In the 1990s, the “computer literate” newsagent had an advantage. They embraced POS systems while others stayed with paper ledgers. In 2026, we are at the exact same crossroads with AI Literacy.

The gap with AI is between those who use it for play or curiosity and those who use it as a core business competency.

We use it every day in my businesses.

The world has moved from search to promoting / asking questions.

For decades, we “Googled” by typing keywords. In 2026, we “Prompt” by giving instructions. This is a fundamental shift in how a business owner interacts with information.

• Old Searching for “how to increase gift sales” and reading ten generic articles.
• AI: Prompting your AI agent with your specific POS data by loading your sales history and current stock on hand data: “Analyse my sales and stock and advise what I need to cut and why.”

Why AI is the new computer literacy

If you can’t “speak AI,” you are effectively locked out of the most powerful productivity tools ever created.

Make sure everyone in your business knows how, when and why to use it. Set ground rules. Train people. Be clear in the outcomes you are chasing. This focus has to start with smart prompts. If you are not sure where to start, start – doing is the best way to learn here.

• Clean your data: AI is only as good as the information you give it. Accurate POS data is the “fuel” for your AI’s literacy. Like stock on hand. if it is inaccurate, AI results will be worth less. Let’s be blunt here: if your stock on hand data is shit, the AI results for and about your business will be shit.
• Stop Googling, start instructing: Treat AI like a highly capable, slightly literal intern. Give it context, a persona, and a clear goal. If you’re not happy with a response, say so, and be clearer about what you seek.
• Empower your team: AI literacy shouldn’t stay in the back office. Train your floor staff to use AI tools for customer enquiries and gift recommendations.

The Bottom Line

In 1995, you didn’t need to be a programmer to use a computer, but you did need to know how to turn it on and navigate a menu. In 2026, you don’t need to be a data scientist, but you must be a master of the prompt.

The newsagents, and all retailers, who lean into AI literacy today will be the ones running the most efficient, high-margin businesses tomorrow. The rest will be left wondering how the world moved so fast.

This is not a game.

Manual data entry of supplier invoices takes time and, too often, results in mistakes.

The Tower Systems POS software AI tools make importing supplier invoices easy, and accurate. here’s a new video demonstrating an import of a Splosh invoice:

Processing a large invoice from a supplier like Splosh Australia can often take hours, especially when balanced against serving customers and managing a busy shop floor. By leveraging AI-driven invoice recognition, we have made it possible to process complex, multi-page invoices in a matter of minutes.

What the video demonstrates is just one of many AI tools in the Tower software that save time, offer fresh business insights and help you make more money. Tower has been delivering embedded AI tools to retailers since 2023.

Now, let’s get into the Splosh invoice example I share here.

Automating the heavy lifting

In our recent demonstration, we processed a four-page Splosh invoice containing 87 individual products. Historically, entering this much data manually—including barcodes, stock codes, descriptions, and pricing—could take the better part of a day.

With the new AI Import feature, the process is simple:

Upload the PDF: Drag and drop your Splosh invoice directly into the system.

AI Analysis: The software reads the document, identifying the supplier, invoice number, and every line item.

Automated Setup: If the supplier is new, the AI extracts their contact details from the header to create a new profile automatically.

Smart Categorisation: You can nominate default departments, such as ‘Gifts’, ensuring all 87 items are correctly categorised instantly.

Why this matters for your business

The primary goal of this technology is efficiency. By reducing the time spent in the back office, you can spend more time on the shop floor. The AI doesn’t just work faster; it reduces the risk of human error in pricing and stock code entry, ensuring your inventory remains accurate.

Whether you are receiving a small delivery or a massive seasonal order from Splosh, the system handles the complexity for you. What used to be a tedious administrative task is now a streamlined, two-minute process.

Are you wasting time?

