Category: newsagency management

If you’re looking to change your retail newsagency, whether it’s a traditional business or one that’s already undergone some transformation, understanding your current position is crucial. This starts with your data.

Knowing where your business stands is the foundation for future steps. This involves examining your business from different perspectives.

• An up-to-date profit and loss statement
• Current debtors and creditors reports
• A list of all money owed to the business, both formal and informal
• A stock listing with total value
• A dead stock listing (items unsold for six months or more) with total value
• A floor plan showing gross profit percentage by product department or category and floor space allocation
• Total rostered hours per week, including owners, and revenue per hour
• A revenue comparison by category for the past six months compared to the previous year

It’s not enough to simply desire change; you need to understand your business’s current state and capacity for change. The information above will highlight immediate opportunities and your ability to invest in changes. This is the starting point for any business I work with on transformation.

Reviewing this data, I recommend focusing on quick wins to build momentum. For example, if you have $10,000 or more in dead stock that’s already paid for, clear it out. Releasing this cash and space will benefit your business. Create a clearance area and apply a consistent discount, such as 50%.

While addressing dead stock, analyse the rest of your data to understand current performance and identify potential opportunities within existing categories. This can guide your initial steps.

As you explore the data, create a list of ideas and action items. You might discover previously overlooked opportunities.

Some retailers seek advice from accountants or business consultants. While this can be helpful, it’s essential they have current, hands-on retail experience in your specific industry.

Remember, it’s your business. You’re the one driving change and transformation. Take ownership of the process.

Start by gathering data, streamlining your business, and building a strong foundation. This will position you for more significant changes in the future.

Free management advice from newsxpress for all newsagents.

This strategy offers a mutually beneficial approach to increasing customer base, supporting local communities, and enhancing brand reputation. By partnering with a well-regarded community group, businesses can tap into a new customer demographic while contributing to a worthy cause.

Identify a local community group that enjoys widespread support and has a membership base that overlaps minimally with your existing customer profile. Propose a partnership where the business offers a percentage of each purchase made by group members and their families to the organisation. In return, members receive a discount on their purchases.

Careful consideration should be given to the financial implications of the offer, ensuring it aligns with profit margins and anticipated sales increases. A trial period can help assess the campaign’s effectiveness and allow for adjustments as needed.

Leveraging point-of-sale software can streamline the process, allowing for easy tracking of discounts and donations through dedicated member cards. These cards can become a sought-after symbol of membership and community involvement.

The primary objective of this campaign is to attract new customers and generate additional revenue. While offering a discount may reduce profit margins on individual sales, it is justifiable as an acquisition cost for new business.

To maximise the campaign’s impact, actively engage with the community group to encourage member participation.Celebrate the partnership through public events, social media, and storytelling to foster a strong sense of community and mutual support.

This collaborative approach embodies the spirit of local commerce, where businesses and residents work together to create a thriving community. By utilising point-of-sale technology, businesses can effectively manage the campaign and measure its success.

newsXpress provides more comprehensive advice than covered here. It’s proprietary so we’d not going into the full details for obvious reasons.

The strategy outlined here benefits the business and community group but can also enhance brand reputation.

By aligning with a valued local organisation, businesses can demonstrate their commitment to social responsibility and strengthen their connection with the community. Positive word-of-mouth generated by satisfied customers and the community group can significantly boost brand awareness and loyalty.

Good luck and enjoy your local community.

This week, we have been delving into fundamental aspects of newsagency operations that can significantly impact business performance and customer satisfaction. By focusing on these core elements, we can differentiate ourselves from competitors and foster a loyal customer base.

This is free advice from newsXpress as we encourage all Aussie newsagents too run more relevant and loved local retail businesses.

Customer service is often hailed as a key point of difference for newsagencies. However, is it truly setting us apart? While many of us pride ourselves on our community connections and customer care, the reality is that the bar for service is continually rising.

