FUELSTREAM Newsletter Nr 42 - Price Labels, Diesel Margin Survey Feedback, Top Tips and more
To price or not to price?
There are a number of reasons why you should ensure that every single product on the shelf has a price label. Lets look at 7 of them:
The Consumer Protection Act states that it is an offence to display a product without a price label. Every offence is carries the probability of a R1m fine or ten years in prison or both. This does not apply to products in a window display.
Customers generally don’t buy something if the price isn't clear. One definite way of increasing sales is to ensure that every product has a label that’s clear and correct.
Planograms have proven to increase sales if implemented properly. Once your shelf has been laid out according to the correct planogram and you’ve made your last changes, the price labels act as your placeholders. Any person packing the shelves can then use the price labels as an indicator of the number of facings to maintain.
Price labels also help you when putting together an order. Its much easier to make up an order if you can see which products should be on each shelf and the amount of space allocated to them.
Price labels are a quick way to identify price gaps. Price gaps are opportunities to increase a selling price without a significant impact on customer's buying behavior. One example would be a price marked at R4.35. There is a price gap to increase the price to R4.45 or R4.55 or even higher. If you have accurate price labels you can quickly identify a price gap, take out the label, mark it with the new price, hand it to the back office to change and print a new label.
Price labels also assist you to develop a trusted relationship with your customers. If products don't have price labels, customers may have the perception that you are trying to hide something from them.
A final reason is that price labels also help customers to make buying decisions. If a customer only has a specific amount of money they may not be willing to stand in the queue and then find out what it costs. This could be embarrassing for them if they have to say to the cashier that they "don't have enough money".
Results from the Diesel Margin Survey
We conducted a survey in December 2016 and January 2017 on Diesel margins, discounting at the pump, the impact from competitors and how it affects Dealers. Click below to view the results:
Here are a few tips we've received from other Dealers who read the FUELSTREAM Newsletter:
If you are constantly losing energy drinks and you want your merchandisers, cleaners and cashiers to keep an eye on it, consider the following: If you have cold drink fridges with doors, install a simple doorbell that makes a sound every time a customer opens the energy drink fridge.
Car Wash Chemicals:
If you're buying car wash chemicals in 20 litre containers, decant them into smaller containers of 1 or 2 litres and issue them daily. That way you can monitor usage more accurately and car wash attendants don't "accidentally" spill/overfill chemicals when struggling to lift and handle a heavy 20 litre container.
Safety & Security:
Take a moment and think about your daily routine. Do you arrive or leave site at the same time and in the same way every day? Do you follow the same route to site and home? If so, make a point of changing your routine and increasing your awareness when you arrive at site and home. Look around before switching off the car and getting out and be mindful when stopping at the gate/garage at your home.
Take a moment and think of the things that take up a lot of your time every day. Is there some way to systematize part of the process or one of the steps? For example, if you are doing the cash up reconciliation every day and constantly have to sort out the cashiers card transaction slips you can implement the following rule to save you time: Each cashier must hand in their cash up with all card transaction slips in sequence, neatly, and stapled together in packs of 20. This will save you time and also motivate the cashier to pay closer attention to each card slip.