If you are manually typing invoice in from suppliers, you are wasting and, likely, making mistakes. You’ll be less efficient, less competitive.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

When customers walk into a newsagency, they expect to see lotteries, magazines, and stationery. When they visit a garden centre, they look for plants and mulch. While these categories provide a helpful framework, they can also become cliches that limit our potential for growth and creativity.

In a this video, the concept of “intentional disruption” is explored as a powerful tool for small business owners. This strategy involves stepping outside the boundaries of your traditional retail channel to offer something entirely unexpected. The goal is not just to change for the sake of change, but to learn, attract new foot traffic, and discover untapped opportunities within your community.

The Power of the Unexpected Disruption can start with personal habits. The video shares an anecdote about a commitment to reading banned books. By intentionally choosing material that others sought to restrict, the reader discovered new genres and perspectives that would have otherwise remained hidden. This personal exercise in breaking cliches serves as a metaphor for business: by doing what is “not allowed” or simply not expected, we open doors to new ideas.

Real-World Examples of Retail Disruption Successful retailers are already putting this into practice. Consider these examples of businesses playing outside their traditional roles:

• A newsagency that has found significant success selling garden bulbs and outdoor products.
• A pet shop that has become a go-to destination for high-quality calendars, a category traditionally dominated by bookstores.
• Overseas models, such as bookstores that operate as late-night bars or homeware stores that run professional smokehouses in the evenings.

Why Should You Disrupt Your Own Business? It is far better to disrupt your own business model than to wait for a competitor or market shift to do it for you. Intentional disruption offers a win-win scenario:

1. If it succeeds: You have found a new profit stream and a way to attract customers who might never have entered your shop otherwise.
2. If it fails: You have gained invaluable data about your local market and your own professional capabilities.

Taking the First Step For local retailers, the challenge is to pick one thing—one product line or service—that is completely outside your “expected” inventory. Execute it with the highest level of professionalism and see what it teaches you about your business’s potential.

New people walking through the door are the lifeblood of retail. By breaking the cliches of your channel, you give your community a fresh reason to visit. If you are looking to thrive rather than just survive, it may be time to embrace the unexpected.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

There is a common trap that many indie retailers fall into: the obsession with being the cheapest. We often convince ourselves that price is the only factor driving customers through the door. However, if your entire value proposition is based on having the lowest price, you are likely leaving significant profit on the table and making your business more vulnerable to economic shifts.

The Convenience Factor

When was the last time you truly reviewed your approach to markup? Often, retailers are so fixated on competing with national chains that they forget why people shop with them in the first place. If your shop offers easy parking right out the front, remains open longer hours, or provides a curated experience, you are selling convenience.

Think about the cinema or a local convenience store. Customers know they will pay more for candy or a soft drink in those locations than they would at a supermarket. They accept this “convenience tax” because the product is available exactly when and where they need it. As an independent retailer, your location and service levels provide similar value. Your pricing should reflect that.

Navigating Rising Costs

We are currently operating in an environment of fluctuating overheads. From fuel surcharges to rising labour and rent costs, the pressure on small businesses is constant. Many suppliers are already applying fuel surcharges to their deliveries. This provides a legitimate “cover” to explain price adjustments to your customers.

Because consumers see these rising costs on the news every day, they are generally more accepting of commercial decisions to adjust pricing. If you aren’t adjusting your markup to account for these external pressures, your business will eventually slip behind.

The Power of Incremental Changes

A successful financial model is often built on a series of small steps rather than giant leaps. You don’t need to overhaul your entire price list overnight. Instead, look for opportunities to increase margins by just a few percent in specific categories—especially in “non-essential” or gift-related items like fashion, homewares, or jewellery.

By building a better buffer into your gross profit, you become less reliant on high sales volumes or a constant stream of new customers to stay afloat.

Take Control of Your Pricing

Stop blindly accepting the Suggested Retail Price (SRP) or the defaults in your point-of-sale software. Your suppliers set those prices based on what they think a product will sell for, but they don’t know your specific local market or your unique costs.