Basic service standards, once considered exceptional, are now becoming commonplace. Greeting customers, rewarding loyalty, and offering additional services like gift wrapping are no longer optional but essential. The question is: what extra steps can we take to truly distinguish ourselves?

Consider how you respond to customer inquiries. Do you simply tell them what you have, or do you go the extra mile by showing them? Are you bringing back-office challenges into the customer-facing environment? These actions can greatly influence a customer’s perception of your business.

Moreover, providing product information and care instructions, especially for gift items, is becoming increasingly important. It demonstrates your commitment to customer satisfaction and can build trust.

1. Do you greet shoppers? More and more of our competitors are doping this. While traffic, labour cost and average spend may challenge the financial model of a greeter, the service is a customer service benchmark.
2. Do you reward loyalty? If not, you’re not meeting today’s minimum customer service standard.
3. Do you offer a gift wrapping service?
4. When a customer asks if you have something do you tell or do you show?
5. Do you bring back-office challenges to the shop floor?
6. Do you provide product service and care info? If you sell gifts this is becoming essential to good customer service.
7. What’s better about what you do compared to those who compete with you?

Ultimately, the key to superior customer service lies in answering this question: What sets your newsagency apart from competitors? We all sell similar products, so it’s how we deliver those products and interact with customers that will make a difference.

By consistently exceeding customer expectations, we can drive repeat business and foster a strong reputation. Remember,every interaction is an opportunity to build loyalty. It’s time to challenge ourselves to reach new heights in customer service and reap the rewards.

Australian newsagents hold a significant position in the greeting card market, accounting for nearly 35% of all card sales nationally. As the largest retail channel for cards and with impressive gross profit margins of 50-70%, it’s clear that cards are a cornerstone of the newsagency business.

However, while cards are undeniably important, are we optimising their potential? Many newsagents delegate card management to staff without sufficient oversight. This is a missed opportunity.

To maximise card sales, consider the following strategies:

• Take control of your card department. Avoid relying solely on merchandisers. Gain a deeper understanding of your product range to better assist customers. Empower all staff to engage with customers about cards.
• Refresh your card selection regularly. Collaborate with your primary card supplier to update your range at least annually.
• Prioritise seasonal cards without neglecting everyday options. Ensure seasonal cards are prominently displayed without compromising sales of popular everyday and lifestyle cards.
• Leverage licensed characters. Cards featuring popular characters often sell well. Explore opportunities to stock these items.
• Create a strong card and gift connection. Cards and gifts complement each other. Optimise product placement and promotions to encourage combined purchases.
• Implement a loyalty program. Reward repeat customers to foster long-term loyalty.
• Enhance card department visibility. Position your card department at the front of the store and ensure it is well-lit to attract attention.

By implementing these strategies, newsagents can significantly boost card sales and strengthen their overall business performance. Neglecting this crucial product category risks losing customers to competitors.

This advice is part of a series on basic Newsagency management advice rom newsXpress, a marketing group that helps newsagents run more valuable and enjoyable local retail businesses.

Beyond the core strategies we have shared above, several other factors can contribute to the success of your card department. Firstly, data analysis can provide valuable insights into customer preferences and purchasing behaviour. By tracking card sales, you can identify popular ranges, seasonal trends, and customer demographics. This information can be used to refine your product selection and marketing efforts.

Secondly, staff training is essential for maximising card sales. Ensure your team understands the importance of the card department and can effectively engage with customers. Providing product knowledge and sales techniques can significantly impact customer satisfaction and purchase decisions. By investing in your staff, you’ll create a more knowledgeable and confident salesforce.

A well-executed magazine relay can significantly boost sales in a relatively short timeframe.

In our experience, the return on investment for a few hours of dedicated effort is substantial and typically realised within a month. So, why is a magazine relay so effective? Fundamentally, it drives increased sales.

The Mechanics of a Magazine Relay

A typical relay two or less hours.

