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A checklist when looking at buying a newsagency

One of the most common questions I get privately from people who find me through this blog is what should I ask for when looking at buying a newsagency?

The question itself, when asked, indicates how green a prospective purchaser is when it comes to purchasing a business.

Here is a list of data I suggest newsagency business purchasers access from the vendor or their representative:

  1. P&L from the accountant for the last two years. i.e. not a spreadsheet created for the purpose.
  2. A good explanation of any add-backs.
  3. Sales data reports, for the last two years, from the POS software in use – to verify the income claim.
  4. Sales data reports from the lottery terminal to verify the income claim.
  5. BAS forms to confirm data in the P&L.
  6. A list of all inventory to include purchase price and date last sold for each item.
  7. A copy of the shop lease.
  8. A copy of any leases the vendor expects you to take on board.
  9. A list of all employees: name, hourly rate, nature of employment, start date, accrued leave.

This is good basic information that will enable any purchaser to undertake reasonable assessment of a business.

A good business will shine through the numbers just as a business with upside achievable by new owners will shine through.

My advice to newsagents looking to sell who are concerned about this list is: think about it now and focus on your business so the data I have listed looks good.

Every day you make decisions in your business that impact many of the data points listed.

This is why I say every day is your pay day. Run a smart, lean and profit focused business and you will have a good pay day today and a good one when you come to sell.

The most appealing businesses are those that are easier to run and are making money.

The time to focus on that is now.

Sure a purchaser can turn a business around. They should get the rewards if they are expected to do that for your business.

The price you can sell your business for will be based on what it is making now.

Getting the data ready for the sale of the business could, of itself, help you improve how you run your business.

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buying a newsagency

The New York Times seems desperate

Screen Shot 2016-03-27 at 11.53.31 pmI have received six to eight over the last ten days emails from The New York Times promoting digital subscriptions. One email is okay but I now have so many they appear desperate. The US$2 a week offer for digital access does not feel like good value in that I can access few news from plenty of sites. Paying US$2 a week for their opinions is not appealing. This is the same reason I don;t pay News Corp. a fee to be told by their opinion writers what to think.

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Media disruption

What do kids see in your newsagency?

Maybe when the shop is closed one night or early morning and with the lights off so people cannot see you, get on your hands and knees and crawl through your business to see what kids see.

I am serious. Try it. What can kids see?

Kids are shoppers, important shoppers. Their pester power can help drive sales.

Supermarkets and other retailers obsess about what to put at a height level for kids to see, engage with and pester parents about.

I am encouraging you to crawl through your business because it is cheaper than bringing in a retail expert to provide you with advice.

When you are on your hands and knees, probably picking up rubbish and rearranging the shelves as you go, think about product placement for your youngest shoppers. This is especially important near the counter.

What new products could you bring in for kids? What products could you move from elsewhere for kids? What can you change to improve the value to you of kids shopping with parents in your business? This is business after all.

Yes, you will feel odd. Give it a go and see what deliberate changes you make. Track the results. Hopefully they are such that they get you on your hands and knees again.

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Management tip

Sunday newsagency marketing tip: tell a story!!!

IMG_7721Once of the best displays at the Toy Fair from a retail perspective was this display of Hawthorn AFL merchandise at Korimco. Putting all hawthorn product together like this tells a better story to hawthorn shoppers than leaving the products in each product stand with all other AFL teams covered in each product group. Small steps honing in with a narrow focus can create a better impression. This image reflects what telling a story can look like.

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marketing

Sunday newsagency management tip: 7 steps for reducing shopper theft

I have been working with a newsagent on addressing the cost of shopper theft in the business. Here are tips they found useful:

While there are other steps you could take, these seven are most valuable from years of working with retailers in a range of retail channels:

  1. Look at people as they enter. Make sure they see you see them. Ideally, say hello to them. The more they think you have seen them the better.
  2. Have a screen near the entrance / exit so people can see that you filming them with your security cameras.
  3. Work on the shop floor. This puts you or your employees among shoppers and heightens the chance of detection of theft.
  4. Walk the floor. Every so often, do a circuit. Be present. Talk to people.
  5. During peak shopping periods, station someone outside the business looking. Ensure they are trained on appropriate action should they see misbehavior.
  6. Bring in a security guard on a casual basis during your most busy periods.
  7. Have a no receipt no exchange or refund policy.

The more likely people are to be caught the less likely you are to experience shopper theft.

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Management tip

Glasgow newsagent killed in religiously prejudiced attack

The news of the fatal attack on newsagent Asad Shah following his posting of an Easter message on social media is shocking. UK news outlets are providing comprehensive coverage.

Take a moment to think of the Shah family and their grief.

Australian newsagents are as ethnically diverse as our UK colleagues. Inside and outside our channel, sadly, prejudices can be seen. We ought to resist this and call out those who ignorantly attack based on ethnicity, religion or sexuality.

