Several newsagents with Tatts have asked me to pose this question again, to see if there is any commercial gain from the new corporate image – as they are facing having to do it. So:
Has the new corporate image required by Tatts improved your business performance?
Anyone?
Nope. None at all.
The big jackpots are all that makes a difference since the refit.
BIG NO. we get customer stare at the tv in confused. .
No, the big change if anything has probably hurt us a little. I think that this image is a classic example of designers not understanding the market and not engaging with the coalface. It is obvious to me that Tatts do not understand our side nor do they appear to value our input.
Simple straight answer is no scratchits sales are down previously under glass in front of me made it an impulse buy now hardly anyone looks at the new dispenser. Lotto table used to be outside the shop always been used and drawn attention to customers who walked past shop now the inside lotto counter is virtually gathering dust. I am sorry but one size does not fit all and the Newsagent should be allowed to have some input into his shop after all he is the one who knows what works best for him.
I have seen 2 SA outlets with the new fit out. Both small outlets, both have 2 large screens on the wall behind the sales assistants. Neither fit outs are appropriate.
Neither can pass themselves off as anything but a lottery outlet.
Not sure how long before Tatts turn their attention to us. It won’t be an easy conversation.
Gone backwards, not forward.
One newsagent in area without upgrade and I can walk in there scan the posters and know exactly whats going on with jackpots promos ect.
My two absurdly oversized screens do half the job.
As per previous comments has not made a difference , jackpots are the thing that drive sales up nothing else.
What amuses me with all the feed back they are constantly getting they are taking nothing on board…. when will they wake up…once its too late!~
So, you have to spend a few dollars to drag your business into the 21st century, no one mentions the fact that doing an upgrade sends a message to your customers, a very positive one that tells them you want them to have a modern and relevant environment to shop in, no more posters to fight with, and yes our sales are driven by jackpot activity, but since our upgrade we have gone up. Tatts has also made many changes to the content since its inception, things like dwell time, the actual content, the quality of the graphics just to name a few. In the last couple of weeks they now have the entire weeks jackpots on the terminal screens facing the customer. So, sorry but they do listen. Tatts is my largest business partner and as such I will treat them as such. Moaning about what is the industry’s biggest partner to me seems counterproductive and destructive. Get over it. How about checking how much commission you are receiving from the winners circle promo, have a look at the commission received on the bonus tickets for the last half of the year, what about the fact they are now caring how we represent their brand and helping us improve, what about the extra activity that is driving customers into our stores, giving us the opportunity to engage with a different demographic outside the traditional lotto player. The new training programs they have invested in to better empower our staff to drive better results, no, they don’t listen and really do nothing for us.
Cris if it is all roses, why has tatts not provided any newsagent with a business case for the capex? Especially for the digital part of the capex?
This is why I asked here, to see if any newsagent who had done what tatts demanded had achieved any upturn.
On the recent changes tatts has made. Good. It took them far too long to listen.
Oh, and this supplier you laud, they are investing heavily in taking your customers from you.
Well said Chris. Golden Casket is an important part of our business. Despite all the moaning by the editor this is a great franchise. No stock, low fees, and routine jackpots driving customers to my business. Beats the crap out of trying to flog a bunch of unicorns. Not the mention when the 50 mil jackpot we just had. Huge success.
All Golden Casket asks is that we put in capex every 10 years to update the image. On my commission that’s about 3% of what I earn over the ten years.
You only get out of this what you put in. Our commission is increasing yoy because we work the franchise a hard as we can.
Not the editor. Comments are not edited.
We have a top lotto agent near us. Top 20 store. Their lotto commission would be $250k per year (possibly more). The store is going broke.
Our store does just over half the commission, yet we are a financially strong and viable store.
The difference? We have evolved our store to not be reliant on Newspapers, Magazines and Lotto. The other outlet is heavily reliant on Tatts….and it is simply not the answer.
We are watching outlets around us drop, and they are “successful” Tatts outlets…
If Tatts is your largest business partner…good luck.
Yes, Tatts is an important partner to us. But are they more important then our major card or gift suppliers? The answer is NO.
Are Tatts fit out costs excessive? The answer is an astounding yes…. Is the Tatts product labour intensive? Even more so now than three or four years ago…..Should commission levels increase, particularly if you have performed a new fit out? Absolutely. Tatts very own annual reports have recommend this for several years that if commission levels do not increase then it will have a negative impact on the retailers selling the product…. yet they have ignored recommendations relating to their very own reports.
Newsagents are Tatts biggest business partner….not the other way around. Please don’t forget that Cris and Gary.
Chris,
Ask yourself :
What is labour cost v commission of serving instants ?
How many families no longer shop where gambling is main product ?
How many customers have lost to on line ?
Tatts is freeloading on your investment and milking you custom
Enjoy
Sorry, I thought the question was “has the tatts upgrade increased your business”. Yes.
As fo the rest of it- if any one thinks that we as an industry are tatts biggest partner, have a look at the rankings. Take note of IGA , TSG, Foodworks, Chemists etc. that is very fast being eroded. Then have a look at the 100% compliance reports, pay particular note to Victoria- why is it the woolworths convenience can so overwhelmingly dominate the list, out of 24 outlets only 3 or 4 are newsagents. For tatts to put up a fight against non traditional avenues, (like lottoland) they need a consistent image delivered to a high standard. As for competing against us, really, what in hell would you they rather did, they are under attack from non traditional new entrants in the digital space, they need a presence, it’s just the way it is. Out job is to make the best of our opportunity, engage with our customers, establish a point of difference and build on it. Your negative energy would be far better placed towards Newscorp.
