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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.

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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.

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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.

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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.

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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.

 

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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.

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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.

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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

National conference for newsagents next month

newsXpress is hosting a national conference next month and has set aside spaces for non newsXpress members to participate at no cost.

Here is the announcement I shared with newsXpress members:

newsXpress National Conference. Melbourne, September 8, 9 & 10.

In the newsXpress member community, I see a powerful force: a community of passionate small business owners. We may run different shops, cater to different customers, but we share a common ground – the drive to succeed, to build, and to serve our communities.

The world throws challenges our way, from economic shifts to ever-changing consumer trends. But here’s the secret weapon of small businesses: we are not alone. This conference is about the power of “Together We Can.”

We can share best practices, learn from each other’s triumphs (and maybe even a few stumbles!), and build a network of support that strengthens us all.

So, let’s use this conference to connect, collaborate, and unlock the incredible potential we have together. Together, we can navigate any challenge, seize every opportunity, and create a thriving future for our businesses and our communities.

Monday is a full business day, focussed on sharing insights on newsagency retail transformation and how to execute this on a limited budget.

We will look to 2025 and beyond and consider ways we can make our businesses more resilient and valuable.

We’ll talk through how we can better support each other.

And, we will consider how to navigate challenges faced baby legacy products.

This is a conference for retail newsagents, designed to offer support and encouragement, to help us all find an enjoyable path to the future.

Thants to supplier support and support from newsXpress itself, participation is free.

If you are interested, please email help@newsxpress.com.au.

At the we conference, we anticipate we will launch an exclusive for newsXpress members range of limited-edition products with a significant partner already delivering terrific traffic and sales for newsXpress members.

Here what to expect at the conference:

  • Networking. You’ll get to meet fellow newsXpress members. This is thebiggest value members tell us about conferences. Catching up with others in a relaxed environment. Sharing, learning, nurturing.
  • It’s a no pressure event.
  • You can provide feedback we use to shape what the group does and offers.
  • You will be presented actionable opportunities.
  • Have a laugh.
  • Challenged. Not openly, not in public. Listening to the sessions though some of what you currently do may be challenges, and that’s good because change is vital.
  • Energised. We’re sure you will come away with an action plan.

If you’re an introvert and are concerned that you’ll find it uncomfortable. Hang out with me, we can talk one on one, privately. There will be plenty of us introverts at theconference.

10 likes
Newsagency management

Thank you mediaweek for covering newsagent concerns about ABC news report on newsagents

mediaweek this morning has this morning reported on our concerns about ABC reporting earlier this week on newsagency closures.

ABC report that newsagency sector in decline fails to investigate closures, claims retailer by mediaweek Editor-In-Chief James Manning accurately reports our concerns. I am especially grateful for this coverage:

How the newsagency business model could look

“A typical country town newsagency today should be making less than 10% of their turnover from print media products, 30% of revenue from lottery commission and 60% from gifts, homewares, books, toys and more. That is, 60% of revenue from items delivering 50% and more gross profit.”

Fletcher has long been a critic of the support newsagencies received from publishers over the years. But he notes it should not be the reason for a failing business.

“You can’t blame the decline in print for newsagencies closing. Newsagents make a paltry margin from print products. It’s disrespectful, and embarrassing how little we make. A business closing because of this is a business rooted in the past.

“Smart newsagents started transforming their businesses 20 years ago.”

Fletcher finished with a final blast for ABC News:

“If the folks at ABC News did even basic research about the future of Australian newsagencies they could have provided more accurate reporting on the state of newsagency businesses in Australia.

“Do better ABC News.”

I am thankful to get this support for the channel out there compared to the reported comments by Brendan Tohill from VANA. Sheesh.

Let’s take a moment to look at the performance of print media products in our shops and for our channel.

Newspapers.

Newsagents make between 10% and 12.5% of the cover price. For the Herald Sun Monday to Friday, that’s .375 cents a copy. @ 50 copies a day, that’s $18.75. Considering the weekend cover price and sales, a medium size newsagency, selling 50 copies of the title each day will make under $7,000 a year in gross profit. Labour cost for managing the title over the year in that size business will be at least $4,500 while retail space will cost at least $2,000 without considering a premium for better positioning in-store.

