Tips for Running a Newsagency Profitably
How do retail stores stay competitive in our increasingly digital world? Marketing agencies advise small businesses to turn to e-commerce, but for newsagencies, is this a viable solution? Ironically, the mainstay products, including newspapers and magazines that have traditionally provided the bread and butter income for this type of retail store have themselves jumped onto the digital bandwagon.
Running a newsagency gets complicated when consumers find it more convenient to get their news online, rather than walking down the block to purchase a hard copy. However challenging it might be, there are solutions for a newsagency to achieve a successful outcome.
Can Newsagencies Adapt To The Changing Marketplace?
A recent survey (conducted by Retail Doctor Group) shows that 79 percent of Australians still visit newsagencies. This is promising data and shows surprising resilience in an industry that could have easily fallen through the holes when the popularity of printed news went into decline.
The fact that thousands of consumers enter any business regularly is a huge opportunity for sales and cashflow. For newsagency owners, it has required adapting to the needs of their consumers.
Diversification Is A Must
Along with the usual newspaper and magazine racks, customers are attracted by a diverse line of offerings. It’s a time-saver for them to pick up the few quick items they need in one stop.
Lottery tickets of course are a major draw, but if your customers are popping in regularly for lotto or bus tickets, what other conveniences can you provide that they can easily purchase from you?
What Do Your Customers Want?
Knowing your customers well is the basis of a great business relationship. Even if your newsagency is located on a busy urban street, approaching your business as though you are serving a smaller community of people you understand can make all the difference to your bottom line.
For example, do you get an early morning surge in your store as people head to work? Can you sell them a hot beverage or a healthy snack that will hold them over until lunchtime? Can you become the go-to destination for a line of unique gift cards or gifts that means they can avoid traffic jams on the drive to a major retail outlet?
Supplying The Demand
Learning what other products and services your customers need takes creativity and willingness to poll the people that enter your establishment daily.
Independent newsagencies in Australia are stepping up to become more engaged in the lives of their customers. As they diversify, the results speak for themselves. Not only are these newsagencies staying afloat, they are turning a profit. Products such as fresh flowers, key cutting, packaged foods, beverages, parcel courier services, bottle swapping services, selling items on consignment for local residents, books, art supplies and even Ugg boots are generating additional cash flow.
Capitalise On Your Skill Sets
While traditional newsagency products and lotteries still provided between 30 and 80 per cent of revenue, diversifying will help keep your books in the black. A great example of diversification is a Newsagency in Sydney’s inner west where the owner is taking advantage of his knack for sharpening knives. He began taking care of the kitchen knives for his shop patrons and has expanded his expert services to include restaurants and butcher shops from around the city.
Basic Strategies For Better Profits
Like every other business, there are basic strategies a newsagency can put into effect to help maximise profits.
Gain new customers. To increase the patronage for your store, you must implement a marketing plan that lets people know that your business is in existence. It could be as simple as placing a sign on the sidewalk in front of your establishment that announces your special deals. You can use postal mailers to promote a new product line or service. Social media is a great way to engage a new audience – people enjoy human interest stories, for example, mentioning that one of your patrons was a lottery winner!
Upsell to current customers. The fact is, you have a captive audience in the people that are already walking through your door. You can double or triple your daily sales by making suggestions. “Would you like a freshly baked muffin to go with your coffee?” “I have a special on flowers today – surprise your partner by taking some home with you!”
Replace dead stock. If you have items in the store that are not moving, even after offering them at discounted prices, get rid of them. They are dead weight with no value. You are better off using the space for stocked items that are quick sellers and earn their right to have shelf space. Implement this as a quarterly process.
Build your team. Your business will only grow as big as your level of productivity. Saving money by trying to do all the tasks yourself will limit your growth to the amount of effort you can give it on your own. Hiring a skilled, enthusiastic employee gives you twice as much manpower, and the time to diversify even further. A team of trusted staff members allows you to improve your business operations and increase your services. Now you can open up shop earlier and close later, taking advantage of the spending power of additional markets.
Outsource To The Experts
As a small business owner, you are not expected to know everything. Your business will run efficiently when you and your employees focus on what you do best, and allow the experts to manage the aspects that only serve to give you a headache. At Nationwide Super, we have over 30 years experience in managing employee super obligations. Our company was founded on the solid understanding that small businesses are the backbone of our country’s economy.
Our goal is to put your business in a stronger position with a professional, effective super solutions that are completely user-friendly. When it comes to superannuation, we’ve got that covered for you too. We are sensitive to the challenges of running a newsagency, and we’re here to support you. Contact us today to learn more about maximising your profits for your newsagency.