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newsagency of the future

Advice for newsagents considering having a website made for their business

I urge small business retailers to take care when selecting an individual or business to undertake Shopify web development. Inside the Shopify web developer ecosystem there are people who take the money, do the bare minimum and run – failing the retail businesses that paid them.

How do you spot a Shopify web developer who is not likely to serve the needs of your retail business? Here is my advice …

Look at their quote. Is it professionally laid out? Is it well written? Is it understandable? Is it complete? If it is none or only some of these things they may not be the developer for you for if they take this approach representing themselves what approach will they take representing you?! we say … be particularly concerned about text based quotes.

Look for understanding. In their words there should be indicators that they understand your needs and that they want to understand your needs. The website is all about you and your business after all.

Speak to them. We have seen shonky web developers void this at all costs. Speak to them. Talk with them. Engage in conversation. You are looking for someone you can trust your business with. Speak to them.

Look at them. Ask for a Zoom meeting, so you can meet face to face. Ask them to show you sample Shopify sites in this meeting and to explain why each is a good sample site for you to consider./ Sometimes we see web developers avoid Zoom meetings so they can hide behind typed words. face to face c an be revealing.

Say you don’t understand. Tell them you don’t understand some or all of their pitch. Test their patience. See if they meet you at a tech jargon level that you are comfortable with. Challenge them. test them. It is vital they use words and terms you understand. They haver to meet you, not you them.

Be in control. You are the customer. You choose the web developer you go with. decide whether you accept their quote and their terms. You do these things when it suits you. Do not succumb to pressure as anyone pressuring you on timing may be serving their needs and not yours.

Website development right now is like the 1800s gold rush – fast, unregulated with a lot of people being negatively impacted along the way and only a few finding gold.

Take your time. Be sure of what matters to you. Choose the business you want to work with, they business you think can hell you achieve what you want.

Know that you get what you pay for. by that we mean … some web developers under quote as a business model either because they will cut corners or because they know they can charge extra for what they did not know at the start. Again, take your time, be sure of your needs, and remember the carpenter adage: measure twice, cut once. Time spent before you make a decision on your Shopify web developer could ensure that the outcome is better for you and your business.

My newsagency software company has been developing websites for retailers for years. here are some of the more recently completed sites:

www.backobourkecollective.com.au
www.inspiretasmania.com.au
www.brindabellastockfeed.com.au
www.heavensabove.com.au
www.loavesrobe.com.au
www.masterjewellersonline.com.au
www.chitchatgifts.com.au
www.eidsvoldrural.com.au
www.forevergiftsandmore.com.au
www.funporium.com.au
www.goulburnstationery.com.au
www.rehfisch.com.au
www.merimbulaextra.com.au
www.morganpark.com.au
www.nextragiftsorange.com.au
www.northsideproduceagency.com.au
www.pamperedpetz.com.au
www.www.paperplayonline.com.au
www.parkesnewsandgifts.com.au
www.rivercitypets.com.au
www.smithstreettraders.com.au
www.sprengersruraltraders.com.au
www.hefeedshop.com.au
www.shop.newcastle.edu.au
www.toyworldcanberra.com.au
www.toyworldwauchope.com.au
www.reasureboxgifts.com.au
www.uncletomspps.com.au
www.warragulpetemporium.com.au
www.welbygardencentre.com.au
www.wollongongbikehub.com.au

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newsagency of the future

Interesting discussion about working from home and ‘getting back to normal’

Regulars here will know that I am over calls for things to get back to normal. They never will. The future is not the past. More people are working from home that ever. Businesses, especially knowledge based businesses, have migrated and even more are migrating to remove work.

Click here to see a video of a discussion with the CEO of Dropbox in which he discusses this is the contact of his business, how his business now operates and how he now operates. It’s about the future of work. I found it fascinating.

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newsagency of the future

Why your local newsagency may not live up to your childhood memories, and why this could be good news

The local Aussie newsagency focussed in newspapers, magazines, lollies, lottery products and cigarettes is fading, which is a good thing. petrol outlets, convenience stores, supermarkets and tobacco shops are taking over these low-margin convenience lines.

Aussie newsagents have been shedding tobacco products for years. They have been reducing space allocation for magazines and newspapers, too. The margin from print media is small and cover price decisions mean newsagents make less in real terms from each magazine sold today than ten years ago.