Newspapers remain inefficient products. Around 75% of newspaper purchases are a single newspaper. I know this because of basket analysis for hundreds of newsagencies over many years. No amount of in-store effort has been successful in changing the basket efficiency of newsagencies.

Magazines.

Newsagents make 25% of the cover price. Thanks to cover price suppression of major titles, in real terms we make less today than five years ago.

In an average size newsagency selling $80,000 worth of magazines a year, gross profit is $20,000.00. Labour cost for the year managing magazines is $12,000.00. That can balloon out if there in an increase in missed deliveries. Theft of magazines costs around $2,000 a year, which lands at net $1,500.00. (My understanding is that supermarkets do not cover the cost of magazine theft.) magazine space in this average newsagency costs around $15,000.00. This average newsagency is losing money on magazines.

Magazines are more efficient than newspapers with single product baskets accounting for only 40% of all baskets.

Traffic generators.

For more than five years, print media products have not been valuable traffic generators for newsagents. While for sure that are people buying the daily paper or their weekly magazines, those shoppers are not the valuable shoppers that make money for newsagents. Indeed, thanks to basket analysis and tracking loyalty offer engagement, magazines especially are the impulse purchase if a shopper has bonus loyalty dollars to spend.

Print media suppliers don’t understand.

Our print media suppliers have management practices that are out of date, rooted in the days when our channel was tightly regulated. These poor practices cost us money. They think their products drive valuable traffic for us. They don’t. They think they make good money for us. They don’t.

Print media does matter tho.

What we don’t know is the value of print media customers who, on other visits, purchase other items from our shops. There is anecdotal evidence, but nothing you could rely on in court. The may to make the category work is to tightly manage space and hope that suppliers lift their game and drag their data management processes into 2024.

Why plenty of newsagents are thriving.

Many newsagents have transitioned their businesses to sell high end gifts, sought after collectibles and other products people will drive and hour or two to source. We have newsagents doing well with books and others doing well with coffee. Many newsagents have websites that reach people way beyond their local area. Some, too, with websites that have nothing to do with their newsagency businesses.

The shingle.

While news outlets and suppliers consider us a channel, we’re not a channel and have not been for many years. You can’t go into a newsagency expecting they will have what you want if your expectation is rooted in decades ago.

I don’t think the shingle matters. What matters is what shoppers feel when they enter your businesses. If they step into a shop that nurtures a feeling of comfort and happiness and offers them a treasure hunt retail experience they will tell others, and they will come back. The shingle above the door is irrelevant.

This is what’s interesting abut plenty of newsagents today. They are retailers, not agents, not shopkeepers. This is what the poor reporting of the ABC neglected.

Here, again, are videos I have done with the owners of three newsagencies that are anything but traditional newsagency businesses. Each business is inspiring:

The Aussie newsagency has as bright a future as each newsagency business owner allows.

22 likes
Newsagency management

ABC News fails in its reporting on the impending closure of Mansfield Newsagency

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

It’s a headline from ABC news today to get attention. The story fails to adequately report on the state of Australian newsagencies.

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

The ABC News story fails to properly investigate why there have been closures. Instead, they publish the cliche of the decline in print media as the cause, which it is not.

The ABC News story quoted someone from IBISWorld and while he has some data that is interesting, numbers don’t tell the story. For example, he offered no number about newsagency businesses that have transitioned into other retail such that the newsagency part of the business is minor.

The ABC News story quoted Brendan Tohill, CEO of the National Lotteries Newsagents Association and Victorian Authorised Newsagents Association. I don’t consider Brendan to be in a position to offer insights – remember their News bar chocolate product launch last year that was going to bring people into shops?

Anyway, Brendan talked the channel down saying newsagencies are now a:

last-minute gift store underpinned by lotteries.

That’s what we are now. That’s what it is.

Shame on ABC News for running this quote. It plays into the narrative that our channel is not relevant and has not kept up. It’s an ignorant quote enemy opinion, something not supported by evidence from plenty of businesses in our channel.

I feel for the folks at Mansfield Newsagency. It was a nice shop in a beautiful country town with a population close to 5,000. The shop feels like it’s from the 1990s, not today.

