RETAIL STANDARDS NEWS DEVELOPMENT - NFRN...To request a pack which includes posters and shelf cards for free, please email [email protected] Newspaper and Magazines ‘on

RETAIL STANDARDSNEWS DEVELOPMENT

NEWS

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INSIGHT MODULE | Retail Standards News Development NFRNonline.com

The continued development of your News Category is important and an

increase in your profits will come by having a focus and understanding of

what is important.

Good management of your news account does not come easy, however, by

focusing a bit more time into the category you should start to see some

positive results, the News Development module we have put together will

act as a great training tool for you and your staff.

In this module, we have covered an array of areas, that will help you

focus your efforts on ensuring that essential things like a good tidy

professional display, and only stocking the right range for your store is

available, through to helping set up or building an existing Home News

Delivery Business. The tips and advice we offer within this module will

help you achieve those goals and will give you the platforms to work from

to ensure your customers want to come back time and time again.

We have also put together some additional Reference guides, checklists,

Key task lists, Training tools and a Knowledge assessment to help you

with Develop your News account, and invite you to use them within your

business.

Paul Baxter

Chief Executive

Mission Statement

“To provide an overall understanding of the News Industry, through both the

supply chain and the retail environment, and to provide knowledge of best

practices for all aspects of your news department to maximise profits”

In the previous module, you will have gained a full understanding of how the News Supply

Chain works and how this interacts with your business both operationally and from an

administrational perspective, and what to do to gain the service that you deserve, In this

Module we will try to help you understand the opportunities and ways of maximising your

profits within your store and benefits of offering a Home News Delivery Service.

CONTENTS

Maximising profits page 4

Serving your Customers page 5

Sales, Product & Promotional Information page 6

Helpful Advice & Information page 7

Developing your Display page 8 - 11

Home News Delivery page 12 - 31

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Maximising profits Serving your Customers

In conjunction with NFRN Newspro* and Store2Door** the following sections and associated

Toolkit will give you all of the help you need to grow your business both in store and if you offer

a Home Delivery Service

• UK shoppers spend over £1.3 billion, buying magazines at retail every year

• The average magazine shopper spends £3 on other products & shops

• One in 3 customers by a magazine - 49% buy on impulse compared with:

» 25% confectionery

» 20% soft drinks

» 10% crisps & snacks

Magazines are fully Sale or Return (SOR) and with over 3000 title opportunities available, there

is something for everyone. Increasing profits from Magazines is no different from any other

category, the key to success is having a backbone of regular purchasers, great new launches

and exciting promotions that are all displayed in a way that makes customer come back time

and time again.

TASK

To get you into a selling mood, find out what’s new on your magazine shelves and if you have

the latest promotions on your shelves, visit our News and Magazine link at

https://nfrnonline.com/grow/news-mags/

Toolkit

Your toolkit is spilt into 4 areas, and is available for you to use at any time via online links and

checklists. THE 4 PARTS OF THE TOOLKIT ARE:

The intention behind this approach is to help you focus on the areas of News category

management that you understand and are confident with and to provide you with the support

you need to maximise your profitability in any new areas that you may not have thought about.

Each of the items in the toolkit is available for free and can be posted or emailed to you.

If you would like to request any of the toolkit items please email [email protected] or

[email protected]

Serving customers and satisfying their needs is what retailing is about and at the very heart of

retailing magazines

Just Ask (UK) & Love to Read (Ireland)Just ask or Love to Read are industry consumer facing brands and are available to you to use,

to help increase awareness to customers. WHY? - Selling areas are limited and this is a simple

way for you to expand the virtual magazine space by inviting customers to place one-off or

regular orders for any title that they might need

To request a pack which includes posters and shelf cards for free, please email

[email protected]

Newspaper and Magazines ‘on sale here’ posterNewspaper and magazine displays might not be at the front of your store. Using a ‘Newspaper

and Magazines ‘on sale here’ poster will remind customers that you do offer this product.

If a customer requests a title you don’t stock – advise them that you will contact your

wholesaler to see if it can be ordered then add to your standing order for a few issues

Download the poster here: https://nfrnonline.com/information/newspro-toolkit/

We accept vouchersPaper based or electronic vouchers may be loved or hated, but what is for sure, is that vouchers

are on the increase and consumers are actively looking for money off offers / savings every day

Using the posters below in your store can build and create a local USP (Unique Selling Point) as

well and also avoids any difficulties for customers who might be reluctant to ask you.

To Download just click on the required link below and then display them prominently in-store.

https://nfrnonline.com/information/newspro-toolkit/

DID YOU KNOW?

SERVING YOUR CUSTOMERS

HELPFUL ADVICE & INFORMATION

SALES, PRODUCT & PROMOTIONAL

INFORMATION

DEVELOPING YOUR DISPLAY

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Magazines are a unique product - catering for virtually every need and every type of customer.

Consumers will engage if they are simply reminded that it is still something they like, need and

cannot afford to miss out on.

