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Newsagency management

If your newsagency is like most, 20% of the stock you have is dead

It takes less than a minute to see the value of dead stock in your newsagency. Your newsagency software can give you the number and, if you want, list the items that are not selling and have not sold in six months or more.

In the Tower Systems newsagency software the insights dashboard has the dead stock data ready for you without you having to run a report.

Too many newsagents say dead stock is not an issue for them when it is an issue. Too many newsagents prefer to live in ignorance than know their real situation. These same newsagents will desperately want to deal with their dead stock issue when they come to sell their business because plenty of buyers will not buy dead stock if they are smart.

Here’s my challenge today: find out the value of dead stock in your business. My advice is if you have not sold any of an item in six months, it’s dead.

Get your number and then resolve to cut this. As a benchmark, dead stock should make up less than 5% of your total inventory investment. I think the best goal is 3%.

So, what’s the value of dead stock in your newsagency?

Here is how we quit stock in retail businesses we operate:

  1. Set a deadline. We’d suggest two weeks for quitting a product or range of products.
  2. Set your initial price. The discount must be compelling. We’d suggest 50% off. A smaller discount in this marketplace will not get noticed. Think about your discount words: in some areas, HALF PRICE works better than 50% OFF. Sometimes, 2 FOR 1 can be even more effective. A $$ price can work better – for example a dump bin with everything priced at $1. People then don’t have to work anything out.
  3. Move the product to a high traffic location. Display it as a line you are quitting – in a dump bin or on a table. This is not a time for pretty displays.
  4. Put up a sign that is either black on white or white on read. Nothing fancy.
  5. Adjust your price. If sales are not strong enough, go harder with your discount.
  6. Give it away. If the products are not selling, consider giving the stock away to a local charity.
  7. Keep track of time. If you decide to be out of the stock within two weeks, stick to that and make it happen with your pricing and placement decisions.
  8. Use the bin. If you can’t sell the item and you can’t give it away, use the bin.
  9. An alternative: If you have a large amount of stock to quit, consider hiring a local hall and running an off site sale.

Quitting stock takes strength and commitment. We urge you to do it to keep your business fresh. Product not selling gives shoppers a bad impression of your business.

This all starts with you knowing the value of your dead stock.

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Newsagency management

Trump tariff moves starting to impact prices in Australia

I have been contacted by two suppliers in the last few days with notice that their prices are increasing as a result of tariffs imposed y the Trump administration.

Despite the claims by Trump, tariffs are paid by the importer, who passes them on in a higher cost of goods. One supplier has advised there will be price increases they are yet to calculate while another US based supplier has written with details on an increase to apply from April 1.

Screenshot

Given the routes some goods go through, priced paid in Australia by some suppliers will increase. While some suppliers will re-route goods to avoid the US imposed tariff, for others this will be a challenge.

The reality is that the tariff moves by the Trump administration are having knock-on affects on manufacturing around the world, leading to significant supply chain disruption.

The Trump tariff move has been made, according to him, to stimulate manufacturing in the US. For plenty of these goods Americans will need to be happy paying significantly higher costs due to higher local manufacturing costs if manufacturing is moved to the US for even the log wages paid in the US are considerably higher than in China, for example. Some US suppliers have noted already, the tariffs are lower in cost than US based manufacturing.

Plenty of economists have explained the folly of imposing tariffs, that the additional cost is borne by US consumers and not the exporting country.

A consequence of the tariff move is more people becoming aware of where what they buy is manufactured. You only need to see some of the news out of Canada in the last couple of weeks to see the extent of the own-goal by the US. I think there is good opportunity here for a more nuanced buy local approach.

While the current federal government in Australia has said it will not impose tariffs on the US in retaliation, trade into our country is already caught up in the US moves. It’s messy and expensive.

In my own case we are making alternative arrangements in at least one instance.

The situation is fluid as we have seen in recent weeks. None of this helps with business planning.

Ugh.

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Newsagency management

Quitting MYKI in the newsagency, another agency line

At my Malvern (VIC) newsagency we advised customers earlier this week that we are quitting offering MYKI public transport ticket recharge services.

We will stop offering all MYKI services including card top-up from the end of March.

For years, offering MYKI services has been loss making, costing us more in time than the government pays.

Most MYKI customers don’t buy anything else, making it hard to justify the service.

We’re a business and need to pay our staff as well as rent and other overheads. MYKI is not commercially viable for us.

We understand this will be disappointing.

By letting you know now you have time to consider other locations for your MYKI services.

Thank you.

Your newsXpress Malvern crew.

This is the only agency service we offer at the business. They were doing it when I bought the business a few years ago and we kept it on so as to not disrupt the relationship with customers, just as we have remained committed to the $400K a year on magazine sales.

While MYKI top-ups offer good shopper traffic, it’s unprofitable traffic. Commission is small and 80% of MYKI customers do the top up and nothing else. Of those who purchase something else with a MYKI top-up, for most it is a newspaper, another small margin product (12%).

A review of gross profit contribution versus labour cost made the decision appropriate. It was made even easier by the decision, finally, by the government that public transport users will be able to use their credit card to tap on and off from early 2026. In the meantime, our MYKI customers have a train station where they can top up a few minutes from out shop.

It will be good to be finally done with this last agency line we have. MYKI customers tend to want to tell us their public transport challenges. They also expect us to resolve issues they have with MYKI and no amount of telling them we are not the company by MYKI time is spend being polite to them.

At this newsagency and elsewhere we are not chasing shopper traffic. While good shopper traffic can make you feel busy, it, too often, does not sufficiently support profitability. We are focussed on efficient business profitability.

Selling high ticket price high margin lines for which the business is known and sought out is more valuable than these micro margin agency lines.

I’ll take being profitable over shop business every time.

In considering all of this we have to let go of the shopper expectation of the shingle. Aussie newsagents can sell anything. Being bound by the shingle in 2025 is unprofitable.

The reaction to our MYKI decision has been one of disappointment by customers. They are grateful for the advanced notice and our convcersations around how unprofitable offering the service is.

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Newsagency management

Generational shift: why plenty of local small businesses are for sale right now

Many small businesses are for sale in Australia right now, including many newsagencies.

While some talk about economic conditions as the reason (queue the cost of living spin cycle of news outlets), the bigges reason I can see is the age of the business owners selling. Typically, they a boomers planning for retirement.

The baby boomer generation, born between 1946 and 1964, comprises a substantial portion of small business owners in Australia. As this cohort reaches traditional retirement age, a natural wave of business transitions is occurring. Whether they make the decision to see or hand the business to family members depends on their own circumstance.

While this demographic shift has been predicted, not many took notice. Instead they are worrying as if something unpredictable and bad is happening. It’s not.

In my experience, many baby boomer business owners lack formal succession plans. This can stem from various factors, including the absence of interested family members or employees capable of taking over.

Consequently, selling the business becomes the most viable option for owners seeking to secure their retirement, which places us where we are today.

