Author: mark

If you recognise the need for a transformation in your newsagency but find your business data isn’t up to scratch, don’t despair. There are immediate actions you can take right there on the shop floor to initiate change.

In our experience, businesses in this situation often have a very traditional shop floor layout. The advice we are about to give is all about deliberately disrupting what you currently have. We have found this can be incredibly helpful for retailers to see their business with fresh eyes and identify new possibilities. It’s a radical and somewhat rough approach, designed to shake things up significantly.

It’s crucial to understand that whatever changes you implement aren’t set in stone. Make these moves, observe the results, learn from them, and be prepared to adjust. Your shop needs to be in a constant state of evolution.

First: Confronting the Old Guard – The Newspaper and Magazine Unit

If your shop features a traditional magazine fixture running down the length of the store, with newspapers facing customers as they enter, here’s what you need to do: remove all the stock and rip the entire unit out. Don’t overthink this; just get it done.

That prime central space is valuable retail real estate that should be dedicated to products yielding a gross profit of 50% or more. Allocating this high-visibility area to products with a 25% gross profit or less is simply not a sound business decision.

Tear the whole unit out.

Now, using basic, low-cost shelving – the kind you’d find in any hardware store – relocate your magazines to the back wall of the shop. Whatever was previously in that back wall space will need to be moved elsewhere. Simple strip shelving with adjustable brackets will suffice.

Place your newspapers on a low, flat shelf beneath the magazines.

Furthermore, if you’ve been displaying newspaper or magazine posters, it’s time to stop. They don’t effectively increase sales.

Second: Filling the Newly Liberated Space

Find a couple of old tables or some sturdy wooden boxes. Use these to create display areas on the main shop floor. On each of these makeshift displays, tell a story about a specific product category. Bring products to this central part of the shop that customers might not typically encounter.

If you don’t have spare tables, check out your local op. shop, your garage, or a discount retailer like Amart. Keep your spending to an absolute minimum.

Resist the urge to use spinners in this newly recovered space.

Carefully select products that you are genuinely proud to offer.

Crucially, make sure to include some products that you think won’t work for your customers. This is a vital step in uncovering what you don’t yet know about their preferences and buying habits.

Be prepared to completely change these displays within a week if they aren’t generating the results you’re looking for.

Three: Observe and Learn

The initial changes might not yield immediate success, and that’s perfectly okay. If they don’t, make further adjustments and continue experimenting until you see positive outcomes.

You might also experience some early wins. If that happens, capitalise on it – do more of what’s working.

If your business still has that traditional central magazine and newspaper unit, we suspect you’ll see some encouraging results from this radical shift. That’s been the pattern in every similar business we have seen try it.

Most importantly, have fun with this process.

We know one newsagent who, after making these changes, hosted a Saturday afternoon sausage sizzle specifically so people could watch as they literally used a chainsaw to dismantle and remove the old magazine unit from the shop!

The fundamental aim of this initial move is to disrupt your ingrained view of your business. Yes, the shop floor will be temporarily disrupted, but more importantly, you need to be disrupted in your thinking. That’s why you need to undertake something radical that you’re likely to initially resist. These suggested changes could potentially do more for your personal perspective than for the immediate bottom line of the business itself.

newsXpress helps Aussie newsagents and small business retailers thrive.

If you’re serious about transforming your retail newsagency or any other local small retail business with which you are involved, whether it’s a traditional setup or one that’s already evolving, the journey begins with a clear understanding of your current position. It all starts with your data.

Knowing exactly where your business stands is the bedrock upon which all future progress will be built. This means taking a comprehensive look at your operations from various angles. You need to gather the following:

• An up-to-date profit and loss statement. This provides a snapshot of your recent financial performance.
• A current debtors report and a current creditors report. These show who owes you money and who you owe money to.
• A complete list of all monies owed by the business, both formal loans and informal debts.
• A stock listing showing the total value of your current inventory.
• A dead stock listing, detailing all items with zero sales recorded in the past six months or more, along with the total value of this stagnant inventory.
• A floor map illustrating the gross profit percentage contribution by each product department or category in relation to its allocated floor space.
• Your total rostered hours for a typical week, including all owners regardless of whether they draw a formal wage, alongside a calculation of your revenue per hour.
• A revenue comparison down to the individual category level, comparing the most recent six-month period with the same six months from the previous year.