The intention behind this section of the Toolkit is to raise awareness of what a store can be

doing locally, as well to build customer loyalty and how to partake in centrally led promotional

opportunities.

Sales, Product & Promotional Information Helpful Advice & Information

In this section there are four areas to help you grow your profitability:

This section of helpful advice and information is as much about guidance and support and

where to go for help if required.

A). National Title File

The National Title File has been designed to provide the news industry with information about

the magazine and newspaper titles handled by the UK newstrade. It includes the title name,

cover description, retail price, cover barcode, on-sale/off-sale dates and market segmentation.

www.nationaltitlefile.co.uk

B) In-Store Routine Task List

Getting into the habit of doing the right things at the right time can be difficult, our in store

Task List (can be found at the back of the booklet) features the key things to consider on a

Daily, Weekly and Monthly/Quarterly basis and allows you to delegate work accordingly to your

members of staff:

EVENTS CALENDAR

This calendar will help you understand the

peaks and dips of each of the many magazine

sectors.

This will also help as a reminder to order

at times of local events or perhaps at bank

holidays.

Download the calendar here:

https://nfrnonline.com/information/

newspro-toolkit/

EMAIL ALERTS

Email alerts will update you with the very

latest product information. We also hate email

SPAM and only believe in short and concise

updates on product launches or special

issues.

This will allow you to make better informed

buying and displaying decisions and in-turn

maximise your profitability on any advised

product lines.

MAGAZINE SALES REPORTING

THROUGH ABC

This BI annual report shows the average

net circulation of every title registered for

the period (the ‘ABC’ figure) and includes a

breakdown into different types of circulation.

Importantly it provides you with a guide on

what has sold well and what has not. Find out

more at

www.abcstandards.org.uk

MAGAZINE RANKING INFORMATION

The importance of having availability of the

best-selling magazines remains the number

one service requirement for your customers

and is critical to your success. Research

shows that many consumers purchase

magazines from up to six locations and

evidence shows that if a title is not available

on as little as two occasions then customers

will simply no longer shop at your store.

Magazine titles available ranked in revenue

order, both nationally and by wholesale house.

https://nfrnonline.com/information/

menzies-updates/ https://nfrnonline.com/

information/smiths-news-updates/

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Making your display stand out is the key to great profitability, yet sadly it is often given less

thought than it should.

Here we highlight what should be considered at the different stages.

A) Display Solutions

Working with our Store Development Team colleagues and chosen partners, we are able to

provide you with suitable news display racking at the best possible price.

https://nfrnonline.com/information/newspro-toolkit/

Developing your Display

B) Planograms

Using a magazine category planogram will help you to arrange your magazines in a logical

layout.

No two planograms can ever be the same, but the layout should flow so similar magazine

titles are displayed near to each other in a logical rather than a random sequence.

Retailers can view a set of Planograms like the sample. Use the link below to view and

then select the desired planogram samples from the drop down menu.

https://nfrnonline.com/grow/news-mags/nfrn-newspro/

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Mus

ic

Food

Title

s

Slim

min

g,

Hea

lth &

B

eaut

y

Craft

TRAFFIC FLOW: LEFT TO RIGHT Page 1 of 1

selzzuPsgnitsiL VTsnerdlihC Computing& Gaming

Three Metre Independent Planogram

Teen

age

Cou

ntry

side

&

Cou

nty

Leisure Interest

Gen

eral

Inte

rest

Tran

spor

tBu

ying

& S

ellin

g

Trad

e &

Pro

fess

iona

l

Ent

erta

inm

ent Adult

Women's Weeklies Celebrity

Women's Weeklies Traditional Sport Motoring

Men's Interest

HomeInterest & Gardening

News& Current Affairs

Mature Women's Interest

HomeInterest & Gardening

Women's Interest - Fashion and Lifestyle

Traffic left to right.

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Top tips - Completing your Magazine Jigsaw!

Before implementing your new planogram, remember your shop save sales by utilising

Just Ask or Love to Read, then remove all deleted/discontinued titles (the ones you

reduced to nil or will in the future only be offering as a shop save) from your display.

Rearrange the remaining magazines to correspond with your new planogram layout.

This will create more impact and a more logical display.

Make a note of those titles that are both out of stock and new additions to your range

that have not yet been received. Allow enough space for these in the right places in

your display and order some extras from your supplying wholesaler at the earliest

opportunity to tide you over until the new issue is on sale.

Where necessary double face your bestselling titles in order to maintain your display

The industry standard is 8 titles per metre.

When merchandising your magazine categories, arrange titles in blocks rather than in

rows. This is because a block of titles with the same content looks better and is easier

for the customer to browse without constantly moving along the shelf

Magazines showing less than a third of their cover tend to make the display look

crowded. Research shows it will put off customers and you will sell less.

Top selling titles should be full faced for greater impact to draw customer attention.

