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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Newsagency management

What can you do if your marketing group contract auto-renews or you are bound by a long lock-out period?

Following my last post (Monday this week), Does your marketing group contract auto-renew? Does it include a lock-out period?, I outline below options you may consider if you find yourself in a marketing group contract you want to leave.

I am not a lawyer. This is not legal advice. In my opinion, a marketing group contract should be so simple straightforward and fair that it does hot need a lawyer to interpret or understand.

If your marketing group contract or agreement is complex and not easy to understand that’s a warning sign right there.

CONTRACT AUTO-RENEWAL.

If you have found your contract has auto-renewed, think about whether it was clear it would and whether the newsagency marketing group contracted you prior to the auto-renewal trigger advising you that auto-renewal was imminent. The ACCC is on record as saying that auto-renewal should be clear and that you should be contacted prior to auto-renewal with enough time for you to say no thanks.

Three newsagents in the last week have told me their newsagency marketing group contracts were auto-renewed without advance warning from the marketing group that it was going to happen. I think any independent party with authority considering this would say renewal action was unfair and that the newsagent could opt to leave the group now.

RESTRAINT OF TRADE – POST CONTRACT LOCK OUT PERIOD.

Some newsagency marketing agreements seek to deny the newsagent the right to join another marketing group for a period of time after the end of the agreement. I have heard marketing groups with such a restraining clause claim that it is to protect their intellectual property shared with the business while they were in the group. The question I have is what intellectual property?

In situations where I have seen newsagents threatened by the group they are leaving, or the lawyers for the group, I have not been able to discover any intellectual property worth protecting.

In a recent report, the ACCC highlighted that restraints which go beyond what is reasonably necessary to protect a franchisor’s legitimate interests are likely to be unfair. For the purposes of this discussion, a franchisor would be the newsagency marketing group.

NEW REGULATIONS.

In November 2023, reforms passed by parliament make unfair contract terms illegal, attracting substantial penalties under the Competition and Consumer Act 2010 and the ASIC Act 2001, with each unfair term forming a separate contravention.

I think it is possible that a newsagent with an agreement that auto-renews and / or with an end of contract lock-out restraint period barring them from joining any other group could challenge the validity of the contract.

While I am not a lawyer and this is not legal advice, if I found myself in this situation I would do several things, all at once:

  1. Write to the franchisor / marketing group explaining my opinion that the contract is unfair and seeking immediate termination of the contract without penalty and without any restraint period. And, if the letter I would request that all correspondence is in writing and only in writing.
  2. Contact my local state government level small business ombudsman seeking their help in resolving the matter.
  3. Seek assistance from Australian Small Business and Family Enterprise Ombudsman on the contract.
  4. Complain to the Australian Financial Complaints Authority (AFCA). They small businesses with a free and independent dispute resolution scheme to assist with resolving financial complaints.
  5. Engage with ASIC, lodge a report of misconduct online.
  6. Write to the ACCC complaining about what I consider to be an unfair contract.
  7. Contact my local small claims authority (VCAT, QCAT, NCAT, TASCAT, SAT etc) to see if they would accept a case seeking to declare the contract invalid and agreeing my my immediate exit from the group.

My point here is that there are options for you, actions you can take that do not require a lawyer, actions that could free you from a contract you no longer want for your business.

I have seen newsagents consider taking steps to get out of a contract only to give up, saying it is too hard. I have also seen newsagents take a couple of steps and be permitted to exit a group as long as they don’t tell anyone.

If you are in a marketing group for your newsagency and want to leave but have been told you cannot or been told that you have a lock-out restraint period, it is possible one or more of the steps listed above could help you out. Doing nothing achieves nothing for your business.

The difference between being in a group doing little for your business and a group doing plenty could be tens of thousands of dollars in net profit in a year.

A good newsagency marketing group is profitable for the newsagency. Belonging just to belong to something is not commercially astute.

I am not going to list marketing group contracts here that I consider to be unfair in part because I have seen some groups with different contracts for different people, which in itself is odd and somewhat concerning. One group has recently become more threatening against newsagents who want to leave, causing considerable distress for the newsagents impacted.

One final point: everything I have written here could relate to some card company contracts I have seen.

Before you sign any agreement, read it, be sure you understand it and ask someone you trust for their opinion.

