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

Sunday newsagency management tip: stop buying

Many newsagency businesses I visit are over-stocked. The owners tend to buy with not enough regard to what is actually selling, driving an increased investment in inventory without a commensurate increase in revenue.

My advice is to put a road-block in place, a moratorium on buying or at least a slow-down in buying to ensure that you are buying you really need. Be disciplined on yourself, give someone authority to stop you buying stock.

Remember, buying stock is not a smart way to build friendships. It’s business. Every dollar you spend on stock only generates a return when you sell the stock.

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Management tip

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