Take the time to look at what you sell and ask: “What are my customers prepared to pay?” Even a small shift in your markup policy can create the financial resilience your business needs to thrive in the long term.

Traditional retail labels are obsolete in indie retail. For decades, the “shingle” over a shop door dictated exactly what a business should sell. A chemist sold prescriptions, a newsagent sold papers, and a bike shop sold parts. However, as we navigate 2026, these rigid industry boundaries are fading. Successful Australian retailers are no longer staying in their lanes. They are embracing a “treasure hunt” approach to commerce.

Breaking the Industry Label

The name of your business does not need to define your inventory. Traditional labels often restrict the owner more than the customer. While you may feel your shoppers expect a certain product range, modern retail is actually built on discovery. Customers enjoy being drawn into a store to find something unexpected. This element of surprise creates a unique experience that big-box competitors cannot easily replicate.

Consider the evolution of major brands. Pharmacies now stock extensive gift and baby ranges. Large hardware chains have dedicated pet aisles. Independent retailers must adopt this same mindset. A newsagency in Tasmania is currently thriving by selling garden bulbs. In Central Queensland, another is famous for serving the region’s best coffee. These businesses have moved beyond their original purpose to become community destinations.

The Power of Surprise and Discovery

Surprising your customers pushes the boundaries of how they perceive your business. It generates conversation and encourages repeat visits. To achieve this, your shop should feel like a curated experience. Garden centres are excellent examples of this evolution. Some now incorporate workspaces, high-end giftware, and chocolate or wine tasting. They have transformed from simple plant nurseries into lifestyle hubs.

The “Bucket of Cash” Strategy

Experimenting with new categories does not require a massive investment. You can start with a “bucket of cash” dedicated to low-risk trials. Set aside a small amount, perhaps $300 to $500, to purchase a product category entirely outside your usual range.

The ideal test products should meet three criteria:

• They are completely different from your known inventory.
• they are impulse-buy items that customers understand immediately.
• They are visually striking enough to sit in your front window.

A non-traditional window display can arrest the attention of passers-by. It drives fresh foot traffic from people who might otherwise have walked past your “shingle.”

A Resilient Retail Future

Small business retail is about providing a curated experience. Whether you run a toy shop, a jeweller, or a bike shop, you have the freedom to play outside the box. By diversifying your offering, you build a more resilient business model. Do not let a traditional label limit your growth. Use your space to surprise, delight, and sell efficiently.

Traditional retail wisdom often insists on a professional shop fit. Many independent retailers believe a high-end renovation is the only path to success. While professional shop fitters provide exceptional craftsmanship, the associated costs are substantial. In 2026, these overheads can become a significant financial burden. High capital expenditure does not always guarantee a return on investment.

The Shift Toward Authenticity

The modern High Street is undergoing a transformation. Local shoppers are moving away from the polished, corporate aesthetics found in major shopping centres. There is a growing preference for “real” experiences. A sterile, “faked up” environment can often feel cold and uninviting. Customers today value warmth and unique character over clinical perfection.

Our own journey illustrates this shift. We previously invested hundreds of thousands of dollars in stores at Westfield Knox and Southland. These fit-outs were professional but incredibly expensive. We eventually discovered the power of “frugal” dressing. By using everyday items, we created spaces that resonated more deeply with our community.

The ROI Reality Check

A $150,000 shop fit requires significant sales just to break even. These costs can crush the margins of an independent business. Before committing to a massive quote, consider the “smell of an oily rag” approach. We recently observed a magnificent shop in Mount Morgan. It looks world-class, yet it was achieved without heavy capital investment. This proves that creativity often outweighs a large budget.

Creative Solutions for Your Space

You can create immersive displays using items you already know. Consider these alternatives to custom cabinetry:

• Dining tables for central product displays.

• Lounge chairs to encourage customers to linger.

• Secondhand finds to add history and texture.