While it’s possible to delegate this task, taking ownership of the process is highly recommended. A hands-on approach reinforces your leadership and allows for a more streamlined operation without the complexities of team management. It’s essential to remember that a magazine relay is an ongoing process, not a one-off event. Regular adjustments to the magazine layout are crucial for maintaining sales momentum.

Optimising Magazine Placement

Ideally, magazines should be displayed on a dedicated wall space rather than occupying valuable centre fixture real estate typically reserved for higher-margin products.

The visual impact of magazine covers can be diluted by excessive clutter. To maximise their appeal, avoid using product headers.

Full facing, where 100% of the magazine cover is visible, generally delivers optimal results. This is particularly effective for smaller assortments of under 500 titles. For larger assortments, consider tiered fixtures with one title per pocket.However, in some cases, accommodating two or three low-volume, specialised titles within a single pocket can be beneficial.

Leveraging Beacon Branding

Highlighting specific magazine categories through beacon branding can effectively attract customer attention. Dedicate the top two or three pockets to a single title to create a visual focal point.

The Relay Process

When undertaking a magazine relay, focus on creating an engaging and visually appealing display. Work systematically,removing and rebuilding sections of the fixture while maintaining clear spaces to avoid confusion. Continuously assess your progress and consider how each placement contributes to the overall narrative.

The Art of Adjacency

Experimentation is key to discovering the most effective product adjacencies. While there are general guidelines, the ideal arrangement can vary depending on customer behaviour and preferences. For example, consider whether grouping titles by brand or by interest category drives better sales.

Some potential adjacency combinations include: cricket, golf, and swimming; wrestling, boxing, and fitness; and creative arts (painting, writing, craft). However, it’s essential to avoid mixing unrelated titles such as soccer and rugby.

Customer Considerations

When designing the magazine display, prioritise customer ease and comfort. Avoid placing titles aimed at older customers in difficult-to-reach locations.

Post-Relay Actions

Once the relay is complete, share your vision with the team and encourage feedback. Monitor customer behaviour and sales performance closely. The insights gained from these observations can inform future adjustments to the magazine layout.

By following these guidelines and maintaining a focus on customer needs, you can significantly enhance your magazine sales through effective merchandising.

newsXpress helps newsagents run more valuable and enjoyable businesses.

At the start of 2024 we set this year’s theme as MAKING THINGS HAPPEN.

It was a commitment to action, growth, success and enjoyment for newsXpress members.

Mid way through this year we are seeing terrific results.

We have helped members attract new shoppers with several exclusive new product ranges.

We have newsXpress members recording double-digit card sales growth because of our exclusive store specific card performance data project.

We have helped stores recalibrate their commitment to magazines to make this low margin category work, freeing high value space for better margin product.

Our retail insights trip to Berlin and London was a terrific success with excellent in-store initiatives flowing as a result.

This is what MAKING THINGS HAPPEN is about.

Nothing we pitch is mandatory. We are not a franchise.

We’d love to help if you are keen for it.

In today’s competitive retail landscape, local small business newsagents need every advantage they can get to thrive. Tower Systems, a leading provider of Australian-made POS software for newsagents, understands the unique challenges faced by newsagents and is dedicated to offering solutions that empower them to succeed.

Their newsagency software is specifically designed to address the needs of newsagents, offering a comprehensive suite of features that streamline operations, boost efficiency, and drive sales.

The Tower Systems newsagency software is helping many newsagents transform their retail businesses from the traditional to the innovative, attracting new shoppers, selling online, and more.

Here are just a few of the ways Tower Systems’ newsagency software helps newsagents harvest success:

• Easy and accurate selling: The software simplifies the sales process, ensuring smooth transactions and minimizing errors.
• Money-making business insights: Gain valuable insights into sales trends, inventory levels, and customer behaviour to make informed business decisions.
• Time-saving supplier links: Automate tasks and eliminate manual data entry with seamless integration with suppliers.
• Sales-winning loyalty tools: Implement loyalty programs to strengthen customer relationships and encourage repeat business.
• Awesome roster integration: Simplify staff scheduling and management with integrated rostering tools.
• Trusted theft reduction tools: Combat theft and shrinkage with advanced security features.
• Free EFTPOS links: Integrate with popular EFTPOS solutions for effortless payment processing.
• Magazine management for profit: Optimise magazine management to maximize profitability.
• Personal training: Receive personalized training and support to ensure you get the most out of the software.
• 24/7 support: Enjoy peace of mind with 24/7 access to support whenever you need it.

