Focus on gross profit and change how you view your newsagency

In the traditional Australian newsagency around 40% of products sold have a gross profit of 50% or more.

By traditional, I mean the business with around 30% of floorspace with magazines and papers, 30% with cards, 25% with stationery and 15% a mix of other.

The good news is plenty newsagencies are not traditional.

Looking at data from the last quarter in my own newsagency, 69.5% of revenue is from items for which gross profit is above 50%.

Any newsagent can achieve numbers like this through careful planning, an embrace of change and a disregard for the barriers of the newsagency shingle.

Focussing on GP through inventory ranging and management can inoculate from regulation issues over which you have not control.