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

Author: Mark Fletcher

The publishers of Artlink magazine show it’s not that hard to pitch local Aussie newsagents

This tweet from the folks behind Artlink magazine would have taken a minute or two and cost nothing. Here they are pitching to their community that the new issue of their magazine is out and available at newsagents.

I wish other Aussie magazine publishers would be this engaged.

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magazines

Australia to ban non-prescription vape products

The news that the federal government will move to ban non-prescription vape products in Australia brings clarity to a challenged retail category.

I do wonder what compensation will be offered to vape shops that have legally flourished in Australia. I suspect it will vale to state and territory governments to resolve this.

For what it’s worth I’ve advocated newsagents not get into the vape space as I felt it was always going to be more heavily regulated.

Given the news from the federal Minister for Health last night, now would be a good time to scale back if you are in this space.

It does come back to the question about the type of retailer you see yourself as being and the types of customers you want to attract. You’ll do better focussing on better margin new traffic attracting products.

As has been the case with tobacco retail for decades, price drives vape product sales. On price, it is tough for indie retailers to win. We do so much better focussing on higher margin products that people love and love giving.

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Newsagency management

The Pharmacy Guild protests too much about prescription changes

It was galling to watch the president of the Pharmacy Guild weep and moan on TV last week about the planned changes to more efficient prescription access to 300 drugs on the Pharmaceutical Benefits Scheme.

The planned changes mean people accessing these medications will be able to get 60 days worth of their medicine instead of the current 30 days worth, meaning one dispensing visit for 60 days instead of two.

I get that pharmacists will lose some revenue. Those needing the medication will save time and costs involved in getting out to collect them. The government will save costs.

I think the gains for consumers and government (taxpayers) outweigh the modest cost to pharmacies.

If you believe the weepy president of the Pharmacy Guild, this move will end some local pharmacies. If that the case, the businesses must not have been strong enough to start, they must have been relying on their government protected monopoly.

In my opinion, pharmacists have been protected for too long, and at too much of a cost to Australians.

24 years ago Aussie newsagents were stripped of the monopoly they had over local newspaper and magazine distribution. This was taken from us under the guidance of the Howard Coalition (Liberal / national) Government. It was taken from us without any compensation. The cost to the value of local newsagency businesses was tens of millions of dollars in business valuation and tens of missions of dollars of revenue.

Good retailers in the newsagency channel thrived. The deregulation made them evolve from agents into retailers.

While kicking the protection crutch of protection hurt and demonstrated a lack of care for local small business retail by the Howard government plenty of us got through it. For sure, compensation would have been good. But, maybe those leading the channel at that time did not have the skillset to achieve anything for newsagents. We’ll never know. It’s 24 years in the past now.

So, back to the pharmacists, while they can moan and complain, and cry, the reality is that the current approach to dispensing prescriptions is inefficient and expensive, to the benefit off protected pharmacists. Making them more efficient and saving money have to be a benefit to the health system and to Australians more broadly.

Local retailers I have spoken with since the tears were shed on TV a few days ago offered no support for pharmacists. It seems to me like they over-egged their response to what feels like a reasonable move.

In the 23 years since deregulation, as I have often covered here, newsagents have benefited from relying less on protection and more on being entrepreneurial. Most in our channel today have stable businesses, plenty are growing, with the growth com ing from decisions we make, rather than some legacy suppliers.

Footnote: I do understand that in some settings, particularly in regional and rural Australia, and in genuine community pharmacies, the move may present some challenges. I suspect that if you look at actual financial details in those businesses you will see the impact will not match the emotional outpouring of some in the last week.

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newsagency of the future

Industry standard software for newsagents

With 1,750 newsagencies in the Tower Systems newsagency software community, it’s the industry standard software solution. While, for sure, there are a couple of other software programs being used in newsagencies, the scale of the Tower newsagent community sets it apart. I an grateful to newsagents for their trust and support and proud to be part of the channel as a supplier, and as a newsagent.

Here’s a recent demonstration of this $185.00 a month software for newsagents:

And here’s another from a few weeks prior to that video:

And here’s a video promoting newsagents to the broader Aussie community:

And here is another video I made and promoted on YouTube to pitch the Aussie newsagency channel:

Plenty of Aussie newsagencies are thriving and I am grateful that my newsagency software company plays a role in that.

Here’s what the $185 a month provides:

  • Access to the latest newsagency software.
  • Onboarding support.
  • Help desk support.
  • Unlimited registers. No extra cost.
  • Integrated accounting link.
  • Integrated e-commerce links.
  • Integrated payments.
  • Loyalty programs.
  • Advanced reporting.
  • Customer marketing.
  • Visual analytics dashboard.
  • Special customer orders.
  • Serial numbers.
  • Sell by fractions, sell by weight.
  • Integrated LayBys.
  • Customer gift vouchers.
  • Customised onboarding.
  • 24/7 support.

From a newsagency operation specific perspective, though, this newsagency POS software handles to best practice industry standards for areas such as magazine management, magazine returns, newspaper subscriptions, newspaper home delivery, magazine putaways, supplier electronic invoices, customer special orders, Epay integration for selling phone vouchers and other electronic vouchers.

Folks who run traditional newsagencies love the software because it handles the traditional requirements well. Folks who run newsagencies that are different, outside what is usual love the software, too, because of how it serves outside what has been traditional for newsagency businesses.

