Australian Newsagency Blog

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

Consignment products for newsagencies?

Mark Fletcher
March 1st, 2014 · 1 Comment

I’ve been a flyer promoting Newsagents Products on Consignment – a business offering newsagents counter items for 25% GP – on consignment.

They offer products for up-front purchase for 50% GP.

I’m not a fan of consignment stock as it is easy to ignore and not work to maximum return. Also, GP less than 50% is not interesting unless it is high traffic generating product like magazines.

We need to tell stories in our businesses – ranging is more important than single products. At the counter, single items can work as long as they sell through quickly. My ideal counter lines generate $100.00 a week from a small footprint unit.

I don’t know anything about the consignment business. The model feels like something from the newsagency channel of old, not relevant to our needs as retailers today.

5 likes

Category: Newsagency management

1 response so far ↓

  • 1 Bruce // Mar 2, 2014 at 8:40 AM

    Totally agree. This is just what I thought when I saw it. About 20 years late.

    0 likes

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