This provides a powerful visual impact to attract customers. By ensuring that

customers can easily find the most popular magazines, this will promote additional

sales.

Remember you will also need to build in space for local direct delivered magazines,

new and seasonal titles

Remember Partworks & Collectables

Hotspot Areas Hotspots can be defined as an area of the fixture where customers are drawn to more often

than others. This could be next to the till or right next to a door. The best way of determining

where the hotspots are in your store is to watch your customers and find out where they visit

most. Magazines placed in a hotspot area will sell better than if they are displayed elsewhere.

Hotspots are normally in the middle of the fixture.

However, if a fixture is more than 3 metres in length, the hotspot usually moves to either the

right or left. The direction the hotspot moves depends on the customer flow.

To determine customer flow in your store you need to answer the question below

Do the majority of people tend to move from left to right, or right to left in your store?

Hotspots are also related to shelf types. On flat shelved fixtures, the hotspot will be at eye level

for example. On a multi-tiered rack, the hotspot is further down and tends to be on the front

part of each section. Covermounts on any title are used to add value to the consumer purchase,

often these can have a high value (Lipsticks, , other cosmetic items and childrens gifts) and

double facings and additional availability check are recommended to ensure maximise sales are

achieved.

CAUTION: You reserve the right to sell what you want, however you are also advised to be

responsive to the views of your customers and in particular you are advised that you are not

obliged to stock any titles if you have objections on religious, moral or other grounds.

PartworksPartworks are a magazine that has a number of parts that build into one complete volume.

They are more usually well known brands, published weekly or fortnightly, often they have a

Covermount attached to collect or build The First issue is usually accompanied by TV advertising,

is discounted in RRP and is a sure fire way to gain new customers.

Why are Collectables important?A Collectable is a product that is available to collect in albums or binders. The product is supplied

in packets which are packed randomly. An example of a Collectable is Topps Match Attax Trading

Cards or Panini World Cup Stickers.These are an important revenue stream to your business

providing the opportunity not only for initial sales but repeat business. Associated sales can also

be made from such items such as starter packs and collector tins.

Are you a Seasonal location?Seasonal locations are those outlets that show a large fluctuation in sales due to local factors

such as an influx of tourists. If you believe this applies to you contact your wholesaler in order that

they know and discuss your actual requirements when they are allocating product

What is Newspro?Newspro closely emulates how a RMG (Retail Multiple Group) might operate its news category.

This starts out with a complete analysis of your existing sales overlaying it with what titles sell

best in your local postcode area and then (absolutely critical to the solution and your USP) ensures

your immediate independent retailing requirements are fully considered.

Through bespoke programmes that are set to meet your individual needs, Newspro then makes

sure this data gathering work is fully reflected on the shop floor and that you are given the right

support at the right time for you and your overall business needs.

https://nfrnonline.com/grow/news-mags/nfrn-newspro/

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NEWSPRO

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1. Starting up a HND service

10 Key factors to consider before starting a Home Delivery service.

The first thing to establish is whether there is a need for a service within the area. There are a

number of ways you could go about this:

a. Talk to your customers who regularly visit your shop.

b. Call on potential customers at their home to see whether they would be interested in

having a newspaper and/or magazine delivered.

c. Place an advert in your shop window.

d. Consider potential business supplies. Are there offices or hotels in your area that may be

interested? What about local schools /colleges?

e. Target show homes on new housing estates.

f. Call in to the warden’s office of sheltered accommodation.

g. To help grow your initial customer base consider self canvassing. Many national and some

regional papers will gladly give support to proactive retailers who are looking to grow

their home delivery business.

h. You should also consider whether there are school children (aged 13 or over) or adults in

the area who would be prepared to carry out home delivery for you

Don’t over promise. It is better to start with a compact area with households falling outside

this initial area picked up as you develop further rounds. A customer will appreciate your

honesty. Ensure that from the outset your customers are aware of how to notify of changes/

holidays/when to pay and are aware at what time there delivery should arrive.

Once you have established there is need for a home delivery service in your area, you will

need to cost out the start up and running costs. You will need bags/trolleys/transport for your

deliverers.

Most business’s charge for this service. The best advice is to cost out your deliveries and

ensure that any charge you make offsets the cost of delivering the paper.

So for example you are delivering to 30 addresses /day and paying your staff £6/day

(example) you will need to be charging a minimum of 20p per day per customer. You should

also be charging for your administration time and factor in writing down of equipment etc

(2%-5%) but do your homework and try and establish what your competitors are charging

as you need to understand what price point the local market can sustain.

Remember by Law you must always pay the minimum pay rates – more information can be

found on the government website - https://www.gov.uk/

Home News Delivery

In this section we will be explaining how to both start a Home News Delivery (HND) business

and how to ensure you maximise your HND whilst ensuring you are trading legally.

