Benefits of Rebate Management on Tobacco Products
As an industry, convenience stores have experienced 15 years of record in-store sales, so it’s no wonder that this cornerstone industry of the American economy reported in 2017 that $1 out of every $30 was spent at a convenience store. While some of this growth stems from higher gas prices in 2017, convenience stores are creating opportunities in other ways within their four walls to drive profits. One method is to leverage the rebate market in the industry’s largest merchandise segment, tobacco. Continue reading to learn how implementing rebate management can help drive profits in convenience stores.
A Major Segment of Sales
Tobacco sales account for 34% of in-store sales in the convenience store market segment, and there have been rebate and reward programs available in this merchandise segment for years. Technology has driven innovation in the rebate marketplace, allowing faster turn around and increased rewards for customers. With back-office solutions consolidating and streamlining data collection, tobacco manufacturers have begun to open the rebate game to retailers themselves with. By leveraging the right rebate management software, your store can start to significantly increase profits.
A Profitable Partnership
As competitive as the tobacco industry can be, gaining access to shopper behavior and habits can provide a manufacturer with a distinct edge. The Smokin’ Rebates program, Success Systems has integrated point of sale scan technology with manufacturer sponsored rebate programs that offer up to $0.15 per carton sold.
This integration, after an initial setup fee, allows your back office system to automatically submit scan data and analytics from your system on a weekly basis directly to manufacturers to be used in conducting market research, creating promotional materials and marketing initiatives, and other rebate programs.
A robust reporting system allows you to learn about your operation’s sales in the tobacco segment and develop your own marketing initiatives to drive sales in the segment. Based on the data gathered and units sold, the manufacturer will in turn and at no cost to yourself cut a check to your company on a quarterly basis, resulting in an income stream that if properly leveraged can result in thousands of dollars a year.
Get Ahead of the Rising Curve
While the industry is setting records in sales, it is also struggling against rising wage costs, insurance costs, card fees, and vendor and franchise fees. Success Systems provides its clients with affordable methods of managing and automating the management process in the convenience store and gas station market segments. With the proprietary Smokin’ Rebates technology working seamlessly in the background, you’re leveraging your most active market segment in order to create a risk-free revenue stream that will help increase profits for your operation in the long term. Contact us today to schedule a free demo.