Tower Systems is a unique newsagency software company in that it owns and runs newsagency businesses. The company bought its first newsagency in February 1996. It has owned newsagencies ever since – using its newsagency software, walking in the shoes of customers, providing all staff with a live testing space and learning more about the software / retail business interface in a way that is valuable for all Tower Systems customers.

Beyond the newsagency software itself, Tower Systems helps newsagents with marketing advice, theft mitigation advice and a range of other management level supports and assistances. We believe in this quintessential Australian retail channel and appreciate opportunities to genuinely help newsagents run better and more successful businesses.

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newsagent software

Cards in the front window of the newsagency attract shoppers

This full face display of Mother’s Day cards in the front window is attracting passers-by into the newsagency on the busy Glenferrie Road in Malvern. That was the plan, our hope. It looks like paying off.

In December 2021, this space was taken by a drinks fridge, and ice-cream fridge and a stand of AWW cookbooks. Slowly we have change what’s here, culminating in the installation of this card wall a few weeks prior to Easter.

I think there is nothing better than awesome good margin products attracting shopper traffic from off the street. It’s a bonus if they are habit related products, products from a category for shoppers could return to you.

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This shop is in a highly competitive location for cards with two newsagencies nearby, several supermarkets, more than 15 card and gift shops and an Australia Post outlet also with a good range of cards. We have the biggest range in the area, but it’s located in the card department inside the shop. I knew we had to bring a card pitch to the footpath.

While our card suppliers have been supportive, we funded this new fixtures ourselves, so that we control the use of the space. This will be especially critical with how we use the space outside of seasons, especially in the retail valley between Mother’s Day and Father’s Day.

On the space itself, we have the capacity to extend it to the left, to almost double the space. This will be needed for Christmas.

A bonus of this new card wall is that we no longer need seasonal card floor units. This frees up floorspace and assists traffic flow. Also, on the new wall, cards are better presented and more easily shopped than in a floor display unit.

While the pitch in the front window of the newsagency right now is Mother’s Day cards, it will change from may 15 to a different card offer.

We used a handyman to install the slat wall, this was a fraction of the cost of a shoplifter. We are frugal in managing our capital investment in this business, and in each of our shops. Our approach tends to be: make a change, measure the result, if good – move forward, if bad – re-group.

Too often over the years I have seen retailers access funding for a new or partial fit out and too much of that money be spent on changes that will not pay for themselves in 3 years. Funding it out of your own pocket makes you more cautious about the spend.

Be frugal. Follow your data. Take small steps. Back yourself over tradition.

Yes, a shoplifter may have created for us something more grand. I doubt it would have delivered a better financial return though.

While our shops are a reflection of us, they should not be a shrine or a showpiece, unless that makes money, turns a profit in the investment, in 3 years or less.

Footnote: some suppliers will be keen to engage with you on changes in your business. For sure, listen to them, but, it’s your business, not theirs.

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Greeting Cards

Newsagency of the Future – a free online workshop about retail newsagency businesses

Join me via Zoom Tuesday May 16 @ 11am Melbourne time for a Newsagency of the Future workshop.

I will share up to date retail newsagency performance data, sales data from outside our channel for categories allied to what we do, thoughts on the rest of 2023 and into 2024. I will also cover some trends into the future that present opportunities.

There will be an open Q&A.

While Covid continues to circulate, it is over from a disruptive perspective. I think there are things we can leverage from the pandemic experience. I also think there are category opportunities for growing business GP% and attracting new shoppers.

I am not running the session to sell you anything, or to get you to sign ups to anything. My sole motivation is for the retail newsagency channel to be strong, vibrant.

It is a competitive world out there and I think all of us in retail newsagency businesses can do better.

Here is the link:

https://us06web.zoom.us/j/84982771189?pwd=RWdRM0s3bENpZ2F5UGxNblkzKzN3QT09

Meeting ID: 849 8277 1189 Passcode: 103292

I’ll record the session.

Anyone is welcome.

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Newsagency management

Advice for retailers on smarter and more customer-friendly ways to deal with EFTPOS fees than charging a surcharge

It’s an easy complaint for a retailer to make – my EFTPOS merchant fees are too high, it’s not fair, time for me to consider another supplier or to consider charging customers a surcharge.

Customers hate surcharges, especially if there is another retailer selling what you sell who does not charge a surcharge.

Every method of payment has a cost, including cash. In my experience working with retailers, the cost of cash is higher because of theft. However, it is not easily seen, especially in retail businesses that do not research or teach theft.

To address the cost of EFTPOS merchant fees on a retail business, you need to be an engaged retailer. Here are some ideas:

  • Promote cash payment – if you want the costs associated with cash of course.
  • Be clear as to the cost of using a card. You could apply a surcharge, which I think is a ridiculous idea though.
  • Price knowing that cards will be used by customers. Build the cost into your pricing model. Keep the bump under 1.5% and it is less likely to be noticed.
  • Lower a cost elsewhere to cover the cost. Look at your labour cost, for example. Shaving a hour of employee rostered time can save you around $30.00, that’s equal to purchases of $3750.00 on a card – depending on the type of card used.
  • Increase sales. While you should be single-mindedly focussed on this anyway, increasing sales helps you address the EFTPOS cost and more in the business.