HND has long been regarded as the bed rock of newspaper sales in that a HND customer

provides a steady regular income and has a significantly higher retention rate to a shop bought

casual copy customer. So with a single round of 30 customers worth in excess of £2,500/year it

is no wonder that many members not only offer this service but are actively looking to expand.

The NFRN support HND through their Store2Door (S2D) programme, Store2Door is the leading

industry recognised brand offering advice and information on all matters relating to Home

Delivery. Access on any aspect of HND is free for NFRN Members via

https://nfrnonline.com/grow/home-delivery/

Store2Door also works closely with industry stakeholders to identify distribution opportunities

that may develop into additional revenue stream for those members who may wish to

participate.

To register for Store2Door simply contact 0800 917 8884 or [email protected]

The following sections will lead you through the stages of developing and sustaining a

successful HND business whilst ensuring you are operating legally and fulfilling your

employer obligations:

1. Starting up a HND service

2. Working with your News Wholesaler

3. Operating & Accounting systems

4. Employing staff

5. Employing children

6. Staff safety at work

7. HMRC requirements

8. Credit control

9. Canvassing for new business and working with Publishers

10. Sub retailing

11. Growing sales

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2. Working with your News WholesalerIn order to meet the demands of your new HND business you may need to request a change

to your RDT and also build in preparation time (this process is explained in module 1 – News

Operations)

In addition you will need to increase your current supply levels to fulfil your new orders. The

main news wholesalers are working towards identifying HND copy on their SAP allocation

systems which will mean ultimately that future orders should no longer be cut below net

sales and HND quantities would be guaranteed. Until this time though any cut backs that

affect your ability to satisfy you HND requirement should be immediately reported to NFRN

Connect on 0800 121 6376

Most National Newspapers also pay a Third Party Insert (TPI) payment based on the weight

of the advertising inserts in their papers. You can easily register for TPI payments through

your news wholesaler or via NFRN Connect. To ensure you continue to receive correct

payment it is advisable to refresh your information on an annual basis.

Did you know - you will also get the normal insertion fees payable for any supplement

inserting that you are required to do. These are paid automatically by your wholesaler and

no registration is required, some publishers pay for copies supplied, whilst other pay for

copies sold.

Your news wholesaler could provide you with financial support through interest free loans

to help you develop your news business. These are subject to terms and conditions but

should offer a solution to raising finance for equipment you may require for your new

business like delivery bags, trolleys, EPOS systems etc.

3. Operating & Accounting SystemsThere are a number of electronic systems available on the market which each offer varying

functionality and levels of back office support. Some can offer standalone news packages and

others a completely integrated EPOS system with full HND support.

What is on offer is continually evolving as new entrants bring the latest technology and

older systems which have failed to adapt have more basic functionality and varying level

of support. Be wary if you are taking on an old system from an existing HND operator and

ensure you check that the system has adequate back office support.

When researching potential electronic newsbill accounting systems you should ensure that

as a minimum standard they have the following functionality:-

• Manage your home delivery routes to improve efficiency of delivery staff.

• Control the stock levels you need from News wholesalers.

• Produce automatic returns reports and process electronic packing notes.

• Automatic control of your product pricing through internet links with wholesalers.

• View customer’s outstanding balance and set individual credit limits.

• Make alterations easily and view customer holiday plans.

• Manage vouchers..

• Print payment reminder letters.

• E-mail invoices and reminder letters.

• Provide itemised invoices.

• Print daily round sheets.

• Identify clearly your charges and profits for both the publication you delivery and any

associated delivery charges.

• Controlled web access by customers to their accounts for alterations and to make

payments.

• Consolidation of multiple drops for a single customer (often businesses rather than

homes) into one account.

• Allocation of payment against invoice.

• Produce labels for each drop at a customer.

Remember this list is only a guide to enable you to decide what level of functionality you

require and as such is in no way exhaustive. You can obtain a list of a number of suppliers

and their contact details on the Store2Door website page and although we don’t recommend

any one particular brand we will happily discuss their pros and cons so you can make an

informed decision before you commit.

For many though who start on a limited number of deliveries it would be wise to delay this

expenditure until you are happy your new HND business is going to be successful. At this

initial stage the market leading booked based system is Huggler, for a much cheaper option

with a perfectly adequate book based solution Acorn supplies is recommended.

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4. Employing Staff

When you have determined the number of staff you will require you will need to advertise.

There are a number of options available to you. Window posters and word of mouth have

always been successful but don’t be afraid to embrace more modern communication tools

such as Facebook/Twitter/Gumtree etc.

All staff 16 years and above even if they only work a couple of hours a day/week must be

treated equally. They should all be paid a wage of at least what the legal minimum is and if paid

on a pence/copy basis you must ensure that what they are being asked to do could reasonably

be done in a timeframe that would pay them at least the equivalent of the legal minimum rate.

The same applies for staff who are 25 or above where the National Living Wage rates apply. The

same rules apply for staff you have working for you on a self employed basis.