As I have written here many times and in emails sent to all newsagents, I’ll help (for free) any newsagent keen to work on transitioning their business from relying on legacy product categories to attracting new shoppers through product categories not common to our channel and in pursuit of growing overall business grows profit and thereby offering insulation to the disruption of change.

I know of country town newsagencies near Mansfield and right around Australia that are thriving, growing. These businesses are not selling last-minute gifts. Some are selling fashion items for $300 apiece and more. Others are selling $500 homewares items. Some are doing $80,000 a year in the best coffee in town. Some are achieving 33% of revenue online selling to people interstate and overseas. Some are selling over $100,000 a year in collectibles.

I know of regional newsagencies doing $250,000 a year in gifts and more, achieving far more in gross profit each year than newspapers and magazines ever delivered combined.

A typical country town newsagency today should be making less than 10% of their turnover from print media products, 30% of revenue from lottery commission and 60% from gifts, homewares, books, toys and more. That is, 60% of revenue from items delivering 50% and more gross profit.

The difference between this type of transformed newsagency business and the traditional newsagency is decisions made by the business owners.

You can’t blame the decline in print for newsagencies closing. Newsagents make a paltry margin from print products. It’s disrespectful, and embarrassing how little we make. A business closing because of this is a business rooted in the past.

Smart newsagents started transforming their businesses 20 years ago. Moving into gifts, homewares, toys and more – attracting new shoppers and selling products at margins four and five times more than newspapers.

The easiest local newsagency to transform today is one in a small country town. This setting presents opportunity, and I am glad to say that many newsagents have embraced it.

This is the story ABC News should be covering, a story of a channel navigating extraordinary change with plenty of local retailers, local newsagents, evolving their businesses to be relevant, vibrate and valuable. It’s also a story that Brendan Tohill could have spoken to.

Here are three videos of discussions I have had in recent months with owners of newsagency businesses thriving:

Each of these business owners should feel proud of what they have done and are doing. Their playing outside the tradition of the Aussie newsagency is inspiring.

If the folks at ABC News did even basic research about the future of Australian newsagencies they could have provided more accurate reporting on the state of newsagency businesses in Australia.

Do better ABC News.

…

Footnote: If you see my earlier blog post from today about one of my own shops closing soon, the closure is because of my decision to focus on high street retail rather than shopping mall retail. My newsagency businesses are thriving outside the shopping mall setting and not renewing the lease allows us to lean further into that.

I have lodged a complaint with the ABC.

28 likes
Newsagency management

Exiting the retail business well when the lease ends

We let the landlord know that we would not renew our newsagency lease at Westfield Southland a year and half out from the end of the lease. We did this because our focus had shifted from shopping centres and wanted to be clear we had no interest in remaining. Our high street businesses and online businesses are doing so much better and on a lower cost base.

We are now eight weeks from the end of the lease. On Monday last week we launched our first step of inventory sell down with this post on our Facebook page:

So long, farewell, Auf Wiederseh’n, goodbye. Our time at Westfield Southland ends in September. We have kicked off a HALF PRICE SALE. This is for everything in the shop except for papers and magazines.
We are truly grateful to the Cheltenham community for their support over the last 7 years. Thank you.
Our lease has come to an end and we have decided to focus on our shops in Malvern, Mount Waverley and online.
We will be here for at least the next 6 weeks with awesome products at half price. Sorry, no special orders, holds or LayBy.

The response online and in-store has been wonderful, heartwarming. Sales have been fantastic. With everything paid for, the sale is all about converting inventory to cash.

Some suppliers are working with us to reduce their inventory, which is helpful for margin. We are also moving stock from our other stores if it’s not moving there as fast as we’d like. It’s not often you have an opportunity for a clearance outlet like this.

We have reset the shop floor to reflect our focus. There are no pretty displays of awesome visual merchandising. The approach is practical and easily shopped. We are also focussed on refreshing shelves when we sell low.

The landlord does not allow end of lease signs or anything similar, which makes for some challenges. This is where social media is vital. We are grateful that the Cheltenham community page allowed us to share our farewell post, which worked a treat.

