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Newsagency management

Managing cash this weekend

With the Oz Lotto $90 million jackpot driving Christmas-like traffic and the Michael Jackson story driving excellent news traffic, we all need to take extra care managing cash this weekend.  Here are some tips which may be useful:

  • Remind all staff how you want cash handled.  Busy times are when you will be targeted for change scams.
  • Have senior staff spend more time at the counter to ensure best practice.
  • Watch out for fake notes. Fake$50s are known to be circulating in Melbourne at the moment.
  • Move cash to the safe regularly.
  • If your bank is open today (Saturday), bank yesterday’s takings.
  • Check your insurance and your cash limit.  This will focus your mind on your exposure.  Check to see if your policy has the ability for one off weekends like this for an increase.
  • Take extra care when you close.
  • If you are in a shopping centre, let centre management know.  You may be able to engage security to watch while you close and move cash to the safe.

While this list may seem alarmist, the circumstances we find ourselves if maye us an appealing target.

Please, add to this list…

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Newsagency management

Making our own luck from the $20 million lottery superdraw

As a result of discussion here I have reviewed the financial benefit measured in my newsagency from last night’s $20 million lotto superdraw. I only looked at yesterday because this is when we saw the biggest increase in traffic driven by the $20 million on offer.

We prepared our business for the traffic with good-value impulse offers carefully placed at each counter and key traffic areas such as our newspaper stand and women’s weeklies magazine section. We also pitched the OzLotto $50 million prize at the counter and elsewhere in the business as achieving an impulse purchase of lottery product in a lottery sale is easy.

At the front of our shop we ran carefully considered offers associated with the newsXpress STOCKTAKE SALE – this shows off to new visitors that we have great deals and drives impulse business.

To assess the results I compared yesterday with an average Saturday. In determining an average Saturday I looked at a collection of Saturdays outside of major seasons and lottery superdraws.

Here are the numbers as reflected in revenue:

  • Art up 53%.
  • Cards up 23%.
  • Stationery up 9%.
  • Ink up 270%.
  • Confectionery up 21%
  • Trading cards up 50%.
  • Magazines up 4% – especially those targeted in our impulse strategy.

Many of these numbers are off good bases.  In overall measurement, we achieved considerable more from each customer than we usually achieve.

In addition to using the shop to drive impulse, we ensured that the traffic generated by the superdraw did not overly impede business – we were strong on queue management and over the counter service. We understand the importance of not having a line snaking out the shop and acting as a barrier to would-be shoppers.

As a pondered yesterday, maybe there are other factors which determine the efficiency of superdraws for newsagencies. It could be our demographic. That said, the numbers suggest that our preparation is a key factor to our success.

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Lotteries

The value of a warehouse

warehouse.JPGWe have had our own small warehouse a few doors down from our head office since late last year. With three newsagencies and four card and gift shops to serve, the warehouse is making it easier for us to buy as a group and better manage stock. Instead of holding stock at the stores, most of it is held at the warehouse. This means we are spending less on our overall stock holding. It also means we are spending less time in each retail location managing stock.

While we have some kinks to iron out of our model, it is developing well.

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About us

Oversupply of greeting cards

As part of helping a business recently I reviewed stock on hand for greeting cards.  One card company was found to have more than thirty pockets with ten or more cards per pocket.  In three cases, there were twelve cards.  In thirteen pockets there were  two designs with more than three cards for each of the two designs.  This is unconscionable behaviour by any measure.

The sales pattern in the store did not require pulling on anything more than one card in a pocket.  So, at worst case I would accept seven cards in a pocket.  Twelve cannot be justified.

The card audit indicated that oversupply by the card company in question was costing the business in excess of $8,000.

Newsagents need to closely monitor card company performance.  While the category is feel good, it has to be financially viable.  This means delivering a healthy stock turn, driving an equitable return on investment and return on floor space.

I’d note for the record that the card company involved was not John Sands or Hallmark.

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Greeting Cards

Managing magazines in the morning

fhn_magazine_process.JPGI have been asked by several people about our process for unpacking, labeling and putting out magazines on Mondays, Wednesdays and Fridays at our newsagency. We have this process complete by no later than 8:15 each morning – having started at 7am. Returns are done the same day, by mid morning. The process runs to military precision. Behind the counter two of the team label stock, by distributor. Labeled magazines are put into columns based on the aisle in which the title is situated. The shopping trolley is for rubbish – this keeps behind the counter clear. I or whoever is putting the stock out takes titles from the customer side an aisle at a time. New titles are put out, unsold stock is put in another trolley which is wheeled to the side of the counter for returns scanning mid morning.

The business turns over around $450,000 a year in magazines. I mention this for those comparing the timing with their own business.

We have tried several approaches to magazines over the years. The approach described above has been followed for the last five years and it has proved to be the most efficient and consistent.

The most common comment we get from people who see our process relates to placement of stock to be put out by aisle.  We found this significantly reduced the time it takes to put stock out.

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magazines

Marketing to neighbouring businesses and workers

sr_neighbourhoodcard.jpgWe are introducing a loyalty cards for people who work near our Sophie Randall card and gift stores.  A holder of the Sophie’s Neighbour Discount Card will receive a discount off each purchase and have access to other neighbour only offers and promotions.  We have business processes (including in our POS software) behind the offer to track the business benefit.  This is important because if it works we will trial it in the newsagency space.

The neighbour card is different to a VIP card or volume based loyalty card.  It is innovative.  The card unashamedly seeks to recognise and appreciate our neighbours.  Our research suggests that this is important in several of our locations – Melbourne CBD especially.

The traditional VIP club offer has had its day in my view since so many stores play in this space.  Shoppers I talk with are cynical about the real value of many loyalty cards.  We figured that by focusing on a specific group with a common location connection we can break free from a me-too loyalty program offer.