More newsagents, too, are not in the lottery space, having chosen to not engage with that highly regulated low-margin product category.

The local Aussie newsagency is evolving … and not in a network wide way, often not in a way that is easily identifiable.

While the local Aussie newsagency may still offer newspapers and magazines, it will most likely have an awesome range of products, which could include: gifts, homewares, books, self-care, nesting, toys, games, garden products, clothing, coffee, food and art … in addition to what you may expect in terms of cards, stationery and craft supplies.

There are plenty of local Aussie newsagency businesses that do not look and feel like a newsagency. Some shoppers don’t like this, they prefer the older style newsagency. The thing is, that old style business is not profitable in 2021. Newsagents can’t bank on the nostalgia pangs of some people. They need foot traffic, turnover and profit. This is why the local Aussie newsagency is changing.

Many newsagents have been chasing change for years and years, trying new products, experimenting to bold layout changes and shape-shifting their businesses to see what might work. What works in one location may not work in another location. This is why the unified and similar looking local Aussie newsagency of decades ago is lost today in 2021. The book and game focussed ‘newsagency’ in Inverloch, Victoria looks very different to the toy and game focussed ‘newsagency’ in Cooma, New South Wales, and both of these look very different to the gift focussed ‘newsagency’ in Sarina in Queensland.

While your local newsagency may still be there, expect it to be different because different is what helps them be there for the local haul, offering you access to magazines and newspapers along with a bunch of interesting and thoughtfully sourced products that work in your local community.

Indeed, in the newsagency retail channel in Australia right now you can see some of the most innovative retail in-store as well as online. It is an exciting time to be a newsagent.

If you haven’t been in your local newsagency for a while, check it out, be ready for a surprise.

Oh, and if you do pine for the nostalgia of the old-style newsagency, think about whether you’d preference one of those brick mobile phones fro the late 1980s or the smart phone you have today. Yes, the world changes. Retail changes, too. This is a good thing. So … check out your local, new, newsagency.

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newsagency of the future

Free taking your retail business online workshop

This Thursday @ 10:30am Melbourne time I am hosting a free Taking your retail business online workshop. Here is the link for accessing this interactive session:

https://zoom.us/j/93218516369?pwd=QW4wR0lFT1F1ZWtzQmFHK2ZxamY3dz09 Meeting ID: 932 1851 6369 Passcode: 636934 Booking is not required.

I’ll cover every question and topic people attending want including: where the shoppers are, what they are looking for, how to get online, how to attract traffic, handing shipping, back office efficiency, niche retailing and how to treat your online business as a start up.

Too often I see people think having a website created for your business is all you need to do to tap into online riches. In this session we will explore the real work, the on-going work that is critical to success online. We will break it down from a local small business retailer perspective.

This is not a sales workshop. It is designed to provide you with information that you can use regardless of who develops your website and regardless of where you are at in your online story.

Everyone is welcome to participate.

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newsagency of the future

The growing empty office space question – for high street retailers

Discussions about empty office space and empty CBDs are growing, which is good. In the US, the conversation is more advanced than here in Australia, with Twitter, parts of Microsoft, Pinterest and plenty of other companies permanently adopting the work from home model or, at least, a far more decentralised model, it’s no wonder property developers are listening and engaging.

Here in Australia we are seeing insurance companies, banks and other usually centralised businesses adopting work from home more.

Scott Galloway has written about this recently. His piece, We (might) Work is well worth reading if the topic of the future location of office work interests you. It includes this…

The wholesale abandonment of office space has been among the most striking fallouts of the pandemic, and it will have profound effects on the way we live and work, long after the virus has been tamed. In New York, new office space is coming on the market 59 percent leased, down from 74 percent pre-Covid. San Francisco went from its lowest-ever office vacancy rate to its highest in the same year, and office rents are set to decline by 15 percent. The worst may be yet to come. Analysts predict that commercial vacancy rates will rise from 17.1 percent in 2020 to 19.4 percent in 2021, besting the previous high of 17.6 percent in 2010. And, as $430 billion in commercial and multifamily real estate debt matures in 2021, lenders will be forced to reconcile the effect of the pandemic on their investments.

