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Damian Luiten

Garden Inspirations Group Melbourne February 28, 2011. Damian Luiten. Types of Garden Centre Owner. The Grower Passionate about plants. Has made their garden centre a community asset because of their knowledge and passion. Types of Garden Centre Owner…. The Artist

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Damian Luiten

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  1. Garden Inspirations Group Melbourne February 28, 2011 Damian Luiten

  2. Types ofGarden Centre Owner Garden Inspirations Group, Melbourne, February 2011

  3. The Grower Passionate about plants. Has made their garden centre a community asset because of their knowledge and passion. Types of Garden Centre Owner… Garden Inspirations Group, Melbourne, February 2011

  4. The Artist Lots of inspiring designs. Their garden centre is an established part of the community because it is a fashion statement. Types of Garden Centre Owner Garden Inspirations Group, Melbourne, February 2011

  5. The Marketer A newer breed of garden centre owner. Socially engineers their communities to treasure the garden centre as a community asset. Types of Garden Centre Owner Garden Inspirations Group, Melbourne, February 2011

  6. The Mechanic The garden centre year is repeatable, predictable, plan-able. Provides a gardening supermarket to their community. Types of Garden Centre Owner Garden Inspirations Group, Melbourne, February 2011

  7. Only stock good quality products. Know and use your KPIs. Inspire Your Customers. Manage your inventory. Use your customer database as your gold-mine. Use disruptive pricing to build loyalty. Pick hero products your competitors can’t touch. Accentuate your local ownership - Touch your local community. 8 Keys ToTomorrow’s Viable Garden Centre Garden Inspirations Group, Melbourne, February 2011

  8. Only Stock good quality products. Know and Use your KPIs. Inspire Your Customers. Manage your inventory. Use your customer database as your gold-mine. Use disruptive pricing to build loyalty. Pick hero products your competitors can’t touch. Accentuate your local ownership - Touch your local community. 8 Keys ToTomorrow’s Viable Garden Centre Garden Inspirations Group, Melbourne, February 2011

  9. Know YourKey Performance Indicators(KPIs) Garden Inspirations Group, Melbourne, February 2011

  10. Total Revenue Door Count Customer Count Know Your KPIs … Shop Floor KPIs Items Sold Garden Inspirations Group, Melbourne, February 2011

  11. Conversion Rate Basket Size Basket Value Customer Count Door Count Items Sold Customer Count Revenue Customer Count Know Your KPIs Garden Inspirations Group, Melbourne, February 2011

  12. Garden Inspirations Group, Melbourne, February 2011

  13. Visitor count, customer count, basket size and value Advertise To Improve.. Leave Brand Advertising for the big guys.. Garden Inspirations Group, Melbourne, February 2011

  14. Garden Inspirations Group, Melbourne, February 2011

  15. Gross Margin Earnings per m2 Stock Turns Know Your KPIs … Back Office KPIs GMROI Garden Inspirations Group, Melbourne, February 2011

  16. Don’t discount cash Add value to their experience Claw something back Discounting Policy Garden Inspirations Group, Melbourne, February 2011

  17. 1 Visitors PM 210,000 2 Conversion Rate calc 1% 43% 44% 3 Transactions PM 90,000 Up 2.6 % 4 Basket Size calc 1 item 5 6 5 Items Sold PM 450,000 Up 24 % 6 Basket Value calc $ 30.00 7 Revenue PM $ 2,700,000 Up 13% 8 Gross Margin calc 1% 48% 49% 9 Gross Margin $ calc $ 1,300,000 Up 15% 10 Retail Space PM 2,700m 11 Revenue psm calc $ 1,000 Up 13 % 12 Inventory average PM $ 300,000 13 GMROI calc $4.33 Up 15% 14 Stock Turns calc 4.67 Up 7% KPI’s Big Payback … 210,000 92,400 555,000 $ 33.00 $ 3,050,000 $ 1,495,000 2,700m $ 1,130 $ 300,000 $5.00 5.01 Garden Inspirations Group, Melbourne, February 2011

  18. Manage Your Inventory • Your most important task as a Retailer! Garden Inspirations Group, Melbourne, February 2011

  19. = ? ( 2 Inventory Management example… + 4 ) x 3 x 5 Garden Inspirations Group, Melbourne, February 2011

  20. = ? (6 x 5) - 6 Inventory Management example… Garden Inspirations Group, Melbourne, February 2011

  21. Inventory management is based on a four-part equation: Sales - Beginning Stock + Ending Stock = Purchases 30 - 6 + 12 = 36 ? Inventory Management Garden Inspirations Group, Melbourne, February 2011

  22. Targeted Ending Stock Depends on Your Turnover Rate Inventory Management • E.g.. If you always want to keep 2 months of stock (6 turns), then 2 months of sales is your Ending Stock figure. Garden Inspirations Group, Melbourne, February 2011

  23. Planning for Grevillea Sales…. Inventory Management mth+1 mth+2 35 25 Sales - Beginning Stock + Ending Stock = Purchases 30 50 = 60 40 Garden Inspirations Group, Melbourne, February 2011

  24. Stock Management’s Big Payback … Garden Inspirations Group, Melbourne, February 2011

  25. A New Pricing Strategy • Use Pricing to Compete and Build Loyalty Garden Inspirations Group, Melbourne, February 2011

  26. Traditional Pricing Strategies: HI-LO - high shelf prices and low-margin promotional items. EDLP - Everyday Low Prices with no promotional pricing. PUF - Profit Up Front pricing, where qualified customers pay for the privilege of buying items at bedrock prices with extremely low margins. Garden Inspirations Group, Melbourne, February 2011

  27. Access Pricing significantly differentiates prices on basic items between regular customers and occasionalshoppers in an open, transparent way all year round Access Pricing … Key Features Garden Inspirations Group, Melbourne, February 2011

  28. Members are issued a card. Reward cardholders with 10 points per dollar spent in store. Set pricing transparently – specifying how many points are required to attract crazy pricing. Ensure items selected are highly visible, and cover a selection across the entire garden centre. Access Pricing… Example Garden Inspirations Group, Melbourne, February 2011

  29. Access Pricing… Example Garden Inspirations Group, Melbourne, February 2011

  30. Successfully counter the price gap perception. give your regular customers distinct, real, tangible, and memorable value which, in turn, changes the price gap perception between you and the Big Boxes.   Put golden handcuffs on your best customers. provide an attractive incentive to your lower spending customers to aggregate their spending with you. Access Pricing… Benefits Garden Inspirations Group, Melbourne, February 2011

  31. Provide rewards based upon customer spending. Give disproportionate value to the heavier spenders, those who provide the bulk of your profits. Differentiate. From both the big boxes and all your other competitors. Access Pricing… Benefits Garden Inspirations Group, Melbourne, February 2011

  32. Access Pricing cuts to the essence of rewards: It changes peoples behaviour Customers are segmented according to what they contribute to the business. And then rewarded accordingly.  Access Pricing…summary Garden Inspirations Group, Melbourne, February 2011

  33. Wrap Up Garden Inspirations Group, Melbourne, February 2011

  34. Thank You Enjoy the after-match refreshments! Damian Luiten

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