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Ethics

Does your marketing group contract auto-renew? Does it include a lock-out period?

If you are in a newsagency marketing group, get out the contract you signed and read what it says about termination.

Be sure you understand the term of the contract, whether you have to give notice and if so what length of notice is required and whether there is a period after the end of the contract in which you are not permitted to join another group.

If you are not sure about these things, seek professional advice. Indeed, you should have sought advice prior to signing the contract. It is never too late to seek advice.

TERM.

Newsagency marketing group contracts vary from one year to six years from what I have seen. Personally, I think anything more than one year is too long. Aren’t you better off staying with a group because of the value gain from it rather than because they have legally bound you in a contract? Shouldn’t groups want you to stay because you want to stay.

If they really trust what they offer and the benefits they deliver for you, why lock you in?

Oh, and I do understand the need for an initial term when you first join, to learn from each other, to unlock value for each other.

NOTICE PERIOD.

Some contracts require you to give notice months ahead of the contract renewal period and your failure to do this locks you in for, sometimes, another long period. In my opinion, a notice period of two months is reasonable and anything more is unfair for the small business retailer.

AUTO RENEWAL.

I think auto renewals in a contract are a gotcha, especially if the auto renewal period is long, like a year or more as is the case for some newsagency marketing group contracts I have seen.

I suspect businesses put auto renewal and a long (like a year or more) lock in period in contracts because they know people will not realise they need to give notice to not renew. They are businesses. It’s all about their revenue.

LOCK OUT PERIOD.

Another thing I have seen in newsagency marketing group contracts is a post contract termination lock out period. I have seen them make this case to protect their intellectual property, which I think is a joke. What intellectual property? Okay in the first year maybe, but what after that time? None of the newsagency marketing groups has a system with training, regulation, branding requirements and more like you see in a McDonalds.

If you are happy with your newsagency marketing group contract, this post is not for you.

If you are unhappy, please dig out your contract and look at your options.

If you have been given a newsagency marketing group contract to sign, please read it carefully. Some have worse provisions than the few I have mentioned here, provisions that are very expensive – like demanding you access some products / services only from the supplier they dictate. I saw one newsagent recently pay thousands of dollars more for something than they would have paid had they not been in that group.

Buyer beware is the point here. Do your homework. be sure you fully understand the contract. Be sure you are happy with all terms prior to signing.

Not all newsagency marketing groups are the same.

I know of at least twenty newsagents currently in groups they want to leave but cannot. Some have received legal letters threatening against leaving and others have received less formal yet equally distressing communication. In most cases, that communication was the first time i a year their business received direct communication about their business from the group to which they belong. These newsagents would leave in a heartbeat if they did not feel trapped. None of them want a legal fight, and I suspect some in the marketing groups know this, and use it to their advantage, and the disadvantage of their members.

If you are in a newsagency marketing group, get out the contract you signed and read what it says about termination.

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Ethics

Reserve Bank consultation on card fees

Following the federal government’s announcement about debit card fees, the reserve bank today announced details of its consultation on card fees. The issues paper provides good background on the move:

The Reserve Bank of Australia (RBA) is conducting a review of merchants’ card payment costs and surcharging. Australians use cards extensively to pay for goods and services and benefit from the convenience and security provided by card payments. However, in an environment of heightened concern around the cost of living and ongoing changes in payment preferences, merchants and consumers are increasingly focused on card payment costs and surcharging. These two issues are linked as merchants would be less likely to surcharge consumers if card payment costs were lower. Accordingly, it is timely to review whether the RBA could do more to put downward pressure on merchant card payment costs by promoting competition and efficiency and whether the RBA’s surcharging framework remains fit for purpose. This review also recognises that some years have now passed since the surcharging framework was introduced.

Retailers have an opportunity here to have their say in relation to payments. Take your time to read the issues paper and understand the extent of this first phase of a bigger project.

The RBA is seeking views from interested stakeholders on the issues raised in this paper. Written submissions on the issues discussed in Section 2 should be provided by 3 December 2024 to: pysubmissions@rba.gov.au

This is a hot topic for retailers and consumers. Having your say puts you into the conversation.

While associations, groups and other collectives will lodge submissions, my experience with government enquiries is that they appreciate hearing from individuals, or in this case, individual businesses.