Simply stating a desire to transform isn’t enough. You need to deeply understand your current situation and the business’s capacity for change. The information listed above will reveal immediate opportunities and provide insights into the business’s ability to fund the costs associated with transformation. This list is the essential starting point for any business I work with on making significant changes.

As you delve into this pool of data, my strong recommendation is to first seek out easy wins that can pave the way for a more focused and productive approach moving forward. For instance, if you discover $10,000 or more tied up in dead stock that has already been paid for, get rid of it! The freed-up cash and valuable space will give you an immediate boost. To clear this stock effectively, consolidate it into a designated clearance area – perhaps a table or a few tables. Apply a consistent discount across all these items; I suggest a straightforward 50% reduction.

While you’re tackling the dead stock, simultaneously work through the rest of your data. Aim to understand the current performance of your business and carefully examine the comparison report for any readily apparent “green shoot” opportunities within your existing product categories. This could reveal a simple first step you can take.

As you analyse your data, compile a comprehensive list of ideas and potential action items. You might uncover some easy wins you hadn’t previously recognised or had been overlooking.

Over the years, we have spoken with retailers considering business transformation or improvement who have been tempted to rely on their accountant for guidance. Unless your accountant has current, hands-on retail experience specifically within your type of shop, we believe this is a misstep. Others have been keen to engage business consultants. Similarly, unless they possess current retail experience in your particular sector, We would advise caution.

The key takeaway here is that this is your business. You’ve reached a point where you want change, a transformation. The next steps are yours to take and are best executed by you, ensuring you have ownership of the changes.

This initial phase begins with diligently gathering your data, cleaning out the stagnant aspects of your business, and getting your business “fit” for what lies ahead.

All of this groundwork is about preparing you to be “match fit” for the more substantial changes that will follow.

newsXpress helps local small business retailers thrive.

Let’s talk about labour costs and how they impact your newsagency or any retail business. The newsagency benchmark suggests aiming for a labour cost that sits between 9% and 11% of your total revenue – that’s your product sales plus any commission you earn from agency lines.

To put that into perspective: if your combined revenue from products and commissions totals $1 million, your total labour expenditure should ideally be around $110,000.

It’s absolutely vital that this labour cost calculation includes a fair market value for the time you, as the owner, invest in the business. Too often, we see newsagency owners clocking up a staggering 60 to 80 hours each week, and frankly, a significant portion of that time isn’t generating productive outcomes.

Think about it – a small business simply can’t afford unproductive management time. Your larger competitors don’t carry this overhead, and neither should you.

This is why we strongly advise against having a dedicated back office, or if it’s absolutely unavoidable, to keep it small and certainly not a comfortable space. There’s a hidden advantage to this lean approach: it naturally pushes pricing and other administrative tasks out onto the shop floor. Embrace this shift, and you’ll likely see your revenue increase.

While the dream of business ownership often involves stepping away from the frontline, remember that the shop floor is where the money is made. That’s where your best people should be, and arguably, where you should be spending a significant portion of your time too.

Allocate your “boss time” strategically, in proportion to the size of your business. For a typical small retail business turning over $2 million or less annually, we suggest limiting your dedicated management time to no more than around five hours per week. Of course, this depends on how you utilise that time. If you’re handling bookkeeping yourself, thereby saving on external costs, then a bit more time might be justified.

Here’s a more practical way to visualise the impact on your bottom line: simply cutting three hours of paid adult labour each day, from Monday to Friday, can directly boost your business’s profitability by over $20,000 per year.