These pieces make a shop feel like a home rather than a showroom. They create a comfortable environment that makes customers smile.

Choosing the Right Location

Location influences your freedom to experiment. Major retail hubs often mandate strict fit-out guidelines. Conversely, local landlords on the High Street typically offer more flexibility. This freedom allows you to test new ideas without seeking corporate approval.

Your shop’s primary job is to sell products efficiently. It does not need to be an altar or a shrine. It should be a functional space that supports your sales goals. Before you sign a contract for a major renovation, pause. Consider how you can refresh your space yourself. Authenticity is often the most effective sales tool you have.

It’s a conversation I’m having more frequently lately: “Mark, how do I get out?”

Regardless of what brokers may say, gone are the days when you could multiply your lottery commissions by a standard industry “rule of thumb” and find a buyer willing to pay for a secure, government-backed income stream.

Based on everything I’ve shared on this blog over the years and what I’m seeing for myself and across the industry, here is the reality of selling in 2026.

1. You are selling a Retail Business, not a Contract

In 2026, a buyer isn’t going to pay you a premium for your lottery or a traditional newsagency operation. They know those margins are under pressure and that the digital shift is real.

What they will pay for is a shop that has a proven track record in high-margin, “want” categories, gifts, collectibles, or specialist stationery. If your business is still 80% commission-based, you aren’t selling a business; you’re selling a job. To get a high multiple, you have to prove that you have built a brand and a customer base that belongs to you, not your suppliers.

2. The “Clean Data” Premium

POS data is your greatest asset during a sale. Get it right. A smart buyer in 2026 is data-savvy. They won’t accept a shoebox of receipts or a vague “discretionary spending” figure.

They want to see clear, department-level reporting that shows growth in non-traditional areas. They want to see that your stock turns are healthy and that you aren’t carrying $50,000 worth of dead stock from 2023. If I were looking at your business today, the first thing I’d ask for is a scan-rate report and an aged inventory list. If you can’t produce those instantly, the price just dropped.

3. The “Owner-Independent” Test

One of the biggest hurdles to selling a newsagency is the “hero owner” syndrome. If the shop only runs because you are there 60 hours a week, the business is worth significantly less to an investor.

In 2026, the most attractive businesses are those that are system-driven. Can the shop run for a month without you? Have you documented your processes? Buyers today are often looking for an investment or a multi-site opportunity, not a 7-day-a-week sentence. The more you can prove the shop runs on systems rather than your personal sweat, the higher the valuation.

4. Stop “Tidying Up” and Start Renovating

Too many owners wait until they decide to sell before they think about the shop’s appearance. By then, it’s often too late. A tired, dusty shopfront signals a tired, dusty bottom line.

If you want to sell in 2026, you need to ensure the shop looks like it belongs in 2026. This doesn’t mean a million-dollar refit, but it does mean modern signage, clean lighting, and a layout that prioritises high-margin browsing over the “dash-in for a paper” layout of the past.

My Advice: Sell on a High, Not a Slide

The hardest thing to watch is a newsagent who holds on too long, watching their value erode as they wait for the “old days” to return.

If you’ve lost the passion for the floor, or if the July 1 lottery changes feel like a mountain you don’t want to climb, then now is the time to prepare for an exit. Clean up your stock, tighten your data, and present a business that shows a buyer the future of retail, not a relic of the past.

Selling is a process, not an event. Start the work today so that when the right buyer walks through that door, you can hand over the keys with your head held high and a fair price in your pocket.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.

Artificial intelligence offers small business retailers like Aussie newsagents powerful tools to improve efficiency and customer engagement. Starting your AI journey does not require a technical background. It’s easy. Let me show you how.

Where to Begin

Begin with a specific, repetitive task. Common starting points include drafting social media captions, writing product descriptions, or summarising long reports.

Choose a popular platform –  ChatGPT, Claude, or Google Gemini and all good. These tools are accessible via a standard web browser. For text, currently I prefer Gemini.