When employing adult workers aside for the normal requirements of checking they are

permitted to work and that they are able to work you should at least:

• Conduct a Risk Assessment of the round and talk this through eg. houses with dogs

• Talk though the process you use and ensure they understand what is expected from them

• Conduct H&S training – Manual Handling

• Provide adequate equipment to do the job

• Ensure the correct pay rate is applied (this should be revisited when there are round

changes or if under 25 at each birthday)

• Request the Delivering Newspapers Safely Booklet is read can be found with the

following link) https://nfrnonline.com/wp-content/uploads/Newspaper-Society_LR.pdf

In addition and if using a bicycle

• Ensure the bicycle has good brakes tyres and lights (if necessary)

• A cycle helmet is used

• Reflective work wear is supplied- Store2Door products as highlighted further down in

this module are available through Shoplink by following www.shoplinkonline.co.uk

• The bicycle is fitted with front basket or panniers

If delivering by car you must

• Check all relevant paperwork- MOT, tax, driving licence

• Check the car is insured for business purposes

Please keep records of these documents and ensure they have agreed in writing that they will

be responsible for any driving/parking penalties/fines and review all paperwork relating to

vehicles annually.

Earn extramoney!

We are currentlyrecruiting

newspaper delivery staff

Apply in-store

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In the eyes of the law children are seen as vulnerable and as such there are a number of

additional legal requirements when employing them. It is important that parents/guardians

are involved in the process and we would recommend a Delivering Safely form be filled in (a

downloadable version is on the website)

It is important as an employer of children that you are aware of the following:

• The rules of employment of children are laid down by law but can be supplemented by

additional requirements imposed by the local council

Separate rules apply in Northern Ireland. For further information please visit

www.adviceguide.org.uk and follow the relevant steps.

• Most local councils require those employing under 16’s to have a permit

• This permit MUST be requested within 1 week of employment

• The minimum age of employment is 13 years

• These rules cease to apply after the last Friday of June in the school year that the person

reaches the age of 16

• National minimum wage does not apply

• There is no entitlement to paid holiday but a two week break in any calendar year is

mandatory

• A risk assessment is required before employing any staff under the age of 18, where

possible walk through round with new staff

• No work may be undertaken which may be harmful to the child’s health or education

• Display a valid copy of your Employer’s Liability Insurance Certificate in your shop

• Keep an accident book and record all accidents and incidents

Any child may not work:

» Before 7am

» After 7pm

» During school hours

» More than one hour before school

» More than two hours a day in term time (school days and Sundays)

» More than 12 hours a week (in term time)

» More than 5 hours on Saturday (13-14yo) in term time

» More than 8 hours on a Saturday (15-16yo) in term time

» For more than four hours without a one hour break

During school holidays the maximum hours a Child can work are

» 5 hours on weekdays and Saturdays (13-14yo)

» 2 hours on Sundays (13-14yo)

» 8 hours on weekdays and Saturdays (15-16yo)

» 2 hours on Sundays (15-16yo)

» 25 hours per week (13-14yo)

» 35 hours per week (15-16yo)

5. Employing Children

Any adult staff that come into contact with a child member of staff whilst undertaking their

daily duties, they should be DBS checked. Any new adult staff must be checked as part of the

application process but only after their application has proved successful – job offers should be

worded ‘pending a successful DBS check’.

What is DBS? - The Disclosure and Barring Service (DBS) helps employers make

safer recruitment decisions and prevent unsuitable people from working with vulnerable

groups, including children. It replaces the Criminal Records Bureau (CRB) and Independent

Safeguarding Authority (ISA).

In all cases for both adults and children you should ensure your business insurers are aware

you have staff that are out delivering and ensure your insurance covers both them and any

potential public liability.

In addition you are advised that should you need to discipline or change the working conditions

of any staff you should consult with NFRN Legal in the first instance. It is an industry standard

that children should not carry more than 10kg and as such trolleys should be made available or

rounds split to ensure this weight is not exceeded.

TASKCheck your insurances today to ensure you have

the correct cover for the business you are running.

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As an employer it is your responsibility to ensure your staff are safe whilst undergoing their daily

duties. To ensure you are fulfilling your obligations as an employer and in addition to the risk

assessments and H&S checks you would have carried out you should ensure that all delivery

staff have adequate equipment to undertake their duties.

Store2Door products as highlighted below are available through Shoplink by following

www.shoplinkonline.co.uk

6. Staff Safety at Work 7. HMRC Requirements

Since April 2015 the old P45s were phased out as Real Time Information came into play.

This means for all employees aged 16 or over you should

• Check the details of all employees you pay, including those who earn below the

NICs lower earnings level.

• Send to HMRC PAYE details by completing a FPS (Full Payment Submission) each

time you make a payment to an employee. The FPS will include the amount you

pay, all Income Tax, NICs and other deductions, such as student loans, it will also

include any starters or leavers.

• Include the details of all employees you pay, including those who earn below the

NICs lower earnings level.

