One of the themes I have explored in the Newsagency of the Future workshop series over the last couple of months is the opportunity for newsagents to compete with other retailers, even to the poit of the competitor closing down.
When I first broach this opportunity, newsagents, especially those in rural and regional communities, balk … concerned at the possible commercial harm to another local business. I understand that. I grew up in Pakenham back when it had a population of around 2,000.
While we like to think about business colleague, the local families that rely on them and the benefits of co-operation, commercial reality prefers us to focus on our own return, our own survival.
What’s better, two businesses covering costs or one business which is profitable and able to invest and grow? I think the second scenario is better. One business growing is better for the business owner, its employees and the shopper community than two businesses which are treading water – especially in today’s world of economic challenges and considerable change around retail.
This is why newsagents need to look around their area and target other businesses as competitors and go after them through service and product range propositions. Whether they act on this is another thing. Look, assess and make a business decision.
Newsagents have wonderful opportunities for competition, opportunities which could dramatically improve the financial return achieved by any newsagency business. Opportunities for expansion in range of products and services.
The logical opportunities are gifts, toys and books. Other opportunities exist with food, coffee and a range of other areas I won;t go into here because for commercial reasons.
We, each of us, need to look at our businesses beyond the prism of a traditional newsagency. we need to seize opportunities which strengthen our offer, drive our profitability and make our businesses more valuable. Oh, and all along the way, easier to run … yes, having an easy to run business makes it easier to sell. no doubt about that. Newsagents often forget this.
Sorry but when you live in a small town you like to be competitive and let the customers make the choice but never would I try to put one of my locals out of business. Most of these people are our friends doing their thing. I’d rather struggle than be a hard nosed barstard.
Carol it’s not about being a hard nosed bastard but pursuing why you are in business.
Putting a competitor out of business is the extreme.
My goal with this post is to get newsagent ts thinking about their businesses through different eyes. It’s better you do this when you don’t need to than when you do need top.
Carol,
I think Mark is saying that there is often a culture amongst small business in rural/regional areas where opportunities are ignored or let go because people feel bad competing strongly and directly against other local businesses.
We’re actually introducing a coffee into our product mix this week. We see a huge opportunity in our early morning and after-school trade for freshly made coffee and hot beverages. We have a local bakery just a few doors down that also sells coffee. We don’t let the fact that they’re local affect a business decision to compete with them head on.