A blog on issues affecting Australia's newsagents, media and small business generally. More ...

newsagency of the future

Selling outside your newsagency – a free workshop for newsagents about online, how to, where to and when to

Join me online for a free workshop this Monday, October 17, at 10:30am Melbourne time in which I will explore with you how, when and where to sell to people who will never shop in your shop.

I will share experiences:

  • Selling interstate.
  • Selling overseas.
  • Dealing with fraud.
  • Packing and shipping.
  • How to sell what you don’t have in your shop.
  • Pre-selling.
  • Payment methods.
  • Marketing, including Google image advertising.

I will also cover factors that may mean online is not for you.

In addition to the group websites my business has created for retailers in the newsXpress marketing group, I have single-store online shops connected to three of my retail businesses, each in a specialty niche, each attracting good business. I’ll take you under the hood to see what that looks like and explain how any retailer can do this.

This is not a sales or marketing event. It is pure business advice you can go use any time that suits.

https://us06web.zoom.us/j/86896859959?pwd=aFdTdGNuSXZvOUxuL1pFUWpya0FzQT09
Meeting ID: 868 9685 9959 Passcode: 877510

Online is here to stay, and sales from online are growing. My goal with this session is to provide information so you can make informed decisions about online.

While the session will be recorded, I will decide after the event whether I release it.

3 likes
Newsagency management

Tower Systems announces new free online marketplace for local independent retailers including newsagents

Tower Systems is launching www.findit.com.au, a free marketplace for local indie retailers like you. Listing products on FindIt will be free for Tower Systems customers.
 
Our goal for FindIt is to help customers looking online for items you sell, to drive traffic to your shop.
 
All Tower Systems POS software customers have access to FindIt for free.
 
We have built FindIt because of the growing importance of being online to in-store retail, and because some retailers are challenged with creating and running their own website. This is a no cost / low cost solution to help you be found online.
 
If you do have your own website, you will still be able to list on FindIt if you wish.
 
Retailers can choose to sell through FindIt, or just list what they have available in-store. If they do sell through FindIt, there is a fee of 10%. This covers Tower for credit card fees and Afterpay fees once that is live. It also covers us for credit card fraud claims. Retailers choose whether to sell through FindIt or not. Again, to list products and have your shop found is free.
 
We are hosting the website on a large secure and fast server in a remote data centre. We are also doing the backend SEO work to raise the Google profile.
 
Customers will land on the website from Google. As the ranking of the site increases, products on FindIt will list in Google results. Customers will be able to add items from multiple retailers to a FindIt basket in a transaction.
 
The FindIt website confirms the order to the customer and provides the retailer with a recipient created tax invoice. Retailers will be able to go to their FindIt vendor panel to download a picking slip.
 
 
 
  

 

Retailers choose the price of what they sell – it can be their web price or their retail price. In the Tower Systems POS software, retailers choose whether a product is listed online.
 
The image for a product will be the first image loaded for a product. If a retailer has a better image than the first one loaded by another retailer, it would take a manual process to change it, a process not currently in place. The same applies to descriptions. 
 
We connect products by barcode. If a retailer generates their own barcode for an item already on FindIt, it will treat that product as a new item.
 
The price will be the retailer’s price – yes, multiple retailers on FindIt could result in different prices for the same item.
The product description is the key. Our advice on this is to try and think about what someone is likely to type into Google.
 
Retailers will have the option to be either freight free or charge. If a retailer has product dimensions and have selected to charge freight, the Australia Post plug-in we have will calculate a freight charge. Retailers will also have an option, on their vendor page in FindIt to set a flat freight charge if you wish.
 
We currently serve over 3,000 local small business independent retailers. Across that eco system there are more than 100,000 unique products. FindIt has the potential to be an important marketplace. 
 
We are around 3 weeks away from launch. 
 
In terms of the launch tho, it will be soft, no major fanfare. We’re taking a Field of Dreams approach … building it in the hope they do come.
 
This is a new space for us and for our customers. There will be missteps along the way for sure. We will evolve the site based on what we learn from these and from your feedback. 
 
We are excited to help local indie retailers find new shoppers for your business.
Find out more about our Tower Systems POS software at our website, www.towersystems.com.au, where you can also easily watch demonstrations of our software. We only supply independent retailers. Plus, our software is Aussie made and supported.
 
For a personal demonstration or to discuss your POS software needs:
  • sales@towersystems.com.au
  • 1300 662 957.
15 likes
Newsagency management

Waking up to $8,000 in online sales overnight

I knew that when the Queen passed the $100 Platinum Jubilee Coin would sell well. I did not expect $8,000 in sales three hours.

What happened here is a testament to having the right product, being online, and being high in search results.

I am not sharing this to disrespect the Queen. Rather, I share it as an example of value we can cultivate in thoughtful diversification.

This is not an isolated situation. And, it is something any newsagent could achieve.

Now, here’s a newsXpress pitch – because access to the coins is through newsXpress. This coin has already been very successful for us. What happened overnight is the icing on the cake. And, what’s most interesting is … many shoppers bought other coins and almost all are first time shoppers with us. This is all part of newsXpress strategy – with execution details shared with members long ago, presenting the same opportunity for all.

UPDATE (12:05pm): It’s continued with people purchasing other coins knowing they will be the last with the Queen. It is fascinating seeing the depth of range of purchases.

6 likes
Newsagency management

Supermarkets vs. newsagents for Father’s Day cards

Of course I am going to say local Aussie newsagents offer the best range of Father’s Day cards, I own newsagency businesses and have been part of this ever-evolving local retail channel for many years.

I am biased.

But I’ll try and look at it objectively.

Here’s the Father’s Day card range in one of my shops.

It’s broad in terms of designs and in terms of captions covered, and there is the biggest difference compared to supermarkets – the captions covered.

I get that card companies like to have supermarkets in their channel mix – but not all card companies do. Supermarkets play a role in supporting engagement by Aussies with greeting cards. But card lovers, those folks who want range and who love good cards, they’ll shop at their local newsagency because there they will see range, get personal service, have choice and, most likely, have access to a loyalty offer that is actually valuable for them.

