It’s nice talking about the local Aussie newsagency as a hub in the local community. It warms the heart. Aww.
I can’t think of a community hub that is commercially successful, and commercial success matters since owning a newsagency is a commercial pursuit above a community activity.
Profit matters, every day. Profit is what pays people, pays off your loan(s), pays suppliers, puts food on your table, educates your kids and gives you a nest egg for future happiness and comfort.
A community hub is likely not as focussed on profit as those who rely on your business might like.
The newsagency as a community hub spin is put about in the media and at some newsagency channel functions because it is an easily understood feel good. It’s not practical tho. In fact, I think pitching the local Aussie newsagency as a community hub is ignorant and lazy. In recent months I have heard a few people who are not newsagents themselves make the pitch, because they want the feel good story some in the media unquestioningly publish.
I heard a supplier representative make the community hub pitch – a supplier that sets newsagent margin way too low and themselves not respecting what we bring to the table.
I heard a representative of an association talk up newsagents as a hub of the community when asked about the future of the Australian newsagency. They had nothing else to offer other than the cliche.
Our channel deserves better than this.
The best local Aussie newsagency is one focussed on profitability, a business with a plan for growth in new shoppers, deeper baskets and above average gross profit percentage. It’s a commercial business that puts the needs of the business and those who rely on it ahead of any local community needs.
Now, none of this suggests you should not be engaged with your local community. Of course you should be engaged. But, community engagement is not your reason for being in business. You’re in business for the financial reward, as everyone who relies on your business for income will / should want.
The type of community engagement that could work is hosting a community noticeboard, supporting local community organisations and being seen out in the community.
One type of community engagement that I think is a waste of time and money is being the retailer of last resort by stocking items that no one else in town carries. The only stock you should carry is that which is profitable for you to carry. Another type of community service that I think is a waste is opening for more hours than is commercially sensible.
Every decision you make in and for your retail business should be in pursuit of maximising the profitability of the business as that profitability is the foundation of the value derive from the business each day and when you decide to sell. Seeing your business as a community hub first and foremost most likely denies you the opportunity if maximising profit.