In a bid to keep up with customer demand, Lollypotz has opened a new distribution centre in Sydney, and it has plans to open them in all of Australia’s major capital cities.
Louise Curtis, owner and director, Lollypotz says SEO has enhanced the company’s profile online, and customers from all over Australia are subsequently seeking its services.
“We have realised that we have to open distribution centres in those areas where we are not franchised, because we have to service our customers.”
Louise says the experience has made her realise just how important these distribution centres are.
“Franchisees can run their businesses from home, but they don’t have a shop front or physical presence.
“As awareness of our brand has become greater we have found we need to have premises so people can feel and touch and see the product. We have to have what we feel are points of sale for our customers,” she explains.
The distribution centres themselves are showrooms with a small factory attached, and customers are welcome to come in and view the products.
Louise says the company is looking to establish distribution centres in all major cities, because it doesn’t make sense to distribute products solely from the company’s head office in Canberra.
For example, a product for a customer in northern Queensland would be sent out of the Brisbane distribution centre when it opens.
“We have found having some shop fronts within the vicinity of these capital cities that people can go to, to see and touch and feel the product is very important,” she adds.
Louise has found the company’s products are in high demand in Melbourne, and she is currently looking for space to open up a distribution centre there.
“On Valentine’s Day morning we received over 400 orders for the Melbourne CBD and I had no one to service them,” she explains.
She insists Lollypotz is going to continue with franchising, and the distribution centres will in fact support franchisees.
“We are certainly not closing the door on franchising; I have a new franchisee starting this week.
“This is about providing long term security and these points of sale to support the franchise system, because we understand that our franchise owners want to work from home, but we also understand customers want to see the product.”
She explains the distribution centres will also alleviate the pressure on franchisees, and cites another Valentine’s Day example where the company struggled to keep up with customer demand.
“Nearly every franchise owner was in tears because we were saying to them ‘ok here’s another 200 orders that need to be processed in the next two hours’,” she recalls.
Similarly, when a franchisee is away, the Sydney distribution centre is able handle their orders.
Louise wants to make it clear that the distribution centres will not have a negative effect on franchisees.
“We are not encroaching on any franchise territory, we just need to consider it as another franchise, but it is company owned.
“We are all going to co-exist just as the Canberra office has always done in its territory with adjoining territories in Goulburn, Nowra and Wollongong,” she explains.
At the end of the day, the distribution centres are about ensuring the needs of the company’s customers are fulfilled.
“This is not about the franchise system; this is about serving our customers and ensuring 100 percent customer satisfaction.
“We need to have a stake in these areas [capital cities] to support our customers, because if you don’t have happy customers you don’t have a business,” adds Louise.
Images: lollypotz.com.au