Retail Brokers - October News / by Richard Pascoe

Daylight saving starts on the first Sunday in October. All clocks will be turned forward 1 hour at 2am on the 4th.

We also celebrate Labor Day with a public holiday on the 5th October giving most of our customers a long weekend.

What plans have you put in place, with a sunny 22 degrees forecast it will be a great way to move towards summer and Christmas?

Lion

LION TRADING TERMS

This year celebrates our 21st year working together in the route industry and we have again renewed our trading terms with this very important partner. 

Through the trading terms, the monthly promotions and the shop support by territory managers with ticketing, ‘A’ Frames, relays and general assistance this partner has been strongly supporting our members for a long time.

The trading terms we have agreed to on your behalf will come into force from Monday the 5th of October 2015.

The new price for our 1lt white milk will be locked in for the next 12 months. It covers the 3 white milk lines, Pura 1lt, Skimmer 1lt and Light Start 1lt.

These comments and many similar ones are made by very happy members of Retail Brokers

·      Many of my customers now buy 4 x 1lts or 6 x 1lts at a time

·      My white Milk sales have more than doubled since introducing the $1.50 price

·      The price of $1.50 has brought in many brand new customers to my store

THIS IS YOUR POINT OF DIFFERENCE

THIS GIVES PEOPLE WHO ARE NOT YOUR CUSTOMERS A REASON TO STOP

To make sure you get the most out of the white milk pricing your selling price should be between $1.50 and $1.75 each.

·      This pricing should be reflected on the ‘A’ Frame in front of your shop

·       It will give new customers a reason to stop and become REPEAT CUSTOMERS

The discounts on all other products will remain in place and the need to carry the correct range in the correct relay will also remain as a requirement to receive the trading terms.

Your Territory Manager can supply you a full list of products to carry and will assist you with a relay in the fridge if needed.

EXTRA SERVICES FOR MEMBERS

Do you take advantage of these great people?

·      CBA Eftpos terminals – Rizwan Siddiqui 03-96756310

·      Protectit Insurance – Doug Napier 08-83727100

·      Adelaide Fresh Air for your aerosol Pest Control – Bryan South 0419608570

·      Espresso Essentials Coffee Machines – Martin Langston 0419128753

·       Adelaide Pest Control – Keiron Snow 08-83448181

ICECREAM PRICING

Both Street’s and Peters Icecream companies have very bright, colourful Header Cards to go above the freezers and ticketing which is stuck to the freezer lids.

I personally never used them and would encourage most members not to use them as well.

If you want to display pretty pictures of what your customers can already see in your bright clean freezer that’s ok but it should also display YOUR RECOMMENDED SELL @ 40% Gross Profit.

Both STREETS & PETERS RECOMMENDED SELL PRICE at 25% gross profit which won’t in most cases cover the electricity needed to run your freezers based on current sales.

Our ‘Suggested Sells’ are just that. You need to be aware of the competition in your area but remember that in most cases Icecream Sales only equate to approximately 2% of your total annual sales.

Having said that the cost in electricity may well out way the current profit you are receiving if you are going by the companies ‘Suggested Sell’

It is estimated that energy costs per year for a 4’ freezer are just under $1000.00 and just over $1000.00 for a 6’ freezer.

COCA COLA REGULAR METRO PRICING

Do you know that the standard list price for non-members for the following is?

CHECK YOUR PROMOS TO SEE WHAT YOU PAY

FAST FOOD IDEAS

Recently  whilst visiting members we came across a wonderful display of just ‘Heat & Eat’ fast food. The products looked Delicious, were Convenient and with a large range had instant Eye Appeal.

The shop has over 121 recipes to pick from, cooks all meals at the shop and it is the fastest growing sector in her shop.

·      Roasts

·      Curries

·      Stirfries

·      Pastas

·      Casseroles

·      Stews

·      Vegetarian Meals

·      Chicken Dishes

·      Beef Dishes

·      Fish Dishes

As you can see there are a lot of choices but not all of them are done at any one time. The meals are in a display fridge and all products are cooked and ready to micro wave

This section is large and now contributes more than 50% of the total stores daily sales.

BALFOURS Footy Pie Sales

The recent allocation of FREE Footy Pies revealed some interesting Sales Figures.

We allocated to most members 26 Footy Pies over a period of a few weeks.

But have a look what happens when

·      You get behind the promotion

·      Have a positive approach

·      Become involved in ordering, promoting and ticketing

·      Talk to your customers and staff

Hamley Bridge General Store           sold 284 Footy Pies

Mylor General Store                           sold 158 Footy Pies

Normanville Service Station               sold 114 Footy Pies

Morphette Vale 7 Day S/market        sold 109 Footy Pies

Delamere Store                                  sold 104 Footy Pies

Well done to these members who excelled and who are obviously self-motivated sales orientated business people, congratulations.

COMMONWEALTH BANK EFTPOS

Rizwan Siddiqui 03-96756310 or 0477741475

Which Bank supplies your Eftpos Terminal?

A great deal on your Eftpos charges can potentially save you more money annually and increasing your profitability without increasing your sales.

Check the NOVEMBER NEWSLETTER for more information and the flier

PFD

We do have trading terms with this company but they aren’t as simple to explain as a straight forward ‘10% discount’.

However on AVERAGE you can expect to receive 10% discount. On some products you’ll receive far more than 10% discount whilst on other lines you’ll receive little or no discount.

PFD who has been a strong supporter of our group since 1994 has given us this list of products that members are currently purchasing.

ADVERTISING

Are you online with your take away food offers? We have talked about Facebook before and Twitter is similar.

Both of these sites allow you to advertise your products to your friends for free. 

You may do hamburgers, rotisserie chickens, soups or specially cooked home-style meals which your customers can enjoy for their evening meal.

Here are 2 more sites you can go on to advertise your take home offers.

·      www.menulog.com.au

·      www.eatnow.com.au

With these sites there is a cost of approximately 11% plus a further 2% if the customer uses a credit card so you would have to do your sums but it might just be a way to cheaply reach a huge audience and grow your business.

TOBACCO PRODUCTS

Just a reminder if you are contemplating deleting tobacco products or if you are thinking about re introducing them.

Not selling tobacco products will impact your bottom line NEGATIVELY, guaranteed.

We understand that the cost of purchase is huge, the fear of being robbed is paramount and the insurance costs can be overwhelming.

But tobacco products are 35% to 40% of your sales each week on average. You can’t walk away from that instead you need to manage it.

Gross Profit at manufacturers recommended retail price is approximately 17% gross profit but most members are less than this somewhere between 10% and 15% gross profit

This means that on a $50 sale your profit is between $4.55 at 10% and up to $6.80 at 15%

If you don’t carry a full range you should as a minimum carry the top 25 cigarette products and the top 10 tobacco products. We have listed the top 10 in each here and for more information go back to your August newsletter.