Today’s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "With a growing trend of retailers offering more services how are new products & needs being sourced?"
In today’s increasingly competitive landscape, retailers are getting more and more creative with the types of services they are offering their clients to get them into the stores. Dine-in space that offers music, internet access or scheduled events such as wine-tasting are becoming more popular every year as retailers compete for the customer’s time, attention and money.
With so many of these services being implemented quickly and by the individual stores, at least initially, the opportunity to consolidate and organize the entire spend for the company presents a very big and potentially profitable opportunity.
One growing service retailers are offering is in-store internet access. Customer internet is a service that can easily be sourced for the entire company either through one national vendor, or a handful of regional vendors. Leveraging the purchasing power of all of the company’s locations for internet services can be a highly successful process as there are so many more providers today than there were even 5 years ago.
The music played in these new areas is also another service that can be sourced as there are many suppliers that can either supply music that can be played and sold at the point of purchase creating yet another new revenue stream or that provide internet streamed music complete with customized marketing messaging in between songs.
Another way for retailers to successfully reduce their spends by purchasing for the whole company is with the supplies being used for their coffee or dining services. In many cases these new areas are not treated as their own profit centers and the materials needed to run them are purchased on a store by store, as needed basis. Napkins, utensils, cups, condiments as well as all of the ingredients that go into the finished product are examples of items that could be taken to the vendor community for more competitive pricing.
So many of these new ideas for bringing customers are highly affective and are difference makers for someone shopping at one location over another and by bringing the services and products they offer under solid sourcing practices they can also be highly profitable new channels of revenue for the company.
For more information on SafeSourcing and how we can assist your company with sourcing these goods and services, please contact a Customer Service Representative for more information.
We look forward to and appreciate your comments.