If you’re thinking that’s not achievable in your situation, take a hard look at where you’re currently spending your “boss work” hours. Could some of those tasks be done at the counter or while you’re on the shop floor? By effectively multi-tasking, you could potentially reduce your paid labour hours. Ultimately, it comes down to whether you’re committed to making your business more profitable.

Consider the experience of one newsagent who heeded this advice. They successfully cut their labour costs by a remarkable $50,000 in a single period, and during that same time, their revenue actually increased by 6%.

Gaining control of your labour costs and ensuring they align with the benchmark starts with a well-thought-out and efficient roster.

This is more advice from newsXpress a marketing group that helps local small business newsagents thrive.

Discovering a suspicion of theft involving an employee under the age of eighteen requires a particularly cautious and considered approach. It’s crucial to take a step back and plan your actions thoughtfully before confronting the individual or even initiating a formal investigation. An ill-conceived approach can have significant and challenging consequences for you, your business, and the young person involved.

Our advice is that the moment a suspicion arises, arrange a meeting involving the young employee and their parent or guardian. It’s also wise to have a second person, ideally independent of your business, present as your witness during this discussion.

In the meeting, present the evidence you have gathered in a calm and factual manner, and then provide an opportunity for them to respond. It’s paramount that you remain civil, stick to the facts, and avoid letting emotions cloud your communication. Actively listen to their response and take it into consideration.

Be prepared with a reasonable course of action if they ask what you intend to do about the situation. If there is agreement on your proposed resolution, you can then move forward accordingly.

However, if there isn’t agreement on your proposal, or if the young person denies the theft, you must have your next steps ready. This subsequent action should be fair, reasonable, and primarily aimed at uncovering verifiable truth.

If there is an admission of theft and the employee is casual, our recommendation is immediate termination, ensuring all legally owed entitlements are paid out. It’s often best to draw a line under the matter at this point and move forward. Avoid discussing the situation outside of your business. In close-knit communities, particularly outside major cities, constantly revisiting such issues can be incredibly damaging to your reputation.

If an agreement cannot be reached, ask the other party what resolution they propose. It’s possible that even while denying the theft, they may be willing to part ways with the business. If this isn’t the case, you could suggest mediation as a way forward. The Fair Work Ombudsman’s office may be able to offer assistance in this area. Alternatively, you could suggest that both parties report the matter to the police.

It’s vital to understand that once you involve parents or guardians, you need to be prepared to see the matter through to a reasonable conclusion.

The key message here is that handling suspected theft by someone under eighteen demands careful consideration and thorough planning. This will help ensure that you, your business, and the young person involved are all treated fairly and safely throughout the process.

This advice is provided by newsXpress for the benefit of all local small business retailers who stop by here. We are a marketing group that helps local retailers thrive.

Running a local small retail business can be tough, and when things feel slow, it’s easy to feel overwhelmed. There are plenty of straightforward, cost-free actions you can take right now to improve your situation. Here are 13 to get you started:

1. Engage Your Entire Crew: Make sure everyone on your team understands how the business is tracking, its needs, and the “why” behind it all. Work together to set achievable goals and outline the steps to get there. Keep the communication flowing and track progress openly.

2. Declutter for Clarity: Spend a day decluttering your shop. You’ll be surprised how the act of physically tidying up can help you see potential positive moves for your business. Do it yourself, and then action those insights.

3. Ditch the Dead Weight: Be honest about slow-moving stock. Whether it’s items gathering dust for six months or two years, dead stock is costs space, time and cash. Anything you can recoup is better than its ongoing drain.

4. Reward the Next Visit: Include a discount voucher on customer receipts that encourages a return visit within a short timeframe – say, seven days. This is a quick win, focusing on immediate repeat business rather than long-term loyalty programs. Think of it as a “come back soon” incentive.

5. Know Your Missing Opportunities: Surprisingly, top-selling items often go out of stock. Your POS system can easily identify these missed revenue opportunities. Fix those stock gaps, and you’ll see an immediate impact on your bottom line. Check your “Insights Dashboard” if you’re using our software.