It’s easy to complain  over EFTPOS fees. But … before you do that, look at your own behaviour. Here are common points in retail businesses that retailers overlook when they complain about a supplier or service related cost. These are things I regularly see ignored in favour of complaining about someone else:

  • Dead stock. A problem not seen is not a problem to too many. In the average indie retail business, dead stock is equal to around 3% of turnover.
  • Bloated roster. Some prefer to spend money on people so they have time to themselves for relaxing, golf or to sit in the back office, where no customer purchases from. I often see a bloat cost equal to around 10% of the roster.
  • Wrong trading hours. Some stay open too long while others are not open long enough. Either way has a cost to the business.
  • Being blind to theft. Theft in local indie retail retail costs on average between 3% and 5% of turnover. Not watching for it, tracking it and mitigating against it has a cost to the business.
  • The wrong product mix. GP% is a key measure of retail business performance. Increasing yours beyond what is traditional for your channel provides you with a buffer. For example, transaction count / sales can decline and you can be okay. Measure GP%. Set a goal. Chase it. The air is cleaner in above average.
  • Ignorance. No, it’s not bliss. There are insights in your software that can guide better decisions, faster decisions, more financially rewarding decisions. Yet, too many in retail don’t want to know. That failure costs them plenty.
  • Stop running out of stock. Manual process for stock reordering, by retailers and suppliers, regularly result in sell-outs, and, therefore, missed sales. Every time that happens it is a cost to the business. In a retail business I looked at recently, the cost of sell-outs was more than $3,000 in a year, or $1,500 in gross profit, all because of poor re-ordering management.

The items on the above list are all on the retailer to address. The benefit is that addressing these results ins a stronger, leaver and more valuable retail business.

Adding a surcharge is an easy step, but the wrong step in my view as doing that could shield you from more important and valuable business moves you can make.

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Management tip

Will some UK newsagents stop selling some newspapers because of increased cover prices and reduced margin?

There is an interesting discussion in the UK at the moment on newspaper prices and margin for local newsagents. This story from the Press Gazette sums it up.

Newsagents ‘could review selling’ some titles after price rises and margin cuts

The Federation of Independent Retailers has raised the prospect three times since December.

By Bron Maher

The Federation of Independent Retailers has again raised the prospect that its members may stop stocking some newspapers after The Guardian raised its weekday cover price to £2.80 but lowered the margin kept by newsagents.

It is the third time since December that the trade body, which represents more than 10,000 businesses including newsagents, off licences and post offices, has made the suggestion in public statements.

Newsagents receive between a sixth and a quarter of the cover price of each newspaper they sell. However, almost all national newspaper publishers have lowered these proportions over the past decade as they have simultaneously raised cover prices.

Press Gazette research in January revealed how UK national newspaper cover prices have sharply increased in the last decade as publishers have sought to counter the impact of falling advertising and increased newsprint/distribution costs.

The most recent warning from the FIR was prompted by news that Guardian News and Media plans to raise the price of the daily and weekend Guardian, as well as The Observer, by 30p per copy to £2.80 and £3.80 respectively while cutting the percentage margin for newagents to 21.5%.

The federation’s national president Jason Birks said: “Neither retailers nor their customers will take this news well.  For retailers, this could mean reviewing the profitability of selling the Guardian against other product categories and for customers, it could mean buying the paper on fewer days of the week.

“Given the low circulations of the Guardian and Observer, this is a risky strategy indeed, which is why I have written to [GNM chief financial and operating officer Keith] Underwood.”

The Guardian has responded by encouraging stockists to enrol in its “Enhanced Margin Uplift” scheme, which boosts the amount they earn when selling papers to Guardian and Observer subscribers. The company said it believes the scheme “will mean that we pay one of the highest margins in the market to retailers”.

In March, DMG Media announced that the retail margin for the Daily Mail would drop to 21.8%, prompting Birks to say he believed that “some members may consider delisting the product and, indeed, whether they continue selling newspapers because their hard work that has kept the news industry afloat for years is neither recognised nor appreciated”.

And in December the Fed criticised both DMG Media and Reach over margin drops. DMG Media decreased the retail margin for the Mail on Sunday and the Saturday edition of the Daily Mail to 20.5%, while Reach lowered the margin across its titles to “an all-time low” of 18.5%.

“Reducing margins to a measly 18.5% will simply speed up the decline of the industry, as news retailers downgrade newspaper displays in their stores and look to other categories that demand less work but where there are greater rewards,” Birks said.

In 2013 three weekday newspapers – the i, The Times and the Racing Post – offered 25% margins to newsagents. Today the highest margin offered, by the i, is 22%.

The only paper not to have lowered its retailer margin over the past decade is the Financial Times, which still offers stockists 20% of the cover price.

As newspapers’ cover prices have risen, so have the amounts of money retailers earn per paper sold. However, the decreased margins mean they earn less than they would have otherwise.

For example, the Racing Post, which nets newsagents the most pence per copy of any weekday daily newspaper, used to earn retailers 50p a copy. It now generates 88p a copy. If the newspaper had kept its 2013 margin of 25%, each copy of Racing Post sold would earn a retailer £1.13.

Some regional publishers have kept margins steady, with National World for example announcing cover price increases in December without dropping retail terms. And in August last year, the Fed praised DMG Media for (at the time) keeping its retail margins the same while increasing the Daily Mail cover price.

While I feel for UK newsagents, we are far worse off here in Australia with margins close to half what they get in the UK. Yet, most newsagents here are publicly quiet on the appalling, disrespectful and socially selfish commercial treatment of retail newsagents by newspaper publishers.

The result of declining value of newspapers to newsagents because of falling sales and falling margins is that the products are moved to less expensive space. Senior management in newspaper publishing companies are not bright enough to understand that a different approach could reduce sales decline. But, as they show us, they know best.

