My client operates a convenience store in a rural area.
He is wondering whether installing a lottery machine could cause a loss of more profitable lines due to frustrated customers, queuing to pay for a bottle of wine losing their patience.
Also any idea of the expected commission revenue and increased footfall potential.
John
Replies (7)
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A lottery point will bring customers in, particularly in a rural area. Hopefully while buying their ticket they will buy other things too.
No idea how much the commission is.
I think ...
... it is 5%, and they take their money weekly, less any prizes paid out.
Generally people in rural areas are less impatient and don't mind a queue and a chat, but that is for your client to guage, as is if there is demand for it, i.e. has he kept a note of people asking him why/when he will do the lottery.
In his favour, people will wait a few minutes rather than a long drive to the next store?
Most would just have it as an extra item on their shopping - do you foresee queues out the door of people popping in just for the lottery?
The counter question is, would it draw people in for more profitable items as they don't have to schlep 10 miles up the road for their lottery ticket now?
EDIT: I must have been writing at the same time as Owain which is why we overlap a bit.
Just to make clear, your client will bank the money, the lottery will take what is due them by DD each week, i.e. gross receipts, less prizes, less commission.
but beware the peaks
there is usually a long queue for tickets in the local supermarket on the evening of a large roll over. Might not be such a problem in a rural area
go for it
Clients who have lotteries have all said that they don't know how they could do without it now and the increase in sales has been amazing.
One draw back - counter space.
Earnings from the lottery itself are not a lot I would guess, but dont forget they will be expected to sell scratch cards etc etc as well, so enough counter space is a must. Reliable internet connection is also a must.
And yes, it will boost sales of sweets, cigarettes, etc.