• Complete a starter checklist if no P45 is provided

• Children under 16 don’t pay National Insurance, so you only need to include them

on your payroll if their total income is over their Personal Allowance

You no longer submit an end of year return, but you will still have to issue P60’s. You continue

to give your employee a form P45 when they leave but you no longer send forms P45 or P46 to

HMRC as this information is now part of the FPS process.

HMRC requirements change on a regular basis and you will need to ensure you keep your

records up to date to avoid fines from them.

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Ideally you should be willing to accept all electronic payment methods to remove any barriers to

payment. Your EPOS provider will confirm what processes they can handle. Any cash collection

should be discouraged but where it takes place it is to be noted that only adults can legally

do this. Starting customers on a weekly payment cycle is not only better from a cashflow

perspective but also helps with incremental sales when they visit your store to pay. However

roundsmen would probably prefer to collect monthly for ease. Many workers are paid monthly

and ultimately would prefer to be billed in a similar cycle and so although not ideal this should

be accommodated.

Whichever payment option your agree with your customers you must be rigid in your

implementation of your policy and be prepared to cease supply should your customer still not

pay despite reminders to do so.

In the unlikely event of continued non payment and after the customer has been served with

gentle reminders and had delivery terminated the final option to recover monies owed is via

small claims court. It is important to note that you will need full contact details for the customer

so ensure when the account if first opened you include full name and address information.

8. Credit Control/Managing Debt

The most successful operators consistently canvass for new customers.

Here are a few tips:-

• Visit potential customers personally either in the evening or at the weekend. You are the

best ambassador for your shop and service!

• Telephone potential customers in the evening or at weekends.

• Make use of any National publisher offers that are available a list of which can be found on

the Store2Door page of the NFRN website.

• Regional publishers too can support HND activity and you are advised to engage on a local

level to see what support they can offer

• Talk to your customers when they visit your shop. Would they be interested in having their

newspaper or magazine delivered?

• Display all HND advertising prominently internally and externally so everybody knows

about your service.

• Target new housing estates or areas you know are poorly served as well as infilling in

areas you already supply

9. Canvassing for new Customers and working with Publishers

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10. Sub retailing

In this section we explain what Sub retailing is and the processes you will need to consider

should you decide to enter this potentially lucrative additional profit generator

What is sub retailing?In short, this is when a retailer who receives his supply from a main news wholesaler also

supplies another retail outlet who in turn sells the products to the end consumer.

The “host” retailer in essence becomes the wholesaler to the retailer he is supplying.

By creating additional revenue to the “host” and an affordable supply to the sub-retailer,

the relationship is beneficial to both parties and of mutual interest.

When to consider sub- retailingSub-retailing is a potential profit generator and is a way to offset the costs associated

with running a news account – understanding this is vital and knowing when to offer this

service and when to walk away is very important. The easy way to describe sub retailing is

to remember that you are providing a service to other retailers and whilst you will want to

cover your costs sufficiently and produce a profit, your new customer will be expecting a

high level of service and to also make a level of profit themselves.

The secret to success is to ensure you have an amicable relationship that works for the

both of you and a binding agreement in place. This agreement should cover all aspects

of the arrangement being undertaken by you along with the commercials agreed by

both parties and may be the only usable evidence in the event that you fall out or have a

misunderstanding.

Calculating the opportunity To enable you to calculate if any sub-retail arrangement would work for you, we would

suggest you calculate profitability using the ready reckoner found at

https://www.nfrnonline.com/ready-reckoner-host-retailer/

Targeting sub-retailers Once you have established that adding a sub-retailing element to your business is a

direction you wish to pursue, you should spend some time identifying potential sites and

visit them.

Ideally this should be in person and you will need to be clear and able to discuss how you

could save an existing news stockist money ( what are the benefits ) or how you could offer

an additional income stream to an outlet not currently stocking news products.

Alternatively, you may choose to generate interest through direct marketing. To help you

with this we have provided two types of marketing leaflets:

1. The first is aimed at introducing you to an outlet that already has a news supply but

whose sales may have dropped and the category is no longer profitable for them yet

they still want to stock it.

2. The second is aimed at outlets who do not sell the category currently but who could

benefit from the additional footfall the category would provide or to give their existing

customers an additional commodity to purchase.

Both leaflets are available for purchase through the Retail Standard helpline

Potential outlets to target are existing low turnover newsagents, convenience stores or non-

historic news retailers such as farm shops, holiday parks, hospital shops, university/college shops,

community stores or even convenience stores that currently don’t sell the category. You may even

come across small towns where no one stocks news at all and someone like the local greengrocer

may be interested.

What margin should I give?Once an outlet has shown an interest you should then discuss financials and whether the supply

should be on firm sale or full SOR terms. Whilst you are free to offer whatever terms you wish, it is

generally felt that for SOR supply a 10% discount from RRP is fair, with firm sale attracting a better

margin. Obviously this margin, whilst easy to calculate, may not necessarily cover your overheads

especially if the outlet is not on one of your existing rounds and as such you may need to consider

adding a charge.