Tower Systems goes beyond simply providing software. They are committed to the success of newsagents and offer a range of additional resources, including marketing advice, theft mitigation strategies, and other valuable support services.

By partnering with Tower Systems, newsagents can gain the tools and support they need to streamline operations, improve profitability, and thrive in the competitive retail environment.

newsXpress members tap into additional benefits as Tower Systems customers thanks to the common ownership of both businesses.

If you’re a newsagent looking to take your business to the next level, Tower Systems’ newsagency software is a valuable investment and newsXpress is a valuable business partner to help you leverage that investment to the max.

Whether you need new software for your newsagency, a website to sell online or access to fresh business insights, the newsXpress and Tower Systems partnership can help regardless of size or location. The two businesses, each with their own team members, work together to help newsagents run more enj9yable, and valuable businesses. They work together to help newsagents attract new shoppers and to grow in an efficient and enjoyable way.

This is what growth in 2024 looks like for newsagents – evidence supported actions to find success for this retail channel that has served in Australia since the 1800s. Here is 2024, the local Aussie newsagency can be relevant, fun and successful, leading local towns to help create vibrant high street settings for other retailers too.

newsXpress and Tower, through common ownership, are grateful to serve Aussie newsagents.

Click here.

Online is the biggest opportunity of 2024 without a doubt. The latest benchmark for Aussie retail reports online as 10% of total business revenue.

In the Aussie newsagency channel, the average figure for those with a website is under 5%.

If you don’t have a website, what would a 5% bump in revenue feel like?

We have businesses we have helped achieve a 20% bump in revenue in a year from online.

We leverage our Tower Systems experience and our newsXpress experience exclusively to help you be open 24/7, serve new shoppers and add valuable net profit in using existing overheads. Our skillset is unique, our experience backed by plenty of success.

newsXpress exclusive. We offer access to a half price, fixed price, beautiful Shopify website connected to your Tower POS software. We back this with advice and mentorship to help you find a profitable niche you like.

If you can’t increase local physical shopper traffic, online is a smart move to improve business reach and profitability.

One newsXpress member launched a website with us last year and added $50,000 in good margin revenue in six months.

Another newsXpress member used their website to pitch an entirely new product category and found a profitable second business as a result, using existing labour and facilities in the shop.

We showed another newsXpress member how to expand the reach of their website and within two months they achieved thousands in additional good margin revenue.

We’d love to connect you with some of these retailers so you can hear for yourself what is achievable.

Value is important in every business, especially so in local indie retail like a local newsXpress business – what you make today and what you will make when you decide to sell.

The newsagency channel was created in the 1880s to distribute a magazine through the goldfields of Victoria. Some of the agency arrangements put in place then can be seen in business arrangements today.

While we understand and respect the history of the channel, the future for our shops is the future. It’s nothing like those goldfield days.

Making the most of the opportunities of the future is about what we talk about in this document.

What you sell. How you sell. When you sell. The customers you sell to. It’s all up for grabs, there for the taking. It starts with the narrative of your business, how you pitch yourself.

How far you go is up to you. We pitch ideas and opportunities. What you do with them is up to you. Once you decide, we can help with practical steps.

While we understand that for plenty, old-school products and services are valuable, their value isdeclining.

You’re not alone. We help you, work with you, hold your hand and encourage you – as much or as little as you want.

The newsagency software from Tower Systems is key to helping newsagents, including newsXpress members, to run more current and successful retail businesses.