Plenty of baby boomers have accumulated ‘wealth’ or assets tied to their businesses. As they transition into retirement, they seek to liquidate these assets to fund their post-working lives.

The sheer volume of baby boomer-owned businesses coming onto the market creates a unique opportunity for aspiring entrepreneurs, particularly younger generations. It also makes for a challenge for those seeking to exit – especially in sectors where there are plenty for sale, like newsagencies. This plays into price and the easy of finding a buyer.

Smart small business owners, including newsagents, have acted long ago to create profitable businesses knowing that they are likely to make more from the day to day trade of the business than when they sell. I have written about this plenty of times here and elsewhere. Make every day your payday.

Too often I see small business owners who have not planned for a profitable exit make emotional decisions and strike out against others as if they are responsible for decisions the small business owners themselves have made.

It’s a buyers market right now. It’s not too late, though, to focus on making every day count for more value for you, making the selling less stressful and sharp.

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Newsagency management

Sydney Reed Gift Fair begins

At 9am today the Sydney Reed Gift Fair gets underway. As an exhibitor I know the fair is smaller than last year. I am as excited as ever for the show as number of suppliers displaying and feet through the door is not a measure of success. It’s new customer accounts that matter the most.

Last year at Reed there was a more diverse type of retail businesses represented. This proved to be commercially valuable. I am expecting the same this year. Being the only software company at the event helps.

For Tower Systems, this trade show is all about AI in retail. The advances are real, available today and huge.

There is a good mix of suppliers here, including plenty of new suppliers – including a couple who have flown in from overseas for the event. Everyone is feeling up beat.

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Newsagency management

World Money Fair in Berlin showed the appeal of serving collectors

Collectors come in all sorts today. Take coin collectors, there are coin collectors, licence fans who purchase coin products, nostalgia lovers who purchase coin products and then there are those celebrating birthdays, anniversaries, citizenship, new babies, Lunar New Year and other events who buy coins. The huge success of the Bluey, remembrance, AFL, NRL and other coin series attest to the diverse mix of customers in the coin space.

At the World Money Fair in Berlin this past week you could see a range of types of buyers of coins.

One of the biggest mistakes I see retailers making is dismissing coins as a viable product category. They think they can’t find or sell to coin collectors. But the reality is, everyone is a potential coin collector given the right circumstances. Coins tap into something primal – a connection to history, a fascination with craftsmanship, and the thrill of owning something rare and valuable. That’s what makes the World Money Fair so important. It showcases the breadth of the market, from classic gold bullion to pop culture collectibles, and everything in between.

Attending the trade show and talking with so many people has helped me understand even better the extent of the coin collector opportunity. It’s an important category in my own shops as well as online, into $1M+ a year. See our mint coin shop website for example.

Unlike the Spring Fair trade show I mentioned in my previous post, World Money Fair in Berlin took up as much space as I had seen previously and the floors were as busy with attendees as ever. This is a show for businesses as well, as individuals, which is interesting if you want to better understand one section of your customer pool.

I am grateful for the opportunity to attend and the insights gained. If all goes well, we will have another couple of mints to represent soon.

Oh, and yes, newsagents can do very well out of selling mint coins and related products.

If you decide to give coins a go, start with a smaller selection to gauge interest and build your knowledge. Partnering with reputable distributors is essential to ensure authenticity and fair pricing. Don’t be afraid to ask questions and learn about the fascinating world of numismatics – your enthusiasm will be contagious!

Here is an example of the broad appeal of coins: Major League Baseball Trading Coins. We have these at mint coin shop.

The New Zealand Mint has launched these and we are grateful to offer them. These aren’t your typical baseball cards; they’re meticulously crafted coins that celebrate America’s favourite pastime. Here’s what makes them stand out:

  • Officially Licence by Major League Baseball. 

  • High-Quality Craftsmanship.

  • Collectible Variety.

  • Rarity and Value.

  • Unique Packaging.

  • Blending  Hobbies.

Whether you’re a die-hard baseball fan, a seasoned coin collector, or someone looking for a unique gift, the New Zealand Mint’s Major League Baseball Trading Coins offer a compelling blend of sports memorabilia and numismatic artistry.

This is one example of a coin product that covers coin collecting, pop culture, sport and gift giving.

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Newsagency management

Here are 3 things you can do in your newsagency that will boost card sales

Growth in card sales is more up to you the retailer than it is up to the card company. This is a controversial view I know – retailers prefer to blame the card companies rather than themselves.

The best way to see if I am right is to make these 3 changes and see if they boost your card sales.

Pitch impulse purchase of cards. If all your cards are in your card department, you’re unlikely to be encouraging impulse purchase of cards.

Create a secondary placement of cards outside the card department, in a spinner or on a stand. Use something you make or source yourself so you 100% control what is on there. Place it near your main entrance. Change the cards every couple of weeks. Start with cards you love on there.

Place two or three cards at the counter. These need to be cards people will buy to have for when they might need them. Change these weekly.

Place two or three relevant cards with your gift displays.

Promote cards. Let people know what you have and why you are grateful to offer them.

Talk about cards you love on social media. One card per post. At least once a week you should have a social media post about cards.

In your front window create an attention-grabbing display promoting cards. Stop people as they walk past with a display unlike anything you’ve done before.

Run a card specific loyalty program. Buy 8 and get your 9th card free, or something along those lines. Keep it simple. Set a date. The goal is top get more people buying cards more often.

Now, here are a couple of additional moves you can make that absolutely will help increase card sales.

Ensure everyone in the shop knows how to put out new card stock and get them doing this when new stock arrives.

Place your own orders. Always have 100% control over what you do order and when. This ownership from the outset will have you more invested in card performance and that is at the core of growth in card sales.

Most of what I have listed here is NOT done by major card competitors of newsagents. Do these things and you differentiate your business and that helps you make more money from cards, for sure.

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Management tip

Transforming your newsagency business: A step-by-step guide fresh start in 2025 for your newsagency

If your plans for your newsagency in 2025 are transformation of the business, I am writing this for you. It’s a simple to follow guide for transformation, a safe guide that anyone can follow.  The advice I’m sharing here comes from years of experience helping newsagents like you transform their businesses.

Understanding your business through your own data

Having a clear picture of your business’s health is crucial for taking steps forward. This involves looking at your business from various angles. Here’s a checklist to get you started:

  • Up-to-date profit and loss statement
  • Current debtors and creditors reports
  • A list of all business debts, formal and informal
  • Stock listing showing total stock value
  • Dead stock listing (items with zero sales in six months or more) with their total value
  • Floor map showing the gross profit percentage contribution by product department/category and floorspace allocation
  • Total rostered hours in a week, including owners (paid or not), and a revenue per hour calculation
  • A revenue comparison down to the category level, comparing the most recent six months with the same period a year earlier

Just wanting to transform your business isn’t enough. You need to understand your current standing and your capacity for change. This data will provide insights into immediate opportunities and the resources available to finance the transformation. This list is the foundation for any business transformation journey I embark on with clients.