6. Partner with Your Community: Connect with a well-regarded local community group with a strong membership base. Offer their members a discount and consider donating a small percentage of each purchase back to the group. This introduces your business to new customers.

7. Have a Cracking Time on Socials: Social media is for fun! Entertain your audience. Don’t overthink it – show the fun side of your business and share unique knowledge that sets you apart.

8. Embrace the Freebies: Ensure your Google Business and Bing (yes, it still exists!) listings are up-to-date, engaging, and accurate. These free platforms are crucial for local visibility.

9. Trim Payment Costs: Card payment fees can eat into your profits. While surcharging is an option, exploring alternative payment providers could lead to significant savings. Even if you switch, consider still applying a surcharge.

10. Connect via Email: If you have customer email addresses and purchase history, use this valuable data for targeted email campaigns. Personalised communication can drive repeat business.

11. Re-evaluate Your Pricing: Ask yourself: “What price could I realistically sell this item for?”. Your convenient location or lack of nearby competitors might allow for a higher price point. Most POS systems make price adjustments simple.

12. Chat with Your Suppliers: If you’re feeling the pinch, chances are your suppliers are too. Ask if they have any special deals on inventory they need to move. If it’s stock you can easily sell, snap it up for a better profit margin.

13. Set Your Shop Up for Success: Create an environment that encourages spending: * Inside the front door: Feature a new, bright, optimistic, fun, and unexpected display each week. * At the counter: Place impulse-buy items with strong performance and unexpected finds. * Introduce a scent: Use a pleasant incense or candle. * Play happy tunes: Choose familiar music that customers might sing along to. * Temperature control: Make your shop warm in winter and cool in summer. * Keep things fresh: Move at least one product category each week to create a sense of change.

Implementing even a few of these free and easy actions can make a real difference to your local small business. Start today and see the positive impact!

The future of the Australian newsagency channel rests in the hands of 2,800+ local newsagents, local retailers owning and running these local shops. The choices newsagents make within the four walls of their shops determine the prosperity – or otherwise – of the broader channel.

The decisions that will carry the most weight revolve around the products newsagents choose to stock, the narrative newsagents weave for their businesses, and how they approach selling.

newsXpress helps newsagents in each of these areas. What we offer is a unique set of services personalised to each member business, to help then thrive!

Before we delve deeper, let’s be clear about where the future of the Australian newsagency won’t be found. It won’t reside in the traditional staples of newspapers, magazines, lotteries, general convenience items, tobacco, inexpensive gifts, budget toys, or an overwhelming display of impulse-buy products. Competing with discount variety stores is not the path forward.

The future isn’t something that will be delivered on a platter by suppliers. Despite their historical role in shaping our channel, print media businesses, in particular, appear to have little vested interest in our long-term viability.

Across Australia we are already witnessing fellow newsagents successfully tapping into premium and unique markets. They are focusing less on being the cheapest and more on astute margin management. The enduring wisdom of “find a need and fill it” remains powerfully relevant as we evolve our local businesses.

When we talk about products, consider venturing beyond the typical newsagency fare. Imagine stocking clothing, exquisite gifts priced at $300.00 and upwards, carefully curated books (distinct from remaindered stock), quality cookware, and sought-after collectibles that will draw customers from afar. These are likely products that traditional suppliers haven’t considered for our channel.

Familiar categories like stationery, greeting cards, and other staples will continue to play a part. Their ongoing success, however, will hinge on your discerning selection and intelligent pricing strategies that account for the cost of carrying them. For instance, simply selling stationery to someone who needs it is one thing; catering to someone who truly appreciates and loves stationery presents a far more valuable opportunity, in my opinion.

Remember, there are no prescribed limits or rules. What you choose to sell is dictated by your own creativity and how you present it to your customers.

By narrative, we refer to the underlying story of your business – the compelling “why” that resonates with potential customers. If you simply operate as a shopkeeper placing items on shelves, you’re missing a crucial element. As a retailer committed to a narrative, you enable customers to understand your business’s values, enjoy being within your space, and desire your offerings because the narrative fosters trust and connection.