Start with the free versions to explore their capabilities before committing to a subscription.

How to Write an Effective Prompt

A prompt is the instruction you give the AI. The quality of the output depends entirely on the clarity of your input. Follow these steps to achieve the best results:

1. Define a role. Tell the AI who it should be. For example, “I own an Australian newsagency in [name your town].”
2. State the Task Clearly. Be direct about what you need. Instead of saying “Write about cards,” say “Write a 50-word Facebook post promoting our new range of Mother’s Day greeting cards.” If this is your prompt, upload a photo of your cards.
3. Provide context. Include details about your target audience and brand voice. Mention if the tone should be cheeky, professional, or community-focused. For example, use a calm and professional tone is what I like to say.
4. Set constraints. Specify length, format, and what to avoid. You might request “three bullet points” or “no mentions of specific prices.” I like to say how many words I want. I also tell it to use short sentences and paragraphs.
5. Use Australian preferences. Explicitly ask the AI to use Australian English. This ensures the software uses ‘s’ instead of ‘z’ in words like ‘organise’ and ‘specialise’.

Refine and Review

Treat the first response as a draft. If the result is not quite right, ask the AI to adjust the tone or change a specific section. If it got it wrong, tell it so.

Always fact-check the final output. AI can occasionally generate incorrect information. Ensure the final text aligns with your shop’s unique personality and local community values.

The notes here are for beginners. You’ll quickly move beyond once you have experience.

Footnote: I use Claude, Gemini, Proximity and OpenClaw for a diverse mix of things. In each situation, I have the paid version for more power and functionality.

Small business ownership is a journey often defined by its highs, yet the lows can be incredibly isolating. In a recent conversation with Jen, a colleague who managed a gift shop for 17 years, we discussed the financial challenges that many retailers face but rarely discuss. We shared our personal stories because we want you to know that if you are struggling, you are not alone.

Jen’s experience involved the common “robbing Peter to pay Paul” cycle. High rents, franchise fees, and prolonged shopping centre renovations choked her cash flow. She delayed supplier payments and refinanced her home to keep the doors open. Like many, she carried this burden in silence, fearing that speaking up would signal failure.

My own story involves a different kind of crisis. In 2009, I received a director’s penalty notice for over $1.5 million. I discovered that a financial controller had been mismanaging funds and deceiving both me and the tax office for years. The debt eventually ballooned to $2.5 million. It was a dark time that required urgent, transparent action. I had to prove the tax office’s own privacy breaches to buy time, shut down underperforming locations, and face my suppliers with the cold, hard facts.

The most important lesson from both our stories is the necessity of owning the situation. Transparency is your greatest tool. When I told my suppliers the truth, they chose to support me rather than shut me down. Every single person was eventually paid back.

If you find yourself unable to pay your bills at the end of the month, take that as your first red flag.

Don’t wait for a total collapse.

Retail, especially in the small business space, is seasonal. You need to plan for the quiet months rather than relying on high-interest, “fast” lenders that can suck a business dry.

In our work with newsXpress, we offer a confidential, non-judgemental listening ear.

While we are not accountants or lawyers, we offer practical business experience. Sometimes, the first step is simply decluttering your store or creating a basic budget to regain a sense of control.

Do not measure your worth against the perceived success of others. Imposter syndrome is real, but it does not define your capability. If you are in a difficult spot, reach out. Taking one small, certain step on solid ground every day is how you begin to move forward.

For a listening ear, call Jen on ‭0434 560 350‬ or me on 0418 321 338.

If you like a checklist,  here are the practical steps we recommend for any retailer feeling the weight of financial pressure.

1. Acknowledge the Red Flags Early

The moment you cannot comfortably pay all your monthly bills, you have reached a critical marker. Do not wait for the next month to “be better” by chance. Sit down and look at your operating costs versus your actual income immediately.