From differentiating and local-business tuned loyalty facilities to tools that nurture community group support to time saving supplier integrations to easy online selling, the Tower Systems newsagency software plays a vital role in guiding greater success for the 1,700+ newsagents who use the software.

This software for newsagents is designed with newsagents, to serve specific needs newsagents have in their businesses. It serve us valuable business insights designed to maximise opportunities for newsagent business owners and employees.

It is not your usual POS Solutions software. This is newsagency specific POS software.

This newsagency software is packed with benefits, including:

• Connect with Slyp for digital receipts.
• Connect with Deputy, Tanda or Planday for easy roster management.
• Connect with suppliers – this software is XchangeIT compliant.
• Connect with other suppliers – we accept many different electronic invoices.
• Leverage you. If your knowledge is a differentiator, offer it through structured opportunities in the software.
• Save time with each management of magazine putaways.
• Cut bad debts with strong customer and sub agent account management.
• Replace LayBy with easier buy now pay later where you are paid right away.
• Ensure compliance with structured age checking for tobacco products.
• Easily handle special customer orders. Bring product in for a specific customer and have them notified automatically by email or text when the goods are in and ready.
• Business differentiating loyalty. Stand out from the crowd. Have customers coming back to you for this.
• Maximise the basket with easy to use one-time shopper loyalty tools.
• School and club pricing profiles. Set pricing rules based on customer type.
• Pre-orders – Easily pre-sell a delivery so that when the stock arrives you can manage distribution and billing efficiently.
• Differentiate with informative receipts. These can include product care, use and safety information based on what customers buy.
• Differentiate with bundles. Selling items bundled together makes price comparison hard.
• Market to customers based on past purchases.
• Save time by importing electronic invoices.
• Sell more with a direct connect to buy now pay later services.
• Cut mistakes with integrated EFTPOS.
• Cut accounting and bookkeeping fees with integration to Xero and others.
• Easily sell online with a direct to Shopify / Magento or WooCommerce link from your POS software.

This newsagency software is packed with plenty more.

All these featured and the backing of an awesome help desk team are the reason more newsagents in Australia use this software than all other newsagency software products combined.

The other huge differentiator for Tower Systems is that it owns and runs newsagency businesses and has done since February 1996. Walking in. the shoes of its customers has proved to be invaluable in terms of newsagency software innovation.

This software offers:

1. Exclusive greeting card reporting Embedded in our software is category / segment level reporting that newsagents are using to grow card sales 25% and more. That’s money in the bank.
2. You can bank on loyalty. Our fresh and successful approach to loyalty can help you drive a deeper basket and bring people back sooner.
3. Safe decisions make for a better P&L. From data feeds from suppliers through to Xero, we help you nurture data for the safe decisions.
4. Not every shopper will walk past your door. A seamless connection between your software and a beautiful website can help you sell to people you will never meet. We develop websites for newsagents.
5. Easily accessed personal service. A key reason 4 times more newsagents have chosen Tower than any other software is customer service. We are here for you, with you, every day.
6. Current software. Current technology. Fresh, current design.

Not all newsagency software is the same. See for yourself.

Value is important in every business, especially so in local indie retail like a local newsXpress business – what you make today and what you will make when you decide to sell.

The newsagency channel was created in the 1880s to distribute a magazine through the goldfields of Victoria. Some of the agency arrangements put in place then can be seen in business arrangements today.

While we understand and respect the history of the channel, the future for our shops is the future. It’s nothing like those goldfield days.

Making the most of the opportunities of the future is about what we talk about in this document.

What you sell. How you sell. When you sell. The customers you sell to. It’s all up for grabs, there for the taking. It starts with the narrative of your business, how you pitch yourself.

How far you go is up to you. We pitch ideas and opportunities. What you do with them is up to you. Once you decide, we can help with practical steps.

While we understand that for plenty, old-school products and services are valuable, their value isdeclining.