Analysing data and taking action

Once you have this data pool, my recommendation is to find some “easy wins” to set the stage for productive focus. For instance, if you have $10,000 or more in dead stock that’s been paid for, get rid of it! The freed-up cash and space will be a big boost. To clear this dead stock, designate a special clearance area, like a table or two, and offer a flat discount on everything there. My suggestion is a 50% discount.

While you’re clearing out dead stock, analyse the remaining data to understand your business’s current performance. Look at the comparison report for any promising opportunities related to your existing business categories. This could be a simple first step to get you started.

As you work through your data, create a list of ideas and action items. You might discover some easy wins you hadn’t noticed before or had been neglecting.

Who should guide you?

Some retailers I’ve spoken with consider using their accountants or business consultants for business transformation or improvement. While they can be valuable resources, in my experience, unless they have current hands-on experience in the newsagency industry, their guidance might not be as effective.

The point here is that it’s your business. You’re looking to make a change, a transformation. The next steps are yours to take, and it’s best if you take ownership of them. This way, you’ll be fully invested in the changes you implement.

Getting your business match fit

This initial step involves data gathering, streamlining operations, and getting your business in top shape. It’s all about preparing you for the more significant changes to come.

But what if your current business data isn’t in good shape, and you’re eager to start making changes right away?

Transforming your newsagency with limited data

If you’re set on transforming your newsagency but your data isn’t up-to-date, there are steps you can take on the shop floor to initiate change. In my experience, businesses in this situation often have a traditional shop floor layout.

The advice I’m providing here focuses on disrupting your current setup. I’ve found that this can help retailers see things from a fresh perspective. It’s a radical approach designed to shake things up in your business. Remember, though, that retail is an ever-evolving industry, so continuous adaptation is key.

Disrupt your layout.  If you have a traditional magazine fixture running down the centre of your shop, with newspapers displayed prominently at the front, take all the stock off and remove the fixture entirely. Don’t overthink it – just rip it out! Move papers to the back of the shop.

Make the shop warm. If you have traditional retail fixtures on the shop floor, remove as many as you can and replace them with everyday items, tables and the like that you find on secondhand marketplaces. Use a rug on the floor to enhance warmth.

Stock what you’d never stock. Find one or two product categories yould never stock in your traditional business. Playing like this way outside what’s usual can help you see what’s possible and this is what can really get you thinking about transformation.

This list is not complete. It;s designed to give you an easy starting point.

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Newsagency management

Maybe a sales counter reset could help your newsagency in 2025

The traditional newsagency counter, once a haven of confectionery and impulse buys, has evolved.  As shopper habits further shift and newsagencies diversify, the opportunities available from a reset counter are considerable.

Managed effectively, the counter can significantly boost your bottom line. This requires dedication – consider it your most valuable real estate.

Suggested rules for counter excellence:

  1. No visible food or drinks unless for sale.
  2. Banish personal items like bags and phones.
  3. Daily cleaning is non-negotiable.
  4. Weekly counter refresh: remove all products, clean, and rebuild.
  5. Minimal signage – every message must serve a purpose.
  6. Employees must purchase from the customer side.
  7. Limit the number of staff behind the counter.
  8. Quarterly counter overhaul – for both staff and customers.
  9. Always assess the counter from the customer’s perspective.

What to Place at the Counter: prioritise profitability:

  1. Set a minimum gross profit margin (e.g., 50%).
  2. Select items that define how you want your business seen, that differentiate your shop.
  3. Select items ideal for with quick, easy sales.
  4. Consider your customer base: lottery players, card buyers, families, etc.
  5. Tell a story with your product selection (e.g., “Fun for Kids”).
  6. Don’t be afraid to experiment!

Counter essentials:

  1. Always feature a rotating selection of cards.
  2. Demonstrate products: play with toys, throw a light-up ball.
  3. Showcase new arrivals and price them visibly.
  4. Highlight engaging magazine articles.
  5. Experiment with pricing – find what works best.

A best practice display is clean and simple: Avoid clutter. It also involves thoughtful / strategic placement: Interrupt transaction sight lines.

Now, for some counter upselling techniques – engage customers: use conversation starters:

  1. “Have you seen this?”
  2. “Kids love this!”
  3. “I love this.”
  4. “We’re running a poll…”
  5. “This is our Facebook deal…”
  6. “Look at this recipe in Better Homes and Gardens…”

Upselling requires practice and confidence. Find what works best for your team.

By implementing these strategies and embracing a customer-centric approach, you can transform your newsagency counter from a cluttered afterthought into a profit powerhouse.

Success lies in understanding your unique customer base and adapting your counter accordingly. Continuously monitor sales, gather feedback, and refine your strategy. By embracing these principles and fostering a culture of innovation, you can unlock the full potential of your newsagency counter and drive significant growth for your business.

If your counter has not significantly chan ged in the last few years, resetting your counter is likely to be an easy win opportunity.

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Management tip

Now, if you haven’t planned 2025 for your newsagency business, here are some tips

I’m going to keep this simple and achievable. If you don’t have a plan for your newsagency for this year, do these things to get started, right away.

Find out what’s not working: the quietest hours of the day, stock that’s not selling, suppliers who are under performing. Your newsagency software can easily reveal these things to you, in seconds. These things provide you with your starting point, they provide you ToDo list.

What’s not working is stock you’re not selling, stock not sold whatsoever over the last, say, six months. List it and quit it. Getting a fraction of the cost is better that you getting nothing, which is what you’re experiencing today. Quit dead stock urgently.

Suppliers not performing are those shown to have stock that’s moving slowly or contributing the least to your grow profit. One you have the list, consider whether to quit the supplier or, maybe, to at least talk with them and explain the situation. Doing nothing with this information is not an option. Take action based on the evidence you have.

The quietest hours of the day are the most expensive in terms of labour cost. Look at your roster. Roster the business for profit over friendship. Or, figure out steps you can take to make those underperforming hours work better for you. Is there work on the business done in other times that can be moved to them?

These three moves are not a complete plan, they are not even part of a plan. The goal here is to give you thinks you can do today, action you can do today.

Action is what 2025 has to be about in every newsagency business. I think this has to be a year of urgency in our channel and we need to drive that urgency ourselves as no one else is likely to drive it for us.

Now before you say I am being melodramatic, the reality is that lottery purchases continue to migrate online, print media sales continue to decline, rents are increasing as are labour costs. These are known things. They alone are enough of a reason for us to see an urgency for us working on our businesses.

If you don’t have a plan for this year, use the steps here and, hopefully, while doing that opportunities for your own plan will come to you.

What you achieve in, with and from your newsagency in 2025 is 100% up to you. Success will come from change.

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Newsagency management

It’s 2025, what can the local Aussie newsagency expect for this year?