Their ignorant treatment of the Aussie retail newsagency channel by newspaper publishers could make an interesting business studies for universities in years to come.

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Newspapers

The best shop for Mother’s Day cards is your local newsagency

If you are looking for a Mother’s Day card this year for sure shop your local newsagency because there you are likely to find the best range of Mother’s Day cards.

There’ll be cards for mum, mother, grandma, nan, granny, and more. There’ll also be cards for people who have been like a mum to you. And, there are likely to be cards from the cat or the dog.

If you like to see the best Mother’s Day cards around, if you want a range from which to choose, your local newsagency is the place to shop.

Now, if you are thinking a text message might do, mum can’t put the text message on the mantlepiece, she can’t keep it with her other cards to look at every few years. A card is a keepsake that lasts, it nurtures memories she will love. And the cards at your local newsagency give you choice to get it right.

Our advice on shopping for Mother’s Day cards this year is:

  • Shop early, like now, because that’s when the best range is out.
  • Shop at your local newsagency, because they have the best range.
  • Look across the whole range.
  • If you’re not sure, ask for help, because staff in local newsagencies are helpful.
  • Choose the card that best reflects you and your relationship with your mum.
  • If you’re not sure what to write, share a funny memory and tell your mum how you feel about her.
  • Once you have the card, write on it, seal the envelops and set it aside ready.
  • if you are posting it, post it early.

The range of Mother’s Day cards out now at your local newsagency really is good. There are many new designs, many cards to brighten mum’s day.

We understand you have a range of shops from which to choose when buying a Mother’s Day card. Your local newsagency is the card specialist. You’re not pressured. The cards are not mixed in with groceries. Browsing is easy and you know, for sure, that you have many wonderful cards from which to choose.

Once you have the awesome card, from a newsagency of course!, here are 10 text ideas for what you could write in the card. Consider them prompts to kick off your own thinking:

  • Happy Mother’s Day to the most amazing mum! Thank you for being there for me, for your love and support, and for teaching me so much.
  • Dear Mum, on this special day, I want you to know how much I appreciate you. You are my role model, my friend. Thank you for the sacrifices you made for me, and for the ways you show me your love.
  • Mum, you hold our family together and for that I love you. I have learnt from your kindness and your wisdom. Thank you for being an amazing mother, and for being such an inspiration.
  • Happy Mother’s Day to the woman who gave me life, and who continues to shape my life in so many ways. You are my safe haven. I love you.
  • Mum, you are my superhero! Thank you for someone I can always count on. I hope your day is as amazing as you are.
  • Dear Mum, thank you for everything. I would not be me, today, without you.
  • Mum, you are the sunshine in my life. I am grateful you are my mum, and I wish you the happiest of Mother’s Days.
  • Happy Mother’s Day to the queen of our hearts! You have taught us love, and you have shown us how to live life. We love you more than words can say.
  • Mum, you are a true blessing in my life. Thank you for being my rock, and my friend.
  • Mum, I am so lucky to have you. Thank you does not feel like enough appreciation for what you mean to me. I love you.

Remember, what you write will last for years. Mum will look back on your words and the warmth you share today will matter in the future.

Newsagents understand Mother’s Day. We’re local retailers serving local communities and as such we are close to our shoppers. You buying a Mother’s Day card from us, from any newsagency, means so much to us.

Now, get out there and buy your mum an awesome Mother’s Day card, from a newsagency of course!

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Greeting Cards

Newsagency performance: comparing Jan – Mar 2023 vs 2021

Here’s a video I shot last week for newsXpress members in which I high-level compare the first quarter of this year at my Malvern (VIC) business with 2022.

I share this here as any newsagent using the Tower Systems newsagency software can produce the same report for their business. They can also select the category version for a deeper analysis. There are other options, too, for even deeper analysis.

Each of us is the most important competitor our business has.

Cross period revenue growth is important.

GP growth is even more important.

It is vital to transition from the 28% – 32% traditional Vally of GP for newsagents to 35% to 40% and more.

I think anyone pitching revenue / profitability growth opportunities to newsagents should support these with evidence. Our channel has had too many snake oil salespeople.

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Ethics

Submission to Senate inquiry into Bank closures in regional Australia

I lodged a submission yesterday to the Senate inquiry into Bank closures in regional Australia on behalf of all newsXpress members.

I urge all newsagents impacted by bank branch closures to lodge a submission. The more the committee members hear from people directly affected the better.

Here is the submission I lodged:

SUBMISSION TO THE RURAL AND REGIONAL AFFAIRS AND TRANSPORT REFERENCES COMMITTEE BANK CLOSURES IN REGIONAL AUSTRALIA INQUIRY

 

This submission is on behalf of independently owned retail newsagency businesses that belong to the newsXpress marketing group.

More than 75% of newsXpress businesses are in regional Australia and most of these have been negatively impacted by bank closures.

Some of these businesses were, themselves, agents for banks, and have had the agency business taken from them, closed. In these businesses the impact has been even more considerable.

Many of the remaining 25% of our members, in city and suburban areas have also been impacted by bank branch closures.

The banks have been poor at communicating their closure decisions and vague in explaining reasons for closures.

While there has been less cash pass through the business in favor of electronic transactions in recent years, cash remains the biggest method of payment for goods and services sold by local newsXpress businesses. This is because of the type of products sold.

