How Can Photo Retailers Expand Print Revenue in 2019?
“Focus on up-selling, doing things differently and finding your niche,” Mast summarized. “Retailers, many of them anyway, must change their business model. The 4×6 no longer exists as a profitable market. We can supply products for retailers who approach their business as B2C, but we want to help dealers diversify and expand business into B2B,” he said.
Mast recommends that photo dealers go after the B2B market partly because the B2C segment offers margins that are too low. In B2B, end consumers are looking for quality. To cash in on this different appetite, dealers should position themselves as a gallery instead of a showroom or lab.
How does Pakor help retailers achieve this shift?
“To begin with, as a manufacturer we now look in the mirror more. Now we’re doing more educating instead of just shipping boxes,” he explained. “We sell expertise. We have some reps with more than 30 years’ experience. We’re experts and we concentrate on transferring our accumulated knowledge to our retailers.”
In addition to expanding into the commercial B2B realm, Mast encourages dealers to find their niche. “For example,” he said, “we’re a leading supplier of passport systems. Why let your customers go to the post office? We can provide a $1,500 system for passport photos. But more important, we show how to create a Google ad for international passports. There are 660 colleges in the U.S. that offer study-aboard programs. This is obviously a built-in market for passport photos, but it’s largely untapped.”
In terms of up-selling, Mast pointed out that Pakor offers a variety of printable items, including buttons, magnets and so forth that are popular and provide more profit for the retailer.