Archive for the ‘Operations & Marketing’ Category

The Simple Secret of Free Publicity

Tuesday, February 9th, 2010

Whether you operate a large or small chain, there are deals to be made that can attract a lot of positive attention to your company.

I know some of you don’t place much of a value on publicity, but when was the last time you priced the cost of a retail ad in the local newspaper? The “secret” for free publicity is much the same as the secret to effective selling—match the right product with the proper occasion at the perfect time.

For two straight years, around the Fourth of July, I garnered the front page of an area newspaper—in full color at no cost. The second year I became the centerfold and, if you look closely at my picture, you’ll know I’m not centerfold material. Yet, all it took was a phone call to get this primetime publicity. I simply called the editorial department and asked them if they would like to snap a picture of Uncle Sam on July 3rd handing out American Flags in advance of their July 4th issue.  The rest is history.  Making the media’s job easier gains you many opportunities. In this case, they came to one of our stores and used the Amoco sign as a back drop.

The next year, I made the same phone call and the same editor said, “sorry, we did that last year.” I replied, “what if Uncle Sam was on rollerblades?” Not only did they run a small color shot on the front page, but I found myself as the centerfold.

Radio Days
If you’re not into having your likeness spread all over the media, fear not. There are other ways of gaining free publicity. During my time as the CEO of a seven-store chain in upstate N.Y., I was approached by a local radio station trying to sell me on being one of eight sponsors that would be involved in giving away a trip for two to Aruba. Each sponsor was asked to pay $6,400. My brain quickly calculated the station was raising more than $50,000 for the trip. I was hesitant and declined instead determined to reverse the entire scenario.

First I obtained prices from a local travel agent on not one trip, but four—one trip each to the Super Bowl, Kentucky Derby, Disney World and a cruise. The total cost was $16,000 after negotiating a discount from the travel agency for using their name on all print ads.

I then went to a radio station whose signal covered our entire marketing area and pitched the idea of making them a full partner in all four trips in return for free advertising. They loved the idea and bought in on the spot. Several times each day they’d announce their call letters, our company name and announce, “the 10th caller will automatically be registered for an all expenses paid trip for two to the Super Bowl.”

Winners were interviewed live on air and future promos were made as each winner called in live from the venue and gave rave reviews. It is so important that customers know there really is a winner.  We also partnered with one large and four small local newspapers and received free promo ads from them for adding them as sponsors. Each drawing was held live on air by the radio station in the lobby of the largest newspaper.

If this little idea is starting to pique your interest, the best is yet to come. Eight of our best vendor partners each paid $2,000 as “official sponsors” and this mighty seven-store chain got major free ads and promos all year long while giving away four great trips, all at no cost to us. Certainly business and reputation were greatly enhanced. Email me, and I’ll send you the actual promos.

The lesson here is don’t be afraid to think outside the box. Not all thoughts are going to come to fruition, and there will be times when you might wish they hadn’t, but sometimes, when your budget is stretched and your cash is strapped, keep thinking until you come up with a winning idea. If it worked for a small seven-store chain, just think what it could do for the big guys.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Riding Out the Economic Storm

Wednesday, February 11th, 2009

Facing one of the most difficult financial crises in the nation’s history, convenience store operators must maximize store performance and drive efficiencies.

That old axiom “fall back, spring ahead” takes on an entirely new meaning for 2009. Faced with the worst recession in more than half a century, springing ahead means fighting for survival for most of us who are trying to navigate the stormiest weather this industry have ever seen.

And in case you haven’t noticed, it’s not just small operators. Caught square in the apex of this rare, if ever-before-seen economic “Bermuda Triangle” are highly successful, well-run companies like Flying J and many others. Suddenly, the industry isn’t so recession-proof.