You would need to discuss the level of any such proposed charge in advance and would need to be

mindful that the sub-retail outlet may already be working on a reduced margin or have a minimum

operating requirement. An inflated additional charge may make it less attractive as the net profit

would creep closer to what they earned through the normal news wholesale process. In simple

terms, if the figures don’t work for you walk away but don’t fall out as circumstances can change

and you may also be able to build a HND round in the area through canvassing which would make

the outlet less expensive to service in the future.

Informing your existing news supplierThe reality is that sub-retailing is commonplace and whilst it is not enforced, you are obligated

under your terms and conditions of supply to inform your supplying news wholesaler that you

intend to supply another outlet under a sub-retailing arrangement.

A wholesaler cannot refuse the application as long as the supplied outlet is in the same distribution

area as the supplying depot for news, and you are not competing against them. Your wholesaler

may however request an additional deposit if you have traded with them for less than 12 months

or if there are any financial irregularities with your account. Remember, how you operate your

business is not their concern and as long as you monitor supply / returns closely, this will not be a

problem going forward. If however you do suddenly start returning large amounts of copy, you can

expect your supply to be affected, so do trade fairly and above board.

Reaching a binding agreement & payment termsNow you have an outlet ready for supply you should issue a service agreement. This outlines the

operating parameters of your relationship to ensure everybody is clear of their obligations and

requirements. The following should form part of an agreement, although, you are free to add

anything further should you choose to do so.

We would also advise that as this will in effect be a legal document you obtain any necessary legal

advice before presenting to the potential sub-retail site for signing.

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Service Agreement Checklist:1. Do you require a deposit? If yes, how much and how long will you keep it and what would

be the process of return?

2. Does the site require both news and magazines – what about other products such as milk

or bread?

3. Is this to be a seven day or less operation and what about Bank Holidays?

4. What time does the site require delivery? Is Saturday/Sunday different to Monday-Friday?

• Ensure you give a contact number for order placement and for claims etc.

5. What paperwork will you supply?

6. Agree a delivery point and establish if it is secure or not and in a well lit location.

7. If SOR, agree that daily news titles are available for next day pick up (if you wish to pick up

same day or have them dropped off you should ensure any additional costs are covered

and that timings work for you). Your news wholesaler can accept news titles a day late for

processing in these circumstances but always ensure your Sunday titles are returned no

later than Tuesday morning to ensure they are processed before the end of week figures

are closed down. Magazines and weeklies should be returned the day after new stock is

delivered

8. Are you going to accept vouchers or not? If yes, you will have to agree a redemption

process. Small amounts are easily added to your normal voucher returns but if the totals

become more substantial you should provide separate voucher return envelopes and

paperwork supplied to you from your wholesaler.

• Return these in the normal way with your details on but ensure you have noted the

unique voucher envelope reference number in case there is any discrepancy.

9. Agree whether the site orders on a weekly basis or if they would like you to manage the sales

10. Agree a process for any claims and what action to be taken in the event of a re-run (many

operators would either not deliver or charge a separate distribution charge in a re-run

situation but this needs to be clear from the offset and they should be informed on the day

so they can decide if they want it or not. If you have sufficient or a similar title you could

agree to send that with the initial delivery as a substitution)

11. Agree when invoices will be sent and when payment should be expected. Remember, you

pay for your supply weekly and you wouldn’t want this opportunity to impact on your cash

flow. It is not uncommon to issue an invoice by the following Monday with payment made

the same Wednesday. Certainly with low turnover stores, liquidity could be a problem and

you would need to be firm as if they can’t pay this week they will be unlikely to be able

to pay double the amount the next week. Highlight the time by which you would expect

payment and stop supply immediately if this is not kept to. Also highlight from the offset

what payment types you will accept. Cash works for most although an increasing number

of agents accept electronic BACS or similar. Be more wary of cheques as in essence these

provide an additional period of credit and are not guaranteed.

12. Agree when the service will commence and the notice period required by both parties

to terminate.

We would also advise you include a disclaimer on the lines of whilst you will make every

reasonable effort to supply required titles, there may be occasions outside your sphere

of influence which may mean the title is unobtainable. In such circumstance you cannot

be held responsible and would accept no liability for any monetary loss.

An example of an agreement can be found at

www.nfrnonline.com/agreement-example-feb-2016-2.

Please note all agreements will be different and it is important all aspects of the

supply are clearly discussed between you and the sub-retailer before the arrangement

commences so that such an agreement accurately reflects the operating parameters of

your trading relationship.