I have been to 8 local Coles and Woolworths supermarkets over the last few days and each had two stands from the one company – one major had one brand and the other major had another brand. Their caption range was limited. The stand looked messy. I suspect it is only tidied when the paid merchandise diner visits weekly or, maybe, twice a week.

In local newsagencies the cards are tidied daily, with the stands kept shopper friendly. So, as well as range, there is the shopper experience. This is where local newsagencies tend to excel. Here’s the display in one of my other newsagencies:

Yes, supermarkets offer volume, but they do not offer the personal engagement that is key to sustained success with greeting cards.

It’s our job as newsagents to get it right with cards because sales continue to e good, growing for plenty of us, and the margin is excellent. It is our job to keen the displays tidy, organised, to work with suppliers on range, to ensure we have a broad range of captions, to ensure that we are pitching cards in multiple locations in the shop – to engage with the impulse as well as destination shopper.

The Father’s Day season brings in more traffic ,which is good. Our job is to provide an experience that encourages them back before the next major season. We can do this, supermarkets tend to not.

I am approaching the rest of 2022 as a card growth opportunity. We have a number of changes afoot in one of my shops, including leveraging an opportunity I’ve not seen done in a newsagency before. If it works, I’ll be thrilled. If it does not work, hopefully I will learn something from it. At the core of what we are doing is a desire to expand the range of card shoppers we attract, and that starts with building the ball park, like in Field of Dreams. yes, I really do believe in if you build it, they will come.

Okay, it’s cliche and twee, but embedded in the phrase is a goal and hope and they are motivators for and local small business retailer. Having a goal is key.

More soon …

14 likes
Greeting Cards

Online, what matters more? You, or what you sell?

Newspower recently sent our marketing that claimed 6,245,277 searches on Google. I knew this was wrong and shared with them data on actual Newspower searches.

The Newspower website itself gets around 16,800 visitors a month. The term Newspower accounts for 3.42% of its traffic. The Newspower website traffic appears to have dropped around 30% over the last 18 months. I shared this with Newspower and their CEO said the claim of 6,245,277 Newspower searches on Google has been mistakenly stated. It was not our intention to mislead any reader with this information, and we will now advise those readers with clarification of the information.

Here is comparative traffic data that I collected this morning using SEMRUSH for 4 newsagent brands / groups.

The thing is, though, this does not matter.

What matters is what people search for online.

newsXpress has a comprehensive, easy to access, multi-faceted online strategy across multiple web platforms. Since I own a newsagency software company too, I have made sure this is easy, and successful for our members.

But back to what people search for online. Here’s a 13 minute video I made this morning that offers real data examples.

If you want revenue from online shoppers, my advice is that you seek it from multiple channels: your own website, websites connected with your marketing group, social media and more.

We have moved from the one pathway to sales, through your shop front door, to today’s world of many pathways, which often connect.

How, when and where people shop has fundamentally changed. This was happening long before Covid. But, Covid, has sped things up.

A challenge when it comes to online is trust. Plenty of people and businesses make claims. Ask for evidence supporting any claim. Their response to you asking for evidence could indicate a simple mistake, deliberate misleading or ignorance … it could also provide evidence that their claim was accurate, which would be ideal.

Online is like to gold rush era of the 1800s in Australia. It’s a rush with people of varying skills and experience our there, in the rush. take care to make informed decisions.

And, yes, it is vital you join the rush. Too much business today is transacted online for you to not engage. Engage now and expect to sell to people you’ve not sold to before.

21 likes
newsagency marketing

Stunning Father’s Day display

This Father’s Day display at newsXpress Sarina is stunning. Shelley and Mark run an innovative business, which is continuously evolving. What they achieve in their town, which is 30 minutes from Mackay in Queensland, is best-practice.

Their success, like this display, is their own innovation. I share it here for inspiration.

16 likes
Newsagency management

A new business insights dashboard in newsagency software offers newsagents a bright pathway

The Tower Systems newsagency software has benefited from a major update this week. While the company releases 3 or 4 updates a year, this update is special because of the new business insights platform it delivers.

There is nothing like it in any other newsagency software.

This dashboard pushed business insights, it collects, curates and presents the insights data without being asked to do so.

Whereas plenty of software programs offer reporting facilities for discovering insights, it’s a pull approach. This dashboard is a push, and it focusses on key measurement points that are vitally valuable to local small business retailers, especially retail newsagents.

This new dashboard focuses on 6 critical areas of retail to assist you on making key decisions by representing data in a graphical & easy to understand format.

These 6 metrics are among the most important metrics that Retailer should be focusing on to impact the profitability of their businesses.

  1. Where Are We Today – Gives you a snapshot of the overall sales & liabilities as it stands Today, this powerful tool can also be expanded to a desired time period.
  2. What’s Not Selling – This gives you a visual understanding of what is not performing in your business.  Deadstock in any business is lost cash.  This report gives you the ability to make decisions on this underperforming stock whether it be discounting or other stock reductions strategies to unlock this lost cash.
  3. What Am I Missing Out on – This give you a list of items that have sold out and potential missed opportunity. The visual sales history will assist in ensuring the right items are restocked to ensure future revenue is not missed out on.
  4. What Sells With What – This gives you an insight to consumer basket analysis. Through this you will see exactly what stock items sell with other stock items and from this you will be able to leverage upsell opportunities, co-location and promotion opportunities.   This also shows the sold alone percentage so you can see item upsell efficiency.
  5. Is Theft An Issue – This provides a in-depth visual overview of all the retailer audit log records by reason, number of occurrences by time day. This will assist in identifying staff theft/training issues that may need to be addressed within the business.
  6. When Are We Busiest & Quietest –   This is a visual overview detect any quiet or peak times in your business by displaying over the week as well as detailed by hour

The idea of the dashboard was mine. While the Tower newsagency software offers the insights, newsagents needed to know they wanted them, they had to look. Too many did not – for a range of reasons. Hence, the decision to create a push approach. I brought the idea to the tech team and, at the same time, tested the idea with some customers. Soon enough, we were invested.

