What’s a Good Retailer Like You Doing in a Mess Like This?
It’s easy to assume pricing compliance issues are the work of careless retailers. But anyone that’s spent more than five minutes running a retail operation knows the complexities surrounding ticketing means even the best retailers can fall prey to breaches of the consumer act. When you’re dealing with large franchise networks, the opportunity to get it wrong when you’re doing everything right is intensified.
Why does this happen when your average store manager is living and breathing the minutiae of the rules and regulations defined by consumer protection agencies? Creating a single ticket requires data from multiple store systems - POS, head office Excel spreadsheets, text files, website, Access, inventory and marketing systems to name some of the usual suspects. The issue applies to promotional signage as well as shelf-edge ticketing.
Ticketing wastage common
In the Optimizing In-Store Merchandising report from RIS, retailers admitted to wastage.
“In addition to lost sales another problem that arises through inaccurate in-store merchandising efforts is waste, which we define as over shopping of product, over printing of material, and cost of shipping materials that can’t be used in some stores.”
What we know is, on average, 40% of promotional ticketing is wasted when produced at the head office. If the marketing department has no knowledge of what’s being printed in the store or if promotions are being printed incorrectly, the losses start to mount very quickly. When the tickets are produced in store, the wastage is reduced to almost nothing. But ad-hoc ticketing at the store level has its own problems. This is a key opportunity for erosion in your pricing compliance.
Brand trust issues
What about brand trust? In this example, a coffee drink is being advertised as a “Healthy Kids Snack”. Smart money says plenty of parents and health professionals wouldn’t agree with coffee as a healthy eating habit for children. This doesn’t address the issue of brand compliance but plenty of violations in promoting the store brand occur in ticketing every single day.
Easing the pain of ticketing
While retailers are under pressure to return a profit, they’re also grappling with increasingly complex store system. How can a good ticketing strategy make life easier for retailers who are already managing a lot of disparate processes and systems? A ticketing service is able to:
- Reduce costs
- Eliminate ticketing wastage
- Improve brand image
- Simplify operations
- Increase sales
- Ensure brand compliance across the network
What this means for retailers
When done properly, your ticketing system can even fill in the gaps of ticketing knowledge due to employee turnover. Most importantly, it can give your marketing department valuable information about whether store promotions are being implemented effectively. Store managers can operate with confidence knowing their tickets and promotions are correct regardless of the number of systems required to obtain the information needed.
If you would like more information about implementing a strategic ticketing service, give us a call. Our staff can give you terrific examples of how we’ve helped retailers all over Australia and New Zealand reduce waste and improve compliance.