2. Choose Transparency Over Silence

The instinct to hide financial trouble is strong, but silence usually makes the situation worse. Reach out to your suppliers. In my experience, if you provide them with the facts and a clear plan, most would rather give you time to pay than see you fail.

3. Beware of “Fast” Finance

There is a whole industry that preys on retailers in distress. Unsecured loans with interest rates of 18% or higher are a slippery slope. Many businesses that appear to be failing would actually be healthy if they weren’t being sucked dry by massive repayments to high-interest lenders.

4. Physical Action Through Decluttering

If the situation feels overwhelming, start with the physical space. Walk through your shop and identify “dead stock”—items that have sat on the shelves for far too long. Sell them for next to nothing or throw them away. This physical act of decluttering often provides the mental clarity needed to make bigger decisions.

5. Simplify Your Budgeting

You do not need a complex accounting degree to manage your cash flow. Create a simple monthly guide based on last year’s data. This helps you understand exactly how much you can afford to spend on stock during the quieter, seasonal months typical of the gift and card industry.

6. Outsource the Final Decision

If you find it difficult to stop spending, use a trusted advisor or a tool to approve your purchases. Removing the final decision from yourself for a period can help break bad habits and ensure that only essential, high-performing stock enters the business.

You don’t have to navigate this alone.

The 12% Parcel Surcharge: Is your retail margin safe?

With Australia Post and StarTrack announcing massive fuel surcharge hikes for April, small business retailers like Aussie newsagents are being squeezed from both ends of the supply chain. If you aren’t adjusting your pricing strategy now, you’re effectively paying for the cost of business hike out of your own pocket.

From North Queensland to WA, the cost of moving goods is skyrocketing. With diesel prices hitting record highs and suppliers adding new levies every week, “business as usual” is no longer an option.

The surge in global energy prices has hit Australian supply chains with force. For small business retailers, the notification yesterday from Australia Post regarding fuel surcharges is a clear signal of the new economic reality. Effective 23 April 2026, contract domestic parcel rates will jump from 4.8% to 12%. StarTrack Premium services will climb even higher to 22.7%. These are not incremental changes. They are structural shifts that demand a proactive response from every local shop and online seller.

Even if you don’t direct;y rely on Australia Post or StarTrack, their combined size means they are in your supply chain somewhere. Also, their announcement yesterday is a signal others are sure to follow.

Understanding the wider impact

Wholesale suppliers across the country are facing the same diesel price spikes. Many are already adding intermodal fuel fees and regional delivery levies to their invoices. In states like Western Australia and Queensland, these charges are becoming a standard line item. You are effectively being squeezed from both ends of the supply chain. Ignoring these costs will lead to rapid margin erosion.

The case for a transparent surcharge

Some businesses may be tempted to hide these costs by raising all shelf prices. This approach can backfire in a price-sensitive market. A more effective strategy is the implementation of a transparent fuel levy. Customers today are well aware of the volatility at the petrol pump. They are often more accepting of a clearly labeled surcharge than a mysterious jump in product prices. A surcharge also allows you to be agile. You can adjust the fee as fuel prices fluctuate without needing to relabel your entire inventory.

Delivering the message

The way you communicate this change will determine how your customers react. Avoid corporate jargon or defensive language. Provide a thoughtful explanation that connects your local pricing to the global situation. Explain that the levy is a direct response to the Australia Post and StarTrack increases. State clearly that the fee is reviewed monthly. This shows that you are only seeking to recover costs rather than padding your profits.

Strategic adjustments for regional retailers

For those operating in regional hubs, logistics are the lifeblood of the business. You may need to review your “free shipping” thresholds immediately. A threshold that worked when surcharges were at 4% is likely losing you money at 12% or 22%. Consider offering a “Click and Collect” discount to encourage local pickups. This reduces your reliance on external couriers and keeps your margins intact.

The current fuel crisis is a test of business resilience. By being transparent and adjusting your pricing model early, you can protect your bottom line. You will also maintain the trust of the community you serve.