Built from scratch by the Tower software development team, this is a significant investment of a genuine value-add for small business retailers, like retail newsagents.

Once the new dashboard was created, we showed customers in a Zoom meeting, and then we live-tested it in my own newsagency shops. Wow! The value was immediate. I saw things that I did not realise, opportunities there for the embracing. The visual ways the insights are presented are terrific, accessible.

We then offered it to the close-knit Tower Systems beta community – a community of retailers from different channels who get top test an early release of the software. Their feedback was wow, this is amazing!

Now, this week, it is available for all Tower Systems customers.

The enhancement is available to all Tower Systems customers as part of the regular update enhancement service from the company. The company is also providing complete documentation as well as training.

The what am I missing out on tab has shocked some retailers. They did not realise that they were missing so much revenue by not being consistent with re-ordering. Some retailers choose to not reorder some lines as they want to see change in their shop. That’s a reasonable decision, unless it cost the business out of certain revenue.

The goal here is to underscore business decisions with accurate data. the easier we make that data available to local small business retailers line retail newsagents the greater the value they can derive from the POS software they use, and value today is critical in every area of our retail businesses.

If you’d like to hear more about some of the insights offered in the new insights dashboard, here’s a video from me speaking about it:

Yes, I get that there will be some grinding their gears at what may read as an ad. The thing is, there has not been much genuine innovation for retail newsagents in newsagency software in recent years. There has been some enhancements connecting with The Lott, integrations with BNPL, integrations with more EFTPOS platforms, but not much innovation around newsagency retail management.

This insights dashboard is something I am proud of because it is genuinely innovative, serves the retail newsagent and is available to newsagents for no additional cost. It’s a true value-add, and we don’t see enough of that these days.

Disclosure: I own Tower Systems and am proud that my company serves more than 1,700 newsagents with newsagency software. The company also serves another 1,500 or so retailers in other specialty retail channels. If you think you might be interested in the Tower software, please email sales@towersystems.com.au.

14 likes
Newsagency management

Tips for hiring and retaining employees in local small business retail

Talk to anyone in business and they will tell you that hiring and retaining employees is one of the biggest if not the biggest challenge they face.

Retail is finding it tougher because working in retail is tough. Besides the obvious of being on your feet all day and how working in retail is seen by many, there is the challenge of dealing with difficult customers. Abuse of staff in retail is common, and no matter how much we provide support in a shop, there are customers itching to take their anger out on someone.

There are ways we can make working in retail more appealing so as to attract good people, and retain them. Here are some of my thoughts on this.

Hire people who want to work with you and help the business thrive. People working to make money only will only focus on that. You need to try and find people looking beyond this week’s pay check. You need people wanting to build something for themselves long-term.

Give your people power. Let them make decisions about the business, encourage them to be personally invested in the business, and this this help develop their skills. The more their future is enhanced working in the business the more they will love working the business and contribute positively.

Support them. Everyone working in your business is on your team. Nurture them. Train them. Support them. have their back. The more they experience this, the more they will do it for you. This support is especially key in retail where customers may be abusing at the counter.

Cut the mundane as much as possible. If there are mundane tasks in the business that could be eliminated with better processes, do it. The less mundane work the more people enjoy their jobs and that helps them stay with you.

Open the books. Sometimes people look for work elsewhere because they think the business can afford to pay them more. By opening the books you might be able to show enough for them to respect and appreciate what they are paid. Opening the books also offers the opportunity for them to think and act more like an owner, to be more invested in the financial success of the business.

Offer a pathway. As much as you are able in your local retail; business, offer people working in the business a forward pathway, opportunities for them to personally advance.

This is not a complete list, of course. It is offered to get you thinking about your situation.

The only topic I have not canvassed is pay. Of course paying the award is inadequate as it is the bar, and plenty would say it is a low bar. What you pay depends on your circumstances and, considering them, how you view your staff. If your staff are adequate, pay the award. If you value them more, pay them more within your capacity and considering what else you offer, such as flexibility to their schedule.

It is easy to complain that finding and retaining employees is difficult. It is hardware to take steps to fix the problem / challenge for your business. complaining achieves nothing. It’s the forward steps, no matter how small, that matter.

The newsagents best placed to find and retain staff are those transitioning or that have transitioned away from the old-school agency model, or at least in part – for it is these forward-focussed businesses that are more interesting.

I have owned retail businesses, newsagencies, gift shops and online shops, since February 1996, and own 4 shops today. I’m not an expert, nor am I professionally trained in this. But, I have learnt from many situations, many mistakes. Good people are essential to any local retail business. Business size is not a factor in attracting and retaining good people.

17 likes
Newsagency challenges

Strong results in Jan – Jul 2022 vs. 2021 newsagency sales benchmark

Thank you to the 109 newsagents trading under a variety of shingles who provided sales data for this benchmark study. Your transparency will help many in our channel.

Strong first half of 2022 for local retail newsagencies.

Newsagents, overall, had a good first half of 2022 when comparing trading figures with 2021. While the increases reported are modest, this is on the back of a better than good 2021 because of Covid.

Of particular interest are strong performances for gifts, magazines, books and toys.

The results show the local newsagency as a business with a strong traffic and revenue core. They also show opportunity considering the growth in some categories for some and not others.

While this latest newsagency sales benchmark study does not include shopping centre businesses as the sample group was too small, I note that they appear to have had a rough first half – begging a question about the status of the shopping centre setting.

After comparing data from the businesses in the benchmark dataset here are the averages for business performance measurement points and categories, comparing January through June 2022 with the same months in 2021:

  • Revenue: Up 2%.
  • Sales count: Down 1%.
  • Basket value: Up 8%.
  • Items per basket: Up 6%.
  • Average item value: Up 7%.
  • Greeting card revenue: Down 2%.
  • Magazines unit sales: Down 4%.
  • Toy revenue: Up 6%.
  • Gift revenue: Up 8%.
  • Book revenue: Up 7%.
  • Stationery revenue: Up 5%.