Why does this matter to newsagents? How, where and when people work plays a role in the performance of high street retail and with the bulk of our channel on the high street, a decentralised workforce matters to us. It can play into what we stock and the services we offer.

There are plenty in our channel who see the work from home moves in 2020 as an aberration, they expect things to get back to normal. I am in the camp of what is normal anyway … every day, / week / months is a progression from the last, there will be no getting back to normal. Online, more people working regionally, less office centric CBDs … these are all connected issues, issues that the pandemic has sped up, issues that impact retail, issues from which we can benefit.

I keep reading up on this topic of office space use overseas as I think it helps to inform decisions we can make today, for our future.

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newsagency of the future

The Queensland retailers with an advantage

Over the last few days, Queensland retailers with an established and good online presence and back end fulfilment process have been able to offer a timely pitch to existing and prospective customers. Whether for safe click and collect or delivery, having an easily shopped online presence is the key first step to trading which your shop is shut or while people are less likely to leave home or work and shop with you if you are open.

I know of newsagents who last year started on the path too getting online and as the Covid situation eased they pulled back on their plans. The thing is, online is growing, retreating because Covid became more under control was a poor decision.

Queensland retailers who are established online are seeing the benefits of that investment.

If you do not have an online presence through which people can trade with you business, make this a priority. But beware, there are plenty of shonky web development businesses and people out there. Choose wisely.

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newsagency of the future

News Corp. to reduce newspaper distribution in regional Queensland

The ABC has just published this story about a decision by News Corp. to scale back print newspaper distribution in regional Queensland:

News Corp Australia to stop distributing newspapers to much of regional Queensland

News Corp Australia has notified a number of newsagents across regional Queensland that it will stop delivering its titles to them from late September, due to the “very high cost” of distribution.

News Corp wrote to select newsagents last Thursday, informing them it would no longer provide physical copies of eight mastheads, including The Courier-Mail, The Australian and The Daily Telegraph, after September 26.

The ABC understands distribution will cease to towns further west than Charters Towers in the north, Emerald in central Queensland and in some parts of the state’s south-west.

The move leaves a large swathe of Queenslanders without access to a daily newspaper covering state, national and international affairs.

In the letter seen by the ABC, News Corp Australia said its decision was based on “the very high cost to distribute to your region, in the context of how people access their news today, [which] makes its continuation unsustainable”.

News Corp. issued this statement to the ABC:

We are following our audience — and our advertisers — to where they consume news and information, allowing our news coverage to be more immediate and focused on our communities. While our changes in western Queensland represent about 1 per cent of state newspaper sales, the true value of a newspaper is in the news, not the paper it’s printed on.

Read the whole ABC story: as it goes into detail and quotes several newsagents.

Here’s the thing … print in not an efficient medium for the distribution of news and opinion. Sales of newspapers have been underline for close to 20 years. The moves being made by News Corp. in Queensland will not be the only such moves.

As I have written here over the years, the only issue to be resolved about the retreat and ultimate closure of print newspapers is the timing.

Newsagents need to run their businesses so as to not rely on newspapers or any legacy products. Hopefully, the story this morning from the ABC encourages more newsagents to pivot.

Now, as to News Corp. itself, it has not dealt with and is not dealing with these decisions in an inclusive way. It is being selfish and secretive. but, hey, that’s News Corp for you. I say selfish and secretive because company representatives tell newsagents they are important, that they support them, that they need them. Unfortunately, too many newsagents and some who support newsagents drink and that kool-aid and fall into line with the News Corp. spin.

News Corp. should be transparent with newsagents about its timeline. Yes, I am sure it has a timeline that documents the trigger points for withdrawing distributions like that covered in the ABC story this morning and even bigger moves like when it will close capital city dailies. I get why it is not transparent …/ but I wish it was as, sadly, there are newsagents who believe News Corp. more than they believe their own sales data.

I support newspapers in newsagencies, but only on terms that are viable for newsagents. By that I mean being frugal in space and labour allocation while at the same time aggressively attracting new shoppers for new product categories that offer growth opportunities into the future.

Anyone involved in print newspaper production, distribution and sale is involved in an activity that will end … soon. Everything being done needs to be done on the basis of pursuing a soft landing. That is what News Corp. is doing with these decisions. If I was a News Corp. shareholder;der I’d be supporting their moves.