Bank branches are important for not only banking takings for but also for accessing banknote and coin change. With the average transaction value in our local retail businesses under $15.00, having available change is an important need.

newsXpress businesses impacted by bank closures have a higher cost of doing business as a result due to:

  • The need to drive to another town to do the banking for the business. The drive time each way ranged from 30 minutes to close to 2 hours.
  • Carrying more cash, especially smaller denomination notes and all denominations of coins, so the business does not run out between banking days.
  • The need, for some, to switch banks because the usual bank for the business is now several hours away.
  • Covering the cost of growing EFTPOS payments due to the fixed price nature of much of what is sold in a typical newsXpress business.

Bank branch closures have added on average for those newsXpress businesses impacted, additional operating costs of between $250.00 and $500.00 a week.

With many newsXpress businesses selling lottery products, the call on cash for the payment of prizes varies, and often cannot be adequately predicted.

In addition to the actual additional cost is additional pressure on the business owners since going to the bank no longer can be done in a few minutes. It needs to be scheduled, rostered for.

There is an emotional cost to bank branch closures, too, as there is more pressure on managing cash since the safety net of the local bank branch has been removed. This extends to the drive to the further away bank branch with cash takings from several days and worry about the safety of this compared to banking at the local branch across the road.

POSSIBLE SOLUTIONS

  • A communal banking model. In a town where a branch is not viable, the banks could work together, maybe under a government overseen storefront, to offer banking services for all Australian banks.
  • Mobile banking. Require the banks to provide regular access to their services through a mobile banking service that visits each impacted town.
  • Easier agency access. If existing banking agencies could be enhanced to be agents for all banks this could open more local banking options.
  • Reduced fees. Where banks withdraw, or have withdrawn, local bank branch services, require them to compensate business customers with significant fee reduction, to help them feel the cost of their decisions.

The newsXpress retail businesses impacted by local bank branch closures feel ignored by their banks, not listened to and unable to rely on a reasonable resolution.

They feel left to figure out what to do themselves so that the banks can maximise shareholder value.

While maximising shareholder value is the most important requirement for the board of any public company, banks often pitch themselves as being more community engaged and socially aware.

The closure of bank branches in regional Australia does not reflect care or concern for the regional Australian community.

Sincerely and on behalf of all local newsXpress member retail businesses,

Mark Fletcher
Managing Director
Mobile: 0418 321 338.
Email: mark@newsxpress.com.au

20 likes
Newsagency management

What defines a good newsagency?

Back in 2013 I was interviewed for a magazine. I recently found an email from the journalist with notes from the interview. Here is some of it, which I think is relevant today:

What defines a good newsagency?

A good newsagency is a business loved by the local community, generating its own traffic growth – off its own efforts – delivering between 40% and50% grow product, profitable and a business with a clear plan for its own future.

When and how did you get into the newsagency business?

I worked in a newsagency, Pakenham newsagency in Victoria, after school in high school for a couple of years and while there used an old card system for handling newspaper home delivery accounts. Seven years later, when I decided to start my own business, I created my first newsagency software –on an Apple II computer. I never sold this software but used it as a proof of concept for what I would go on to develop.

From 1981 to February 1996 my focus was on my newsagency software company. Then, in a fit of madness or brilliance, I bought my first newsagency at Forest Hill in Victoria. I owned that business for thirteen wonderful years.

You have three newsagencies now. When you were establishing these what were your biggest challenges and how did you overcome them?

I now own three newsagencies in Victoria, all in shopping centres. All three were new locations, greenfield locations. Beyond negotiating the lease with the landlord – which is the biggest and most important challenge, the hardest work is getting the product mix right. Too often we see this as a do it once and you’re done thing. In fact, it’s daily – especially in a marketplace where change is relentless.

So, the biggest challenge is today’s challenge – to be relevant, interesting and valued to today’s customers and to know, for sure, what I will need to do tomorrow to achieve the same things,

Newsagents historically have relied on suppliers to tell them what to do. It’s part of the agent culture. Today’sworlddictates that we have to own our ownfuture because it is ours. We have to source our own products and package them with our own services – not those products from other suppliers or services we are told to provide.

Our future is up to us. And, sadly, this is why many newsagencies will close – because they will not take ownership of their future. That said, many will flourish. Our channel has the potential to grow in strength,

You’re very experienced in retailing and you regularly share your experience and advice on Australian Newsagency Blog. When you were starting out was there someone more experienced that you looked to for advice? How did their advice influence and shape your career and retail management?

I didn’t rely on or pick up retailing ideas from newsagents. My insights came from travelling overseas and looking at trends there at leading retailers. I realised what I liked and what could be applied to newsagents.

It’s easy to become discouraged when business is flat or going backwards. What advice can you give other newsagents who may be in this situation?

I see newsagents who grow to hate their business. It’s important that we know our triggers for negative feelings and that we fight against these.

To newsagents feeling depressed or worried about tough times I say: get moving, do something, anything, but take steps in your business today, right now, to drive change. The steps themselves may be wrong but you will get more benefit from moving in your business than standing still and worrying or complaining.

Owning and managing a retail outlet is competitive business. Do you think there’s opportunity for newsagents to work more closely together to achieve better outcomes for the overall industry?

I think our channel, while still a channel, is breaking apart. The term newsagency appliers to a diverse mix of businesses. It’s rare for there to be a consistent product mix or service value proposition.

Newsagents have a history of eschewing opportunities to work together, even in smaller groupings like marketing groups. They all complain about the channel not getting value from suppliers for its size – with thousands of rooftops – but they do little or nothing to actually leverage this. They are their own worst enemy and I wish that was not the case, I really do.

