Page 18 - TOB Magazine March/April 2013

38
TOBACCO OUTLET BUSINESS
MARCH/APRIL 2013
a portion of any product-specific incentive offered.
“Go to vendors with whom you have a relationship
and look for a mutually beneficial way to drive
volume,” he suggested. “Incentive programs are a
great way for people making $9 an hour to really
significantly increase their pay.”
In a similar vein, approximately 38 percent of
respondents reported having no formal training
for employees. “Effective training can make a
huge difference in the level of service your store
offers—and again, this is something you can ask
your vendors to partner on,” said Cass. “We all
work with manufacturers who will be all too happy
to come in and work with your employees.”
Smoking lounges are another often-unrealized
opportunity. 74 percent of retailers reported that
they do not have a smoking lounge. Yet of those
who do, 80 percent have seen an increase in usage.
Moderator Craig Cass noted that his lounge is
packed every day and that sales rose significantly
after he installed it.
Retailers also seem to be underutilizing
technology in promoting in-store events and
products, according to survey results. Most rely
heavily on flyers and point-of-sale displays,
but Cass has found that email is by far the most
effective and economical way to promote. “If you
aren’t using email, you’re leaving money on the
table,” he said. “Compared to print and radio, it’s
very inexpensive. In fact, it’s free, unless you buy
an email list instead of collecting addresses at the
register.”
Additional data excerpted from the Interactive Marketing Session results follow.
-11% or more -10% to -6% -5% to -1% Flat +1% to +5% +6% to +10% +11% or Higher
30%
25%
20%
15%
10%
5%
0
3.23%
12.9% 12.9%
9.68%
16.13%
25.81%
19.35%
4% or Less 5% to 7% 8% to 10% 11% to 14% 15% or Higher
35%
30%
25%
20%
15%
10%
5%
0
12.5%
33.3%
25%
12.5%
16.67%
How Did Your Business Grow In 2012?
What is Your Total Labor Expenses
as a Percent of Annual Net Sales?
TPE 2013 Takes...
Annual Sales Growth
Total Labor as a Percent of Sales
% of Respondents
% of Respondents