I am fortunate to see data for many newsagencies when I do the quarterly newsagency benchmark studies. Here are inspiring results for the June 2015 quarter I have for one newsagency located in a small country town with a population of less than 1,500:
- Number of sales: down 11%.
- Average sale value: up 27%.
- Average items per sale: up 2%.
- Overall revenue (exclusive any agency revenue): up 10%.
- GP: up 18% as a result of the shift in focus to higher GP items.
- Cards: no change at $4,000 in April – June 2015 sales over 2014.
- Magazines: $13,000 – down 15%.
- Newspapers: 14,000 units – up 16% in unit sales.
- Stationery: $8,500 – up 20%.
- Gifts: $10,500 – up from $2,000 a year earlier.
- Confectionery: $1,200 – up from $600 a year earlier.
This is an extraordinary result for a newsagency in a challenging situation. There are big towns nearby ti where people travel for their weekly shop as well as for gift and other purchases. The growth being achieved by the business is happening because of decisions made by the owner to transform the newsagency from the traditional into new traffic opportunities.
This story is important as it offers evidence of growth by a size and type of newsagency business with which many here could identify.
While it is hard work to grow any small business, the biggest barrier is those who run the business. They have to want growth and to be prepared to back that desire with investment in necessary decisions that pursue change. These factors are barriers ahead of capital yet lack of capital is often used as the main excuse.
The growth being achieved by this real newsagency is proof growth can be achieved on a budget – it starts with a desire for change.