If you want to turn your business into a newsstand

Author: | Posted in Australia No comments

In recent weeks, several different people have asked me how they can turn their existing store into a newsstand business. Although they each had different reasons, they were sure they wanted to take action. So, let’s explore it.

There is no such license to call your business a newsstand. Shingle has no regulation about it. There are regulations regarding lottery items, and there are hoops that must be skipped for newspapers and magazines, and there is supplier-driven regulation of access to newspapers and magazines – but it’s more about physical location and proximity to other retailers.

There is no place that can tell you everything you need to know or what to do, which is good because that in itself is a barrier to the difficulties of trading on the channel.

Before you go too far down the road, you need to make sure of the following. Why you want to make the move and what the move actually looks like. It’s relatively easy if he’s putting newspapers and magazines in your current shop… but will a newsagent do your job? If this is you, you should know that there are many newsagents crossing the other direction.

In the past, a traditional newsstand depended on a few key product categories: newspapers, magazines, lottery items, greeting cards, and stationery. You could say tobacco was there, but it wasn’t as dominant as the five mentioned above. The first three product categories Agency lines. That is, you are paid a commission for selling them and the commission is much lower than the normal retail margin.

If turning your current store into a newsagent means you want a lottery, you should contact Lotterywest if you’re in WA or Tabcorp if you’re elsewhere in Australia. I’m not sharing specific contact information as there’s a hoop you have to jump through, consider that a qualifier.

If you want a newspaper, your starting place should be the publisher. If they are interested they will connect you with the right people.

If you want magazines, you should start with Ovato, or Are Direct as they will soon be available.

However, it’s more than just getting supplies. You should consider the space in your store, the time management requirements for each category, and how shoppers for those categories will fit in with your current customer mix.

I’m barely scratching the surface of this topic. This is deliberate. Making your current store a newsstand isn’t easy. It is important that you understand this from the very beginning.

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