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Media disruption

The importance of the free shipping trigger point on your retail business website

Looking at 27 sales transacted Monday just gone, 18 Sunday and 23 Saturday and comparing basket value, more than 20% were above $100.00 but less than $120.00. I’d note that 5% were above $120.00. What is interesting to me s the amount over $100 they were. The average is $1.50 with plenty at $1.00 or less above and only a couple above $10.00.

What’s my point?

I’m glad you asked … The proximity to $100.00 is interesting to me as $100.00 is the free shipping trigger on the website. The close proximity to $100 for so many $100+ baskets indicates the considerable interest in attaining free shipping.

I see these purchases within, say, $5.00 of $100 as being by people shopping to get free shipping whereas I see the purchases at $130.00 and more as being more about what they want than the free shipping trigger.

This is on my mind today because the trigger point for free shipping is something newsagents in particular have challenges with as they move their businesses online.

In my case, I set it based on guiding shoppers to spend more than the average. This has to be a core principle of any loyalty program and, free shipping, after all, is a form of a loyalty program.

To newsagents struggling to determine their free shipping trigger point, I’d note – you can change it easily so … start somewhere, gather data and adjust once you know more.

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Newsagency management

Newsagents want change in magazine distribution arrangements

The survey I launched 24 hours ago seeking to understand the attitude of newsagents should magazine supply arrangements not change received over 150 responses:

What change do I want? It is simple, really. I want magazines supplied on terms at least equal to those of my main competitor, supermarkets.

  • I want to eliminate most of the arrival and return data work.
  • I want to pay only for what I sell.
  • I want electronic invoice access to be free.
  • I want reports of list or damaged supply to lodged electronically and always accepted.

The current model disadvantages newsagents. Unless there is change, yes, I am likely to reduce my commitment to magazines.

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magazines

A new online workshop: Taking your newsagency online: a dive into newsXpress national and local store websites.

Taking your newsagency online: a dive into newsXpress national and local store websites.
Tuesday, Feb. 16 @ 2pm Melbourne time.

Tuesday next week, at 2pm, I am hosting a new free workshop for any newsagentinterested in taking their newsagency business online.

This session will look at this topic from the context of what newsXpress does and has done for 5+ years. We will look at the national sites and the local store sites:

  • How to generate online traffic for national and local store websites.
  • The cost of fulfilling sales.
  • How local stores setup for efficient fulfilment.
  • Managing freight in terms of lowest cost to execute as well as decision making around the free freight question.
  • What being online has meant for in-store purchases.
  • Repeat business prospects.
  • How to use online for first to market opportunities.
  • How to be sure quantity on hand data is accurate.
  • This will be a genuine behind the scenes look.

I am doing this new session using newsXpress national website and local store website examples because I have good data and personal experiences I can speak to. You can rely on this information to make more informed decisions yourselves at the local store level as well in the context of any group you are part of.

newsXpress was the first marketing group in any retail channel in Australia to deliver local store connected websites with a live quantity on hand data feed. The learnings have helped other groups step into this. lucrative space.

This will be an online session, which you can access from anywhere with this link:

https://zoom.us/j/97889421359?pwd=R2puem9RWUVFS1lFTStXMjNHMzRIdz09
Meeting ID: 978 8942 1359 Passcode: 791972

I won’t be trying to sell you anything in the session. Rather, I will share experience insights, lay out the steps involved, discuss online platform options and answer all questions.

And, if the 2pm timing does not work, let me know and I will do my best to schedule another session at a time that suits.

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Newsagency management

How we achieved $388 in sales to one customer this morning in our suburban newsagency

This true story happened this morning at my Mount Waverley newsagency.

A new customer visited and made a modest gift purchase. On the receipt was a discount voucher for $4.00, which was pointed out to them.

They left the store and returned a few minutes later and made another purchase.

Then, twice more, they left the store and returned a few minutes later and made another purchase.

Over the course of four transactions they spent $388.00 for which we gave away around $30.00 in discounts, which is small when you consider the margin we achieve with gifts

The voucher guided them to look beyond their destination purchase.

here is a video I shot late last year in which I explain the vouchers some more. What happened today at Mount Waverley is not unusual. It’s another way we can grow our newsagency businesses.

