Once the sole domain of the forecourt, Till Point Promotions were designed to take advantage of the fact that customers were already buying fuel, by giving the opportunity to make an additional purchase at an “incredibly” low price. This enhanced the margin the retailer received on the overall transaction and gave the consumer the perception of great value for money.
The trick was to use the fuel pump as an advertising hording while you had the consumer captive, filling up his tank. However, some of these “low” prices were matched by very low quality goods.
Competition in the market has brought considerably enhanced ranges and products and, having let the forecourts suffer these growing pains, the offering is now more widely available and has crossed over into high street convenience.
While, the non-forecourt business cannot make the same use of pump top promotional advertising to sway the consumer, the point of well branded high value and high margin goods is to make the most of that impulse spend. Your counter top is by far and away the most valuable square foot in your shop and you should not be selling it short.
Most offerings should give you margins of at least 25-30% and on a ticket price of £5, that’s a cash profit of up to £1.50: there are not a lot of opportunities around to make that sort of money.