Given that the shop requires a two-week defit, we have, in real terms, just under six weeks of trade left. This will be a daily dance of moving stock to keep products in the best positions to move and attention paid to any further write downs.

We are not being firm on our actual closure date since if we sell out sooner, we will close.

In the meantime, even day we have customers coming in, spending and saying farewell. It’s bittersweet. We are grateful to be leaving on our own terms though.

7 likes
Newsagency management

Advice on how to prepare your newsagency business for sale

Selling a retail business is like selling a house, you need to prepare it so that it looks appealing to prospective purchasers. Selling a newsagency is more challenging because of assumptions about the channel and what a newsagency is can could be, especially today in 2024.

If you have control over the timing, start work on preparing your business for sale six months, preferably a year, out from putting it on the market. This enables you to make changes, benefit from improvement in performance and thereby achieve a better price.

Here are steps I recommend on preparing a business for sale.

  1. Make it look and feel appealing. While there are people who will look for a challenge, a fixer-upper.  Most buyers will want two see a business they understand and feel they can run. It needs to look easy for them. They need to be able to imagine themselves as the owners.
  2. Eliminate dead stock. Dead stock looks bad on the shelves and looks bad on the books. Purchasers should not pay full wholesale for inventory more than six months old as your poor buying or management is not their obligation. Our view is that anything older than six months is dead.
  3. Streamline operations. Make the business look easy to run by ensuring it is easy to run for you.  This means:
    1. The best opening hours.
    2. An efficient roster.
    3. A structured goods inwards operation.
    4. A streamlined sales counter.
    5. Tight back office management.
    6. Job descriptions so everyone knows their responsibilities.
    7. Good internal communications.
  4. Maximise profit. What anyone will pay will depend on actual profitability of the business.
  5. Be happy. Owners who talk their business down will find it harder to sell the business. be happy and make the business look happier.
  6. Keep your social media presence up to date. Today, many people check out a business online prior to looking at it in-store. Maintain up to date Facebook, Instagram and elsewhere.
  7. Get your paperwork in order. Early on, get business documents together:
    1. Premises lease.
    2. Equipment lease.
    3. Employee records.
    4. Product forward orders.
    5. Franchise documents.
    6. Supplier agreements.
    7. Details of all forward orders.
    8. Any other documents relating to the operation of the business including manuals for any equipment items.
  8. Choose a broker for your circumstances. This could be a local because of the likelihood of a local buyer or a specialty broker to attract someone looking for your type of business from afar.

Success at selling your newsagency business depends on the work you do to prepare it for sale. Focus months, even a years, out can make for an easier and better sale.

12 likes
Newsagency management

5 common mistakes I see newsagents make with social media posts

  • Giving some other business control. Outsourcing your social media posts to another business, a consultant or a marketing group results in generic and often bland posts that are likely to deliver little commercial value to the business.
  • Not entertaining. People use social media for entertainment. If you’re not entertaining the engagement you see is likely to be minimal. Bland posts about a new lottery jackpot or showing a magazine cover that many others show is a nothing post.
  • Ignoring local. Living local through your posts is likely to be loved by locals. Support local community groups. Celebrate local heroes. Be out and about locally using what you sell, and share it.
  • Yelling. Telling people to use cash or to shop local are posts likely to be ignored. Posts like this may make you feel good but they achieve nothing.
  • Missing in action. You are a key differentiator in your business. You need to be seen through the posts. help people to get to know you and have a laugh with you.

With any social media post you have a couple of seconds to grab their attention. I spent a couple of hours last night looking through newsagent Facebook pages and I tagged 75% of posts falling into one of the above 5 areas. That does not allow for the 33% of newsagent pages I saw that infrequently posted, like the one business that last posted in January this year.

The best face to put on your business is you. On social media, be yourself, have fun, bring customers along for the ride with you.

I appreciate some will say they know nothing about social media, that they don’t know what to say. Social media engagement is a basic business task. Anyone can do it. You start by starting. Getting someone else to do it for you is a dreadful mistake, it will likely achieve little for your business.

Remember, have fun. This is key. People go to social media to be entertained. Entertain them. Let them see that you have a sense of humour.