This is a good example how a systematic approach to managing loyalty can. drive sales. There was nothing extra special about the approach in-syore. In reality, the software did the heavy lifting, calculating the discount opportunity and including this on the receipt.

It’s a thill seeing it work so well, work in different tilting the business.

In our Mount Waverley retail setting we compete with several gift shops. Plus, we have Chadstone less than 10 minutes away. Every win we can make is worth it to this small suburban retail newsagency.

While it was key we had products they wanted or were likely to want to purchase in the next few weeks, it was the practical opportunity of saving that mattered in making the $388.00 in sales a reality.

Any newsagent can do this.

While the Tower newsagency software was first newsagency software to offer discount vouchers back in 2013, others do now so newsagents with other software could have the type of success I have described here.

My point is – we all need to structure our businesses for these wins based on differentiation of our offers through smart loyalty marketing in businesses with broadly appealing gifts.

It’s good news and another example of small steps combining to create a good commercial outcome.

Whereas in the past we’d letterbox flyers and advertise in local papers. Today, using tech, we can guide greater efficiency from shoppers, maximising the opportunity.

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Newsagency management

Taking your newsagency online workshop today @ 2pm

Today at 2pm, I am hosting a free workshop for any newsagent interested in taking their newsagency business online.

This, itself, will be an online session, which you can access from anywhere with this link:

https://zoom.us/j/91031390280?pwd=LzFKYXFqdVJueS9iNWhNbWRJUndBUT09

Meeting ID: 910 3139 0280 Passcode: 323615

I won’t be trying to sell you anything in the session. Rather, I will share experience insights, lay out the steps involved, discuss online platform options and answer all questions.

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newsagency of the future

Workshop: taking your newsagency online

Tuesday next week, at 2pm, I am hosting a free workshop for any newsagent interested in taking their newsagency business online.

This, itself, will be an online session, which you can access from anywhere with this link:

https://zoom.us/j/91031390280?pwd=LzFKYXFqdVJueS9iNWhNbWRJUndBUT09

Meeting ID: 910 3139 0280 Passcode: 323615

I won’t be trying to sell you anything in the session. Rather, I will share experience insights, lay out the steps involved, discuss online platform options and answer all questions.

Being online is critical to every retail business. We saw that last year and already see value from that this year. Business experts, accountants, mentors … everyone agree that being online is critical.

The hope I have for this session is that it offers a useful learning opportunity for newsagents, to encourage them to get online and to lay out several pathways through which they can achieve this.

And, if the 2pm timing does not work, let me know and I will do my best to schedule another session at a time that suits.

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newsagency of the future

Learning about shopper perception from social media

Social media platforms like Twitter allow us to see what shoppers think about our channel. Looking this morning, I found the thread below on stationery. One of the comments caught my attention as they talk about the demise of local newsagents. Then, in the same thread is the comment that local newsagents were a godsend during Covid lockdown.

The more we engage on social media speaking about our channel the better. We have many good stories to tell.

Here’s the bit about the demise of our channel:

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newsagency of the future

Join me in a look at the Q4 2020 performance of 5 regional newsagency businesses – demonstrating core health of our channel

Here is a video of a discussion I had yesterday exploring the impact newsXpress has on member businesses. we look at the performance over the last quarter of last year compared to the same period in 2019.

There is much more that could be shared, including even greater successes as well as a more gradual detail. Think of this video as the start of a conversation abut the difference an engaged marketing group can make with engaged newsagents keen for change.

I am sharing this video to show the great success regional newsagents have made for themselves, to celebrate it and to reflect how far each of these businesses has transformed from what we used to think of as newsagencies.

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Newsagency management

11,500+ daily visitors to the newsagency blog

Thinking about some of the comments recently published at this blog I thought I’d check the current traffic landing here. I’ve not looked for a couple of years since I don’t write most of what I write seeing to drive traffic.

Currently, this blog is landing in excess of 11,500 visitors a day, as measured by professional web traffic tools.

One traffic analysis tool that I use in my POS software company tracks ‘competitor’ sites as it sees competitors – based on common keywords. While Newspaper attracts more daily visits, this blog offers more keywords and achieves greater dwell time, which indicates more reading.