You’re not alone. We help you, work with you, hold your hand and encourage you – as much or as little as you want.

For decades, major card companies in Australia won new business by offering a rebate on purchases, and we all loved it.

Newsagents would change card companies because of a bigger rebate offer. Oh, that and ‘interest free’ loans we could draw based on anticipated rebates.

What many of us soon realised is that the rebate is worthless unless you sell the cards as it is only when you sell something that you bought at a discount off wholesale, which is, after all, what a rebate from a card company is, that you bank the rebate value.

Switching to a new card company because of rebate could be a mistake unless their cards sell as well as or better than what you have today.

The main reason to switch card companies in my view is to sell more cards.

It’s only when you sell cards that you make money.

Already in 2023 we have seen enough trading to consider 12% year on year growth in card sales as a reasonable benchmark against which to compare your newsagency business.

If a card company’s main pitch is the quantum of the rebate, my advice is question why they pitch this ahead of the actual products.

What you want, and need, is cards that drive new traffic and more purchases in each visit, you want product that perform above average. This is about card company choice and about how your in-store range is managed – two quite different things.

Cards are the best margin products in our businesses. They deserve our active management attention.

My advice is check your year to date performance against 2022. Are you up 12%? If not, think about what you might do about that, and consider it in the context of any rebate pitch put to you.

This has been on my mind because of conversations with some newsagents recently where rebate was the topic.

One stuck out – they said they would not switch unless a card company matched their current rebate. Their card sales are down 9% year on year. That decline is twice the overall business decline, meaning there is a problem with card range. They refused to look at any other supplier, thereby =not considering that range might be the issue.

I see any rebate as a pot I can draw from to help drive card sales, and I do that to fund a loyalty program, and more. each month I am seeing terrific results, like for April.

Yes, that’s 19% growth in 2023 over 2022. If I compare back to 2019, cards in this business are more than 50% up.

I know that if I get the card story right in-store and in socials pitches not only does that department benefit but the whole shop benefits because of card shopper dwell time. And, all that flows to margin dollars banked, which are far more value than the promise of a rebate in the hope of selling something.

This post is not about any specific card company. I am not suggesting you switch to any specific card company. My advice is that you make your business decisions on what you bank, and that spends solely on sales.

newsXpress helps newsagents run retail businesses they love and value. We are often asked for advice on buying a newsagency. Here’s some of the advice we share:

There has been a surge of interest in buying a newsagency this year.

Aussie retail newsagency businesses are proving to be good businesses to buy.

So, to the question: what should I ask for when looking at buying a newsagency?

The question itself, when asked, indicates how green a prospective purchaser is when it comes to purchasing a business. Our first advice is that they better understand the newsagency business of today, to understand what they could be buying into.

Here is an updated list of data we suggest prospective newsagency business purchasers access from the vendor or their representative:

1. P&L from the accountant for the last two years. i.e. not a spreadsheet created for the purpose.
2. A list of add-backs used to achieve a profit figure on which the asking price is based.
3. Tax returns for the same two years. While note always appropriate given business structures, they can provide a cross check with the accountant P&L.
4. Sales data reports, for the last two years, from the POS software in use – to verify the income claim. This source data is key.
5. Sales data reports from the lottery terminal to verify the income claim.
6. BAS forms to confirm data in the P&L.
7. A list of all inventory in the business including the purchase price and date last sold for each item. And, copies of invoices from which you can randomly select to verify.
8. A copy of the shop lease.
9. A copy of any leases the vendor expects you to take on board.
10. A list of all forward orders placed on behalf of the business.
11. A list of all employees: name, hourly rate, nature of employment, start date, accrued leave and accrued long service leave.

This is good basic information, a starting point, which will enable any purchaser to undertake reasonable assessment of a business.

Don’t get too worked up in what a retail newsagency used to be. Rather, once you have the business performance data, consider what you could make of the business. Consider the opportunity for change.