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EFTPOS fees

Advice for newsagents on preparing to make a case for rent relief from your landlord

If you want/need to make a case to your landlord for rent relief – short or long term – here is a list of what I suggest you assemble to enable you to make a case. This is what I’d ask from you if you seek our help. Your evidence is key. Too often retailers ask for rent relief without making a business case and then wonder why their request was rejected.

  1. Current profit and loss (most recent year or to the end of the most recent quarter) and for the same period a year earlier. This does need to be recent to be relevant.
  2. Sales comparison for recent period (more than 3 months) to same period a year ago..
  3. Details of every step you have taken to improve traffic and sales including external marketing and costs associated with each activity. Assemble this in a spreadsheet. This will be important to show you are doing your part for your business.
    1. Itemised.
    2. Numbered.
    3. Provable.
  4. Details of steps you have taken to manage costs. Again, show that you are professional and thorough in your approach to your business.
  5. Changes made to the business over the last year. Assume your landlord has not been to the shop and seen the work you have undertaken.
  6. If possible, comparisons with other newsagencies – an understanding of how you compare, especially if it shows you as doing better than most in key parts of the business.

Take your time. Be thorough. The more complete and professional your documents the more notice will be given to your request for assistance.

Once you have all of this information together look for a narrative, a story, which supports the proposal you want to make to the landlord.

By narrative, I mean a case, a story, the reason – to justify your request. The data you have gathered will/should support this.

If you do not have a specific proposal, what you actually want – work it out.

It is not enough to say you want a better deal, a discount on rent or some other relief. Landlords get that all the time. Your request needs to come with something for them. Be specific and ensure you have the data necessary to justify your claim.

If your P&L shows your profit is stable or improving, your case will be hard to make.

If profit is falling your case is easier, not too easier, but easier nevertheless. You should not manufacture figures to suit your case though. Look at the accurate data and listen to what it tells you.

If your P&L shows profit declining or you making a loss, consider what you actually want as a result of this.

Too often retailers go to a landlord with a problem and not a solution. Work on your solution and use the information you have gathered to justify the solution to your landlord.

The best people to pitch a landlord for assistance are the business owners. There are some horror stories in the newsagency channel about so-called leasing experts who have left newsagents worse off than ever.

Prepare your proposal, based on verifiable evidence and present it without emotion.

The proposal should be in writing, not too long, with the documents you have assembled as attachments to support your case.

Usually, a landlord will want a meeting. Ensure there is an agenda. Go with prepared notes and your evidence. Do not get sidetracked. Do not engage in emotive arguments.

Your sole focus ought to be on the outcome you want and the evidence you have which supports this outcome.

FOOTNOTE: be true to yourself. If what you want is not supported by your own business data then don’t ask for it. Landlords get requests every day from tenants asking for a better deal. Those who achieve it are those who have made the case.

MY EXPERIENCE: I have followed this advice in major shopping centre settings as well as in a couple of high street settings, and achieved a good outcome each time.

This advice is part of the extensive business support advice provided by newsXpress. newsXpress is a marketing group serving 200 newsagents.

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Newsagency management

Retail sales up in August in Australia

Continuing the trend some newspaper publishers ignore, retail sales in Australia were up in August according to the latest data from the Australian Bureau of Statistics.

Overall, the retail sector in Australia demonstrated strong resilience and growth in August 2024. The combination of warmer weather and ongoing consumer confidence contributed to the positive performance.

This is good news for retailers. The even better news could be in the bus

While newsagents sell falls into a range of segments tracked by the ABS, there is this indication around books and newspapers in their August data:

Of the various segments newsagents cover, clothing is the strongest.

It’s valuable looking at the ABS data against your own data comparing a month to the same month a year earlier. I say a year earlier as at a store level tha type of comparison is more useful.

The strongest growth product categories that I see in newsagencies right now are:

  • Homewares.
  • Clothing.
  • Books.
  • Sensory.
  • Toys.
  • Collectibles.

Price point wise, I am seeing stronger growth for higher price point items compared to lower cost, like under $50.00.

Another data point in the ABS data that’s interesting is that Victoria is the equal strongest state / territory in terms of growth. Reading the Herald Sun you’d not think this is the case.

The ABS data is useful as to can help to inform consumer sentiment and that helps us.