The percentages are small, especially when you look at 2021 over 2019, however, that earlier comparison was comparing pre-Covid with Covid, which for high street newsagencies was massive.

Since the above results are averages, there are some considerably below and some considerably above.

In terms of type of business, the best performing newsagencies I see in the data are high street suburban followed by high street regional / rural.

It’s what is not in the above benchmark results that is interesting. There are some newsagents experimenting with success. Homewares, whitegoods, hardware and spectacles are all categories delivering growth in reports for a small number of participating businesses. I can see several going from $0 to a reasonable number in on introducing the category.

Some newsagents are quitting categories, too, like ink and toner, toys for some and some agency lines.

There is also interesting data within departments, like stationery and magazines:

  • In stationery, sales are strong for everyday items like pens and paper and less so for less frequently purchased items. Pens, for example, continue to command around 30% of all stationery revenue in newsagencies with strong pen sales. Given their percentage of space allocation and capital requirements, this makes pens a prized segment. I wonder whether there is an opportunity for newsagents to price some stationery with a convenience premium.
  • In magazines, weeklies experienced the biggest decline, an average of 9%, followed by women’s interests while special interest, crosswords and craft & hobbies experienced above average growth to sustain overall magazine performance.

In this benchmark dataset there are 2 newsagencies that introduced gifts, toys and plush to their businesses. In each case the three new categories accounted for more than 6% of total revenue for the six months. One business introduced trading cards part way through the six months and did more than $12,000 in revenue.

The shopper traffic challenge.

A big challenge I see in the benchmark data is shopper traffic.

Our channel was built on being a destination for papers, magazines, cards, lotteries, stationery and, back in the day, tobacco. We’d open the front door and people would come in. Newsagencies were businesses that benefited from the habit based shopper.

Those days are gone, more so in the city than the country, but they are gone.

We need to work harder at attracting shoppers, by stocking a broader range of habit based products and by showing guiding people to purchase, by educating them, enticing them. We do this by being smarter and more engaged retailers, and by doing these things inside and outside of our shops.

Every newsagency, every retail business, needs a new shopper traffic strategy, because if were are not growing the shopper pool, the future of our businesses is at risk.

Stock what could attract new shoppers, display it so passers-by can see it, pitch on social media.

If all we do with something new is put it on the shelf, we fail that new traffic opportunity.

The run home to Christmas

July through December are critical for any retailer. Maximise the opportunity:

  • Go out as early as possible with Christmas.
  • Pursue attracting new shoppers.
  • Stop doing what’s not making you money, which may include adjusting opening hours.
  • Quit dead stock.
  • Follow any green shoots in your business data, every business has these.
  • Be frugal with your roster.
  • Make your shop look the best it has been.

I say all this because even though our channel is producing good results, we have plenty of competitor retailers who are energised to win business, and you don’t want them winning it from you.

The next six months matter because they set you up is you may want to sell next year, they put more money in your pocket and they help you enjoy your business more.

I own and run four newsagencies. Over the years I have had three others. I own newsXpress, a newsagency marketing group focussed on helping newsagents attract new shoppers.

Mark Fletcher
M | 0418 321 338

23 likes
Newsagency benchmark

What does newsXpress offer newsagents for its $175 a month membership fee?

A newsagent contacted me earlier this week asking why it didn’t help with leases and why it restricted the card company members could buy from. I explained that newsXpress does help with lease negotiation and that there is no restriction on the card company newsXpress members buy from. It turned out they had been misinformed by someone. Hmm…

Anyway, that call prompted me to make this new video in which I talk about what is included for the $175 a month membership fee to be part of this vibrant and proactive community of newsagents.

12 likes
newsagency marketing

Websites for newsagents

Here is a video I made last week in which I and a colleague discuss websites for newsagents and how the newsXpress / Tower partnership delivers.

Being online is critical, but maybe not for the reason you think. People use websites to browse. Not being online means you’re not reaching those browsers. I have heard of people driving hours to pickup something they found online.

When people search online they are searching for an outcome, not for a business. Think on that … many small business retailers go online with the goal of making their physical business easily found. My advice is focus of what the shopper wants, what they will search for.

The other comment I’d make is you are not your customer. What you might do re online shopping is not what others might do re online. I would never have any retail business today without an online presence.

6 likes
newsagency of the future

Questions from newsagents on websites

Since I sent the invitation Monday for the newsagent website workshop tomorrow, I’ve received some questions. Here they are, with answers:

  1. What’s the typical cost for a website? Tower offers a fixed price of $6,600.00, or $550.00 a month paid for 14 months.
  2. Is there newsXpress half price offer still available? Yes, newsXpress members who use Tower can get the same fixed price website service for $3,300.00.
  3. How long does it take to get we website setup? If your data (stock descriptions and images) is all setup, it could be live in a few weeks.
  4. Do I have to sell online or can the website show what I have in the shop? It’s easy to have the website show what you have in the shop but not sell online. Plenty of retailers do this.
  5. Do I have to sell online what I have in the shop today? No, you can sell anything you want online, as long as it is legal.
  6. Why Shopify? It’s easier to use ands maintain than WooCommerce and other platforms. But, WooCommerce developers will disagree as they make money maintaining sites. With Shopify it’s that easy that you can do it yourself.
  7. How can I get my website to be ranked high in Google? Hard work, consistent hard work. There is no shortcut.
  8. How much can I expect to make online? That all depends on your niche and the time (and money) you invest. I know newsagents making $300,000 a year online, others easily making $50,000 a year and others making nothing.

Again, tomorrow’s workshop is not a sales pitch. I plan to share and discuss information you can use regardless of the web development path you choose. 

Free online workshop: Websites for newsagents

Thursday June 23 @ 2pm.