What leg of the triangle does one attack first? Shameless and recently bailed-out banks are no longer willing to make loans to longtime customers with great track records. Does the term “pulling the rug out from under you” mean anything? Then there’s the illusionary futures market that has all of us wondering which way fuel prices will go. What’s left is the third leg: improving operations. This is no doubt a tough task, but of the three it’s the one that convenience store owners have the most control over.

To operate more efficiently operators are advised to:

• Get a handle on expenses. Be willing to make the tough decisions. Examine every line on that P & L and know what makes up the line. Can it be justified? Should it be justified?

• Force yourself to sell off nonperforming assets and take aim at underperforming stores. Certainly it’s a poor time to get a great price on these assets, but ask yourself, “Can I afford to carry this asset in this business climate?”

• Spring ahead with a well thought-out plan to maximize sales. Make every effort to keep fuel competitively priced in order to drive more customers inside the store. Once they’re in, “wow” them with outstanding service.

This economy demands constant and meaningful specials for customers. “Two-fers” allow a larger ring while affording customers value. Be sure to involve your vendors. If you’re slow, so are they. Go the extra mile and don’t fail on the small things. Image is paramount!

• Make a full commitment to foodservice—the industry’s brightest minds say you can’t survive without it. Involve your grocery wholesaler in your plans. They have great information, ideas and contacts. Operators like Sheetz, Wawa and QuikTrip have raised the bar for us and customers no longer consider c-store food a secondary option. Ride their coattails.

Also remember customers like one-stop shopping, and they rely on quick, inexpensive meals. No one is in a better position to accommodate them than we are. Explore options like creating a snack deal that might include a Coke and a Reese’s candy bar, or coffee and a doughnut.  A meal deal can be as simple as a hot dog, a bag of chips and a fountain Pepsi. If you’re already doing this, explore ways to improve it. Generate some excitement like using a fan to send the scent of fresh pizza from your ovens throughout the store at mealtime, offering product samples and developing new point-of-purchase displays—anything to get customers’ attention. If you’re not already in foodservice don’t wait until the storm subsides.

• For those still in good financial shape, there will be many opportunities for growth. Keep a nest egg and make it a point to know the up-to-the-minute thinking of your bankers’ bosses before making any acquisitions. Show restraint and act only on the best opportunities.

Above all, keep a positive attitude and let it shine through for all to see. And remember, when things are going bad it’s never as bad as it seems, just as when things are going good it’s never as good as it seems. Don’t lose sight of the fact that after most every rough storm, there is indeed a rainbow. Best of luck finding yours.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

New Year, New Challenges

Monday, December 29th, 2008

With 2009 approaching, let patience be your guide to achieve personal and professional goals.

As we usher in a new year, let patience be your guide to achieve personal and professional goals.

What if you suddenly found out that your slate could be pretty much wiped clean and most all of the tactical mistakes made could disappear? What if you could be convinced that you were going to be given a golden opportunity to correct some flaws that have hindered your success a bit? (more…)

The Man in the Mirror

Saturday, July 5th, 2008

With the U.S. consuming about 20% of the world’s fuel, it’s time to take matters into our own hands to reduce the nation’s dependence on foreign oil.

By Jim Callahan

You may have noticed that fuel prices seem to be on the rise recently. Quite dramatically you say you’re really ticked off about it–you say it’s putting a crimp in your disposable income and starting to have an effect on your standard of living, threatening your business, and you want to know who’s responsible. Let’s examine those thoughts for a minute

I’m told that America comprises around 5% of the world’s population and yet consumes some 20% of the world’s fuel. Despite this obvious imbalance, consider these three facts: (more…)

Steppin’ into Spring and Springing into Summer
by Jim Callahan, Convenience Solutions

Tuesday, April 1st, 2008

I recently read a great quote attributed to a one time door-to-door sales person and lately more recognizable as founder of the billion-dollar company that bears her name, Mary Kay Cosmetics. Mary Kay Ash said, “Don’t limit yourself. Many people limit themselves to what they think they can do. You can go as far as your mind lets you. What you believe you can achieve.” (more…)

Staying Alive: Planning to Thrive!
by Jim Callahan, Convenience Solutions

Tuesday, February 12th, 2008

Staying Alive: Planning to Thrive!