Newsagents working together could become a serious commercial force to be reckoned with.

On Australian Newsagency Blog you regularly provide marketing tips. If you could sum up your top 5 marketing tips, what would they be?

It’s hard to list the top five specific marketing tips as the top five today will be different tomorrow. Right now, the top five in a general sense are:

Determine and live your USP – Unique Selling Proposition. Answer the question- what do you stand for? and live that in every business decision.

Relay your magazines, confuse your employees and customers – own your magazine range as it represents the single most important point of difference for any newsagency today.

Give your employees power to change your business. You don’t have to lead the business alone, your employees could have brilliant ideas if only you helped them bring them out.

Make sure you can be found online. This means being locatable on Facebook, Twitter, Google Places, True Local and every other local directory. Check out how easily you can be found by typing in newsagent and your suburb or magazines and your suburb …and so on. If you don’t come up worry!

De clutter. Stand our the front of your shop and look carefully at what your shoppers see, the messages you present. The typical newsagency will have 30 different messages, often conflicting. I’ve heard retail psychologists say that anything beyond five messages is too many!

What do you believe are some big opportunities in 2013 for newsagents to use to set themselves apart competition?

The biggest two opportunities for newsagents in 2013 are to become fierce retailers by taking complete charge of their own retail destiny and to use their own store specific business data as their roadmap. Take the energy from the first and the guidance from the second and you have a model for the future for any local business that is sure to drive success.

Are suppliers doing enough to support small business like newsagencies in Australia? What makes or breaks a relationship between a retailer and a supplier?

Many suppliers to newsagents use processes that are decades old and have associated with them an operational cost that makes products in newsagencies more expensive. Our suppliers need to change as much as us, cutting costs from the supply chain so we and they can make more. We them to be more efficient so we can be. This means we need less reps on the road and easier ways to connect with suppliers in more modern-day ways.

Suppliers have sometimes “bought” store floor space and fixtures to ensure their products are displayed prominently. Is this an advantage or disadvantage to retailers? For example, does it provide a needed cash injection or restrict the rotation of other stock and product that may benefit from being in that “bought” location.

Historically a range of suppliers have funded fixtures in newsagencies. I strongly recommend newsagents reject such offers as a bit of cash today comes with a high cost to the business long term. What matters is the margin I make on products and that products turn quickly. Margin and stock turn matter the most. I will make more from good margin high stock turn product than any supplier cash hand out today.

Where do you see newsagency retailing heading over the next five years?

Over the next five years I send the gap between the strong and the weak to widen. Hopefully, this will attract more to being strong. I’d note that being strong is a choice- it is not a function of suppliers or other circumstance. We need to own our own situation and live this with gusto.

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Newsagency management

MilkRun to close

MilkRun, the super fast local grocery delivery service is to close by the end of the week according to a report by the AFR.

Ultrafast delivery company MilkRun will close its doors and make all staff and riders redundant, marking an abrupt end for the company which raised one of the biggest early-stage rounds in Australian venture capital history.

The company’s founder, Dany Milham, told staff MilkRun would be shutting down by the end of the week, blaming worsening economic conditions, in an email seen by this masthead on Tuesday.

I live in an inner suburb of Melbourne where MilkRun established itself in the city early in its life. I signed up for the app at the time. In my letterbox and by email I regularly received offers. I never used it and, curiously, deleted the app only two days ago.

MilkRun and similar services always felt to me like a solution in search of a problem. I am never going to play to have a couple of grocery items delivered within 10 minutes. I can walk or drive and buy them myself with greater choice options and, often better pricing – and all within 10 minutes.

This story is of interest to newsagents with other services able to delivery what we sell locally, and quickly. The nature of our typical product mix is such that there are customers for urgent need delivery of, for example, stationery, birthday cards and even gifts. The same services are available to newsagents. Through Uber, Menulog and others. And, of course, many newsagents have infrastructure to enable to offer a direct service, and some have done so for many years.

While I MilkRun management and some analysts will point to economic conditions as a reason for the closure, I really do this it was a solution looking for a problem.

Good on to the folks behind MilkRun for having a crack. Maybe another time …

3 likes
Newsagency management

If your newsagency has been negatively impacted by a bank branch closure

The Senate is currently conducting an inquiry into bank closures in Australia:

On 8 February 2023, the following matter was referred to the Rural and Regional Affairs and Transport References Committee for inquiry and report by 1 December 2023.

The current extent of bank closures in regional Australia, with reference to:

  1. the branch closure process, including the reasons given for closures;

  2. the economic and welfare impacts of bank closures on customers and regional communities;

  3. the effect of bank closures or the removal of face-to-face cash services on access to cash;

  4. the effectiveness of government banking statistics capturing and reporting regional service levels, including the Australian Prudential Regulation Authority’s authorised deposit-taking institutions points of presence data;

  5. consideration of solutions; and any other related matters.

Go to the Bank closures in regional Australia page at the Australian Parliament House website and consider making a submission.

The date for submissions has been extended to April 28, 2023.

Click here to see the submissions loaded so far. Many are from individuals.

This is an excellent opportunity to have your voice heard. Making a submission takes a few minutes.

Given the news over the last week of plans by the big 4 banks on cash handling, the more local retailers are heard on the branch closure challenges the better.