This free workshop on websites for newsagents will look at:

  • how newsagents can be successful online
  • why this matters
  • pot holes to watch out for
  • what it costs
  • what about after you are live
  • easy steps you can take today to prepare

I’ll be hosting the session and sharing plenty of lessons from the last few years: websites I have launched that have failed and websites I have launched that have been successful.

I’ll discuss full time websites, and seasonal websites too.

Please have your camera on so people can see who you are. Please come with questions, too. Here’s how you can connect:

https://us06web.zoom.us/j/86342284316?pwd=M1A1WGw2MkNDL0lFQVQrWjdRd3VSZz09

Meeting ID: 863 4228 4316 Passcode: 586410

Thursday June 23 @ 2pm Melbourne time.

I will record the session for people keen and who cannot make it.

Being online is as important today as having a photocopier in your newsagency was 10 or 15 years ago. The biggest challenge I see confronting newsagents in particular is what to sell online. I’ve seen some spin their wheels over this for months. Some take the approach of putting as much of their shop online as the can while others treat the new website as a start-up business. I am more from the latter camp.

I am not hosting this workshop to try and sell you anything. Rather, I am keen to share experiences so that you can make more informed decisions. I see too many retailers, including newsagents, making decisions about websites that waste money.

Just about any local Aussie newsagency is perfectly placed to host a successful online business.

Having a realistic view of being online is critical to being successful online. A website can be a hungry beast and I’ll explain how.

I will, for context, touch on the group connected websites newsXpress runs that offer the easiest path to selling online. Any marketing group can do this.

If you can spare an hour Thursday I am sure it will be worth your while.

Mark Fletcher
Managing Director
newsXpress and Tower Systems
0418 321 338
mark@newsxpress.com.au
https://www.linkedin.com/in/mark-fletcher-tower/

PS. If you’d like to know more about what newsXpress offers newsagents: Click here for what is included in our $175.00 a month (or $1,680.00 (inc GST) per year paid in advance) membership offer.. Please email help@newsxpress.com.au or call Michael on 0400 331 055 with any questions about newsXpress..

3 likes
newsagency of the future

Free online workshop: Websites for newsagents

You’re invited to a free online workshop Thursday this week @ 2pm.

Websites for newsagents will look at:

  • how newsagents can be successful online
  • why this matters
  • pot holes to watch out for
  • what it costs
  • what about after you are live
  • easy steps you can take today to prepare

I’ll be hosting the session and sharing plenty of lessons from the last few years.

Please have your camera on so people can see who you are. Please come with questions, too. Here’s how you can connect. :

https://us06web.zoom.us/j/86342284316?pwd=M1A1WGw2MkNDL0lFQVQrWjdRd3VSZz09

Meeting ID: 863 4228 4316 Passcode: 586410

Thursday June 23 @ 2pm Melbourne time.

I will record the session for people keen and who cannot make it.

Being online is as important today as having a photocopier in your newsagency was 10 or 15 years ago. The biggest challenge I see confronting newsagents in particular is what to sell online. I’ve seen some spin their wheels over this for months. Some take the approach of putting as much of their shop online as the can while others treat the new website as a start up business. I am more from the latter camp.

In this workshop my goal is to not try and sell you anything. rather, I am keen to share experiences so that you can make more informed decisions. I see too many retailers, including newsagents, making decisions about websites that waste money.

If you can spare an hour Thursday I am sure it will be worth your while.

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Newsagency management

What does the future look like for Australian newsagency businesses?

I did an interview a few days ago and this was the opening question.

What does the future look like for Australian newsagency businesses?

While we won’t know the answer for years, what we know today is what we offer the local communities in which each of us serve.

The question from the journalist was rooted in a belief that our future relied on the sales of lottery products, newspapers and magazines.

Thankfully, for many in our channel that is not the case. Many of us have followed paths on which we do not rely on these legacy products while, at the same time, continuing to offer these products.

More of us in our channel to do more to spread the word that the local Aussie newsagency is evolving, and that the future looks bright because of this.

My newsagency software company serves more than 1,700 newsagents. That’s why we created this video and other collateral supporting the Aussie newsagency channel. I grateful to newsagents for their support.

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newsagency of the future

Updated advice for new newsagents, those who have bought a newsagency

This is not a complete list. Also, it’s my list. Others will have their list.

Before you get to the list, consider  consider the type of newsagency do you want to run: retail or agency. In my opinion, retail has growth opportunities and relies on you whereas agency is flat or declining with others in control of much of your business. I am more interested in retail.

You drive business value by playing at the boundaries of the business, broadening what you sell, the price points you can achieve and the new faces you can attract. Attracting new shoppers has to be a key focus as this feeds into other metrics.

Plenty of people offering newsagents advice on how to run their businesses and what to stock are not newsagents, not even retailers. Often, they are not business owners with a vested interest in your success. Be cautious about advice offered, especially from supplier reps. Their needs are likely not your needs.

I own the newsagency software company supplying more newsagents with software than all others, I also own the newsXpress marketing group and I own 4 newsagencies. Best of all, every day I get to work with retail experts, retail practitioners. They have the best advice, from lived experience, successes and failures. In offering advice here I’m not trying to make money off of you. The advice is offered free to anyone to read and use or not.