6 likes
Newsagency management

Thank you Real Commercial are a more balanced reporting on the state of the local Aussie newsagency

I am grateful to Henry Johnstone of Real Commercial for their questions about the state of the Aussie newsagency reflected in a broad article published recently: ‘Move with the times’: How the humble newsagengy became a retail destination.

Newsagency evolution  

It’s no secret that the newsagency of 2024 looks nothing like it did 20 years ago. 

With over-the-counter newspaper sales declining at a rate of 11% year on year, many traditional newsagents have evolved into convenience-based businesses, which has afforded owners the opportunity to embrace a wider choice of revenue streams. 

A 2024 IBISWorld report revealed that of the industry’s $2.2 billion in annual revenue, 21.5% of sales can be attributed to books, 20.5% to newspapers and magazines, 16.9% to stationery, cards and gifts, and 12.9% to lotteries.  

According to the intelligence organisation’s data, the remaining 28.2% of sales are listed as ‘other goods and services.’ 

Mark Fletcher, CEO of Tower Systems – a company that supplies software to specialty local retailers – said newsagents have the potential to thrive in the digital age by not seeing themselves solely as newsagents. 

“I know of businesses that have opened cafes, while others have gone into garden centre products. I know of a newsagency in Victoria that created a baby shop within their business and are now going gangbusters in that space.”  

“By all means sell papers and magazines, sell lottery tickets, but don’t let those things define you,” Mr Fletcher explained.  

“There are newsagents in regional Australia making up to $500,000 a year selling gifts and homewares. They still do the legacy stuff, but their real interest as retailers is in non-newsagency items. That’s where the future lies.” 

…

Last month, ABC News published a story on the Mansfield Newsagency in regional Victoria and its failed attempts to find a buyer.  

“Unfortunately, it’s an industry nobody wants to take on anymore,” owner Frank Livingstone told the ABC, blaming the decline of his business on the demand for online news outstripping print media. 

It’s something Mark Fletcher vehemently disagrees with.  

“You can’t blame the decline in print for newsagencies closing,” Fletcher posted on his blog after the article was published. “A business closing because of this is a business rooted in the past. Smart newsagents started transforming their businesses 20 years ago.” 

While the official number of newsagency retailers is difficult to pin down, IBISWorld currently quotes a figure of 1,784, while software supplier Tower Systems believes the number is somewhere closer to 2,800.  

It’s good to see a better balanced view on this than copvered recently by the ABC and some others.

Here’s what the Newspower CEO said:

“Newsagents are the hub of a community. And that’s a great word to keep in mind – community. For a lot of small towns, the newsagency is a one stop shop, so it’s all about what they can offer their community that’s not there already.”

I think Helen is wrong. Every newsagency in Australia is a commercial business and ought be run as one. Profitability has to be the priority ahead of any community service as it is only profitability that will give the business a future and the owners what they need / want from their business.

I think Helen’s quote shows where Newspaper is at today. It reminds me of the Jethro Tull song, Living In The Past.

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Newsagency management

Advice on how to get your business website to rank higher in search engine results

Here are 6 things to do to rank higher with Google and other search engines:

  1. Include brand in product names as that’s what people tend to search for.
  2. Arrange products by brand, with the brand name in the collection URL.
  3. Use blog posts to promote brands and branded products. Write these yourself. Try and not use AI generated content – search engines preference human created content.
  4. Use keywords relevant to your business in the content on your website, keywords people are searching for.
  5. Ask your suppliers to link to your website.
  6. Optimise meta title and meta descriptions to accurately describe content.

Here’s how you can optimise meta titles and descriptions in Shopify:

  1. Go to the product you want to edit in your Shopify admin.
  2. Click “Edit” to open the product editor.
  3. Scroll down to the “SEO” section.
  4. Replace the default title with a concise and informative title that includes your target keyword.
  5. Write a compelling description that accurately summarises your product.
  6. Click the “Save” button to apply your updates.

Additional tips:

  1. Incorporate target keywords naturally into your meta title and description.
  2. Aim for a meta title around 50-60 characters and a meta description of 150-160 characters.
  3. Use strong action verbs and a clear call to action.

Each week add new blog posts. Each post should be about a single product or a single brand. Talk about what you love about it. Be personal. Use a friendly and engaging tone. Write more than 350 words, ideally above 500 words. Refer back to your physical shop in the post. Use the product name or keyword or phrase you are targeting at least five times in the post – use it naturally though.

