Hi all, sorry for the delay. These are the daily figures inc GST and the 7 day moving average trend line in black. Importantly the low lows are going up each week (in other words the worst day on each subsequent week is better than the last) and the high highs are increasing each week...in other words the best day each week is getting better. If you place a ruler on the screen you can see the low low trend and the high high trend lines both increasing. That obviously won’t continue forever but its solid direction up and always a positive. The trend line 7 day moving average is also starting to push up too which is what we want to see...again early days ...generally the first few months is more what we care about. I can tell you right now add a public holiday, a sunny day and weekend and any centre will be pretty deserted...as they are if there is a blizzard blowing. So we always expect ups and downs. More broadly at Inkspot we set every store a daily and monthly target. When we do we set the target above what we would expect..this then gives us something to work towards...ie there is no point in setting the target so low that it is achieved without effort. Business is all about effort...daily weekly monthly. The targets therefore should always be set to ensure that there is something to drive toward...when setting up the daily merchandizing display, when working out a monthly special and putting up the flyers, when working with centre management on local area marketing ideas, when working out a schedule for getting out to local businesses with your flyers, when working out whether it is worth it or not to add someone to your stores linked in profile.....will they help me get to my target? Yes they use lots of ink and have a few staff.......add. Our targets for Tooronga was $9,000 revenue for month . For month 2 we are targeting $10,000. During the 1st month we were conscious of not going overboard with marketing. Marketing is a plan to follow...a rifle than a shot gun approach. In the 1st few months, all we want in respect to marketing is the following. 1) 3 x A1 posters .... these were put around the shopping centre to let people who come in through other entrances know that Inkspot is now in their centre. These were put up in the 1st week. 2) 1000 A5 flyers (printed at the kiosk on A4 then cut) distributed by staff to the houses and apartments directly around and above the centre (yes, this centre has apartments above it). These were distributed throughout the month. 3) 80 Commercial (as we call them B2B flyers ...short for Business to Business) A4 flyers ..also printed at the kiosk, distributed to businesses directly around the centre. This is not a great deal. Each has been hand delivered to a business during what we call ‘B2B runs’ which literally means putting up a sign at the kiosk that says back in 20 minutes, running out and introducing yourself to a few of the local businesses. This month we will go back to these same businesses and add a few more. B2B is about repetition not just pure numbers. If a business sees you every month eventually when they run out of ink in the middle of something important..they will remember the smiling and persistent Inkspot person who comes back every month or so with their latest ‘special’. 4) In centre B2B. Note the 1st obvious people to give B2B flyers to are the shop owners/managers in the centre itself and centre Management. They all use ink and toners! They are easy to talk to before hours and after hours and during really slow retail periods. 5)Staff discount cards printed but not yet distributed to shop staff and centre management staff. We will be giving out staff discount cards this month. 20% discount on Inkspot brand cartridges. (of course you can set your own level) 6) Opening special. We have an opening promotion of 50% off a second identical Inkspot brand cartridge. You always have to use this kind of discounting very sparingly...whether its 20, 30 40 or 50% discounts....at the end of the day they significantly add to your cost of goods. What they do however is help convert customers “oh thats cheap...I might give these new guys a try” . The signs come down at the end of this week...and being replaced with a 30% Inktoberfest special. ...The 50% was only an opening special ...this month we want to keep increasing sales and reduce our Cost of Goods, by reducing the specials we have... Summarised Results. (for a detailed review of the books call John Papas on 0411 392 043 and ask to sit down and be walked through them...we are keeping an old style ledger book). To give a more fair representation of the direct costs, we are only counting the cost of stock actually sold. Total Sales Revenue September $7202.87 + GST (79% of target) Originals Inks and toners ......circa $300 + GST , Inkspot brand Compatibles ..... $6903.87 + GST Cost of Goods (noting that there is a higher than usual cost of goods because we are running an opening special 50% off second identical cartridge so that substantially adds to the COG relative to RRP) $3604.48 + GST Rent $1773.82 + GST Outgoings $110.71 + GST Other expenses. $149.40 + GST (A1 printing) GST is still in negative due to GST from purchase of the kiosk itself. Return $7202.87 - 3604.48 - 1773.82 - 110.71 – 149.40 = $1,564.46 In other words, as an owner operator it would have returned, give or take, around $1560 in the 1st month. In month 2 (October) we want to actively raise the amount of B2B business and the overall average daily retail revenue. Further we will be reducing our overall Cost of Goods by reducing the discounting (from 50% off second identical cartridge to 30% off second identical cartridge) We will give a further update mid month on sale progress and month 2 figures (October) in early November.
Posted on: Wed, 08 Oct 2014 03:26:19 +0000
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