With the school year about to start and many now back at work after a summer break, we have an opportunity to turn our mind to 2025.

Hmm, if you’re starting to think about 2025 in your newsagency now, you are coming late to the party. For many, planning for 2025 was well under way six month ago. Never mind. Even late planning is better than no planning.

Let’s start by looking at what we think might happen in 2025 in the context of our Australian newsagency channel.

Newspaper sales will continue to decline. Newspapers will generate less traffic for your business. The financial contribution they make to your profit will fall. I expect over the counter newspaper sales to fall by between 10% and 12% this year.

Magazine sales will continue to fall. While magazines will generate less traffic, the decline will not be as much as newspapers depending on your approach to magazines. Newsagents with a strong commitment to special interest and niche category titles will have a good year. Those who focus only in the top 100 magazine titles will have a less good year. I expect overall magazine unit sales to decline by between 9% and 11% with the majority of that decline to come from the top 100 titles.

Stationery sales will be good, up, in newsagencies that gave a range tuned to local everyday needs as well as a focus on offering stationery for those who love stationery. This is an important distinction. People who buy stationery because they have to focus on convenience and function whereas those who buy stationery because they love it buy because they have found something not often seen elsewhere. Newsagency can play in both of ese spaces well, and thrive. I think stationery revenue can be up 10% if we put our mind to it.

Greeting card sales. As with stationery, people buy greeting cards for different reasons: obligation, guilt, expressing love, to be remembered in the future and because they like the look of a card. Newsagents who do the bare minimum and leave managing the card department to their card suppliers will have a flat year, maybe a decline – not because of the card company but because of the disinterest by the business owner in this vital category. Newsagents actively engaged with cards, those who pitch cards as an impulse purchase and those who understand and lean into the different reasons for buying cards, they will have a good year – I expect growth of 5% to 10% in card sales.

Gift sales. This is open land for harvesting, good land, fertile, ours for the taking – as long as we approach gifts as if this was the only category on which we could rely in our business. If we stock the kind of gifts a supplier says are perfect for a newsagency, the year won’t be so good. If we stock outside that quaint expectation and play outside what our businesses are known for, it could be a good year. I know newsagents expecting 25% growth in gift revenue this year, and more.

Online. This is the biggest opportunity for it’s us reaching people who will never set foot in our shop. In one of my own shops where our website is barely eight months old, we’ve already done $25,000 in online sales in 2025, with nothing spent on marketing. I know of a newsagent mature in online who has done $40,000 this year online. What we achieve is only constrained by our imagination. No, budget is not a factor, not from what I see.

2025 is a year of opportunity for our Australian newsagency channel. What we achieve is up to us. If we do nothing outside of what has been usual for us, we hold our business to the trajectory of 2024 and prior. If we change our approach, if we have a 90p degree turn, if we open some new does, if we fundamentally reset our shop with little consideration of what some expect of an Aussie newsagency, 2025 can be a year of terrific grow, wonderful profit and a feeling of achievement.

What have you got planned for 2025?

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Management tip

Vela APX Announces the Acquisition of Tower Systems

On November 1 last year, I sold my newsagency software company, Tower Systems, to Vela APX, a division of Vela Software Group and Constellation Software Inc (CSI). Fro that date, vela has been in full control of the business and, as Tower customers have experienced since, it’s business as usual: software updates are flowing, customer service is as accessible and helpful as it has always been, and I remain with the company, doing what I was doing.

I am grateful to the thousands of newsagents who have chosen Tower over the decades since 1981 when I started the company. This has been a good channel to me, one I hope to serve for many years to come.

Newsagents were the cornerstone of the Tower Systems business for many years and while the company today operates successfully in sixteen specialty retail markets, newsagents remains a marketplace of considerable value and importance.

As the company serving many more newsagents with its software (57 new newsagency customers in the last 12 months alone) than any other company, Tower appreciates the leadership role and leans into it with care and respect. In our Tower newsagency software there are facilities newsagents can leverage to expand the reach of their businesses, to make them more relevant in a changing marketplace.

2025 will be an exciting year in newsagency software. I say this knowing work already done over the last year and more that is soon to become available.

While the acquisition was finalised on November 1 last year and announced confidentially to Tower customers on that date, it could not be publicly announced until a range of tasks had been completed as required by the public company acquiring the business.

Now, here is the official announcement from Vela:

January 21st, 2024 – Melbourne, Australia – Vela APX, a division of Vela Software Group and Constellation Software Inc (CSI), is pleased to announce the formation of Tower Systems, following the acquisition of assets from Tower Systems International Pty Ltd. This acquisition strengthens Vela’s portfolio and enhances its capabilities across independent retail in Australia and New Zealand.

Tower Systems provides Australian-made and supported Point of Sale (POS) software designed specifically for independent and specialty retailers. With tailored solutions for sectors such as jewelers, garden centres, bike shops, pet stores, and more, Tower Systems empowers local businesses to streamline operations, enhance customer experiences, and grow sustainably. The company also offers integrated services such as eCommerce website development, inventory management, and accounting integrations, ensuring a comprehensive solution for retailers. Backed by a dedicated support team and decades of industry expertise, Tower Systems is a trusted partner for small businesses across Australia and New Zealand.

Mark Fletcher, founder of Tower Systems commented: “I am grateful to have found a happy and strong home for the Tower Systems community of team members and customers and to have done this at a time of my choosing. I am also thankful for the opportunity to continue to serve the business as it evolves in its service of local independent small businesses. Our mission remains: to help local indie retailers thrive.”

Gavin Williams, General Manager of Tower Systems, expressed excitement about joining the Vela Software Group, “We’re excited to join the Vela Software Group, a move that builds on the dedication and talent of our team. This partnership will help us grow, innovate, and continue providing practical solutions that make a real difference for the Retail businesses we are proud to serve.”

Mark Schmutter, Group Director at Vela APX, echoed this sentiment in saying “We are thrilled to welcome Gavin, Mark and the Tower Systems team to the Vela Group. Their expertise in providing real solutions for independent retailers helps to strengthen our position in these markets both in Australia/New Zealand and with our other business unit servicing similar customers in the UK. Tower’s agility, innovation and flexibility, combined with Vela’s network of expertise and resources, will allow them to thrive and continue evolving with their customers.”

This acquisition reinforces Vela’s “connected autonomy” model, providing Tower Systems with the agility to innovate while benefiting from the broader support and resources available within the Vela Group.

For more information on Tower Systems and Vela APX, please visit velaapx.com or contact us at vela_m&a@velaapx.com.

For those interested, here’s what I shared on Facebook today about this:

Tower Systems, a company I founded in February 1981 ( originally as Fletcher DP Services – what a name!), was sold in November 2024 to a subsidiary of a Canadian public company (Constellation Software). I’d been approached many times over the years, but this time felt right, even though selling wasn’t easy.

