Yesterday’s decision to increase the minimum wage should act as encouragement to newsagents to drive their gross profit. I have italicised should since I am not sure this will be the case.
The traditional response by small business owners is to complain about rising wages. While I understand that, it is also reasonable to ask what is being done in the business to improve its situation for handling rising wages.
What have we done to grow gross profit? What have we done to attract more shoppers? What have we done to get existing shoppers spending more?
Retailers understand the importance of doing these things, they understand taking responsibility for business performance. Shopkeepers, on the other hand, will complain about rising costs and, usually, expect others to drive traffic, GP and shopper efficiency.
Was the increase in minimum wage justified? Yes, in my view, something we can work with … if we’re retailers.
I think some people were surprised at how modest the increase was – but it does reflect the current economic pressures on the sectors that it most affects and as noted by the FWC it takes into account the upcoming super superannuation guarantee increase.
It baffles me that that some newsagents don’t actively try to improve the performance of their business. The first day of each month is always my favourite – its when I look back at the previous 4 weeks, compare, and see what we did well and what we didn’t. This is when the ideas begin to flow. This is when I get to challenge myself.
Everytime someone quits I take the opportunity to look at their role and identify any possible efficiencies I can introduce into my business. One of my drivers has just told me they will be finishing at the end of the month, and I will be absorbing their weekday round, only replacing them for their weekend round. This will see wages fall even after allowing for the payrise. I have also identified I can live without 1 more weekday driver, which will save even more when the next driver leaves (perhaps not voluntarily).
Dean, that happened to me when my early magazine lady quit recently.
The (anticipated) change to two days a week magazine delivery will help me offset wage rises as I re roster. When I lived in the UK for three years in the 70’s, I recall half day closing on Wednesdays. I strongly suspect this delivery change could cause such an effect at my store, dead Wed arvo’s, mid week lotto in nsw being minimal, will think to reduce Wed staff and may well open for longer on Saturdays, maybe not now but in the spring.
Good rostering is vital.