What is the percentage of gross profit of your newsagency business today compared to a year ago and a year before that? If it has not increased then you are behind the game as many newsagents I speak with are chasing GP growth.
The current retail newsagency business average GP is between 28% and 32%. if you are within this band and run a traditional newsagency it should be relatively easy to get close to 40%. Climbing from 40% to 50% is harder work, relentless work in fact as you need to completely reconfigure your business and move it away from the more traditional agency model to a self reliant retailer model. While I say it’s harder work, there are newsagents doing it.
My management tip today is pretty simple – know your GP percentage as it is now and compare this to last year and a year before. Are you headed in the right direction? If not, ask for help. I’d certainly be glad to help.
When figuring gross profit margin, how do you handle commission lines like transport cards, phone recharge and Lotto and isi?