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Newsagency management

Smart ways to grow your newsagency

bne_workshop.JPGThe KICK START YOUR NEWSAGENCY management workshops I am involved with are in full swing. Yesterday in Brisbane we had a good discussion about our all important point of difference and again today in Sydney. It is good to see newsagents so passionate about ways in which they make their business stand out – some have flown into town to participate.  Like all workshops, this one will evolve as I get around the country this week. The details for Canberra, Adelaide and Perth, the remaining locations in this initial cycle are:

  • Canberra. Wednesday Feb. 11 at 6pm. Rydges Capital Hill. Cnr Canberra Ave & National Cct Forrest. Undercover Parking Available.
  • Adelaide. Thursday Feb. 12 at 10am. Rydges Southpark. 1 South Terrace Adelaide. Parking Available.
  • Perth. Friday Feb. 13 at 10am. Holiday Inn.  Burswood.  Parking Available.

    • If you would like to come and join the conversation about growing newsagencies feel free to drop in.

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    Newsagency management

    Newsagency management and marketing workshops start Monday

    The 5 WAYS TO KICK START YOUR NEWSAGENCY workshop starts on Monday.  I’ll be hitting six cities in five days and meeting with between 250 and 300 newsagents.  This weekend I am working on the content to ensure it is fresh, relevant and genuinely useful.  The location details are:

    • Melbourne. Monday Feb. 9 at 2pm. Crest on Barkly. Barkly St St Kilda. Some parking on site.
    • Brisbane. Tuesday Feb. 10 at 10am. Brisbane Riverview Hotel. Cnr Kingsford Smith Dr & Hunt St Hamilton. Parking Available.
    • Sydney. Wednesday Feb. 11 at 11am. Rydges Camperdown. 9 Missenden Road Camperdown. Basement Level Parking Available.
    • Canberra. Wednesday Feb. 11 at 6pm. Rydges Capital Hill. Cnr Canberra Ave & National Cct Forrest. Undercover Parking Available.
    • Adelaide. Thursday Feb. 12 at 10am. Rydges Southpark. 1 South Terrace Adelaide. Parking Available.
    • Perth.  Friday Feb. 13 at 10am.  venue to be confirmed.

    I’d be thrilled to catch up with newsagents who wish to drop by who have not booked – it’s free.  Even though we have excellent numbers in each city I am sure we can make room for more.

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    Newsagency management

    Building better newsagencies

    I will be in Townsville next week (Wednesday, 2pm at Jupiters Hotel and Casino) and Darwin the week after (Wednesday at 2pm at the Holiday Inn) talking with newsagents about strategies for building stronger businesses. These sessions are part of the Tower Systems Spring User Meeting Tour which has attracted newsagents from around the country keen to work on building better businesses. If you would like to come along to the free workshop, please drop me an email. All newsagents are most welcome.

    As I have traveled around Australia over the last month on this tour it has been a thrill to meet with newsagents who are embracing change and focusing on the opportunities in the marketplace. I am excited by the innovation I have seen and heard and the positive attitude of so many newsagents.

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    Newsagency management

    Good October numbers

    We had a good October at Forest Hill.  Overall, sales were up 6% on last year.  This is despite magazines and lotteries recording a dip.  Greeting cards delivered excellent growth.

    What is most interesting is the continued shift away from what have been traditional lines for our newsagency.  Gifts, books, calendars, art supplies and ink all delivered excellent growth.  While calendars are a traditional line, we are taking a completely different approach to the past.

    I mention these results as a balance for the doom and gloom being reported at present.  There are excellent growth opportunities available.  It is essential we energetically pursue change in our newsagencies.  I am not the only newsagent playing with new product categories.  Yes, some fail.  More, however, succeed – as our October results are showing.  The key is the pursuit of change – it’s better to chase it than have it surprise you form behind.

    I expect that lotteries and magazines will bounce back.  They are more affected by short term and other factors.  Our year to date numbers are good.

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    About us

    Building better newsagencies

    I am visiting several cities this week presenting a workshop on how to build greater success in your newsagency. This is being delivered as part of the Tower Systems Spring User Meeting Tour. Any newsagent, regardless of the system they use, are are most welcome to attend. The details of where I will be speaking are:

    • Perth. Wednesday Nov. 5 @ 10am. Duxton Hotel, No. 1 St Georges Terrace, Perth WA 6000.
    • Dubbo. Thursday Nov. 6 @ 10am. MACQUARIE INN. Corner Wheelers Lane and Birch Avenue Dubbo East NSW 2830.
    • Adelaide. Friday Nov. 7 @ 10am. Rydges South Park. South Terrace, Adelaide.

    My session is followed by a review of the latest version of the Tower Systems newsagency management software (retail and home delivery) which was released two weeks ago. This is followed by an open Q&A session.

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    Newsagency management

    Labour cost ratio

    More and more when talking with newsagents I am asked what percentage of revenue labour ought to cost. In a retail only newsagency the figure I consider okay is between 10% and 12% depending on product mix. There are only two ways to achieve a healthier labour cost to sales ratio: increase sales without increasing labour or cut labour costs without decreasing sales.

    If you need to cut labour costs, start by analysing sales by time and see whether there are pockets where you can eliminate casual hours as these are the easiest to adjust.  A good sales by time report viewed in association with the roster ought to help uncover opportunities to trim certain shifts.

    To drive a healthier labour cost to sales ratio, you could consider sharing the current data and your target with staff.  This sets a shared goal.  Sometimes retail staff will engage more proactively if they know there is a specific outcome which can affect them as well as the business.

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    Newsagency management
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