If you are not sure what keywords to target, ask someone. I provide this advice, based on data evidence, free to Tower and newsXpress customers. The data I source is through a platform I pay US$300 a month to access. It’s up to date for Australian keyword searches.

Keyword targeting in your content is key to the content driving your website higher in search engine results.

Yes, this is all hard work. Do it if you want to rank higher. A website is a forever hungry beast.

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Management tip

Father’s Day is over, what’s next in the newsagency?

Engaged retailers have their plans in motion for port Father’s Day activity on the shop floor. For some it will be a move into Halloween, for others it will be a Spring launch of new products, for some it may be a move into graduation and / or wedding season, while for others it will be clearance ahead of Christmas.

It’s important that there is a shop floor reset from today, a major reset, the kind of reset shoppers notice and comment on, something that gets people talking to others about.

Today is not too late to consider and act on a post Father’s Day reset.

Taking down Father’s Day and not making a change into something fresh is a mistake in my opinion. Certainly, newsagents years ago would do that, do nothing after Father’s Day for a while. Our in-store actions back then were guided by suppliers. The needs of suppliers don’t match the in store calendar needs of newsagents, or any retailers.

Focussing on a Spring launch would need you to have bought stock months ago to be ready for this. The same is true with Halloween. Graduation and Wedding are easier to lean into as there is plenty of product available and you could have it in-store within a few days.

If you have not planned for post-Father’s Day and want some tips for what you could pull together easily, here are my suggestions relying on products you are likely to have in0store right now:

  • Kids activities. This pitches stationery and toys. It appeals to a good cross section.
  • A post-Winter sale. It’s a good opportunity to quit what’s not working.
  • Graduation. People will buy early. You need to guide them through with product opportunities right in front of them.
  • Colour block. This is easy. Bring together in a font of store display everything you have that features the colour you choose. My advice is do this for a week and then change colour, and repeat this change for a month. It takes care of in-0store promotions for 4 weeks and that gives you time to plan. Here are some photos from one of my shops.

Colour blocking displays like these can be put together in an hour. They use existing stock. Customers always comment positively, and they find things they never knew you stocked. This is why a colour block display is my go-to if I am not sure what to do next. They are also differentiating since most retailers will not do a cross product category display like this. here in suburban Melbourne, these colour block displays work for us.

Back to post Father’s Day though – do something. Make a statement,. Get shoppers in-store noticing.

7 likes
Newsagency management

Advice for retailers and their suppliers about the challenging economy

You’d have to be living under a rock to not be aware of challenging economic conditions being reported on daily. We are seeing the daily reporting play out in retail with people being more careful on what they spend. The number of people emailing and dropping in resumes to retailers has spiked over the last month. We receive resumes here at the office daily, way more than in years.

It’s a challenging economy. FYI, here is some of our advice I have shared with retailers:

  • The current economic conditions are not normal. You cannot trade as if they are normal. 
  • Where possible, pitch Australian made. This lands well everyday, and especially in times of higher unemployment.
  • Show value through a loyalty offer with cash off the next purchase. Cash is better understood than points, and big business competitors can’t compete.
  • Stock what you know sells for you. Typically, your top 25 sellers are out of stock 20% of the time.
  • Make the in-store experience happy and welcoming.
  • Quit dead stock. If it’s not sold in 6 months, why is it on your shelves?
  • Expand the appeal of your business with products you’ve never stocked before and pitch them outside your business.
  • Reset the front 3 metres of your shop weekly. Give the shop a fresh feel.
  • Ensure every hour of labour cost on your roster delivers value.
  • Ask a supplier pitching a new product these questions:
    • Who is the customer?
    • How can I reach them?
    • How valuable are they to me over a year?
    • How many Google searches are there in Australia every month for this product?
    • When they search, what is the search text?

I mention this because suppliers, too, need to adjust their businesses to reflect the economic conditions.

On top of what you read and feel about the economy, retailers have just had to absorb a 3.75% wage increase and a .5% superannuation contribution increase. Add to this a minimum 5% annual increase in rent and a 33% increase in insurance and you can get a sense of the stress some will be under.