10 likes
Newsagency management

Stationery beyond practical need is a terrific opportunity for Aussie newsagents

The Aussie newsagency channel is known for offering a good range of stationery. Newsagencies are where many locals shop for stationery, especially when the need is urgent. We are considered expensive, but shoppers expect is to offer quality products.

We’re not expensive. We know that.

There is a growing stationery opportunities for Aussie newsagents and that is with stationery that reaches beyond the practical need. Stationery that is fun, on point.

No, this is not major branded stationery, like with Disney characters, nor it social stationery that we have known for years. It is stationery with text or images that make it appealing beyond function, like these pencils.

There are plenty of opportunities like these: pens, pencils, pads, post-it notes, envelopes, stickers, tape, and more.

The challenge is to be current with the offer as some trends will come and go in the blink of an eye. Others, though, are around for months, even years, offering opportunities to make good money.

Most suppliers of these types of trend stationery items are not common to our channel. Plenty are small, too.

We have been playing in this space through 2022 and it’s been fun, and educational. I see plenty of upside for us and for plenty of newsagents engaged in the opportunity.

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Newsagency management

Commemorating the 50th anniversary of the Vietnam War

I’m grateful that we have been able to stock this highly sought after coin commemorating the 50th anniversary of the Vietnam war. Having something so connected with news like this coin is connects us with shoppers we value.

This coin is also the first coin to note the years of reign of Queen Elizabeth, which makes it even more collectible.

The rush to access this coin has created some challenges. I think 2023 will be big year for coin collectors and I’m glad to have a small role in that locally.

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Newsagency opportunities

If you are finding shoppers more concerned about price

If you have noticed a change in shopper behaviour because of interest rate / inflation / wage suppression challenges, one option that could help is discount vouchers a facility in the Tower newsagency software.

Discount vouchers offer a way for you to add value for customers while encouraging spending with you rather than elsewhere.

Being dollar based, the value of the reward you provide is more easily understood than points.

I have seen retail situations where shoppers are concerned about money and have embraced discount vouchers because they offer a reward in currency rather than grey points. Garden centres and pet shops are retail channels where there is years of success for the vouchers.

In my own newsagencies I swear by them. Good redemption rate. Better value per shopper visit. The vouchers easily pay for themselves from increased sales.

I made a video about this a year ago in which I show the vouchers and explain their use.

With news outlets being drawn to negative stories about consumer sentiment it’s appropriate to have a structured course of action in-stopre that plays against that narrative being pushed.

The vouchers are a small business differentiator as the supermarkets and other big businesses cannot match them.

5 likes
Management tip

Your local newsagency has the best range of Easter cards in Australia

Easter is one of those times of the year when we think of friends and family. We gather for means and celebration and when we can’t we often send a message.

An Easter card is a perfect way to let someone know you are thinking of them this time of the year. There are religious options, and non religious options. So many options for providing a memory they will be able to look back on over the years.

Cards are like that. They offer memories. No batteries required.

Most people keep the cards they receive. That’s why we say they are memories for years.

Easter cards can be tricky for some people who are unsure what to write. Here are some ideas to get you started:

  • Share a favourite memory or an inside joke between the two of you. Make it personal.
  • Express your appreciation for their presence in your life. Tell them why they matter to you.
  • Share a thoughtful message of hope and renewal. This is more connected with the tradition of the season.
  • Use quotes that resonate with you or the recipient.
  • Wish them a happy Easter and a joyful Autumn season.

A handwritten note goes a long way in showing your sincerity and thoughtfulness. What they feel when they receive the card will last long after they first open it.

Now, thinking about where to buy your Easter cards, newsagents do have the best range of easter cards in Australia. They have fun cards, cards for kids, cards for family members, cards for those you love. There are religious cards, spiritual cards, comforting cards, cards that are money wallets for cash gifts. So many different cards in your local newsagency.

The range of Easter cards in your local newsagency will be bigger and, often, easier to shop than elsewhere. You can trust that the cards are good quality too, not on thin stock with a cheap print job. The Easter card, after all, says plenty about the giver.

So, yeah, when you are shopping for Easter cards this year, shop at your local newsagency and see for yourself the difference in their range of Easter cards.

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Greeting Cards

Why buying stationery from a newsagency your home office or your local business is a good move

Okay so you can buy stationery from a ton of places from the big blue stationery shop to online to supermarkets and other big businesses.

There is a difference, though, in much of the stationery bg businesses sell and what your local Aussie newsagency sells and we’re here to talk about that today.

Your neighbourhood newsagency is a great place to find high-quality stationery to help you get organised and stay on top of your tasks.

  • Convenience: Time is money. You don’t have time to spend driving around town trying to find the perfect notebook or pen or waiting for an online order to arrive. By shopping at your local newsagency, you can quickly and easily find everything you need in one place.
  • Selection: Newsagencies carry a wide range of stationery products, from basic ballpoint pens to high-end pens, and from simple spiral notebooks to luxurious leather-bound journals. With so many options to choose from, you’re sure to find the products to suit your needs and style. Seeing is believing.
  • Quality: Newsagencies are known for carrying brand name products. If quality matters you’ll like this. Newsagents tend to use the stationery they sell. If it’;s on their shelves, they recommend it. You don’t get that in a big business where it’s all about volume.
  • Supporting Local Business: When you shop at your local newsagency, you’re supporting a small business in your community and community matters to all of us locals for sure. The economy is circular and the more you spend locally the more help available locally.
  • Fun and Stylish: Stationery can be fun as you can see in many local newsagencies where the shelves offer fun stationery for the kids, colour stationery for the home office and eco friendly stationery for the planet.