It was better to place the company, its team, and its customers in good hands now than to risk needing to find a buyer under different circumstances later.

I am grateful to the many who have been part of the Tower team over the years, both those who stayed for decades and those who passed through. This eclectic mix made our work uncommonly interesting, fun, and valuable.

Having my daughter Laura in the business was a joy. Her counsel and support over the last few years and especially the last few months as I approached the decision to sell has been invaluable.

In 2009, the company had a near-death experience, nearly being wiped out. I lost everything I thought I had. The following 14 years have been our best, a testament to the crew from those years, many of whom are still with the company today. We got through it by taking things one step at a time, and by realising who cared.

It’s been an odd time since the sale on November 1, 2024, finding memories of the first days filtering up along with other memories of embarrassment, excitement and joy. I am also reminded of opening the envelope in December 1973 to read my high school results, discovering I had failed. While school is important, the number you are given is not necessarily a measure of your capabilities.

My first job ever, four years with the CSIRO, is what set me on a path in computing and having worked in a newsagency while at High School taught me about business. The two experiences were at the heart of starting Tower in 1981.

I’ll stay on with Tower Systems for two years. I still have, and love, the newsXpress business that serves 200 awesome local Aussie newsagency businesses as well as the associated websites: www.mintcoinshop.com.au, www.myornaments.com.au and www.hugsandlove.com.au.

In the meantime, a short play I wrote, Shirley, is being produced next month for the first time ever – in Chapala, Mexico of all places, by Bravo Theatre (https://thebravo.org).

28 likes
Newsagency management

Plenty of takeaways from the National Retail Federation Big Show in New York

I am grateful for the opportunity to spend four days last week attending the NRF Big Show in New York, the largest retail / tech conference and trade show in the world.

While this was predominantly a big business focussed event, there was plenty offered that was independent and small business relevant. I’ll share more detail of that in the businesses in which I serve over the next few weeks. Here are some overall comments abut this terrific event.

The NRF Big Show 2025, organised by the National Retail Federation, attracted around 40,000 attendees and featured around 450 speakers across 200 sessions. The trade show hosted around 1,000 companies. It was a conference and trade show about tech in retail, for retailers.

This year’s theme, “Game Changer,” highlighted the pressing challenges and transformations within retail and urgent need for innovation and adaptability in a rapidly evolving landscape.

Artificial Intelligence (AI) was the hot topic in presentations and on vendor stands. Only a few companies on the trade show flow did not include AI in their key pitch. From the small and niche to the large, AI was the headline. Those without it felt out of date.

The question for Aussie newsagents has to be: how are you using AI to your advantage today?  There are plenty of opportunities already, opportunities that are proven and that you can trust.

AI driven inventory management was an often-covered topic. I sat in sessions on several different businesses (Dicks Sporting Goods, GAP clothing, Freedom Furniture (Australia), Men’s Warehouse, Academy Sports & Outdoors and more.

They covered how AI tools helped them cut inventory management labour costs, improve stock turn, make beneficial dynamic pricing decisions, have less out of stocks and increase sales by giving in-store associates easy access to information.

I had a retailer badge for the show and engaged often through a retailer lens. Here are retailer specific takeaways from my notes:

  • Change is faster than ever.
  • Retail staff need easier access to decision support tools.
  • Most shops don’t need a back office.
  • We should be able to cut inventory by 25% and achieve double-digit sales growth.
  • What you can sell should not be restricted by your type of business.
  • More suppliers are going direct.

This conference and trade show is unlike anything you’d see in Australia. The sheer size brought to the floor businesses and discussions we’ll not see or hear here for a long time. This is where I found opportunity for myself and those I serve.

On AI in running a newsagency business: it’s here, available now and has been for a couple of years. If you’re not using it, you’re falling behind, you’re less competitive.

Now, to round out this brief note, here are a few of the 200 photos I took:

12 likes
Newsagency management

Finding new customers for your retail business in the changing circumstances of 2025

Meta’s Elimination of human fact-checkers and the changing landscape of attracting new Ccustomers

Meta’s recent decision to eliminate human fact-checkers signals a significant shift in the social media landscape. This, coupled with the ongoing decline in organic social media reach, necessitates a reassessment of your out-of-store marketing and customer engagement strategies.

While social media remains a valuable tool, it’s no longer sufficient to solely rely on it to attract new shoppers. To cut through the noise and build genuine connections, focus on creating original and engaging content that resonates with your target audience. Share your knowledge, showcase your passion for your products, and encourage interaction by creating content that people want to share.

A robust online presence is paramount. Having a website is critical. Ensure your website is user-friendly, with accurate product descriptions that align with relevant search keywords. A well-maintained blog that provides valuable insights into your products and brand story can further enhance your online visibility.

Leveraging local partnerships is vital. Collaborate with community groups and actively involve their members in promoting your business. Offer incentives or exclusive benefits to encourage their support.

Don’t underestimate the power of traditional marketing. An eye-catching storefront display can still stop passersby in their tracks. Consider in-store sampling events to generate buzz and encourage word-of-mouth.

Hosting regular events throughout the year can significantly boost customer engagement and brand awareness. Plan a diverse range of events, from product demonstrations and workshops to customer appreciation nights and seasonal celebrations. These events not only attract new shoppers but also provide opportunities to showcase your unique offerings and build stronger relationships with your existing customer base.

For businesses in regional areas, consider a targeted letterbox campaign. A well-designed flyer distributed to local letterboxes can effectively promote upcoming events or highlight specific products.

In today’s evolving marketing landscape, a multi-faceted approach is essential. By diversifying your efforts and focusing on building genuine connections with your community, you can effectively navigate the challenges of the digital age and ensure the continued success of your business.

Success with Facebook and Instagram has, according to many plateaued. Factor this into your marketing plans for 2025 to ensure you have new customers reaching your business through other channels.

7 likes
Management tip

I love last minute Christmas shoppers in the newsagency

Their eyes dart nervously, their movements a blur of panic. Yes, I’m talking about the last-minute Christmas shoppers, those adrenaline junkies who leave their festive preparations to the eleventh hour. They are typically male and can be aged anything from 18 to 80.

While they may emerge a few days before the big day, it’s in this last week that these thrill-seekers truly shine. They’re a joy to watch, a pleasure to serve (their gratitude is palpable), and a boon to our businesses. Some will buy anything.

I’ve seen plenty of these last-minute shoppers. I chatted with one who confessed to the thrill of the chase. One guy I spoke with loved the challenge of finding gifts for ten people in an hour. He refuses to shop before the last week. Another guy I spoke to had a list of names and an amount next to each. His method is to always go with the first idea – it’s better than them getting nothing he said.

We configure the shop to serve these last minute shoppers, placing products close so they can do the fast shop they want. It works a treat.

Last-minute shoppers are unique in my experience. They thrive on the chaos, the urgency, and the thrill of the chase. They’re a reminder that sometimes, the best-laid plans can go awry, and that a little spontaneity can add a lot of excitement to the holiday season. They make retail more interesting.