One other point: avoid using an AI tool to write posts for you. AI content is, well, AI content. Oh, and don’t use AI generated images as doing so will say more about your business, which you ay not like.

15 likes
Management tip

How far can we push what we can sell in a newsagency?

We have put up The Perth Mint’s 125th Anniversary Australia Sovereign 2024 Gold Proof Five-Coin Set for sale at $10,999.00 We were lucky to get one of the 125 of the sets made. I decided to take on the product as it helps us see what the boundary is of the highest ticket price item we can sell.

We had good success with coins prices at $3,995.00 and moved on to coins priced just over $5,000.00, and they sold. The move to try this new coin makes sense.

I appreciate that this will feel out of reach to plenty here. If you’d told me about this coin set five years ago I’d have said no way could I contemplate this, yet here we are.

Good retailers don’t stand still. They try new things and if they work they lean further into them, to learn and see how far they can go. That’s what’s happening here. It’s what I have seen newsagents do in the gift space taking their business fro $20,000 a year in gifts to over $200,000 a year in gifts in a short period of time.

What we can sell in our newsagency businesses is not restricted as it was decades ago.

6 likes
Newsagency management

The clueless supplier pitch: this range is perfect for a newsagency

Sheesh I hate it when a supplier says this. They think saying this range is perfect for a newsagency gives them an in when pitching to a newsagent. Not to me and here’s why:

  • I can’t recall them ever having evidence to back up their claim.
  • The products are likely to be something our channel may have sold in the 1980s.
  • Suppliers tend to not be retailers and are likely to be out of touch with our retail.
  • I don’t want products others think are perfect for a newsagency because newsagency today in 2024 is a meaningless term.

So many of us have transitioned our businesses into new product categories and services, we have moved far away from the newsagency of the 1980s. We keep the shingle because it’s easy, not because it is accurately descriptive.

For sure there are products in our businesses from back when the shingle reflected a channel full of similar businesses, things like newspapers, magazines, cards, stationery and lotteries. Many in our channel don’t rely on some of these old core categories.

Suppliers need to stop generalising about newsagencies. It lets them down and it is not appealing to us.

If you have a range or a product to pitch do so based on the facts: tell me who will buy it, when and how often; explain how I can reach them; provide evidence; make a financial case in terms of return on investment and floorspace.

11 likes
Newsagency management

What’s the point of a Coke fridge in your newsagency?

The only reason to have a Coke (or similar) fridge in your newsagency is if it is delivering a good return on space, labour and inventory investment. if you have a Coke fridge and don’t know its performance numbers, work them out.

I see too many newsagents hang onto their Coke fridge because customers like the convenience of it. That’s no reason to keep it.

Your Coke fridge must make you more money than you could otherwise make from the space.

Your Coke fridge must make more than not having it and the associated assumptions that come with it.

People seeing a Coke fridge do make assumptions in my view. I think they will see it and register the business as a convenience business. If you sell higher end gifts, the assumptions flowing from seeing the Coke fridge may not fit what you want for the business.  Coke is a banner brand like that. See it in the front of a local independent shop and you do think convenience.

I was in a newsagency a couple of days ago that had a Coke fridge right near their entrance, in prime position. From the front door of their shop I could see four other shops with a Coke fridge. The newsagency having a Coke fridge did not make sense. The owner said they keep it because it works. They could not explain that in terms of financial performance or their profit and loss statement tho.

I bought a newsagency two and a half years ago that had a Coke fridge. The staff said customers would complain if we got rid of it. No one complained. We are surrounded by cafes and take away food outlets with Coke and other drinks. The fridge had no commercial value in our newsagency.

None of this matters. If you’re making a good profit, more than you would otherwise make from the space, stick with it.

If you don’t know your numbers, go work them out, now.

I worked them out for the shop I was in a couple of days ago and the Coke fridge was losing money. It was not paying for the square metre of space it was taking let alone the labour and capital tied up in inventory. This is a beautiful newsagency by the way, one offering excellent gifts. I think by removing the Come fridge they can  remove some shopper assumptions and expect more shopper traffic as a result.

Sometimes we find ourselves doing the same thing over an over because no one has stopped in front of us and asked why we do that.

