A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Sunday newsagency management tip: bank bonus margin for yourself

If you purchase products on a deal, lower than usually wholesale, bank the bonus margin yourself – price the products as if you had paid full wholesale.

Too often I see newsagents mark up items based on what they actually pay rather than based on usual wholesale.

With plenty of deals available through the marketing groups it is easy for newsagents to save 10%, 20% and more off what is usually paid. While I understand the temptation price lower and expect to sell more, in most cases you can price based on usual wholesale and achieve the same sales result – giving you excellent growth in GP and, as a result, a more valuable business when you decide to sell.

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Management tip

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