This Christmas season has been a resounding success.

10 likes
Newsagency management

Check Christmas trading performance in your newsagency

Run a comparison report comparing performance in your business from November 1, 2024 to December 9 2024 compared to the same dates in 2024. If your business is like I have seen from plenty of other businesses today you should be seeing:

  • Card sales up 9%.
  • Gift sales up 21%.
  • Plush sales up 16%.
  • Toy sales up 15%.
  • Book sales up 12%.
  • Stationery sales up 4%
  • Magazine sales down 11%.
  • Newspaper sales down 12%.

These are the average results from 20+ different businesses. All high street though, no shopping centre businesses. Mor regional and rural than in the city. The best news is in the top five numbers.

In each of the businesses from which I have drawn data, they have made a conscious decision to pursue growth in one or more parts of the business while, at the same time, at least maintaining decaying product categories (i.e. not actively harming them).

What is most interesting in the data is that in more than half the businesses the growth was achieved off a flat transaction count. These businesses are getting existing customers spending more.

My point is that there are newsagents growing their businesses, achieving results of which they can be proud, results that deliver a healthier P&L.

Data like this is easy to access. if you have the industry standard Tower newsagency software, use the Monthly Sales Comparison Report. It’s the benchmark report for this type of analysis. I love this report. In seconds you can have your results and compare where your business is at. It’s the report I use.

I know of newsagents who wait for their accountant to produce a report on business performance. I think that takes too long and is too expensive. You can run this report today and have in no time at all valuable information to guide more moves you can make in your shop. Waiting for a non-retailer to tell you how you’re doing is old-school and, usually, unhelpful.

Take a look at your numbers. If they differ considerably from what I have noted here, reach out. I’d be happy to take a look for you. I am keen to help newsagents run healthy and profitable retail businesses. 

Our channel has come i9n for some negative reporting in the media this year. The best response we can have is to grow our businesses and, with this, flip the bird at ignorant reporters and media outlets.

11 likes
Newsagency management

How a no-frills POS software connected Shopify website has added $4,000 a week to my newsagency in the last 4 weeks

A few months ago, I embarked on a small experiment: building a website for a local suburban Melbourne shop, my newsXpress Mount Waverley shop,  on a tight budget and following the advice I give to other retailers.

The goal was to test the waters: to see what could be achieved with minimal investment, to see if the advice provided, when followed, is financially valuable.

Starting with a modest product range, the website quickly began generating sales. As I discuss in this video, which was shot late last week, in the seven weeks to filming, this simple online store has raked in over $18,000 without any additional marketing spend or inventory investment.

In the last week sales have surged further, the website has delivered over $5,000 in revenue in seven days. Not one sale has been to an existing customer. On top of this, the website has driven excellent growth in in-store shopper visitors: they find the product on line, find out where we are, and they shop in-store.

This video takes you behind the scenes on what we have been able to do through the Hugs and Love website integration with our Tower Systems newsagency POS software into the Shopify website.

The Hugs and Love website (www.hugsandlove.com.au) is a prime example of how seamlessly integrating Tower Systems POS software with Shopify can streamline online sales and fulfilment processes for local businesses. This powerful combination allows businesses to efficiently manage their inventory, process orders, and fulfil purchases both in-store and online. By leveraging the strength of these two platforms, local shops can:

  • Expand their reach: Attract new customers and increase sales beyond their physical storefront.
  • Simplify operations: Streamline inventory management and order processing, saving time and reducing errors.
  • Enhance customer experience: Offer a convenient and efficient online shopping experience.

The experience with this website has been valuable in helping us see what is possible in the shop.

I am always telling retailers who are creating their first website to launch early and launch often. Where we started with Hugs and Love in terms of products is different to where we are at today. We quickly discovered opportunities, and we leaned (hard) into them. This has been a key factor in making money. It has also provided a runway into 2025.

I see newsagents, and other retailers, make mistakes with their websites, big mistakes, expensive mistakes. Keeping it simple and developing on a frugal budget is best. Having as much control yourself as possible is key too. 

The most important advice that the Hugs and Love experience has reinforced is that a good website is a good plan B. It provides you opportunities outside of the shop you know, in case you want an option away from the shop.

Now, here’s the pitch: what I’ve done with www.hugsandlove.com.au is bring together the newsXpress retail experience and the Tower Systems newsagency software experience to create a solution that could work in any newsagency regardless of location or size. As I said, it’s a pitch. It’s also an explanation of how you can make money: take the Tower tech, the newsXpress expertise, a frugal budget and some of your time and you can achieve a return on investment that is likely to be better than the return you are getting from your shop today.

When we consider the newsagency of the future, one option is that it is this, it is playing away from the boundaries of your four walls and the expectations and restrictions of the newsagency shingle. It is about harvesting shoppers far away from your business, learning form the data they share and turbocharging your business growth with almost no additional capex, labour investment or space investment – delivering bonus net profit to your bottom line.

I’d be happy to talk one on one with any newsagent on this 0418 321 338 or mark@towersystems.com.au) , to take you further behind the scenes or to verify any of the information I have provided here.

12 likes
Newsagency management

Unfair treatment of small business retailers by shopping centre landlords in Australia and how you could help

I have been assisting a newsagent over the last two weeks in their lease negotiations. Their landlord, a well-known national business, is insisting on an annual rental increase of CPI + 2% and a similar increase on their mandatory marketing fund contribution. For this particular landlord the increase being sought in new lease agreements is more than in recent years – a consequence of the Covid years I suspect.

The landlord refuses to consider that a significant portion of what is sold in a newsagency, even a newsagency that has transformed from the traditional, comes from products over which the retailer has little or no control on the sale price. Indeed, plenty of products in any Australian newsagency have experiences price suppression over the last five years, making newsagents worse off in real terms.

While the person representing the landlord locally appears to have no wriggle room on the annual increase, they have some capacity on the base rent. It’s not enough though to make this tenancy viable from my perspective, especially when you take on board the restrictions in the lease permitted use clause.

Through the retailer, I have provided the landlord with comprehensive data on product price history to support the request for a fairer approach to the annual rental increase as well as evidence of a typical ‘newsagency’ today to expand what is covered in the permitted use clause. They appear to be unswayed by the evidence presented.

Talking about the situation with a leasing consultant last last week, they commented that they, too, had noticed a toughening of position by several major national landlords in their negotiations with small business retailers.

I mention this today to people who stop by here, newsagents, suppliers and landlords, to encourage them to understand the pressure newsagents, especially those in major shopping centres, are under.

I ask that suppliers consider this when setting your product prices and determining the gross profit your wholesale model permits for retailers. Your decisions impact the capacity of newsagents to pay the lease cost hikes set by landlords.

I ask that landlords treat newsagents differently to other retailers who do have more control over their priced. Plenty of suppliers will back up what I have shared here.

