Newsagents in Victoria should take time out of their businesses and visit the GHA and Reed Gift Fairs in Melbourne starting today and running through to Wednesday. You will see product allied to what is sold in newsagencies today as well as many completely new lines and categories. I was talking with the GHA (Gift and Homewares Association) yesterday and they confirmed that the number of newsagents attending these fairs increases each year.
Gifts are a fast-growing category for newsagents. I have seen newsagencies go from $10,000 in sales from gifts in 07/08 to $40,000 in 08/09. The margin, depending on your buying and pricing policy, is usually around 50%. The key to success is careful buying and knowing your customer – oh, and that you may not be your customer.
It is also important to have a price management policy – knowing how long you want to hold an item and how you transition the item through price points to move the stock.
I know a bit about the fairs because my software company, Tower Systems, exhibits. This year, like last, we are at the Showgrounds location. We find it worthwhile because of the number of newsagents attending and because of our growing gift shop customer base.
You are right. The gift fair is fantastic. So many product ideas including from suppliers we already deal with.