Store economics
Grow your store’s revenue without raising prices - here are 5 options
Your store’s next revenue stream could come from a service, available space, an in-store event or the bags you already sell. Compare five options and what each requires from your business.
Five ways to earn additional revenue
The useful comparison is what the store retains and what must change to earn it. Start by separating service payments and rent from advertising revenue.
1. Parcel service: an additional store service
This is a service with ongoing work. You receive payment per task, while staff handle receiving, storage and handover.
Strength. Can fit a store that wants to offer another service and has suitable space and staff.
Consider. Parcels need receiving, storage and handover. Payments must cover handling during busy periods too.
- Staff work
- Space requirements
- Investment requirements
2. Parcel lockers: offer a location
Start with payment. Will the store receive rent, or is the benefit mainly a service and possible visits? Agree responsibility for access, cleaning and damage.
Strength. Operator-owned lockers can use available space without staffed parcel handover.
Consider. The lockers occupy space that the store cannot use for anything else. If the operator does not pay rent, the store receives no direct income from the lockers, even if they attract more visitors.
- Staff work
- Space requirements
- Investment requirements
3. Ad screens: use the store’s location
A screen does not always require your own investment. Butiksreklam describes an operator-managed offer with no-cost installation and shared ad revenue. Check the terms for your store.
Strength. Can combine advertising with the store’s own messages.
Consider. Location, equipment and operating responsibility must suit the store. A screen can also detract from the customer visit if it draws too much attention away from personal interaction.
- Staff work
- Space requirements
- Investment requirements
4. In-store events: when customers want to try or ask
An in-store event can be a product demonstration or another staffed activity. In a paid partnership, the store provides space and time to an external organiser. The agreement needs to cover the activity fee and responsibility for staff and materials. The event fee is a separate revenue stream from any additional goods sales.
Strength. A staffed demonstration or activity allows questions, personal conversations and immediate feedback.
Consider. The event occupies store space for a set period and requires planning for staffing, customer flow and cleanup. A single event generates a one-off fee rather than recurring revenue.
- Staff work
- Space requirements
- Investment requirements
5. Posterbag: advertising on store carrier bags
Posterbag offers advertising on bag gussets and coordinates the advertising work with the store’s existing supplier. This means the store keeps its identity on the broad side. Advertising work is offered at no additional cost to the store.
Strength. No additional service counter, screen or advertising footprint on the store floor. You retain your bag supplier.
Consider. Advertisers must be booked. The store approves the ads and the supplier must be able to print them.
- Staff work
- Space requirements
- Investment requirements
What does each option require?
A longer orange bar means greater requirements for the store. A shorter bar means fewer requirements. These assessments describe the arrangements below, not measured results.
| Option | Staff work | Space requirements | Investment requirements |
|---|---|---|---|
| Parcel service point Storage, handover and customer service become part of operations. | Staff work | Space requirements | Investment requirements |
| Space for parcel lockers Assumes operator-owned lockers. Payment for the space must be agreed. | Staff work | Space requirements | Investment requirements |
| Operator-managed ad screen Assumes the operator provides installation, operation and ad sales. | Staff work | Space requirements | Investment requirements |
| In-store event A staffed activity with dedicated space. Costs and responsibilities are allocated in the agreement. | Staff work | Space requirements | Investment requirements |
| Bag ads through Posterbag Uses existing bags and supplier. Approvals and print planning are required. | Staff work | Space requirements | Investment requirements |
Tip: start with carrier bags - an asset you already have.
Since carrier bags are already part of the store’s operations, part of their surface can be used for advertising within the existing purchasing process. This can add an ongoing revenue stream without a new service counter or equipment in the store.
Sources
- PostNord
Applications and requirements for parcel service points, including premises and delivery access.
- Fastighetsägarna
Agreement background for parcel lockers, covering locations offered with and without payment.
- Butiksreklam
The provider’s description of its operator-managed screen offer, including installation, operation and ad sales.