Tobacco rebate scheme trialled by Nisa
Nisa commented: 'A low price in store has a positive impact on your tobacco sales and, in turn, will enhance your reputation'
Nisa is trialling a tobacco rebate scheme for partnered stores that price selected Imperial Tobacco lines at a new, lower RRP.
The 13-week trial ending on 6 December includes Players Superkings Real Red, Players Kingsize Real Red, Lambert & Butler Real Blue Kingsize, Lambert & Butler Kingsize Silver and Gold Leaf.
Participating retailers must reduce the RRP by 8p to 10p in exchange for rebates of between £1.07 and £2.29 per case ordered. The new incentive means an individual pack of JPS Players SK Real Red, with a wholesale price of £6.92 and a RRP of £8.80, must be sold at £8.70 or less to receive a rebate of 17.8p per pack.
Overall, this increases profit on return from 5.6% to 7%. The rebates will be credited on a rolling five- to-six-week basis.
In an email notifying retailers of the trial, Nisa said: “A low price in store has a positive impact on your tobacco sales and, in turn, will enhance your reputation.
“You will have to ensure quality EPoS data each week is sent to Nisa. This includes all unit sales volume and RSP sales values of the five lines.”
Commenting on the scheme, Harry Goraya, owner of Nisa Local in Northfleet, Kent, told betterRetailing: “We’ve done similar schemes with other manufacturers and they work quite well. So often now, customers ask what’s your cheapest pack?
“So, suppliers know if they can ensure a retailer can stock at low prices with better margins, they’ll get volume. It also helps the premium lines to stand out in terms of price.”
The scheme operates similarly to Booker’s ‘tobacco club’ launched in February.
Like Nisa’s scheme, Booker asks participating retailers to sell products at RRP or below, with retailers required to send in EPoS data to prove the rules are followed.
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