Here’s my updated list for new newsagents:

  1. MAGAZINES.
    1. Arrive invoices through XchangeIT – no other way.
    2. Only sell magazines by scanning. Never use department keys.
    3. Do not label all magazines. Do not label weeklies or high volume monthlies.
    4. When returning magazines, scan out returns. Do this at least weekly.
    5. Do not early return magazines the day they arrive unless you have been sent too many. Often newsagent who early return deny the opportunity of sales.
    6. Early return at least twice a month – based on what is NOT selling.
    7. If you have sub agents – only supply them through the sub agent facilities in your newsagency software.
    8. Check your magazine account as soon as it comes in to ensure you have received all credits.
    9. Pay your magazine bills on time without fail – avoid being cut off for weeks without magazines.
    10. You control where magazines are placed, it is your shop.
    11. You do not have to put posters in the window. I recommend against this.
    12. You do not have to do big magazine displays – it is your choice. I see no evidence of it increasing sales.
    13. I recommend against letting magazine companies set up display unless you think they will help drive sales.
  1. NEWSPAPERS.
    1. You control where newspapers are placed, it is your shop.
    2. If you are regularly undersupplied, complain to the publisher as well as the supplying newsagent (if you do not have a direct account).
    3. Scan all newspapers you sell.
    4. Scan all newspaper returns – accurate data will be your friend in the event of a dispute
    5. You do not have to put out newspaper posters or place newspapers in a certain position unless you have signed a contract with a publisher agreeing to this.
    6. Manage your exposure to promotions where you sell stock for a tiny margin.
  1. CARDS.
    1. Cards have the largest %GP of all physical products you will sell (except coffee if you offer that). Treat cards with the respect that value demands.
    2. Think carefully before signing a contract.
    3. Pay for your own fixtures.
    4. Put out your own cards. Learn what you stock. Take ownership of this most important product category.
    5. Ideally, do your own card order. It’s your money being spent. Don’t leave this to someone else to do.
    6. Agree on an ordering process with your card co. account manager, for example what number of cards remaining in a pocket to order on.
    7. Immediately report any over or under supply.
    8. Trust your data ahead of your gut and ahead of sell-in reports from suppliers.
    9. Pay on time or risk being cut off.
    10. Discount seasonal stock at the end of the season for a couple of days to pick up stragglers and make an extra few $$$.
    11. At least every two years (preferably annually) undertake a range review of sales by pocket based on your sales data, not card company provided data.
  1. STAFF.
    1. Decide on your pay rates. The award is best used as a base guide. It’s likely that to attract and retail good staff you will need to pay above award.
    2. Ensure everyone has a list of things to do each day.
    3. Have a documented position description against which your employees are measured.
    4. Have a written roster every week.
    5. Have a structured process for handling annual and sick leave.
    6. Use payroll software for record keeping.
    7. Pay always on time and preferably by electronic transfer.
    8. Pay super on time. Do not start someone working for you unless they have provided a super account number with their tax file number.
    9. Change your roster regularly for casuals.
  1. STOCK  AND SUPPLIERS.
    1. Every day, look for opportunities to attract new people through what you choose to range and how you display it.
    2. Do not buy for yourself, what you like.
    3. Only see supplier reps who have made an appointment.
    4. If a supplier rep tells you something will be a success, ask for the evidence.
    5. Use your computer system to guide ordering of stock – order based on sales.
    6. Order to a budget.
    7. Scan everything you sell.
    8. Scan out personal use stock.
    9. Set your own mark-up policy for items that are not pre priced.
    10. It is easier to discount than increase prices.
    11. Do not pay for an external stock taker – do it yourself through the year.
    12. Check high theft risk items like weekly or fortnightly.
    13. Arrive and price stock on the shop floor, and not the back room. You’ll sell more this way.
  1. SHOP LEASE.
    1. Negotiate your own lease. Paying someone who is not financially invested in the outcome is likely to not get a better deal for you, despite their pitch.
    2. Read your lease.
    3. Make sure the permitted use clause serves the future needs of your business.
    4. Pay on time otherwise you could be locked out.
    5. Do not agree to a new lease unless you have read the entire document and are prepared to agree to it in its entirety.
    6. Conduct discussions with your landlord in writing to maintain a paper trail.
  1. GST.
    1. Complete your BAS on time and make any necessary payment – to reduce the opportunity for you being audited.
  1. FINANCE AND OTHER MATTERS.
    1. If you borrowed to get into your business, start paying this off from the first week, make progress everyweek. This avoids you having a challenge when you come to sell the business.
    2. Pay yourself a wage or at least accrue this in the accounts.
    3. Integrate with accounting software like Xero – keep bookkeeper costs down.
    4. Ensure workcover (workers comp.) cover is up to date and maintained.
    5. Ensure you have appropriate council permits for what you sell – i.e. food.
    6. Have a structured banking process that ensures that cash is tracked at all steps and at all time.
    7. Take a data backup every day. The best approach is an automated cloud backup – ask your software company.
    8. Bank every day and bank the takings for each day separately to make reconciliation easier.
    9. Use your software to manage the end of shift process to drive consistency and accuracy.

As I said at the start, this list is evolving with time. I hope it is useful to new newsagents and would be newsagents, to understand some of the day to day tasks you cannot afford to get wrong.

Footnote: I first published a version of this advice 7 years ago.

11 likes
buying a newsagency

Perfecting the digital newspaper and magazine experience for travellers

You’d struggle to find print newspapers and magazines in airport lounges in the US now.

At LaGuardia (New York) airport yesterday, in the American Airlines lounge, I spotted this sign.

Clicking on the QR code takes me to an awesome website offering current newspapers and magazines. The range is extensive.

Once you select the title you want, access is immediate – all without needing to register, login or pay anything.

The copy of the paper is complete with ads.

Checking countries for which they have newspapers, Australia is not listed.

I spent an hour looking through the site, including the magazines, and that’s where I found some Australian titles.

Again, the reader experience was easy. You can zoom in and out with ease – on any device you are using. I tries this on my phone, iPad and MacBook. Such a good experience.

And, yes, in The Australian Women’s Weekly, there are ads.

I was even able to download titles, like AWW, for reading later. It was so easy.

I am surprised at how good the experience is, that it is free and that they ask nothing of me.

There are a couple of aspects to this experience that interest me: more evidence of digital first for what was print media, and, the tech story. The first was a given. But, it has been slow, because of the second. Tech has been slow and while what I experienced in the American Airlines lounge was good, it was not perfect. It was, however, a leap forward from two years ago when I last tried this out.

This is not about the traveller experience though. Well, it is, but looking down the path, it’s about how tech companies and others are removing roadblocks, to make the digital reader experience easier, faster and more personal. It is also about relationships that could be leverages to reach more eyeballs for instant access.

