Commenters writing on my Do newsagencies have a future? post have been discussing average basket size with some publishing their number. Basket size can be measured in dollars or units. Good newsagency software reports this easily for you. There is a considerable difference in basket size, beyond the size and performance of the business, depending on what you include. For example, lotteries, transport tickets and other volume agency lines can skew the results. This is why I recommend not including these high volume low margin items in such analysis.
I check the basket numbers in my own newsagencies every couple of weeks as basket depth – units and value – are a key indicator in what I’d call the small steps strategy for successful newsagency management. These are a range of small steps, measurement points, on which to focus to build a healthier business.
The current channel average basked size is 1.43 items with an average basket value of $3.65.
Easy access to good data is the most common reason I see for newsagency success or failure. There are no excuses. You don’t need to be IT savvy. You don’t need a lot of time. It’s not about business size. All you need is a desire to be successful in your newsagency. Do you check your basket data regularly?
Click on the image to see a a larger version year on year comparison of basket size (dollars and units) as well as a comparison of average item value and total items. This is the final analysis in what’s called the Monthly Sales Comparison report – my favourite report
Mark this sort of stuff is brilliant insight. My number is 1.26. Small but now I’ve got it I’m working on how to grow it. I love numbers. I am surprised more newsagents have not commented though.
Mark , how do i do the report without haveing lotto and scratchies in it ? I have always done this report but i have always included both of them .
Ditto Shauns
Mine also does not show up the average item per sale ? am i missing something on the settings maybe ?
Shaun, you can tag departments as agencies in the software. This allows you to exclude them from reports – thus providing a better view of non-agency part of the business. Such a distinction is vital in my view if we are to look at agency and non-agency business separately.
As for it not being on your report, call the Tower help desk.
Thanks Mark i will do a report as tagging the departments and call them up about the items part .
Mark, I have heard you in various video clips discuss agency sales and lotteries, I was wondering if you accept newspaper subscription payments in any of your stores, we currently do with a 2% commission and have found that none of the customers purchase from our store only pay their bill!!
Lyn we currently do this in one of my stores. the experience varies by customer. We make sure that every customer receives an offer to return or spend. The key is the habit of coming to us – one day those who only pay the paper will buy something else!