IGESWaterpark DinnerGenerating Revenue

David D. Mitchell

Palace Entertainment

Tina Hatcher

3i AdvertisingNovember 2014 1

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Generating Revenue

• Identifying Trends• Items to maintain COS• Small Spaces• Top sellers• Trends 2014-2015 • Store Layout• Planograms – Balance and Flow

• Increasing Revenue• Solid steps for increasing sales

• Overview3

Identifying trends

What is a trend?Something developing or changing (Organic & Made in USA)

Camouflage

What is a fad?Something that comes and goes …the silver bullet/bandwagon

Beware “it’s selling like hotcakes everywhere, you must have it”

Who drives a trend?YouTube©, Facebook®, Magazines, Colleges, Major Sports Teams

Who offers the best direction?Retail Stores, Expo’s & Shows, and Magazines

Surf Expo©, Las Vegas Gift, Tennessee – Pigeon Forge & GatlinburgConsistency in products shown at Expo’s amongst top vendors

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Cost of Sales

What are my actual Cost of Sales?It’s the percentage difference of profit from the cost, delivery charges

and revenue from the sold item

How do I know my best sellers?The amount of reordersVendor feedbackGuest feedbackIndustry colleaguesOther resources

Social media, guests in the park5

Maintaining COS• Candy• Packaged is best - less mess and easy to back fill• Sour worms, War Heads, Peachie O’s, Airheads • Plush pops, Rock candy, Theme suckers• Packaged cotton candy (Flossie’s or Dandy)

• Sunglasses• Children, Adult, Polarized, Novelty

• Display is a must, with a mirror

• Jewelry• Mood rings, surf necklaces, hair accessories, and bracelets

• Aqua Socks or Flip Flops • Displays are best or wall units

• Park Name Plush• Great item for PWP

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COS Continued

• Beverages“Ice Cold”•Soda pop, Water, Tea, Lemonade, High Caffeine soda•Ice cream with the freezer visible from outside

• Snacks•Grab n’ Go - the salty the better!•Near the register, in the cue line near the beverages and candy

• Impulse Buys•Item price average $0.49 to $1.99

• Keep the cash wrap clean and clutter free•Stock the shelves, keep them full but not overstuffed

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Small Spaces – Big Impact

• Limited Retail Space• Purchase the “grab in go” Candy and Snacks• Towels, Sunscreen, Aqua Shoes, and Jewelry• Magnets and Bottle openers

• Fasten sheet metal to the wall

• Lollipop tree with plush – perfect for kids• Suits, Tops, Tanks, and T’s can hang on walls• Package Deal

• Tote Bag, Sunscreen, Towel, Mug, Magnet etc.

• Big Out – Small In• Use spill out for large items, and small inside

“Dust racks, vacuum floors, remove dead bugs from window displays – keep it clean!”8

Life Guard Souvenir Apparel Hoodies, Jr and Adult Tee shirts

The chair is the best POP

T-shirts/Tanks Name drop full front (FF) is best for Destination parks Kids – FF with bright colors & glow in the dark

Beverages Contact your local supplier for the cooler Or contact one of your local business partners to sponsor the purchase of one

(with free advertisement)

Cabana Towels Great item to offer with the purchase of a cabana Consider including a bottle of water

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Top Sellers

Hot Trends for 2014-2015

Neon (great anchor colour…the eye catcher)Hot for Juniors, Bright colors and Stripes

T-shirts, Hoodies, TanksClassic designs revamped (Coke, Pepsi, Papst Blue Ribbon,)Jr tops: Baseball V-neck; Oversized, and Flare tanks

Surf and X Sports (Hottest apparel)

Wild animal graphics, Camouflage

JewelryMarvel Hero’s, Bracelets, Tiki’s, Shark’s Teeth, Mood

Love PinkContemporary Juniors - Attracted Bright colors such as pink, green,

yellow, coral, and fuchsia10

Store Layout

Planograms T-shirts (tell the story)Sundries

Floor or Wall display with all the needed items

Balance and FlowFollow the path through your store

Product PlacementWindow display of hot items

Men’s sectionKeep it basic, but bright

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Increasing revenue

• Foot Traffic• Add More Items• Increase item cost• Negotiate lower pricing

“If you can’t measure it, you can’t manage it!”12

Foot Traffic

How to get the guest in your store?A-frame signs

Outside your store with a reminder of best sellers

Bright, vibrant, and not too busyReach out to vendors for assistance with signage

FacebookWindow displays are prime real estateNeon or Tie DyeJunior Apparel Boxes of CandyConsistent top park sellersChange merchandise every 2-3 weeks 13

Adding More Items

Upselling and Cross-selling

McDonalds® - “Would you like fries with that?”Upselling – adding an item at a higher costCross-selling – an item not associated with the purchaseAdd-ons are items to compliment purchase

Each opportunity adds items and increases revenue

TransactionsAre how many times the guest comes to purchase Season Pass Holders are the toughest

Offer weekday discounts (Monday-Thursday)

Locker rental or ATM withdrawal receipt14

Increase Prices & Negotiating Increase item cost•Add 10% to your current pricing

• Jewelry can add up to 20% with an awesome display• Cool Jewels and Barry Owen have light up displays (Joe Bonk)

• Focus on your top selling categories • Maintain pricing on larger value goods

• Mentality of a “fair price” on commodity goods-Keystone

Negotiate lower pricing•Total amount of goods purchased as leverage•Competitive bid with another vendor

• Who is willing to play the game? • Threaten to move business• But ALWAYS have a back up plan!

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Overview

Go out into your park, walk through it as if you’re a guest

See what’s missing and can be added to increase foot trafficSignage in areas on the way to the store (I’m Thirsty!)

Use Google® Earth for an aerial view of your locationProvides a “birds eye” view locating opportunities

Pricing for core items; have higher perceived valueSunglasses, jewelry, flip flops, cover ups, headwear

Higher quality/branded products capture the guests’ attention and push their buying habits to a higher level 16