In terms of the tech, navigation is where I’d like to see change.Access is currently linear, like the print products themselves. I’d like more diving by topic, breaking stories free from mastheads. But, of course, that dilutes the value of the mastheads in the eyes of the publishers.

If you think about it, the print media distribution model was always destination shopper driven and distribution was always focussed on. this: newsagencies, home delivery etc … driven by the person who wants access to those products. The person has to know about the product and either want it or be curious about it.

The airline lounge experience is for the passer-by with some time available to read, it’s for the impulse shopper, the passer-by. That’s a different ‘shopper, and, potentially, a more valuable shopper for publishers into the future.

As publishers, and tech platforms, finesse their offerings, they will be more easily able to reach more of these people. I think partnerships will help drive this, using the masthead content as a value-add. This is where we will see more disruption.

That model, that future model, could / should be about stories reaching out to people, reaching more people, and not being accessed in a linear way.

I’m not doom and gloom for the newsagency channel based on what I have seen. This innovation, and what will come, are inevitable. Publishers are evolving, just as we must.

While I am sitting here in the lounge writing this, I am sat next to a large digital screen promoting an American Airlines / Oprah Book Club, Apple TV+ partnership through which I can watch Oprah interview authors and access those books to read while flying.

It’s the era of partnerships baby, and tech for what was print media!

So, where do we fit into all this? Today, if we offer print products in our shops, and not all of us do, we need to offer the best experience. And, while we do this, we need to evolve new traffic attractors, to bring more people. The best thing we can see in our newsagencies is new faces and the best experience is when they come back, again and again. Achieving that is 100% up to us as retailers. It’s not something agents would do.

The biggest risk to our newsagency channel is the newsagents who are not evolving, the newsagents who prefer to remain agents and the suppliers who encourage and enable them.

Postscript. It’s now 8 hours later and I’m in Wisconsin. I thought I’d try and access another title. Sure enough, access is locked to the WiFi at the American Lounge I was in.

It makes sense that access to locked to the location. It also underscores the opportunity of this tech to help publishers engage with new audiences.

8 likes
magazines

Can we sell a $3,750.00 item in a newsagency?

Yes, we can, and we do, and we did within 3 hours of having the item.

Coins attract loyal, valuable, shoppers.

We sell mint coins from $15.00 through to this magnificent piece. But this post is not about coins, not really. It’s a bout what is possible in any local newsagency business.

What we used to do should not define us.

What we like, or don’t like, should not limit us.

Who we see in our shops or on the street outside should not limit who could shop with us.

What we sell today should not limit what we could sell tomorrow.

What you sell in your shop is up to you. All it takes is one unexpected success to brighten a path forward.

Too often, I see newsagents limiting their view of what they could achieve in their business, because of advice from an accountant (who is not a retailer) or advice from a bank manager (who, also, is not a retailer) or from their own view of what their business is.

Today’s in 2022, there are no boundaries, no rules, no limitations.

Your newsagency can sell anything. What it sells is up to you.

The challenge for our channel is that since forever we have had suppliers telling us what we can and should do, suppliers defining our borders and being paternalistic about decisions we make and about how were run our businesses. For too long too many in our channel have been happy to be agents rather than retailers, happy to be told what to do rather than to lean into free will and consider what we could do.

While many in our channel have found their way out of the agent world, too many are still in there, still chasing a few bucks they could win from a supplier for a good display of low margin product, rather than chasing many more bucks from, you know, actually selling higher priced and better margin from that same supplier requested display space.

My point is, if you are still reading this (thank you for that!), this $3,750.00 coin sale is no longer unusual for us. The first one did open my eyes. Like so many things we have tried in the past, we learnt from it, leaned into it and found more gold on the pathway. Any newsagent can do this. With the right relationships, capital is not a barrier.

And, my experience is not alone. I know of plenty of newsagents with sales outside of what has been traditionally, sales that caught their attention and propelled them to more change in their businesses.

11 likes
newsagency of the future

Why the Local Australian Newsagency Retail Business Is Vital for Local Communities

Serving local communities for more than 130 years, the local Australian newsagency business plays a vital role in community connection and engagement, bringing to local shoppers products and services on which they rely.

The local Aussie newsagency is quintessentially Australian. It’s a place where people can gather to catch up on the latest news, purchase their favourite magazines and chat with friendly staff. As newsagents, we get to know our regular customers by name and develop a rapport that can last for years.

For many of us, the newsagency is more than just a retail business – it’s an important part of the community. We’re proud to serve our local communities and will continue to do so for many years to come.

If you value your local newsagency, make sure you support it! Shop locally where possible and tell your friends and family about the great service you receive. Together, we can keep our newsagents thriving. Thanks for supporting your local!

And, in case you hand’t noticed, the local Aussie newsagency has changed, it has evolved with the times, often offering gifts and other products that you would not have seen in a local newsagency 15 or 20 years ago.

So, please don’t think of us as just a place to buy your newspapers and magazines, we are so much more than that! We are your local community connection.

And that is why the local Australian newsagency retail business is vital for local communities. We connect people, we help them express their feelings, we help them and their interests feel seen. We help keep local communities strong.

Now, let’s get to what this post is really about. While the above pitch is supportive of newsagencies, this post is not about that. I included the above content to demonstrate to you how much the world is shifting.

An artificial intelligence app wrote the above article. I spent a minute on the topic and a couple of keywords. the AI app did the rest, in seconds. I have pasted above exactly what the AI app wrote. I have not edited it whatsoever.

This is how much written content for websites, blogs, magazines and even some books is being generated now. Not everyone uses AI apps, not even most. But you’d never know.

How does this relate to newsagents? To me, it speaks to change. I could not have generated this article with so little input a year ago. Okay, I could have but it would not be as good as this one. I’m not saying the article is perfect. But, if you want something that indexes well with Google to keywords like local newsagent or local newsagency, this article will do the trick.

The world is changing rapidly. AI is having more of an impact on our day to day than most of us imaging.

