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

Month: June 2015

Happy with May results for the newsagency

We had a great May with revenue up 7% on the back of excellent growth in May 2014 over 2013. Everyday counter card (birth to death) sales were up 25% of an excellent base, gifts up 25% – now 33% of cards, plush up 63% – not close to 50% of cards, toys up 340% off a good base – it was a stellar month.

Our focus on gross profit has continued to work with good growth there as higher margin items are in more baskets.

These results are from many small steps which is the way I like it. I don’t want success from one big single move as that is risky for the business. I prefer many small steps that feed into each other and compound to create the result I am writing about here.

I am writing about the results here to encourage newsagents to look at their year on year results, to share them and to know that we can grow our businesses and make them more valuable.

How did you do in May?

3 likes
Newsagency management

The shopping centre challenge for newsagents

While being in a shopping centre has its benefits, it also has its challenges – such as when an anchor tenant departs. The troubled Top Ryde shopping centre in Sydney is to lose Myer as reported recently. With Coles and Kmart taking the Myer space the traffic mix and frequency of visit will change.

Independent retailers in shopping centres are there for the ride in many respects, hoping the majors work and bring in a traffic mix off of which they can benefit.

1 likes
Newsagency management

We need healthier newsagents

It can be tough staying healthy while running a business, especially in these days of lean overheads. Eating on the run and lack of exercise can damage our bodies and impact negatively on our businesses.

I struggle with my weight and have been able to stabilise this by walking at least 8km a day. I got a Fitbit in January 2013 and this changed how I get exercise. It measures steps, stairs and distance. As long as I do 10,000 steps a day I know I’m doing okay even if I make some (necessary) poor food choices.

While I understand some reading this wills they don;t have time to walk for an hour a day, I’d disagree. For your health you can make the time. I do. I walk in time slices. Usually for 30 minutes at lunchtime and for 40 minutes at the end of the day making business calls.

I find that a daily walking target works better for me than exercise a few times a week. That said, I know of newsagents who exercise in the back room, play golf three or four times a week, are un a running group and swim in a group activity.

Health experts say daily exercise is vital for your mental health – so the benefits go beyond physical health. Here is another reason we need to take care of ourselves.

I am writing about this today to encourage newsagents to talk about how they exercise to encourage others.

If you are a Fitbit user and want to connect and taunt me click here for my profile.

11 likes
Newsagency management

Warm up your newsagency this winter with sound

Winter is here. It’s months before the next major traffic generating season. Now more than ever we need to make our businesses appealing. This week I’ll share some tips.

Practical ideas to warm up your newsagency this winter with sound.

  1. Play summery songs.
  2. On Fridays, offer to play summer songs from your customers.
  3. If there is a local choir consider asking them to busk out the front singing summer music.
  4. See if your local school or kinder would like to put on a summer show out the front of your shop.
  5. Maybe play a recording of waves crashing to bring the summer beach experience into your shop.

Sound alone probably won’t do it so consider some in-store VM to connect with your sound activities.

3 likes
newsagency marketing

Terrific newsletter from GNS

Click here to see an excellent newsletter from GNS management. I share the link here with permission.

I say the newsletter is terrific because of the depth of information presented, the outlining of strategies for the business and the openness of the communication itself. The newsletter is full of facts.

GNS is a victim of considerable ill-informed gossip by newsagent suppliers and newsagents. Given the business is owned by newsagents, newsagents ought to take more care with this asset.

19 likes
Ethics

Warm up your newsagency this winter with colour

Winter is here. It’s months before the next major traffic generating season. Now more than ever we need to make our businesses appealing. This week I’ll share some tips.

Practical ideas to warm up your newsagency this winter with colour.

  1. Colour your window. As they are doing in Kikki.K at the moment – use a single warm colour. Grab attention.
  2. Colour block in store. with every display and all product placement, group colours together. This will considerable boost warmth.
  3. Feature colour on your Facebook page. Talk about bright colours.
  4. Run a warm up winter colouring competition.
  5. Colour your floor.
  6. Colour your hair.
  7. Colour your face – maybe at the peak of winter turn every team member into a bright sun.

Yeah, some of these ideas are ridiculous. My hope is that in the ridiculousness you find ideas of your own for bringing colour to your newsagency this winter.

4 likes
newsagency marketing

Beware the add backs if you are buying a newsagency

I was looking through a profile for a newsagency for sale in Victoria recently and was surprised at the number of add-backs to get to an Adjusted net profit. In this instance, I’d consider this figure to be a work of fiction as there is no accompanying explanation or detail provided.

The best assessment of business performance is the Profit and Loss statement. While it could be that the company has other interests or activities, it would be straightforward for an accountant to provide a P&L for the newsagency entity within the overall business.

It is only when you get back to original accounting and business performance data that you can assess the financial health of a business. This is crucial to determining the appropriateness of the vendor asking price.

A good business run well and profitable will attract a good price.

I am suspicious of newsagency business profiles with many add backs, especially when these are presented would accompanying explanations or a supporting P&L to provide context.

If you are planning on selling your newsagency soon, do everything possible to drive profit today as this is what will benefit you when you do decide to sell. Smart purchasers will pay a premium for profit and not for a figure boosted by add-backs.

6 likes
buying a newsagency

How a micro Facebook campaign unlocked a new customer

We had a customer shop with us Friday for the first time, spending $89.95 on a destination purchase. They came to our shop to purchase items we had promoted for two days on facebook for $5.00. This shopper is a collector of the items we promoted. They will certainly be back. W3e estimate that they spend in excess of $500.00 a year on their collection.

While the narrowly targeted $5.00 Facebook spend attracted more shoppers, this is one who was clear with us about the value of the facebook ad.

Yes, we can attract new traffic for our newsagencies.

3 likes
marketing
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