Staying Alive is both the title of an old disco tune, as well as a description of the challenge that today’s c-store operators face. C-store growth in numbers as well as quality continues unabated. I certainly don’t have all the answers about staying relevant, but I have some very interesting facts that indicate it is being done on a consistent basis in one of the very toughest markets. (more…)

Negotiation Practices for Small C-Store Chains
by Jim Callahan, Convenience Solutions

Saturday, January 26th, 2008

The sweet science of obtaining a better deal than was offered!

To compete with the big chains more effectively, you’ve got to be able to buy better, which is obviously much more difficult for a smaller chain, even more so for the single store operator. But in reality it’s much easier than you might think (more…)

Growing Same-Store Sales in a tough Market by Jim Callahan, Convenience Store Solutions

Friday, August 17th, 2007

So simple – so profitable – so what’s stopping you!

Unless you run an above average operation, you might just experience a sudden urge to stop reading, part way thru this article. I’m going to put the results toward the top to help, suppress that urge!More…
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Can’t Take the Trip Without a Road Map!

Wednesday, April 4th, 2007

Running Convenience Stores is a long and exciting journey, albeit fraught with Pot Holes, Winding Roads and Stormy Weather. If you’ll stay the course, you will still find that a small pot of gold awaits you!More…

So tell me, what other long, rugged and expensive Trip would you make without using a “Road Map”?
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Great Timing = Great Sales

Wednesday, April 4th, 2007

Over the years, I’ve found that when I’ve matched the right product with the right occasion, I’ve been able to create increased sales with a much higher gross profit %. Not nearly as difficult as it sounds! Here’s an example: we place wool hats and brown jersey gloves on the counter, directly in front of each cash register, each and every time the weather turns cold. I started doing this 15 years ago in frigid upstate N.Y. and find that it is every bit as effective in sunny Georgia. Our stores each sell many hundreds of these items – year after year at 65/70% gross. The key is to have them at the register when and only when it is cold! Ice scrapers, gas line antifreeze and other chemicals are also good items.

Recognizing that most of us fail to get our customers to “walk the store”, to see the wide array of products that we have to offer, consider instead, bringing the store to them. How, you might ask – Use a portion of the counter by the cashier or a front end cap for timely items: Slim Fast drinks and Slim Fast Bars at the first of the year for the many who make a resolution to lose weight. January and early February are key months for customers who spent too much during the Holidays and are looking for bargains – perhaps a 3/99c Candy shipper, or a Meal Deal and Fountain drink special – all it takes is a large empty cup with a visible price. February and March of course bring with them the Cold & Flu Season.

What’s wrong with having Cough Drops, Vitamin C, Tissues, and Nyquil right under your customers “runny nose”? Match the Product with the Occasion! Do it all year long and watch your profits rise.

To be even more effective with the tactic, involve your Employees. I’ve had Cashiers wear the wool hats at the register during Cold weather to help drive the point home. Let your employees know how important these extra sales are – some Companies fund both raises and bonuses out of Suggestive Selling Profits! Many others run suggestive selling contests, rewarding those who reach certain benchmarks. Consider a suggestive selling item of the day or the week. Once a Cashier becomes comfortable with suggestive selling, you will see extra pride and satisfaction – done right, it can be infectious for the entire store!

Even small chains now have the ability to create inexpensive signs to bolster sales of the chosen product. Place them in key spots around the store. If you’re in an area that allows Reader/Message Boards, share your sales theme with the motorists who drive by your store. Do the same with electronic gas pumps. The key to effective signage is to be “Short & Sweet” and to change it often.

Good Luck!
Jim Callahan, Partner
Convenience Store Solutions
Jfcallahan502@msn.com