Practical advice on managing the messaging

A clear and empathetic notice is essential. Below is a template you can adapt for your website or in-store signage. It is designed to be professional, transparent, and grounded in the current reality of the Australian transport sector.

Notice: Introduction of a temporary fuel surcharge

We are writing to share an update regarding our delivery services. We’re sure you would have seen or heard the news reports about the significant volatility in global energy markets. This has led to a sharp rise in diesel prices across Australia, with regional terminal gate prices recently increasing by more than 50% in some areas.

To ensure we can cover these rising costs, we are implementing a temporary fuel surcharge on all shipped orders, effective 23 April 2026.

Why this is happening. Our primary freight partners are increasing their costs to us. For example, including Australia Post and StarTrack, have announced substantial increases to their fuel levies to recover their rising operational costs. For example:

• Domestic parcel contract surcharges are increasing from 4.8% to 12%.
• Express and Premium service surcharges are rising from 15.5% to 22.7%.

Our commitment to you. We have resisted passing on these costs for as long as possible. However, the scale of these recent increases means we must adjust our shipping model to maintain the service standards you expect.

• Transparency: This is a standalone surcharge, not a hidden price hike on our products.
• Flexibility: We will review this levy on the 1st of every month. As soon as fuel prices and carrier surcharges stabilise or decrease, we will adjust our rates accordingly.
• Local Support: For our local customers in Malvern and surrounding areas, our Click and Collect service remains 100% free of any surcharges.

We appreciate your understanding as we navigate these broader economic pressures together. If you have any questions about a specific order or our shipping tiers, please don’t hesitate to reach out to our team.

There is another option here. Plan B: an general price increase

You could not implement a fuel charge and, instead, increase prices on products over which you have price control. This “cleaner” approach avoids the friction of extra fees at the checkout and protects your brand from being associated with “surcharge fatigue.”

However, because this increase is permanent and less “justifiable” by a single external factor, your strategy must shift from cost-recovery to value-preservation.

The Psychology of Plan B

Research in consumer behavior suggests that customers often react more negatively to a small, visible $2 surcharge than to a $5 increase in the base price. Surcharges feel like a “penalty” at the final moment of commitment. An across-the-board increase, if done subtly, often goes unnoticed.

How to Implement a Plan B “Modest Increase”

To make this work without losing customers:

• The “Cent” Strategy: Instead of a flat percentage, use “charm pricing.” If an item is $9.50, moving it to $9.95 is often more acceptable than moving it from $10.00 to $10.50.
• Target High-Volume, Low-Sensitivity Items: A 20-cent increase on a high-turnover item can often cover a 12% freight hike more effectively than a large jump on a big-ticket item.
• Review Your “Free Shipping” Threshold: If you offer free shipping for orders, Plan B usually requires raising that threshold (e.g., to $120). This encourages larger basket sizes to offset the shipping cost.

Messaging Without Mentioning “Fuel”

When you don’t use a surcharge, you shouldn’t constantly remind people about fuel prices. Instead, focus on quality and sustainability.

The Tone: Focus on “Investing in our service.” The Explanation: “To ensure we continue sourcing the highest quality products and maintaining our fast, reliable delivery standards, we have updated our pricing across our range. This allows us to remain a sustainable local business in a changing economic landscape.”

Which Plan is right for you?

Given the mix of products in an Aussie newsagency, even in a transformed newsagency, Plan B is more likely a better fit.

1. You have a loyal, local customer base who values the “relationship” over the lowest possible price.
2. You want to maintain a “premium” feel (premium brands rarely use surcharges; they just adjust their prices).
3. You want to avoid the administrative headache of changing a surcharge percentage every time Australia Post sends a 30-day notice.

Ultimately, what you do is up to you. Think about it carefully. Doing nothing means you soak up the extra cost yourself, and likely complain about it. Rather than complain, make a business decision.

…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.