Looking at the 14,000+ keywords Google indexes from this blog, the mix is interesting and diverse. Even this list of the first few keywords shops not only the traffic generators but the number of daily searches in Australia for each.

Now, let’s scroll down to the 45th page of this keyword report and look at the tip of the tail of keywords.

I share all of this information with you today for several reasons:

  1. To demonstrate that everything here is public, including comments, speaking to the place of newsagencies in Australian business and society more broadly.
  2. To show that nothing here is lost. The 12,000 posts form an extensive body of work.
  3. To encourage more business focussed discourse. Disagreement is healthy, and to be encouraged. However, it’s important we all accept that disagreement does not determine right from wrong.
  4. To show that the newsagency channel and associated keywords are popular and driving plenty of Google clicks.
  5. To reinforce that what we talk about here is interesting to plenty.
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Blogging

Newsagency marketing group workshop tomorrow

If you are considering joining a newsagency marketing group this year, any newsagency marketing group, join me tomorrow, Tuesday jan. 12 at 10:30am, for a Zoom meeting where the newsXpress services and engagement opportunities will be shared and discussed:

https://zoom.us/j/95381467491?pwd=WEZDbEtWS0ovSmR0VjEyREg2bzE3dz09
Meeting ID: 953 8146 7491 Passcode: 861573

newsXpress is a newsagency marketing group offering business transformation advice and help, access to new suppliers through which you can attract new shoppers, encouragement, display advice and much more.

Nothing it does or or suggests is mandatory. You get to run your business the way you choose. The difference is you have options and opportunities from which you can choose as appropriate.

Click here for a refreshed document outlining what newsXpress offers members in 2021.

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Newsagency management

Legacy newsagency suppliers are wrong: traffic from one successful product category does not always drive success for another product category

Looking deeper at data from a bunch of regional newsagencies for November / December this year compared to last year, it is obvious that traffic from low-margin legacy products is not key to the health of a business.

In each case, local newspapers closed, slicing hundreds of transactions from each business each week. There was no negative financial impact. Transaction count was down, but not revenue.

Even though I have commented here for many years about the inefficiency of newspapers for retail newsagencies, plenty of newsagents are discovering it for themselves. The newspaper shopper is likely to purchase a newspaper and nothing else around 80% of the time – less so in regional Australia, far more so in capital city shopping centre newsagencies.

Plenty of local newspaper closures are not adversely affecting the performance of newsagencies.

For decades, newspaper publishers, and other low-margin legacy suppliers, said yes our products are low margin but they drive traffic and you make money from that.

No, most low-margin legacy products are inefficient for newsagents. They may sell in volume. however, rarely does that shopper purchase higher margin items. No, the new higher margin items newsagents source often drive net new traffic.

While the closure of local newspapers is disappointing for the reach of local news, retail newsagents can have a bright future regardless.

I get that retailers like foot traffic. The key, however, is that foot traffic has to be commercially valuable. Single item purchase of low margin product is not as commercially valuable as it once was.

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newsagency of the future

Evidence of real transition by a newsagency business

This data is from one regional newsagency in Australia. It reflects a comparison of 2 weeks in December this year to the same 2 weeks last year. On top of the more than 50% in revenue growth and and excellent growth in overall business gross profit percentage, there is this:

Here we see, on the left, data for 14 days in December this year, next, data for the same 14 days in December 2019, and, finally, the difference.

The transaction count is down because several regional newspapers closed. It is the compounding value of average sales value, average item value and average items per sale that fuel an excellent result.

If you have been able to gently drive higher prices as well as bring in new product categories from which you can achieve higher than your average gross profit, focussing on basket depth can deliver the valuable compounded result. This is about guiding a shopper to purchase more in a list than they might have otherwise.

Achieving a higher average items per sale result comes from an ideal shop floor layout, good product placement, leveraging hotspots, having awesome shop floor staff and having a counter configured for easy impulse purchase decisions.

Building this level of success is like building a jigsaw, without having a clear picture of what the end result will look like. But … it does involve placing many pieces. It’s trial and error, daily work, small steps work.

Any newsagent can do it. Capital is not a barrier. Location is not a barrier.

Focussing on smaller datapoint is a good start as small wins from small steps can be motivating.

Our success is up to us.