I have nothing against Coke by the way. Some newsagencies, though, do not need to offer the product, they can make better use of the space.

If you have a Coke fridge, please go work out your numbers and let them guide what you do.

17 likes
Newsagency management

13 Ways Newsagents Can Boost Sales And Profits In Challenging Economic Times

If you or a retailer you know are finding economic conditions tough for your business you can complain, do nothing or make changes. Only one of these has any hope of improving the situation. My advice is to pursue change every time.

Here are 13 free and easy to implement action items any local small business retailer could consider to improve their situation.

  • Engage everyone in the shop. Let all team members know how the business is going, what it needs and why. Agree on achievable goals and steps to take in pursuing them. Track results openly. Keep communicating.
  • Declutter. If business is down and it’s getting to you, spend a day or two decluttering. Typically, the act of decluttering helps you see positive moves you can make in the business. Do this yourself. Make those moves.
  • Quit dead stock. What is dead will depend on your type of shop. For some, it will be stock that has not sold in 6 months while for others it will be stock that has not sold for 2 years. Dead stock wastes space, time and ties up cash. Anything you get for it is better than the daily cost of your dead stock today. And, in quitting, do it in 2 weeks. If it’s not gone, give it away.
  • Reward an additional purchase. Include a coupon on receipts that offers a reward if the customer makes another purchase in a short period of time – we suggest 7 days. While loyalty points programs focus on the longer-term relationship, the voucher proposed here is all about encouraging purchases sooner. In our software, this is discount vouchers.
  • Know what you are missing out on. In a typical shop, the top 5% selling items are out of stock 21% of the time. That is guaranteed revenue missed. Fix it and revenue will increase. Your POS software can easily show what you’re missing. In our software tis is on the Insights Dashboard.
  • Support a local community group in return for their members supporting you. Connect with a group that has plenty of members, the community loves and that does good work. Offer their members a discount off purchases and a contribution donation from each purchase value to the group. The goal is to get their members who don’t buy from you buying from you = new customers.
  • Have fun on social media. People go to social media to be entertained. Entertain them. Don’t overthink it. Have fun, show your business as a place of fun, share knowledge that differentiates your business.
  • Leverage free. Make sure your Google Business and Bing (yes, it’s a thing!) presences are up to date and fun.
  • Lower payments costs. Card payments can cost small business retailers between .075% and close to 2%. While you can surcharge customers, switching payments company could save plenty. If you switch, still surcharge tho.
  • Email your customers. If you have customer email addresses and know what they have bought, run some targeted email campaigns using this data.
  • Review pricing. Most retailers either follow the supplier suggested retail price or a mark-up percentage set many years ago. To determine the price you could sell an item for, ask that question. It could be that the convenience of your location and lack of easy to access competitors means you can sell items for more than is usual. If this is the case, do it. Most POS software makes it easy to make these price adjustments.
  • Talk to your suppliers. If you are finding it tough it is likely your suppliers are too. Ask if they have deal prices to move inventory. If they do and it is inventory you can easily sell, grab it for bonus margin.
  • Set your shop right. Make sure that your shop is guiding shoppers to spend, and spend more:
    • Inside the front door: Have a new display weekly. Bright. Optimistic. Fun. Unexpected.
    • At the counter: Pitch items people will easily purchase on impulse. Items that achieve the best performance and items they did not expect to see at your counter.
    • Have a scent: Incense, a candle – introduce a scent people like.
    • Have a sound: Play happy music people will know and sing along to.
    • If it is cold outside, make your shop warm.
    • If it is warm outside, make your shop cooler.
    • Move: Move at least one product category each week. This gives the shop a feeling of change.

My POS software company, Tower Systems, makes and supports POS software for local specialty retailers in Australia and New Zealand. I also own the newsXpress newsagency marketing group and own and runs shops.

I share practical advice like covered here because I love helping local independent retailers thrive.

Mark Fletcher
Managing Director
Tower Systems International (Aust) Pty Ltd
ABN 61 007 009 752
M | 0418 321 338 E | mark@towersystems.com.au
Sales: 1300 662 957 sales@towersystems.com.au

First published: June 27, 2024.

8 likes
Management tip
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