Too many of the close to 3,000 newsagents with a newsagency Point of Sale system in their business do not use the software to manage stock.
This increases their exposure the customer and employee theft, it leaves them overloaded with stock, more than they need for the business, and it is costing them thousands of dollars a year in unnecessary wages.
The majority of newsagents have the technology at their fingertips yet too many do not use it.
It is as if these newsagents want to pay more in wages than they need to, carry more stock than is necessary and accept theft. Dumb, dumb and dumb.
Is this you? Do you genuinely manage your inventory? Do you use your computer system to generate orders or do you order based on gut feel, walking around the shop with a notepad and pencil or, worse still, by letting a supplier representative do it for you?
I have seen newsagents implement full stock control, without spending any more money on technology, and cut wages by $1,000 a month, cut their stock holding by $10,000 and cut theft by $15,000 in a year. That is a total saving in the first year of $37,000.
Newsagents with these tools at their fingertips and not using them have no excuse. They are financially hurting their business and the newsagency channel as a whole.
Here are the proven simple steps to saving time, cutting theft and reducing dead stock in your newsagency.
- Receive all stock you sell through your computer system.
- Scan ALL sales.
- Scan out all products you return to suppliers.
- Eliminate all department sales – where you type in the amount of the item as you would on an old cash register.
- Do a complete stock take with the computer system.
- Implement a program of rolling stock takes of the store by section – never pay for a professional stock taker again. Act on the discrepancies reported from your rolling stock takes – this is theft – by moving categories, being more vigilant or eliminating the lines.
- Generate stock replenishment orders using your computer system. STOP relying on supplier reps to order for you – they work for their boss and not for you.
- Integrate your stock control plan into the schedules of all who work in the business.
There can be no excuses. If you want to make the most out of your business (and why else would you be in business?) then following these steps is essential and urgent.
Some reading this will nod their head and agree that they should follow my advice. That is where it will sit … an idea they agree with but not acted upon. These people are ignorant, they don’t care about the thousands of dollars they will lose this year in their newsagency as a result of their inaction.
In addition to cutting theft, reducing your investment in stock and cutting paid-for hours, you will access other benefits, I promise you…
- Better business decisions. When you have accurate sock on hand data in your system you can rely on accurate Return on Investment, Stock Turn and Return on Floor Space data – by department, category and item.
- Better understanding. Thanks to accurate comparison of supplier comparison data.
- More informed strategic planning. Thanks to an accurate and financial performance based assessment of your business. If you are concerned about the impact of devices like the iPad on your business you will want to contemplate diversification. Some options will be obvious thanks to more accurate and meaningful business data.
- An easier business to sell. Implementing the eight pointed noted above results in a business which is more profitable and easier to run. This will make it easier to sell your newsagency. A smart broker will point this out when comparing your newsagency with another.
To kick start your newsagency in 2011, I urge you to act on this list. Today. If you have questions or comments, call me on 0418 321 338. I am happy to help regardless of the newsagency software you use.
You can’t plan for the future unless you are fit and healthy today. My eight point list goes to the heart of the health of your newsagency. Businesses which compete with newsagencies – supermarkets, convenience stores, petrol outlets, card shops, stationery warehouses, national variety stores – they all do this as a matter of course. How else do you think they have been able to take so much business from your channel? They treat their business data seriously.
Are you in? Are you committed to taking these steps to strengthen your business this year? I hope so. You need this for your future. The newsagency channel needs this for its collective future.
On the software side, I’d note that Tower Systems offers an excellent suite of training videos, advice sheets and live online training workshops which cover the area of inventory management and specifically how to unlock the benefits I have outlined above. For Tower Newsagents especially, there in NO EXCUSE.
Please don’t ignore the opportunity I have outlined in this blog post. You have nothing to lose and thousands of dollars to gain this year.
Remember, I’d be glad to help in any way.
We are promoting Prevention magazine with this aisle end display. I see Prevention as another title which sells particularly well on weekends – especially in a couple of shopping centres where I have newsagencies. We see different shoppers on the weekend to our regular weekday shoppers. We are more likely to see irregular visitors to the centre – hence the opportunity of impulse purchases which reflect the traditional weekday product mix. This is another reason we do weekend only displays for some products.