Next time you’re in the market for some new stationery, check out your local newsagency. With their convenient location, great selection, and high-quality products, you’re sure to find everything you need to stay organised and inspired.

Footnote: some may say that the local newsagency is expensive. Any time a price check has been done on a basket of home office stationery requirements, the local newsagency has performed well, they have not beed the most expensive. Often they are among the cheapest without even factoring in the amount you save on petrol.

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Stationery

Retail manager vacancy: Cheltenham Victoria

Retail Manager: Cheltenham, Victoria. Westfield Southland.

$65,000 – $70,000 PA plus super.

We are looking for an experienced retail manager, keen to manage their own small business retail shop. Someone with good current Aussie retail skills, ideally in innovative small business.

The shop is newsXpress Southland. While it sells papers and magazines, the key focus is cards, gifts and cute plush. Brand names. Good online sales too.

We provide considerable freedom, which is backed with encouragement and support from our head office team.

The use of current POS software is key to success as are the growing online sales fulfilled through this business. Experience with Shopify would be a help.

The role includes, buying, hiring and training staff, rosters, shop floor displays, and days to day customer service. This is a lean business where the manager is a key day to day retail associate too.

This role reports direct to our head office retail businesses manager. There are opportunities in the future outside the shop, too.

This is a full time role that we hope to fill urgently.

Want to know more, please email mark@newsxpress.com.au.

https://www.linkedin.com/in/mark-fletcher-tower/

https://www.youtube.com/@TowerSystemsPOS/videos

No agents.

Permanent residents or Aussie citizens only.

UPDATE: Role filled!

1 likes
Newsagency management

Why buying a birthday card at your local newsagency is better than buying it somewhere else or not at all

Sure you can say happy birthday, or send a text, but nothing beats a card they can hold and keep. It’s that memory that makes the card more valuable, more loved, more appreciated. A birthday card is a keepsake for years. A text message or happy birthday said is not the same. Cards are valuable, for years.

Here’s why buying a birthday card from your local newsagency is a good move:

  1. Convenience: Your local newsagency is local. You don’t have to go out of your way to visit a specialty card store or spend time searching for the perfect card online our deal with the small range in a supermarket. Pop into your local newsagency, browse the selection, and find the perfect card in no time.
  2. Personal touch: When you buy a birthday card at a newsagency, you can add a personal touch to your gift because of the range on offer. You can choose a card that reflects the recipient’s personality or interests, or add a heartfelt message that shows how much you care. It’s a small gesture, but it can make a big difference.
  3. Supporting local businesses: The newsagency closest to you is most likely locally owned and run, and supportive of the local community. Shopping with them helps you and where you live. You’re helping to keep the community vibrant and ensuring that small businesses can continue to thrive. It’s a win-win situation!
  4. Variety: Newsagencies have more cards than other retailers. Range matters if you want to find the right card for your situation. In your local newsagency card department you can find cards for all ages, genders, occasions and situations. Whether you’re looking for a funny card, a rude card (yes we have those), a sentimental card, or something in between, you’re sure to find it at a newsagency.
  5. Help: Ask and the folks at your local newsagency are sure to offer help in your selection. They can provide you some options based on what it is that you say you need.

Buying a birthday card or any card at a newsagency is a smart choice for anyone looking for convenience, variety, and a personal touch.

The more we send cards the more we bank memories into the future and that matters in the relationships we cherish.

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newsagency marketing

Here’s one way your local newsagency helps families save money on food

Food can be expensive, especially when we eat out. It is one of the first areas of the weekly spend that we pull back on when concerned about money, like may be the case in the current economy, especially with constant news about inflation, interest rates and flat wage growth.

In local Aussie newsagents there is wonderful help for handling the family food budget. Magazines can help you save money on your food budget. For sure!

Magazines provide helpful tips and tricks for making delicious meals at home, and for growing food for a low cost.

  • Recipes: Magazines are packed with delicious recipes, many of which are easy on the wallet, and easy to follow. From budget-friendly meal plans to tips on how to cook with leftovers, magazines can help you create healthy, delicious meals at home without breaking the bank.
  • Grow your own: Magazines offer advice and tips on growing vegetables in your backyard, making delicious food even easier and for a low cost.
  • Meal Prepping and Planning: Prepping and planning your meals in advance can help you save money by reducing food waste and preventing last-minute takeout orders. Magazines often offer meal planning guides and recipes that can help you plan your meals for the week. from school lunches to weeknight dinners to family cooking, Aussie newsagents have magazines that help.
  • DIY staples: Magazines can also provide tips on how to make your own food staples at home, such as bread, cheese, and even condiments. By making your own food, you can save money on pre-packaged items and also have fun experimenting in the kitchen.

These are just 4 of many ways magazines can help families save money on food. By using the tips and tricks provided in magazines, you can enjoy delicious meals at home and still have the occasional night out without breaking the bank.

If money matters to you and you like delicious food, a magazine from your local newsagent could be the answer, it could set you on a path of delicious discovery that saves money too.

And here’s a bonus tip – look beyond the food magazine titles that you may already know because local Aussie newsagents have many specialty magazine titles in the food space from magazines for diabetics and the gluten intolerant to magazines purely about leftovers to magazines from many different countries.

And, here’s a secret – many of us who work in Aussie newsagencies get our best recipes for our own home cooking from magazines we sell!

8 likes
magazines
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