Suppliers can help by:

  • Ensuring stockists are listed on your website.
  • Linking to stockist websites from your website. Backlinks this are valuable.
  • Promoting your stockists regularly on social media.
  • Ensuring every contact has commercial value to the retailer.

Anything suppliers can do to help newsagents and other retailers make their businesses more valuable is appreciated.

The alternative to the action for retailers and suppliers noted here is to do nothing, to treat things as business as usual. That’s not a smart move in my opinion. Whether our businesses are experiencing challenges or not, there is enough noise out there to indicate action is needed.

10 likes
Newsagency management

Where can I find a newsagent near me?

Where can I find a newsagent near me? It is the most common search online with the term newsagent in the search. There are around 20,000 such searches a month in Australia. Once we add similar and related searches, the number hits 40,000 a month.

Smart newsagents come up first in the search results, showing on a map. Check if you come up in the results. If not, you need to fix that by following well published, like this, Helping newsagents find local shoppers using the free Google Business Profile, that I published here and via ALNA.

The thing is, though, this search Where can I find a newsagent near me?  is not the biggest search relating to our channel and what we sell. People don’t search for a retail shingle, they search for an outcome, a product, brand or category. Someone looking for a birthday card is many times more likely to search for birthday card than for a newsagent. Don’t take my word for it – the evidence is in current search data for Australian online searches.

It’s one reason you need the be thoughtful in what you call your products if they will ultimately me sold online. I saw a newsagent recently call a Jellycat Bashful plush toy and pink plush toy. People will for search online for a pink plush toy, they will search for a Jellycat plush toy with Jellycat being the most important word in the product description.

By all means try and index well for newsagent. My advice, for what it’s worth, is to invest time in indexing well for brands and product categories as that is where the real traffic is. This focus will also help as you transition from legacy newsagency products into better margin and traffic generating products for which our channel is not known.

If you have a website connected to your newsagency and you want to catch some easy traffic, write a blog post with the headline of Where can I find a newsagent near me? and write about your business, what you offer and why visiting your shop could be satisfying if you are asking Where can I find a newsagent near me?.

I trust you can see what I have done here. yes, I have done exactly what I suggest you do. Use the headline based on this most common of questions and answer it in in the context of your website. Search engines and AI LLMs will ultimately learn from this.

9 likes
Newsagency management

Transforming your Newsagency

The latest issue of Channel magazIne published by ALNA includes a four-page spread on Transforming Your Newsagency. I am grateful to ALNA for publishing my article. Click here for a copy of the article. I urge newsagents to read it as the article contains advice anyone can act on today without spending any money.

 

8 likes
Newsagency management

How to do a magazine relay in your newsagency (updated)

Maximising Magazine Sales Through Effective Merchandising

A well-executed magazine relay can significantly boost sales in a short timeframe. It delivers an excellent return on investment in my experience.

A few hours of dedicated effort results in a revenue boost, fresh social media content and more value.  There Is no down side. Fundamentally, it drives increased sales.

The Mechanics of a Magazine Relay

A typical relay can be completed in two hours or less.

While it’s possible to delegate this task, taking ownership of the process is highly recommended. A hands-on approach reinforces your leadership and allows for a more streamlined operation without the complexities of team management. It’s essential to remember that a magazine relay is an ongoing process, not a one-off event. Regular adjustments to the magazine layout are crucial for maintaining sales momentum.

Optimising Magazine Placement

Ideally, magazines should be displayed on a dedicated wall space rather than occupying valuable centre fixture real estate typically reserved for higher-margin products.

The visual impact of magazine covers can be diluted by excessive clutter. To maximise their appeal, avoid using product headers.

Full facing, where 100% of the magazine cover is visible, generally delivers optimal results. This is particularly effective for smaller assortments of under 500 titles. For larger assortments, consider tiered fixtures with one title per pocket.However, in some cases, accommodating two or three low-volume, specialised titles within a single pocket can be beneficial.

Leveraging Beacon Branding

Highlighting specific magazine categories through beacon branding can effectively attract customer attention. Dedicate the top two or three pockets to a single title to create a visual focal point.

The Relay Process

When undertaking a magazine relay, focus on creating an engaging and visually appealing display. Work systematically,removing and rebuilding sections of the fixture while maintaining clear spaces to avoid confusion. Continuously assess your progress and consider how each placement contributes to the overall narrative.