The typical Aussie retail newsagency today can be a gift and homewares shop first and offering traditional newsagency lines more as a service than as a core traffic and profit driver.

But, the success of any retail newsagency business you purchase will have its roots in the performance numbers of the business today.

Our advice to newsagents looking to sell who may be concerned about this list is: think about it now and focus on your business so the data we have listed looks good. The time to prepare your newsagency for sale is every day you are in the business.

This is why we say every day is your pay day. Run a smart, lean and profit focused business and you will have a good pay day today and a good one when you come to sell.

The most appealing businesses are those that are easier to run and are making money.

Sure a purchaser can turn a business around. They should get the rewards if they are expected to do that for your business.

The price you can sell your business for will be based on what it is making now.

SUBMISSION TO THE RURAL AND REGIONAL AFFAIRS AND TRANSPORT REFERENCES COMMITTEE BANK CLOSURES IN REGIONAL AUSTRALIA INQUIRY

This submission is on behalf of independently owned retail newsagency businesses that belong to the newsXpress marketing group.

More than 75% of newsXpress businesses are in regional Australia and most of these have been negatively impacted by bank closures.

Some of these businesses were, themselves, agents for banks, and have had the agency business taken from them, closed. In these businesses the impact has been even more considerable.

Many of the remaining 25% of our members, in city and suburban areas have also been impacted by bank branch closures.

The banks have been poor at communicating their closure decisions and vague in explaining reasons for closures.

While there has been less cash pass through the business in favor of electronic transactions in recent years, cash remains the biggest method of payment for goods and services sold by local newsXpress businesses. This is because of the type of products sold.

Bank branches are important for not only banking takings for but also for accessing banknote and coin change. With the average transaction value in our local retail businesses under $15.00, having available change is an important need.

newsXpress businesses impacted by bank closures have a higher cost of doing business as a result due to:

• The need to drive to another town to do the banking for the business. The drive time each way ranged from 30 minutes to close to 2 hours.
• Carrying more cash, especially smaller denomination notes and all denominations of coins, so the business does not run out between banking days.
• The need, for some, to switch banks because the usual bank for the business is now several hours away.
• Covering the cost of growing EFTPOS payments due to the fixed price nature of much of what is sold in a typical newsXpress business.

Bank branch closures have added on average for those newsXpress businesses impacted, additional operating costs of between $250.00 and $500.00 a week.

With many newsXpress businesses selling lottery products, the call on cash for the payment of prizes varies, and often cannot be adequately predicted.

In addition to the actual additional cost is additional pressure on the business owners since going to the bank no longer can be done in a few minutes. It needs to be scheduled, rostered for.

There is an emotional cost to bank branch closures, too, as there is more pressure on managing cash since the safety net of the local bank branch has been removed. This extends to the drive to the further away bank branch with cash takings from several days and worry about the safety of this compared to banking at the local branch across the road.

POSSIBLE SOLUTIONS

• A communal banking model. In a town where a branch is not viable, the banks could work together, maybe under a government overseen storefront, to offer banking services for all Australian banks.
• Mobile banking. Require the banks to provide regular access to their services through a mobile banking service that visits each impacted town.
• Easier agency access. If existing banking agencies could be enhanced to be agents for all banks this could open more local banking options.
• Reduced fees. Where banks withdraw, or have withdrawn, local bank branch services, require them to compensate business customers with significant fee reduction, to help them feel the cost of their decisions.

The newsXpress retail businesses impacted by local bank branch closures feel ignored by their banks, not listened to and unable to rely on a reasonable resolution.

They feel left to figure out what to do themselves so that the banks can maximise shareholder value.

While maximising shareholder value is the most important requirement for the board of any public company, banks often pitch themselves as being more community engaged and socially aware.

The closure of bank branches in regional Australia does not reflect care or concern for the regional Australian community.

Sincerely and on behalf of all local newsXpress member retail businesses,

Mark Fletcher
Managing Director
Mobile: 0418 321 338.
Email: mark@newsxpress.com.au