Your store, the ultimate kiosk
Have you ever been to a Cracker Barrel restaurant?
It’s almost a guarantee that no matter when you arrive, you will stand in line for
a table. In my case, it means having to wander around their very attractive
retail store for about 15 or 20 minutes before being seated. That’s just enough time for my wife to spend more money on knick-knacks, hand creams
and bric-à-brac than our meal will eventually cost.
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Long ago, this national restaurant chain discovered that they could add a
significant stream of income by selling stuff. Bear in mind, all items are
attractively displayed, never discounted and very profitable.
Lately, there’s been a great deal of discussion on the cleaners network regarding the best use
of one’s storefront — that large empty space in the front of almost every plant. Specifically, the
question has been, “What can I sell in my store to make my business more profitable?”
I believe a drycleaning plant truly is the “ultimate kiosk.” The average business has hundreds of people coming in daily. These are people
you already have a relationship with, so why not offer them another product or
service to buy.
In case you haven’t noticed, drycleaning sales are down pretty much everywhere. Some customers
have cut back on the number of pieces they bring in, others wear their clothes
longer between cleanings and then of course, there’s a growing number who now use their home washer and dryer in an effort to save
money.
With regard to retailing, I don’t recall anyone saying the idea of selling something at the front counter was a
bad idea. The real issue had to do with defining a good product and on that
subject there were many recommendations.
One guy suggested turning the front area into a mailbox facility and possibly a
FedEx and UPS store. Another thought that selling men’s dress shirts would be a good idea. Someone then suggested that since we’re involved in the drycleaning business the product should be directly related
to clothing and wardrobe.
The response then was to have an attractive display area to market sweater bags,
wooden hangers and books on how to dress for success.
With regard to retail selling, the issue of having to deal with sales tax was
raised and the discussion went on and on.
Look, there really are no bad ideas, so why not brainstorm, make a list of
ideas, think about them, discuss the pros and cons, weigh the possibilities,
make a decision and then get something going. After all, if your drycleaning
revenue isn’t carrying you now, how do you plan to make up the difference over an extended
period of time?
Adding a small retail business is up to you. A friend of mine sells bird feeders
and birdseed. Recently, she was offered a high-end line of sunglasses and
binoculars, which she now displays and sells at her front counter. Business is
good.
Lately, I’ve been thinking of ways to increase traffic without having to stock and display
an inventory of expensive products and without having to resort to deep
discounts and my suggestion, at this point, would be to give something away as
a premium.
A good premium is one of the most powerful marketing tools available to
drycleaners, yet it’s hardly ever used. My friend, Murray Raphel, used to suggest that when faced
with a choice between reducing prices or giving away something free… you should always give something away free.
Cleaners often give away $5, $10 and even $20 in free service thinking it costs
them less. In the end, however, a $20 discount (regardless of its actual cost)
is still $20 that didn’t show up in your cash drawer at the end of the day.
On the other hand, a low cost premium with high-perceived value is an effective
way to get around discounting. Here’s how it works.
Let’s say you can buy an attractive premium, valued at $20, for $8 and let’s assume that this item is something your average customer wants. Now, instead
of giving away $20 in service, you offer an item with a perceived value of $20
but a cost of only $8, which leaves you $12 ahead on every transaction.
Ideally, the best premiums are readily redeemable and frequent rewards are more
effective than infrequent. So in searching for a good premium, I would look for
two things.
First, it must be easily affordable, especially in this economy. An expensive
premium, requiring oversized orders or multiple visits may disqualify a large
percentage of your prospect pool or customer base, thereby limiting the
universal appeal of your promotion.
Second, it must be a popular item with mass appeal.
The fast-food chains use this technique all the time with their action
figurines. A kid gets a free Han Solo with the purchase of a Happy Meal, then
comes back to collect Chewbacca, Luke, Leia and Yoda. The restaurant gives away
a 25-cent toy while the parent pays full price for the meal… again and again.
Mrs. Fields built her cookie empire by giving away her cookies.
Our local McDonalds offers free lattes on Monday mornings and the drive-up
window is always backed up 15 cars deep. With this in mind, if you are looking
for an easy way to make the most of your front counter, please call me at (630)
602-4222 or send an e-mail to bill@makmarketing.net.
I’ve run out of article space and don’t have sufficient room to explain, but here’s a hint. Starbucks has just entered the soluble coffee business. It’s a radical departure and seemingly low-brow for the high-end java brewer, but I
think they have a pretty good idea where the next big money is going to be
spent. For additional information, please see our ad on page 28 of this issue.
