I met with a newsagent in Sydney tonight to talk about challenges faced by the business. Answers for the key challenges are in their business data. The biggest challenge is understanding that and then leveraging the data to guide a solution.
The newsagent is relatively new to our channel – less than a year. They came to us with a background of success in another retail channel. They made all the right moves including completing the required supplier specific training as well as the industry endorsed ANF training. None of this training equipped them for the newsagency specific challenges they face.
We let new newsagents down. Our training of new entrants is inadequate. The business management support infrastructure outside one or two marketing groups is almost non existent.
The newsagent found me through this blog. I have no other connection to their business. I am glad to help where I can. Indeed, each situation I encounter like the one I found tonight, is educational.
The key problem I saw tonight was a business making decisions on out of date data. Their accountant provides a P&L six monthly. The only guide as to how the business is travelling is their bank balance.
They buy stock based on what they see they need and based on what supplier reps order for them. They process magazine returns using distributor websites. No one is driving them to change their practices – suppliers have provided website work-arounds which bypass industry EDI standards.
We let ourselves down from the first new newsagent training session through to their early months.
An overhaul of how we bring new newsagents into our channel, how we educate them and how we support them through their early months is years overdue. We have too many relatively new newsagents falling behind, hurting their businesses and the channel more broadly.
This is an issue crying out for national attention.
As for the newsagent I met with tonight, they will quickly address what needs to be addressed. I am confident or a turnaround in the next three months – we are developing a plan which will improve the business and build their knowledge. I am blogging about the meeting and the training issue at their suggestion – they feel let down by the introductory processes.
Thanks Mark – this is very relevant for all business operators. This blog is better than ever…
What I have seen both sides of the newsagency training fence is a rushed,commercially driven, supplier trade show. 99% of the content at the anf training course is geared to what the supplier wants you to know.
Most suppliers look at the training course as a means of capturing new business or securing current accounts.
Some of our esteem suppliers instruct at the course because they pay a fee. The larger suppliers are there to help but are poorly instructed or moniterd. The course we attended the instructor got margin and mark up around the wrong way. A new board or organization needs entry by new and training of exsisting agents to be a priority. If it is to be commercial let’s make it correct and well monitered.
I agree with brad all the training course seems to be is a chance for a few suppliers to grab a few more accounts .The only worth while info i have ever received is from this blog it works wonders and is a great tool for the channel
What about a mentoring system? Team up new newsagents with ones that have been around a while (and are successful). It will build our newsagent community and support these agents. Ideally I would see this system working with face to face meetings…
Sarah you are right however it is the compensation of time that may hurt the process long term. I agree that mentors are a vital part of ur business and I have 2 people that I draw inspiration, motivation and advice from.
The one true benefit you can draw from any newsagency conference is the ability to network with fellow agents. In the past small groups of agents have come together at these events and formed a support/network group. One in Victoria was/is particularly successful.
This blog has formed a support network of sorts, Not everybody agree’s but they all support the industry.
The training school should have theory content but then a longer practical component. The practical should be mentored in store, yours and theirs to get a feel for the business.
The problematic thing will be regional help, compensation of time and who will co-ordinate the process. All things a strong governing body could control.
There are mentoring systems in place in some parts of the industry – Tattersalls, newsXpress and Newspower in some states that I know of. Tattersalls requires you to work in an approved agency and pay the agent for their time. It works well.
I’ve used this blog and Mark’s knowledge as a mentor of sorts, since I’ve owned my store and it’s probably helped me more than anything else (apart from common sense).
If you go through the categories down the side of this page you “should” find past topics that might help with what ever your looking for.
Thanks Mark for having this site and keeping us up to date with what’s happening in our industry.
Well said Mark; i get many calls for help from new newsagents because no association can correctly gear them on how to run a successful newsagent.
It’s a complex business that needs very specific training.
Hi Guys,
I am considering buying a run-down Newsagency. Its a family business that has been held onto way too long. No stock, old fittings, turnover only couple of Gs a week.
Its location is terrible. On a main road with no parking and no footfall. Couple of questions to the members. My thoughts are to move the location. How important is natural footfall – can the business overcome a lack of this?
and secondly, parking?
Can a newsagent generate traffic by simply being a newsagent, knowing that petrol stations, shopping centres and supercentres are in the position to offer just about everything we can but with added convenience.
Whats people thoughts on our competitive advantage for the consumer? And how important are business to business sales? What % represent B2B vs B2C.
I know lots of questions, if anyone would be willing to participate in a 20 minute Q&A that would be great. I’m only 28, I know the industry basics but want to get a good understanding of the hard targets/requirements in order to be successful. Thanks guys. This forum looks like a great resource 🙂
Jay
Jay,
Location is very important to a business which needs to find itself. You will rely on being found by passers-by for at least a couple of years.
A key reason people shop in newsagencies is convenience. So, locating the business in a convenient position for foot and vehicle traffic is important.
Given the diversity now in the newsagency channel, different newsagencies have different competitive advantages. The most common I see is the community connection. It is all about being local, friendly and convenient.
That said, in a shopping centre, it is about range, price and service.
In terms of targets, get the numbers for the business, develop your own budget to know your true operational costs and the capital investment required. Knowing this will guide your work on targets.