staying power.
It is so frustrating when customers comes in for an Ink cartridge that they urgently need. The one I have ordered on line hasn’t arrived and I need to do printing something urgently. Another customer threw an invoice at me for an cartridge she had bought on line and told me my prices are too high. I check my prices against others and our prices are good but I can’t beat on line prices. Just the same we do pretty well and we only keep top 30.
Carol it’s frustrating when customers come in for a stationery item that they couldn’t find in Big W, Woolies or Office Works then when I say sorry no I don’t carry it they tell me they could always buy it from newsagents.