I ask that newsagents actively consider the value of being in a major shopping centre. The value has diminished over the years. Better opportunities outside exist in many situations. If you are not happy with a lease, don’t sign it. If you have any concerns whatsoever about your capacity to fulfil the obligations of the lease, don’t sign it. If your lawyer on reviewing the lease recommends against it, don’t sign it. There are many other options.

With overheads (insurance, power etc.) up by 10% and more and the retail award expected to increase close to 5% again this year, newsagents are having to increase their sales by more than 5% and increase their overall business gross profit by one or two points to not fall behind let alone move ahead.

In my work with the newsXpress group of 200 newsagents, the key focus right now is about:

  1. Maximising the gross profit on every item over which they have price control.
  2. Maximising shopper visit efficiency (from a deeper basket each visit).
  3. Maximising shopper value: bringing the shopper back sooner.
  4. Maximising stock turn and thereby maximising return on inventory investment.
  5. Maximising return on labour spend: by working on operational efficiency.

Back in the day, when our channel was a government protected monopoly, these things did not matter. Opening the shop door in the morning was all we needed to do to thrive. There was plenty of business to cover parts of the business that were not performing well.

Today in newsagency businesses, every supplier, every product, every staff member must perform. There is no slack to cover failure. (Suppliers take note.)

Also today, newsagents must play further afield, further away from what has been traditional for newsagents. Fashion, coffee, greenlife, licenced product and online are all areas of tight focus for our community. We especially like exploring products people might never consider offering in a newsagency.

It’s hard work every day. It’s what we signed up for, all of us in retail and in this channel.

21 likes
Magazine subscriptions

When you choose a card company for your newsagency, choose for profit over friendship

Some card companies invest heavily in hiring people good at making prospective customers feel good. Often, they arm them with an expense account for lunches, dinners and coffees. They also give them some cash to splurge to buy your business, cash for fixtures and other things.

None of this matters if you end up with greeting card products that do not perform as well as products from another card company.

Be wary of card reps offering you lunch, dinner or cash to spend in your business.

Any company selling products that uses cash or ‘friendship’ to get you to buy from them should be viewed with skepticism in my opinion as these things take your focus form their products.

Historically, some of the big card companies in our channel built their retail network on ‘friendship’ and other ways of buying business. I know of retailers who subsequently switched card companies and benefited from double-digit sales growth.

Card sales are strong this year. Here is the topline summary data for one of my shops comparing the last month with the same period a year earlier.

Strong results: 16% up in unit sales and 10% up in revenue.

For everyday captions, the results are even better: up 31% in unit sales and up 27% in revenue. This growth achieved without a card company change – it’s the card company working with us to maximise the opportunity for both our businesses.

This is what matters, it is all that matters: growing revenue, and profitability, to make the business more valuable for all stakeholders. This matters more than a free lunch or some other glad-handing.

I know of a newsagency business that changed hands recently and within days a card company rep was in there greeting the new owners and inviting them out to dinner. The new owners, in their first ever business, felt loved and accepted the invitation. They didn’t think they might be schmoozed into a decision that may not have been in the best interests of their business. Thankfully for them they realised the game being played before they signed an agreement.

Prioritise suppliers who help you make more money in your business, they are more valuable to you than ‘friendship’ or a free meal.

10 likes
Newsagency management

Cash continues to trump points in the loyalty stakes in newsagencies

Since Tower Systems launched discount vouchers in its newsagency software in February 2013, they have lead in the loyalty stakes, helping to drive terrific sales for newsagents.

I hear stories regularly of how shoppers have behaved on receiving a voucher, often looking around the shop for something else to purchase. The bigger the discount offered the more engaged them become in my experience.

The $11.18 discount offered on the voucher above will typically have no real cost to the business since the business has settings options with which to encourage shoppers to spend more than they might have usually spent. This is what a good loyalty program is about – encouraging shoppers to be more loyal than traditionally.

Discount vouchers are perfect for the times in which we find ourselves today: offering a cash discount off their next purchase captures the mind of and budget-conscious shopper.

Another thing to love about discount vouchers is that they are owned and run by the store, thereby helping to drive overall store performance. This is better for the local business than a specific supplier funded loyalty program that only seeks to drive sales of products from that supplier. That type of loyalty tends to be of lesser value to the local store.

The best loyalty program is one that lifts the overall business performance, rather than merely shifting sales between suppliers.

Points based loyalty programs have been ruined by supermarket behaviour. Most customers would not know the dollar value of a point if asked I suspect. My thinking is the value of points is the inverse of the money spent by a retailer promoting their points. Noisy points program marketing = lesser value for consumers.

Looking at shopper basket data from plenty of newsagencies where discount vouchers from the Tower Systems newsagency software has been used I can see that magazines continue to benefit – the magazine department accrues the least value in voucher dollars yet it benefits the most from purchases made with a voucher as part payment. There are some departments, however, where vouchers accrued and redeemed tend to match, demonstrating terrific efficiency.

If you are one of the 1800+ newsagents with the Tower Systems newsagency software and you’re not using discount vouchers, check them out, they could deliver a terrific bottom line performance boost.

16 likes
marketing tip

Website sales back office fulfilment advice for small business retailers

Yesterday, Anthony from the newsXpress business and I talked through some of the back office fulfilment setup and processes in place for several consumer-facing websites we operate through the newsXpress business. It may be useful to any newsagent with a website for their business or considering one for their business:

The video is part of a series for Tower Systems on management of a website and streamlining in-store processes.

Getting sales online is only the first step in success from an online business. Back office fulfilment is key to cost management and mistake mitigation.

10 likes
Newsagency management

Advice for newsagents selling online – dealing with the challenge of shipping pricing

Retailers, small business retailers especially, can get stuck on what to do about a free shipping trigger point for their website and the actual shipping charges they apply.

We have see it slow the process of getting their new website live.

After looking at many websites across a range of product categories I have some advice that I hope is helpful. I made this video yesterday:

For the free shipping trigger, if you are not sure where to start, start with $100. Experience with the website will soon guide you as to where you might adjust this. Adjusting the free shipping trigger is easy. Where you land really depends on your own business.

What you charge for shipping, when you do charge, needs to be simple and understandable. Too often we see retailers over complicate this. If you are not sure where to start, choose a number: $10, $12, $15, any number, and start there. Once the website is live, shopper engagement will guide you on where to land.

Every online business has shipping costs. Be careful to not be sidetracked by big competitors that pitch free shipping. Sure, there are shoppers who chase free shipping. There are more shoppers who appreciate reliability, personal service, care with packaging and, most important, of all, immediate availability of stock.

The advice in this video is part of a series of short videos Tower Systems is creating for retailers having websites built by the company and connected to its POS software. The advice in this video is not Tower specific.

The goal of the video is to share information that helps you make an informed decision faster, to overcome a common hurdle on the path to getting live with your website.

