I am often asked by people looking at buying a newsagency why they should given the issues and challenges discussed here and elsewhere.
In my view, a newsagency represents a good investment and offers good opportunities, plenty of upside – despite some challenges presented by out of date practices. The value in theupside is why I have expanded my own involvement.
There is plenty about a newsagency business you can control.
There are excellent new traffic opportunities: ink, books, gifts, services and some other new products areas I am not prepared to name here just yet. These are brining new customers in.
There are excellent sales efficiency opportunities – selling more to existing customers. This is achieved by cleverly leveraging high traffic products such as newspapers, lotteries and major magazine titles to drive impulse purchases.
There are good margin opportunities. For example, ditching magazine company calendars in favour of dealing with calendar specialists – newsagents more than double their margin.
Proactive newsagents can transform the business. This is where the biggest opportunity lies. By respecting existing key traffic generators and evolving the business offer in other categories, smart retailers can significantly increase sales and profit. Yes the traditional newsagency is old and tired. The new newsagency is vibrant and profitable.
Change. Yes technologies like the iPad will impact our businesses. This will be more in a good way than a bad way. Entrepreneurial newsagents are seizing the opportunity of change and using this to motivate internal change. There are newsagents making good money from cafe services, online businesses and expanded distribution businesses.
So, why would I buy a newsagency today? The opportunity!
The only caveat I would apply is that you need to buy at the right price.
I will be covering the themes in this blog post in detail at the Newsagency of the Future workshop next month.
I know I complain a lot here but I would not own any other business. Hard work pays off.
Am interested in buying a newsagency around the Brisbane/Gold coast area but am a bit concerned at how many are for sale. If they are a good business, why are so many selling them?
Brett, newsagencies can be great businesses to buy. The opportunities for evolution and growth are considerable. The keys are to buy well, buy where the opportunities and stronger and to relentlessly pursue your own business agenda.
I am not sure that there are more newsagencies for sale now than a few years ago.
Yes, we live in disruptive times in the print media world. However, these are times of extraordinary opportunity.
This seems to be an industry where after years of long hours, good operaters sell up, have a break but return to the industry.
We left Post Offices to become involved in an business that WE had more influence in the directio it takes and its success or failure. I have long maintained that when we stop changing and evolving the business, it will start to fail due to our staleness and it will be time to sell. I also believe that the process of evolving the business will help keep us fresh enough to operate the business long term. Newsagencies that are well located but not being operated to stay relevent to the market would be good businesses to buy at the right price for a progressive operator.
We are selling our distribution only newsagency.
While I would not be keen on taking on a home delivery round again, I would definitely look at a retail newsagency. I think if you buy well, and you look at the opportunities available, a retail newsagency can do extremely well. I also enjoyed working in our old store.
Brett,
I have owned a newsagency for nearly 4 years, and have looked at the newsagencies for sale for probably about 5 years before that.
My observation is that they go on sale in waves.
While everyone has their own preferences, I would recommend looking at a good retail outlet in a strong shopping strip, personally I would stay away from a shopping centre but other people like them.
You also need to make an informed decision if you want to buy a newsagency with a home delivery round. They can be the cause of increased hours and people burning out, but again if managed well they can also help you grow your sales.
You need to look for one priced correctly, and that has the opportunity to grow by increasing sales or by introducing higher margin products.
While newsagencies do have their problems, so do all industries. Newsagencies represent an opportunity if you are good enough.
we are on the gold coast with a great little newsagency (it is for sale)
As owner/operators we only work 3 days a week. We are in a busy modern shopping centre with heaps of foot traffic – we wont be millionaires out of this but it has been a great lifestyle work place. Now five years on it is time to retire. I would not hesitate to buy a newsagency again should we decide to re-enter the work force. Open at 8 shut @ 5pm no deliveries and great staff.
contact me on msg_50@hotmail.com for a great little opportunity
Hi Newagents, I am interested in buying an agency, read the need to have knowledge of running a newsagency, or does one mean, small business knowledge?
Hi Newsagents, I am interested in buying an agency, read the need to have knowledge of running a newsagency, or does one mean, small business knowledge?
Tracey you need a good business head first and foremost. By this I mean be good at researching, planning and backing your own well-considered decisions. This is more important than retail and newsagency experience as they can be picked up along the way.
Hi all
You talk of ensuring you get a good deal on the purchase if there a magic number (multiplier) that is reasonable when looking at sale and /or purchase of a newasagency
Michael you control the price. Pay what it is worth. There is no standard multiple. See these posts for related advice:
https://www.newsagencyblog.com.au/2016/03/29/a-checklist-when-looking-at-buying-a-newsagency/
https://www.newsagencyblog.com.au/2015/06/01/beware-the-add-backs-if-you-are-buying-a-newsagency/
https://www.newsagencyblog.com.au/2012/01/11/take-care-when-buying-a-newsagency/