You cultivate this narrative through your product selection, your in-store merchandising, your social media presence, your website content, and your own personal engagement with your products and customers.

The key to a successful narrative is its capacity to evolve alongside you, the passage of time, and the changing needs of your local community.

The “how” of selling encompasses when and where you sell. In today’s retail landscape, having a robust online presence is no longer optional – it’s essential. If you’re not selling online, you’re operating with a significant blind spot, unaware of the opportunities you’re missing.

Now, if this sounds like a radical departure from the norm, it’s not intended to be. We are currently immersed in an era of experiential retail, where customers seek to feel and experience their purchases. This is where your narrative truly shines. A basic writing pad in a generic newsagency is just that – a writing pad. The very same writing pad in a store with a compelling narrative can command greater attention and a higher price point.

The more your physical shop and your online presence can evoke emotion and create a memorable experience, the greater your chances of success.

Ultimately, the future of the Australian newsagency lies in our collective ability to be sharp, engaged, and innovative. Each of you has the power to transform your individual shop into a thriving local business. It’s unlikely that this will result in a uniform channel, but that’s perfectly acceptable. What truly matters is that you build a locally powerful business that also attracts online shoppers who connect with your unique offering.

To those who choose not to act, who resist change, we wish you all the best. The era of the traditional newsagency is drawing to a close. Time will inevitably catch up, leading to a contraction in the number of newsagency rooftops. While the exact figure is uncertain, current trends suggest a potential loss of 150 to 200 businesses in the next year alone.

For those eager to embrace change, know that there is a supportive community within the channel ready to assist where we can. Reach out. Together, we can ensure the continued relevance and success of our vital local retail businesses, regardless of the diversity of our products and services or what we choose to call ourselves.

Footnote: Some may argue that the traditional “newsagency” name is no longer relevant. While the core product of “news” may have diminished in significance, the name itself matters less than the actual experience your shop offers. It’s akin to the saying, “a picture is worth a thousand words.” What your shop demonstrates itself to be is far more impactful than its name. That being said, Australian newsagencies, being inherently local businesses, are arguably best served by a name that holds local resonance, rather than an impersonal national brand.

Second footnote: Reflecting on what has been written, we acknowledge that a definitive prediction has not been offered. This is because a singular “channel” future is unlikely, and there’s no way to foresee the individual choices each business will make.

In the dynamic world of small business retail, profitability isn’t just a desirable outcome – it’s absolutely paramount. It’s about more than just seeing a positive balance today; it’s about diligently constructing a robust foundation for sustained growth and enhanced future value. At newsXpress, we appreciate the significance of profit and its direct influence on the overall worth of your newsagency.

Here is why profit matters:

Immediate Financial Gain: Profit provides an immediate boost to your business’s financial health, placing crucial funds directly into your account. This empowers you with the resources necessary to reinvest in your operations, manage essential bills, and, importantly, enjoy the rewards of your hard work.

Future Value Proposition: A consistently profitable business is undeniably more appealing to prospective buyers. When the time comes for you to consider selling your newsagency, a strong and demonstrable profit record can significantly elevate its market value.

Here’s how newsXpress supports local newsagents on their profit journey

At newsXpress, our commitment lies in empowering you to maximise your newsagency’s profitability. We focus on a range of key business areas, from astute inventory management to fostering meaningful customer engagement. Here’s a glimpse into how we can contribute to your ongoing success:

Inventory Management: We assist you in optimising your stock levels through insightful analysis of product turnover rates. This enables you to identify opportunities for cost reduction and enhanced operational efficiency.

Supplier Relationships: Our extensive network of preferred suppliers offers you access to competitive pricing, exclusive product lines, and exciting first-to-market opportunities.

Central Billing: Our streamlined central billing program provides you with advantageous delayed billing terms, thereby improving your vital cash flow.