Deciding on the right free shipping trigger for your website involves several factors:

  1. Shipping Costs: Calculate your average shipping costs to determine a sustainable threshold for your business. The trigger should cover these costs and ideally contribute to your profit margin.
  2. Customer Behaviour: Analyse your customer data to understand their average order value. Set a trigger that incentivises customers to exceed this value.
  3. Competitor Analysis: Research your competitors’ shipping policies. You could choose to offer a competitive or more attractive free shipping offer.
  4. Profit Margin: Ensure the free shipping trigger doesn’t significantly impact your overall profitability. Consider the potential increase in sales versus the cost of free shipping.

If shipping costs are slowing you going live with your website, make a decision, any decision, and monitor shopper behaviour, adjust as you learn.

10 likes
Newsagency management

News outlets talk newsagency businesses down, how can we change the narrative?

Newsagencies in decline as demand for online content outstrips print media.

It’s a headline from an ABC news story a few months ago, a story published online, on radio and on TV. I wrote about it here at the time.

The story, reporting on the closure of Mansfield Newsagency in Victoria, failed to adequately report on the state of Australian newsagencies. So called experts failed to present accurate current information about the health of local newsagency businesses.

While there have been newsagency closures, the numbers are not huge, not as big as we see in retail channels.

The ABC News story is another in a series of reports by the ABC and other mainstream media outlets in Australia to properly report on the state of Australian newsagencies. While there are businesses struggling, there are more thriving, growing.

Let’s all work at pushing back on the cliché narrative about our channel.

Rather than complain about the failures of news media and some others to adequately represent our channel, here are steps I think we can all take in our newsagency businesses.

On social media, engage with content that is different to what people expect from a newsagency. That means posting less about magazines and lottery products and more about unique gifts, clothing, books and toys you may sell.

In your social media posts, talk about what you love, and why. Write your gratefulness for local Aussie products you have been able to find for your business. Appreciate local community groups you can support thanks to the support of your customers.

In your front window pitch products people do not expect to see in their local newsagency. Your front window display has one job: to get people to notice it. Hopefully, they stop and look, and then step inside. Your window display must crash assumptions. It must be bold.

At your counter pitch products people do not associate with a newsagency counter. This means no chewing gum, everyday candy or similar. Have products people don’t associate with you. However, the need to be products easily purchased on impulse.

From the front door and for the first 3 metres inside the shop pitch products people do not expect to see in a newsagency. And, change how it is displayed weekly. You want people saying things like this is nothing like a newsagency or every time I come here it’s changed. These types of comments tell you that you are getting things right.

The key to each of these steps is you offering in your newsagency business products people do not usually associate with a newsagency. That means buying from suppliers who do not traditionally supply newsagencies or go to the trade shows you might typically attend.

Playing outside what is expected for your type of business is key to you pushing back against the narrative of mainstream media that: Newsagencies in decline as demand for online content outstrips print media.

The decline in print media, which is between 10% and 12% a year currently, has nothing to do with newsagency closures in my opinion.

Some newsagency shops close because the lease is at an end and the owner has plans for elsewhere. Most close, however, because the newsagency is not relevant to today, which brings us back to product. The products you offer in your shop are the best way you can state your purpose, show your difference, ensure your relevance locally, and online.

It’s hard work, every day. As retailers who own and run our own businesses, we choose this. Our future is ours to make, and in doing so we need to take every opportunity to push back against the ill-informed narrative about our channel put about by mainstream media.

6 likes
Newsagency management

A website for your newsagency could be a perfect plan b

Too often retailers think a website connected with their shop needs to reflect what they sell in the shop. While this can often work, it is not essential.

There are plenty of retailers, including newsagents, who run websites from the back of their shop, using the resources of the shop without additional overheads.

There are newsagents who started this way, with a website as a completely different business, who then discovered that the products sold through this other business could also sell in their shop.

I know of one newsagent who stumbled across the opportunity when unpacking goods for the website they ran from the back office. A customer noticed the items being unpacked, items you’d never expect to see even in an innovative newsagency. Soon enough this newsagent had a section for these products in the shop and attracted a whole new range of shoppers as a result.

I know of another newsagent who let a friend use spare space at the back of the shop to run a new online business. Soon enough the two were working together offering the online products in the shop once they discovered that something they never considered would work worked a treat.

A website connected with your newsagency could be a perfect way to explore what you could sell. That a website can easily reach many more times the people your shop reaches, it is easier to experiment. That it is new means you can experiment outside any boundaries you impose upon yourself in your shop.

This approach of experimenting completely outside what you do in your shop today is what I call a plan b., It’s you experimenting in pursuit of fresh traffic and revenue for your business, through which you might find a financially rewarding path beyond what the physical shop currently offers.

Websites are easy to setup and run, they can evolve too, as you learn more of what can sell.

By all means offer what you have in your shop online. Think, too, about the opportunities of playing completely outside what you do today and through this attracting revenue from shoppers you will never see and from products you thought you would never carry.

Connecting your website to your newsagency software is easy, offering one place for managing all inventory and all sales. This is time and labour efficient. It also protects against theft.

We had an idea for a very niche website for one of my newsagencies a couple of days ago. We have the domain name and are working on inventory. Always chasing change.

5 likes
Newsagency management

Overthinking a website for your retail business can be a mistake, and here’s why

Here’s a quick video I did yesterday morning showing why it’s wrong to overthink your website when planning for it. I see too many retailers, including newsagents, overthink their website, wanting everything to be perfect, thinking they know exactly what people will buy.

We created www.hugsandlove.com.au for one of my own shops in suburban Melbourne. It took less than two weeks to go from idea to being live. We’ve spent nothing on marketing and we have quadrupled the product range since launch. We have been deliberately frugal in our investment in the website and lazy in terms of chasing sales – to show others what they could achieve even being time poor.

Also, we did not add any tech skills to the business to make the website happen.

In this video I step you through some of the transactions and explain how seeing these helped us evolve the website. I hope some find it useful.

How you approach creating and running a website for your shop is 100% up to you. This video is my experience for this website and this shop. It’s one of ten websites we have created over the years for my shops. Again, the goal was to mirror something any newsagent could do.

We are at a point in retail where having a website for your business is as essential as having a fax machine was decades ago – every business had one.

As I note in the video, this quick and dirty website of ours for this suburban shop will add $50,000 in retail sales in the first year. I can see that doubling the next year with small effort. $50,000 in sales is close to $25,000 in GP, for no additional labour or retail space overhead. That’s good for business. Double it and you’re at $50,000 hitting the bottom line profit of the business.

These results are coming from shoppers the business cannot easily reach by opening the front door of the shop. Every retailer would be happy for this type of growth on top of what the physical shop is achieving.

I know of newsagents doing hundreds of thousands of dollars a year online. This is the financial opportunity anyone can chase. It starts with your first website and leaning into what it shows you.

11 likes
Newsagency management
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