I will also add that I am happy to put energy into growing 70% of my business by 10% than growing 10% of my business by 50%. If lotto is such a large part of my business then clearly it is relevant for my customer base. I have to run with that!
If you are in a position to not have to rely on lotto, then good on you and well done, but that is the exception.
What scares me as it has happened before- what happens when the continual pressure from supermarkets finally sees an outdated piece of legislation get wiped and they stand there willing to dedicate 35 square meters to lotto exclusively, at least 2 staff in Golden Casket uniforms, be 100% compliant and just get on with it.
Cris, the supermarkets will never do that !
I can guarantee you that if the supermarkets take on Tatts products it will be on the supermarkets terms not the other way around.
And no offense but even my old Tatts AM said that if lotto is more than about 50-55% of your business then in all likelihood your business isn’t going to exist in 3 to 5 years time.
Cris,
If 70% of your business gross profits are from Tatts, then Tatts are most likely over 90% of your turnover. You’re a betting shop, ditch the rest and reduce your space to almost zero.
Tatts are 35% of my turnover and less than 15% of my gross profits. If my non Tatts turnover is up by 10%, I would need a 100% increase in Tatts to make the same profit increase.
Go figure.
You idiot Cris.
Cris,
Lets run through your statement “I will also add that I am happy to put energy into growing 70% of my business by 10% than growing 10% of my business by 50%.”
I am using the following assumptions (as I have no idea but it seems a reasonable place to start):
Annual lotto sales: $2 million
You state lotto is 70% of your sales
I’m assuming commissions of 8%
Therefore, total sales would be $2,857,142
Therefore $857,142 (30%) is from other than lotto
10% of your sales therefore is $285,714 on 50% margin is $142,857 profit
8% commission on $2m is $160,000 profit
Grow your lotto by 10% and get an extra $16,000 profit
Grow the other 10% by 50% and you get an extra $71,429 profit
Maybe I’m no good on the calculator, but I think you are barking up the wrong tree!
You are right Glenn. In fact, with the right buying and pricing the figures can be even better. I was going to leave Cris to live in ignorance.
One of my stores, without lotteries, does $850K+ a year with a very very healthy GP and it is growing well. Only a fool would not pursue new traffic, only an agent.
Oops, I should have used 10% of non agency sales, just to clarify. My real point which is entirely missed is that we have and have had an opportunity with lotto to engage for a long time, its not hard, they have provided all the tools, I never said not to try anything else, innovate or diversify, If name calling makes everyone feel better then thats great, but I am over all the whinging about Lotto, we have to own our business’s and drive them forward, innovate and engage, if something doesn’t fit in your business’s future then get rid of it, but for me Lotto is great and it has a strong future.Thats all from me folks.
I can’t help but wonder is Cris a polite Troll for Lotto.
My two cents for what its worth is the best way to grow lotto sales is grow the rest of your business to attract more customers who choose to shop with you.
There’s no real point of difference, apart from customer service, between one lotto counter and another.
Why would you allow a comment from Jeff calling Cris an ‘idiot’. You’re happy to block my comments whether you deny it or not.
Andrew,
If your comments were being blocked then I would thought the accusation of blocking would itself be blocked. All very Rumsfeld.
Peter @ 22. Funny I thought the same !
The new retail image has little upside for the agent but a huge upside for Tatts. Digital screens means less reliance on agents complying with correct advertising and they control what is pushed out, alongside getting extra revenue from the added fee. They don’t have to send out as much marketing material, so it saves them more money. Instead of charging a fee, they should be giving at least extra .5% Turnover to agents on the new image.
I understand that there should be a unified image across agents but the access to implementing the image is one of the major costs. Having a choice of a limited number of installers, of which the number reduces dramatically if a regional agent, leads to reduced competition. I could get a local cabinetmaker and builder to install the same image for half the cost of other quotes and be compliant but they aren’t going to jump through the hoops of getting approved as an installer for just one job. Its just a bench, some signage and pretty laminate, it shouldn’t cost over $30,000 to do. Tatt’s could at least bulk buy the screens and equipment and sell at cost.
I knew about it when I purchased the business , it was budgeted for and with my turnover isn’t anything major plus I needed to refit the shop. But for the majority of agents it is a serious cost especially the regional ones. They won’t see that return on investment even over 10 years. Lotto retail sales have hit their peak and it is only downhill from now, only big jackpots will see a bump in sales and that is left to chance.
I could bust a nut and try to increase lotto sales marginally or put that effort and existing foot traffic into selling more profitable items. 7-9% margin vs 40-50% margin, same fixed costs, simple maths.
Tatts gets all of the benefit from the image upgrades and none of the risk. If the costs send an agent under/close or they have to surrender the agency, Tatts can easily find another agent (their preferred choice in QLD would be independent chemists or grocers) or the sales migrate to online or another agent in the area.
As for Lottoland they are small fry once Tabersall/Lottcorp is formed but LL will still have their overseas lotto betting to fallback on, at least till the behemoth wants some of that too.