The key to increasing cigarette sales is multi-pack discounts. Many vendors provide scan data rebates, but getting your money for scan data is not enough to increase your sales. By providing a discount to your customers, cigarette sales increase. These discounts are funded by your manufacturer enabling you to maintain your margins. The discount funding is only available when you participate with the scan data program.
Up-selling to Increase Cigarette Sales with Discounts
The increased sales are achieved by lowering the price. The price discounts are funded by the manufacturer and are in addition to the existing buy-down and other contractual programs you have now (you must make an agreement with your cigarette representative for Altria and RJR).
To be sure you keep your margins, it is critical to process the information correctly. Many scan data vendors provide the scan data processing at a low price. If they do not process the multi-pack and loyalty payments, however, the funding for the discounts is paid by the retailer. That is, unless properly submitted the multi-pack discount reimbursements will not be made. It is critical to ensure your processor is able to collect all the data AND provide it to the processors so that the retailer receives the discount payments. Finally, it is a lot of money, make sure you have a partner that will work with you and your manufacturer to get all that you are promised.
Cigarette Scan Data Processing Keys to Success
- Scan data includes all the multi-pack information for both the Altria and RJR program
- The vendor is able to apply your specific multi-pack discounts based on your POS processing
- Your manufacturer has included you in the multi-pack program and provide your discount
- Have your processor know how to resolve certification delays or data problems.
Of course you can sell more if you discount the price. Of course, you can up-sell more easily when the customer gets a great value. Of course, they will visit more when you provide the best value. The program works, make sure you have a partner that will help you get all the reimbursements so you maintain your margin.
It helps when you have a cigarette rep that knows the program and helps you get started. Also make sure your processor understand the details of all the different rebate issues and has a track record of getting full payments for their clients (i.e., carton, multi-pack and loyalty). Of course, it helps to be able to contact a knowledgeable person who will help you get it done. Sometimes the program and technology can be a bit frustrating in the beginning. Find the right partner and make it happen. Drive more sales and save your customers a lot of money.
Cigarette Scan Data Has Three Parts
- Basic file submission for up to 10 cents a carton (everyone does this step)
- Multi-pack certification. Make sure you get your reimbursements.
- Loyalty processing certification. This one is often worth more than the others.
C-Store Scan Data – Related links
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