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newsagency of the future

Innovative retail in the US relevant to newsagents

A couple of weeks ago I visited several stores in the US in the card / gift / homewares space in Los Angeles. Myself and a colleague made a video about what we saw for newsXpress members. Here is that video.

Videos like this are part of the newsXpress resource kit for members to engage with as they continue to evolve their businesses. As you see in the video, it’s not about saying do this or that. rather, it’s about this what we saw that looked interesting.

3 likes
newsagency of the future

At Shoptalk 2022 in Las Vegas

I’m flying back to Australia today having been at the Shoptalk conference in Las Vegas this week, as well as in Los Angeles looking at some innovative retail.

Shoptalk was extraordinary. Thousands of attendees. Hundreds of sessions. Hundreds of tech suppliers. Thousands of retail businesses represented.

While I will have more to say on some of the insights next week, I’d note that the extent of change in retail is bigger, and faster, than I can remember. And, the nature of the change is such that no retailer can sit it out.

It’s been a scary, inspiring and affirming week. I am grateful for the opportunity to attend and immerse myself in all that was shared.

Now, here’s a snippet of one of the live entertainment pieces between keynote speakers.

6 likes
newsagency of the future

Insights from The Retail Summit in Dubai

I am grateful to have been able to attend The Retail Summit in Dubai earlier this week. Here is a video I shot yesterday in which I care some insights from the conference:

While it was terrific to be in a live conference setting again, the travel process was more complex and less enjoyable than it was priorate the pandemic, as you might expect.

I also got to see some innovative retail in the latest mall situation in Dubai. It was all corporate, big business type. But, nevertheless, worth seeing.

15 likes
Newsagency management

The shock of selling fixtures from the newsagency shop floor

I was talking with a newsagent recently about their first purchase of home furnishing products, two tables for their shop, for displaying product. The tables cost $450.00 wholesale each. The day they unpacked the two tables and put them on the shop floor two separate customers asked how much. Without thinking, the newsagent said $1,195.00. each table was sold that day.

That was five years ago.

Today, that newsagency does $120,000 a year in gifts and $75,000 in home furnishing products. The average GP% for each category is 60%.

The story reminds me of several general truths the it comes to retail:

  • In the shop, everything is for sale.
  • Stock things you don’t expect to sell, because you are not your customer.
  • Having products people want gives you a margin opportunity you should always embrace.
  • A small step of success can lead to awesome things.
  • The shingle does not define our business.

I was thinking about these things when I shot a video recently in which I talked about opportunities outside of traditional seasons. While Mother’s Day, Father’s Day, Valentine’s Day and similar are valuable, it is what we create for ourselves that is more valuable.

This is true in terms of what we sell. Today, there are more success opportunities outside of what we have traditionally seen in newsagency businesses, and, often, those success opportunities reveal themselves when we are not expecting it.

My point is, play outside what has been traditional for you and embrace where it takes you … don’t be constrained by the shingle and what you think it means.

7 likes
newsagency of the future

The window of the shop

For habit based shoppers, what you put in your front window will not be noticed by them, as they are more often than not destination shopping when them come to your shop.

This is why I suggest to retailers that they not pitch destination products in the front window or on the lease line. It doesn’t;t make sense to me to show off what you are known for.

I like to use a front window or a lease line display to pitch what I am not known for, to get people to notice or turn their head at least, and, maybe come in to check us out.

The more we can play against shopper expectations the better I think for the expectations attached to newsagency shops are rooted in history.

This display is from one of my shops from yesterday. It speaks to this desire to pitch what we are not known by most for. It speaks to a freshness and a warmth if you will outside of what may be associated with shopper assumptions re a newsagency.

The mix of colours, textures, product categories and gifting occasions pitches a diversity that we think will help us attract people who might otherwise have passed the shop by. We are really happy with the mix. Quite proud actually.

This approach to outside traditional newsagency category pitching at the front of the business is easier for us given that we don’t have lottery products. While we are asked daily (ugh!) by people who tend to not look around themselves, we are getting more people asking about gifts they’d like to give.

This display at the front of the shop will remain in this form for no more than two weeks. Then, it will start to evolve. depending on new sales and new inventory availability it may be completely replaced at that time.

Let me leave you with some sales benchmark guidance. Plenty of newsagents are doing gift revenue of two and three times their card revenue, some even more. Those doing less than their card revenue have excellent opportunity for growth and that is the key point I’d make as there are many Newsagency businesses with that opportunity on the table.

Oh, and one final point. To show what I mean by being on the lease line, look at this image as through it you can see the Coles supermarket that is opposite us.

10 likes
Management tip

The power of a podcast

There’s a niche product we sell that ticks over, usually selling somewhere around 10 units a week through the year and delivering $17,000 a year in revenue.

It had been out of stock so when we could order again we went hard, and just as well. On Monday the product featured in a podcast episode. This week we have sold over 100 units.

While the experience has changed our view of the product and what is possible with it, the bigger story for us is that usually a third of our sales for this product come from in-store. This week, 100% have come from online with a third of those customers also purchasing something else.

Being online is key in business today. Being easily found online is even better.

On the street, people will browse based on what they see. we configure our businesses to leverage this.

Online, most purchases are intended, sought out, based on what people want. Data confirm this.

We were lucky that the podcast referenced the product, that we had stock, that we had a website and that we came up in search results. 

Any newsagent can do this.

2 likes
newsagency of the future

Some newsagency related predictions from July 2011

Here’s an article published by The Australian Financial Review open July 4, 2011 (pg 10) in which I and several others are quoted about trends in newsagencies.

Some predictions were accurate, while some others were not.

Are we better off than in 2011? I think so, because more newsagents have ditched the fading agent model and found success in being innovative retailers.

Coffee has turned out to be a terrific success while ink shot up and faded. Gifts and homewares continue to grow, as do collectibles and several other niches.

Tomorrow is the start of a new year. I hope it’s successful for you professionally and personally.

13 likes
newsagency of the future