A year ago I published a bunch of New Year resolutions for newsagents. I have revised the list in the light of what 2012 has delivered and what 2013 looks like. Here are my top three New Year resolutions for 2013:
- Take control of your inventory. Order stock based on what has sold. By stopping supplier reps doing orders for you will probably find that you cut your stock holding and increase your stock turn. Included in this is trimming your magazine department. My view is that 700 titles in the max I would carry.
- Answer the questions: what do you stand for? Answer this in what you stock, how you merchandise it, the service you provide and how you promote your business. Just relying on a shingle – NEWSAGENCY – above your door to declare what you stand for are over. You need to own your unique selling proposition.
- Cut debt. This is the most important of all. Debt is a high cost on any newsagency business. Every dollar of debt you eliminate is interest saved. A lower debt level will make navigating change easier.
If all newsagents did these things we would be a commercial force, a retail network, to be reckoned with.
Please add your resolution suggestions.
Strike a partnership with the Landlord
Cut my debts please! Its the old money go round , it comes around to me and off around to the guy I owe but rarely stops long enough for us to have any. Brett you could by my shop with the freehold then forget about the landlord.
Carol we can all do more I am sure.
Mark I will try to start off positive no ifs or buts tonight. Happy
and prosperous New Year to all.
1st Resolution is the 80/20 rule. Stop spending 80% of your time on 20% of the least most profitable part of the business. Turn this around and spend 80% of your time on the 20% most profitable part and grow that part of the business.
2nd Resolution is if you are a member of an association question their value to your business. They will have to change in 2013 and focus more on retailing and less on distribution. If you haven’t used them for 12 months stop paying them levies.
3rd resolution is look at your P&L every month over time and question trends and expense items line by line and GP line by line. Eg:if you sell cigarettes is it worth a cabinet with $5k/$10k of stock sitting on your shelf. Look at revenue less cost of goods for each item (GP) and get to know them intimately.
Happy NY love the blog.
Clive – the most common mistake is that many newsagents spend far less time on the parts of their business over which they have the most control.
Open this morning for papers that have not arrived and got finded $330 for a traffic infringement 20mtrs from my driveway. Years starting good!