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Social responsibility

Making the most of Easter in the newsagency

12776740_956239031150139_1035868510_oThere is no doubt about the value of going out early with a broad range of Easter product pays off, especially for higher-end items people plan to purchase or LayBy over time.

My experience is that grandparents especially like to shop early for something special beyond the eggs and usual Easter fare you see in so many other stores. This is taken into account in developing the displays and positioning product. I have found a good way to encourage grandparents and regulars is to move the Easter display through the season.

The more you interrupt traffic flow the better.

Easter is a season that should be growing in our channel regardless of the more commercial and chocolate focussed retailers out there.

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Newsagency management

Cat cards are cute – in the newsagency

I am often asked how to promote everyday greeting cards on Facebook. Here is one example of something I did recently as part of a series of themed posts about cards to like. The post was simple, engaging and speaking to a popular interest. Here is exactly how it looked. It took me less than a minute:

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This type of marketing of cards and the business on social media, not only Facebook, is easy. I urge all newsagents to try it.

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Greeting Cards

Enjoy the day off

Most newsagents will get tomorrow off. Have a good break even if you find your mind on the business even when you are away from it.

Happy Easter whatever the season means to and for you.

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Uncategorized

Issues with the Hubbed $250 rebate?

A newsagent advised me of delays in getting the $250 a month rebate from Hubbed. Despite contact many times the issue was unresolved, until yesterday. The time the newsagent had to spend chasing Hubbed was considerable. I agreed to raise the issue here to see if anyone else is challenged with Hubbed.

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Hubbed

Great networking event for small business newsagents

newsXpress held the first of two national conferences for 2016 on Tuesday in Melbourne, at the MCG. 135 newsXpress members attended as well as plenty of suppliers. The conference itself followed a full day at the Toy Fair being briefed by suppliers and leveraging group buying.

While I am a Director of newsXpress and sure to speak positively about the experience, I want to take a moment to speak about newsXpress members. Their optimism is wonderful. Their engagement is pursuing new traffic and above-average gross profit is exemplary.

Retailers from businesses large and small, in the city and country, on the high street and in shopping centres, they all mixed and engaged in a series of business sessions focused back on their businesses. I want to note again the optimism at the heart of every session, every discussion.

Magazines were part of the discussion too thanks to a terrific Pacific Magazines presentation that included terrific marketing initiatives.

The mood of the room reminded me of the Barack Obama slogan from 2008 of Yes We Can. Hearing newsagents explain to newsagents about how to embrace change, the fun they will have, the success they can have, is always a thrill.

I talked with several people who have recently joined and their common comment was they had no idea what the group really did. They mentioned that it was completely different to what was expected. Having been with Newspower for years and a shareholder in Nextra prior to being involved with newsXpress, I wanted to be part of something that was different.

There is no one group for the newsagency channel nor should there be. Competition is important and healthy. To me, the most important factor is that newsagents in a group and those running a group work hard and 100% together on common goals for shared mutual benefit.

Here are some photos from the conference itself and the dinner at Bamboo House Tuesday night. The whole event was free to newsXpress members thanks to supplier funding. All interstate travellers received financial assistance for flights and hotels.

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marketing

Another perfect local product

IMG_7707Further to my post below. While it does not work in regional and rural towns, the local editions of Monopoly are a treat for businesses in the cities covered – not only for local shoppers but also as gifts for visitors when they arrive or leave. Sometimes we have to show and tell customers what to buy and why as not all its,ms are purchased for one reason.

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Gifts

Personalised products a smart move for rural and regional newsagencies

IMG_7786One way to maximise visitors in town and in your shop is to have products that connect them with being there. Whereas for ages postcards were the best local item, there is now a broad range of products: bags, stubby holders, magnets, hoodies, singlets, thongs, rulers, pens, pads and, yes, delicious and locally branded chocolate.

The more unique the better, especially if the products feel locally made – whether they are or not is not the point.

Nothing says you are a local business better than if you have products with the name of the town. Even locals will love this when looking for products to send to friends of to give to guests who may be staying with them.

Sourcing products that bear the name of the town of the region is a terrific way to position your newsagency as not only being locally connected but also supporting the town or the area. It shows you as being a proud local.

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marketing

Newsagent humour on Twitter

IMG_4036This tweet on Twitter three days ago is hilarious. It’s from someone in the UK and referring to the experience there.

My question for convenience focussed newsagents – do you sell chia seeds? If you do, how well do they sell?

The tweet gave me a good laugh as I hope it does for you.