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Newsagency management

Journalists need to do better when writing about newsagency closures

The story by the ABC about the closure of Vizes City News in Rockhampton reports on the closure of a long-established newsagency. While the story offers balance in reporting on success at newsXpress Mount Morgan it fails in needed detail in some areas.

  1. The story says the business has adapted. I have been to the shops several times, as recently as late last year. yet, they adapted primarily into one new category. It was not enough. It was sort of a separate business, too. The newsagency core needed adaptation.
  2. The story says that newspaper closures are the reason for the closure of the business. I can’t see this as they were anticipated. I’ve certainly been writing about the need for newsagents to manage for the decline of newspaper and magazine traffic for 15+ years.
  3. The story talks down the value of newsagencies. Recent sales and the spike in interest in buying a newsagency suggest otherwise.

I get that people leaving or who have left the channel prefer a narrative that suites them, the evidence does not support them.

Newsagency closures reasons are complex. Newsagents often have had opportunities to avoid them, if they wanted to.

I have seen data today for a newsagency an hour or so away from this business in Rockhampton that is closing. Revenue is up 64% off a good base. New product categories are helping to drive revenue growth of some traditional newsagency categories like magazines and card. In this business, newspapers are down 24%, with no bottom line impact. The BIG news is that GP% is way up, based on the new product mix introduced over the last year.

We all make our own success.

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Newsagency challenges

Are the banks forcing Australian retailers to go cashless?

A few months ago, a retailer switched banks because their usual bank closed the local branch. Now, the new bank has announced the planned closure of the local branch early in 2021, leaving the town without a bank branch.

With the nearest deposit branch a 20 minute drive away, the business is actively contemplating going cashless.

At the peak of Covid, they traded cashless for six weeks and it did not impact the business. Some customers who switched to cashless and remained cashless.

Looking at recent bank branch closures, I do wonder if banks are guiding all of us to go cashless. The wonder makes sense since the costs of dealing with cash have gone up.

Of course, retailers don’t like credit card and EFTPOS fees. However, when balanced against the labour cost and rick cost of cash, cashless is barely more expensive.

I was in a shop in suburban Hawthorn last weekend and went to pay with cash, we only take cards, sorry, was the response. I asked abut it and it turns out they started accepting cash after the Covid lockdown but after two weeks stopped because so few used it that it was not worth the time it took to manage for. Indeed, they have gone as far as to remove the cash drawers from their registers.

But, back to the banks. It feels like they want us to move away from cash. I know from talking with newsagents directly impacted by local bank branch closures that they feel the same way.

What do you think?

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newsagency of the future

Black Friday is here to stay in Australia

Whether we like it or not, the Black Friday retail sales event is here to stay. I say this based on personal experience and the experience of other Aussie retailers.

A gift shop I spoke with yesterday told me they doubled last year’s results and sole more than $5,000 in gifts online.

A homewares store owner told me that sales this year tripled what they did last year, delivering more than $10,000 in additional business.

Both commented that they considered the event itself boosted traffic to their websites from people looking at what was available and that, in each case, at least half purchases were at full price.

In our own case, we kicked it off in-store and online Thursday at lunchtime. While in-store store has been good, online has been excellent, achieving 100% growth off a good based from 2019.

We didn’t spend any money on ads or paid social media. Rather, we leveraged our email database and free social media posts.

Looking at online sales for one store, a small high street store, I can attribute more than $5,000 in online sales to the Black Friday event, with most of this coming from new shoppers. Now, it’s taken 3 years to get here, the be ranked by google, to have a good email database and to have access to sought-after products in a niche retailers who focus on price don’t play in. This has means that our Black Friday discount can be modest, yet interesting.

Whether retailers like it or not, you have no choice but to engage with seasons like Black Friday and Cyber Monday. There is money to be made.

Online is the best way to engage with Black Friday / Cyber Monday. While plenty of retailers have success with in-store, it is online where there is the most traffic. Also, as I harp on about, online never closes so you can transact with shoppers online at 1am and 2am and happily take their money if you have what they are looking for.

I get that plenty of small business retailers are yet to embrace online for their businesses because it seems too hard. I’d note that in almost every situation, the comment after getting online is I wish I’d done it sooner, I had no idea.

If you want to make money from Black Friday / Cyber Monday next year or any other growing online sales event, get online asap, so you are ready.

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Newsagency management