The Art of Adjacency

Experimentation is key to discovering the most effective product adjacencies. While there are general guidelines, the ideal arrangement can vary depending on customer behaviour and preferences. For example, consider whether grouping titles by brand or by interest category drives better sales.

Some potential adjacency combinations include: cricket, golf, and swimming; wrestling, boxing, and fitness; and creative arts (painting, writing, craft). However, it’s essential to avoid mixing unrelated titles such as soccer and rugby.

Customer Considerations

When designing the magazine display, prioritise customer ease and comfort. Avoid placing titles aimed at older customers in difficult-to-reach locations.

Post-Relay Actions

Once the relay is complete, share your vision with the team and encourage feedback. Monitor customer behaviour and sales performance closely. The insights gained from these observations can inform future adjustments to the magazine layout.

By following these guidelines and maintaining a focus on customer needs, you can significantly enhance your magazine sales through effective merchandising.

7 likes
Newsagency management

Small business retailers optimistic at Melbourne Gift Fair: gift shops, jewellers, newsagents, garden centres

Feedback from suppliers at the Melbourne Gift Fair over the weekend and yesterday, including from the team from my POS software company, is positive. In fact, more positive that many had expected.

Retailers have been spending at the trade show. Plenty are happy with business. I suspect this is a local small business thing. We are less likely to be surveyed by media. We’re not connected to major nosy retail groups.

The optimism has been across the mix of retailers at the fair: gift shops, jewellers, newsagents, garden centres, toy shops and more.

Hot topics on the trade show floor I’ve heard about include EFTPOS surcharges (whether to or not, how to and how mush), suppliers who sell direct to consumers (more seem to be doing it and some preference their direct sales over supporting retailers), imported vs. made in Australia (Australian made preference is strong) and delays from order to fulfilment (some suppliers ask for a deposit before they order manufacture of goods).

While I’ve not been able to make it myself, those I have heard from are happy with the the trade show. The big surprise for them was the optimism among retailers attending.

Footnote: it’s interesting that my POS software company was the only software company exhibiting at Reed.

14 likes
Newsagency management

Small suppliers loving electronic invoice platform easyEDI

My newsagency software company Tower Systems last year launched easyEDI, an absolute game-changer for sending invoices electronically.

Made for small suppliers, easyEDI set out to make creating electronic invoices easy and low cost.

Retailers love electronic invoices. They save time and money, and they help reduce data mistakes.

If faced with a choice, retailers will choose the supplier offering electronic invoices over the supplier of similar product who does not offer electronic invoices.

I mention it today since electronic invoices is a hot topic at the Melbourne Gift Fair this weekend.

easyEDI will create either a CSV file or a DD2 file, commonly used by newsagencies and card and gift stores. You can also link it with the popular Unleashed inventory management system we know plenty of suppliers use or supply your own product list so your files are even more useful by containing barcodes and/or RRP prices.

easyEDI costs $55 a month, which includes 500 invoices sent per month for no additional cost. Each invoice beyond 500 costs 12 cents.

There is no lock-in contract, you can cancel at any time.

Setup is easy for the supplier. easyEDI is a Xero approved integrated app.

Suppliers ready to sign up should go to www.easyedi.com.au.

Tower Systems first engaged in EDI (electronic data interchange) invoice creation by developing standards that were adopted for the Australian newsagency channel more than thirty-five years ago. Those standards formed the basis of file formats in use in the channel today.

While XchangeIT serves magazine suppliers and a some other suppliers, easyEDI is a lower cost and easier to implement solution. It’s made for small suppliers.

Suppliers and retailers using easyEDI today have taken the product beyond proof of concept and into the real world. It shows it as a reality, helping every day.

I’ll finish up with a pitch:

  • User-Friendly: We’ve designed easyEDI with simplicity in mind. You don’t need to be an EDI expert to use our platform effectively. Our intuitive interface guides you through the process seamlessly.
  • Efficiency: Save time and reduce manual data entry errors by automating your EDI file creation. Focus on growing your business while easyEDI takes care of the technicalities.
  • Compatibility: easyEDI seamlessly integrates with Xero, ensuring a smooth data flow between your financial and EDI systems.
  • Dedicated Support: Our customer support team is always ready to assist you. We provide ongoing assistance to ensure you get the most out of easyEDI.
5 likes
Newsagency management
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