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Fun

Melbourne Toy Fair an excellent opportunity for newsagents

IMG_7768The Melbourne Toy Fair has been terrific again this year. Finishing today mid afternoon, the attendee mix has been varied: toy retailers, gift retailers, newsagent retailers and more. The supplier mix exhibiting has been equally diverse covering toy, hobby, collectible, art, gift, game and other products. This is a valuable trade show for retailers and for suppliers and especially valuable for newsagents looking for an educational event that can open them prospective new shoppers.

Many suppliers use the show to educate retailers about new shopper traffic opportunities. This is part of what makes the Toy Fair and important event, far better than any single channel specific event.

With the walls between specialty retail channels crumbling, it is more important than ever for newsagents and other specialty retailers to look beyond what is traditional for their channel. This also means looking at what appears to be traditional product through fresh eyes. For example, with one supplier you are confronted by model kits and may dismiss them as an out of date product whereas what you make appeals to a niche interest making them saleable not as model kits but as collector items in that niche. I hope this makes sense.

Sometimes it is only when you dig deep with a supplier and discover a back story opportunity that you can unlock a value from a range that otherwise may have been missing for you.

If you are dismissing the toy fair because of the word toy in the title you’d be missing an opportunity. This event was about far more than toys.

I was at the fair for my software company Tower Systems on the weekend and on Monday with a group of 100 newsXpress members who had group appointments with various suppliers – who blocked off their stands for the group. The group, moving as a group, through the fair caused plenty of discussion among exhibitors and attendees. It demonstrated the value of working as a group. It certainly focusses the minds of suppliers when they have 100 retailers on their stand all interested in the same mix of products.

This is the fourth toy fair newsXpress has done as a group with suppliers closing off stands to other retailers for set appointments. It is being repeated each year because of the commercial success for the retailers and the suppliers.

There is no doubt that toy and related product is a growth category.

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Newsagency management

We ought to support Cryptic Crosswords and other Puzzle People titles

20160319_071355I love the note from the editor of Cryptic Crosswords. It explains that while they have withdrawn from subscriptions, the title is still available in newsagents.

We ought to support Cryptic Crosswords and other titles from Puzzle People. This is a local Victorian published magazine that helps us pitch a point of difference to other magazine retailers.

The editor is supporting the newsagency channel. We should support them.

Go and grab copies of the latest issue:

  • Place it between your two top selling weekly magazines.
  • Place it on the counter as a featured magazine.
  • Talk about it on your business Facebook page – mention it is an Aussie title. Posts like this can add to the narrative that yours is a local business supporting local (Aussie) publishers.
  • Remind staff to recommend it if people ask for a crossword title.
  • Thank the editor for their support: info@puzzlepeople.com.au.
  • If you don’t stock the title, request it from Gotch.

Let’s get behind this magazine and help it enjoy a bright future and through it promote a difference between our businesses and other magazine retailers.

This is an opportunity for us to do good for us and another independent small Australian business.

Take a moment to check out their website to understand their pitch: All first-time publications Products of our compilers’ minds. They are NOT computer produced! Founded in 1989, at a time when imported puzzles dominated the local market, Puzzle People identified the need for a high-quality, locally compiled product, published on a regular and reliable schedule.

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crosswords

The House of Wellness is not a gift with purchase

IMG_7682Newsagents were paid by News Corp. to hand out the 100 page The House of Wellness magazine with newspapers last week. The compensation did not cover the cost of the service. The product itself was pitched as a “gift with purchase”.

I looked through the magazine on the weekend. This is no gift. It’s an advertising catalogue with articles promoting advertisers. While I am not the target consumer, I found little value in the publication.

Any supplier wanting newsagents to promote a gift with purchase ought to ensure the gift is a genuine gift – rather than an extension of their advertising platform for which newsagents are poorly paid to distribute.

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Newspapers

Sunday newsagency management tip: target competitors

Knowing your competitors is vital for any business that wants to grow. Often, competitors can be more than the obvious. For example, to a growing and changing newsagency, competitors could be local toy, gift and other shops.

With growing newsagency businesses reliant on new traffic outside of what is traditional for our channel, it is vital we take a broad view when contemplating who our competitors are. This broad view will help inform our competitive positioning.

Tough as it is, we have to look at businesses near ours we can take customers from. It is business after all.

The most valuable competitive options available to us today are those where we target single category businesses are they are more likely to be weak. Our diverse traffic mix is a strength. We need to play to this through this period of transition as we diversify the appeal of our businesses.

Yes, competition is tough, brutal. How hard you fight, how hard you compete, depends on how much you want a future for your business.

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Management tip

Sunday newsagency marketing tip: how many is too many

Stand at the entrance to your business and count the marketing messages confronting shoppers as they enter?

How many do you have?

Pare back. Choose two, maybe three, messages you want to land with shoppers. Make sure they pop. Do this by removing altogether or muting all other messages.

Too many newsagencies are so visually noisy no message lands.

4 likes
marketing
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