Training and Guidance: Our practical, shop-floor focused training and guidance are designed to help you achieve tangible improvements in inventory turnover, enhance your return on investment, optimise your valuable floor space, and boost labour productivity.

The advantage of being part of the newsXpress community.

By choosing to partner with newsXpress, you can look forward to a range of significant benefits, including:

Increased Profitability: Our carefully developed strategies and comprehensive resources are specifically designed to help you strengthen your bottom line.

Enhanced Business Value: A consistently profitable newsagency naturally becomes a more valuable asset when you eventually decide to sell.

Access to Exclusive Opportunities: Our well-established network of preferred suppliers opens doors to unique products and early access to innovative new offerings.

Improved Efficiency: Our targeted training and ongoing guidance can help you streamline your day-to-day operations and effectively reduce costs.

Profitability forms the very bedrock of your newsagency’s ongoing success and long-term sustainability. By collaborating with newsXPress, you gain access to the essential tools, valuable resources, and dedicated support you need to drive profitability and, ultimately, maximise the inherent value of your business.

No matter the size of your newsagency or whether you are located in the city or country or in a shopping centre or on the high street, newsXpress is here to support you on the big and small opportunity cities and challenges you face in your business. How can we help you?

Please remember that all initiatives and offerings from newsXpress are entirely optional. You always retain complete control over every decision made within and for your local retail business.

Whether you’ve got a traditional newsagency or you’ve already made some changes, understanding your current position is absolutely essential. It’s the very first thing newsXpress focuses on when working alongside newsagents.

Think of it this way: having a clear picture of your business’s present state is the solid ground upon which everything else will be built. It involves taking a thoughtful and thorough look at your operation from all angles. So, what information will be most helpful? Here’s what we consider important:

• A profit and loss statement that reflects the current situation.
• Up-to-date reports on who currently owes money to the business (your debtors) and who the business currently owes money to (your creditors).
• A comprehensive list of all outstanding amounts owed to the business, both through formal invoices and any less formal arrangements.
• A recent stocktake that provides the total value of all the stock you currently hold.
• A specific listing of any stock that hasn’t sold for six months or more (often referred to as dead stock), along with its total value.
• A floor plan of your newsagency that indicates the gross profit percentage generated by each product department or category, as well as the amount of floor space allocated to each.
• The total number of hours rostered per week for all staff members, including yourself, and the total revenue generated per hour.
• A comparison of your revenue across different product categories for the past six months when compared to the same six-month period in the previous year.

While a desire for change is good, it’s equally important to have a clear understanding of your business’s present circumstances and its capacity to accommodate change. The information outlined above will highlight immediate opportunities and provide insight into your ability to invest in making those changes. This is always the initial step in any business transformation we undertake together.

When you’re reviewing this data, we suggest focusing on identifying some achievable early wins to help build momentum. For example, if you find you have, say, $10,000 or more tied up in dead stock that has already been paid for, consider making a concerted effort to move it. Freeing up that capital and the physical space it occupies can have a surprisingly positive impact on your business. Perhaps setting up a designated clearance area with a consistent, reasonable discount, such as 50%, could be a good approach.

As you’re addressing the dead stock, take some time to carefully analyse the rest of your data. This will help you understand your current performance across different areas and identify potential opportunities within your existing product categories. This deeper understanding will provide a thoughtful direction for your initial steps forward.

As you gently explore the data, make notes of any ideas or specific actions that come to mind. You might just uncover some valuable opportunities that you hadn’t previously considered.

Some retailers find it helpful to seek advice from accountants or business consultants. While this can certainly be a valuable resource, it’s wise to ensure that anyone you consult has current, practical retail experience within the newsagency industry specifically.

Remember, this is ultimately your business. You are the one guiding the process of change and transformation. Embrace that ownership.

Begin by gathering this essential data, gently streamlining your operations where possible, and building a strong, clear understanding of your current position. This will thoughtfully prepare you for more significant and rewarding developments in the future.

newsXpress is here to help.