Payments and Record KeepingFor those who already have an electronic rounds management system, charging and

recordkeeping should be straightforward. We would advise that you contact your

supplier to ensure that your system offers the following facilities:

• Daily delivery sheet

• Ability to process returns (in particular the ability through a live feed to cope

with magazine returns – if not, these will need to be processed manually or not

supplied at all)

• End of week invoice

• Application of a discount rate

Whichever management system you use, we firmly recommend that you keep all of your

sub-retail outlets on a firm 10 day credit basis – supplying an invoice by Monday and

payment expected on the Wednesday of the same week. Failure to pay should result in

immediate suspension of supply. Experience shows that at this level once payments start

to slip there is an increasing likelihood that problems of future collection may soon follow.

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Range management and third party suppliersIn most cases the outlets you will be supplying will have only a limited understanding of the

market and we would suggest you initially work with them to identify the titles and quantities that

would best suit their location. You don’t want to lose sales but by the same token if you continually

put in titles and quantities that don’t reflect sales you may well find your allocations will be

reduced which will impact on other parts of your business.

For low turnover units where space is at a premium, it is often best to work on the proviso that

“more is less “and stock up accordingly. Like other categories you may well find the top three

or four selling nationals and the local paper may suffice. Magazines, if you decide to sell them,

should also be well controlled. Ask your news wholesaler for a top 100 magazine list for your

area and ensure your new outlets have a copy to show to their customers. Firm orders can then

be taken without the headache of stocking and removing unwanted titles. Consider providing

Just Ask material to promote the sale of magazines which can be requested by calling the Retail

Standards Helpline

Whenever you add a sub-retail customer, ensure you stress to your wholesaler that additional

copy will be required and agree with them a fixed supply by title for a fixed period.

For added support we recommend you join the NFRN Store2Door scheme which is free to

members and can be accessed either online or Store2Door direct at 08009178884

or e-mail [email protected]

Whilst products from third party suppliers are often considered poor value for money, there are

on occasion products that could drive additional revenue through your business and it is worth

evaluating each on its merits and discussing with your sub-retailer if you believe they may have

a market. Football trading cards may be a good example but remember some may incur VAT

and should be invoiced as such.

Supply of productsEnsure this vital process is explained fully to your sub-retailer and is outlined in your

agreement.

What to consider:

1. Which days supply is required

2. What time they are required (remember there may be different requirements at the

weekend)

3. Is there a safe lockable place for them to be delivered to /picked up from

4. Is the delivery area well lit and accessible early in the morning

5. Do they understand the paperwork

6. Do they understand that any theft or returns sent back to you outside of the permissible

period is down to them

7. Is there and do they understand a claims or re-run process and any financial costs should

you have included these in your agreement with them

8. If a process has been agreed in relation to additional supply requirements

Return of products1. Do they understand the returns paperwork?

2. Do they know how to tie returns correctly and attach a returns note?

3. If both parties have agreed to when you will receive them (end of the day or next day with

the delivery)

Many believe that these returns have to be picked up on the same day and returned with

that day’s returns. This is wrong and although some news wholesale houses may complain

– they must accept them a day late. The only industry rule on this is that newspapers must

be processed by midday on a Tuesday so in effect as long as the Sunday papers are received

at the wholesalers by Tuesday morning, they will be credited. To ensure there are not huge

numbers to be processed on one day, the industry norm is that daily papers are returned the

next day. So papers returned a day late due to a sub-retail arrangement should not cause any

issues with your news wholesaler.

VouchersThere is no escaping the fact that newspaper vouchers drive significant sales in the category

and you should consider carefully the implications of including voucher acceptance in your

agreement with the sub-retailer.

• Where local demographics dictate, you could find that a significant proportion of sales

could come via this process and as such you should accept them, whilst in other areas you

may feel that for the few you may receive it is not worth the extra work.

If you do accept vouchers from your sub-retailer you must ensure you have a robust process

in place and that the sub-retailer must understand that vouchers should be treated as cash

and as such collection at time of weekly payment would make sense.

If it is just a handful of vouchers these can be checked at the time of collection and the value

agreed and signed for. For larger amounts you could leave a news wholesaler voucher

envelope and relevant paperwork with them filled in except for actual voucher totals and

leave them to fill in the quantities and seal.

Adding value and servicesAny sub-retailer outlet should be keen to explore other revenue streams and other cost saving

services that you may be able to provide.

Here are just a few ideas that others already provide to their sub-retailer customers:

• Supply of milk/bread

• Supply of ambient grocery (remember many grocery wholesalers have a minimum spend

for delivered goods but small operators like your sub-retailer may not be able to afford/

require)

• Payment for referral of new Home News Delivery customers

• Local letter/parcel delivery

• Leaflet dropping for a local company

• Seasonal goods (e.g. Easter Eggs)

30 31


Summary

Thank you for completing the News Retail Development Module, In this Module, we have tried

to help you understand the benefits of managing and developing your display, as well as

highlighting the world of a guaranteed sale of Home News Delivery. If you have any feedback or

suggestions please contact us on

[email protected] or [email protected]

Further Help and advice is also available through locally held training sessions, Timings, Dates

and Venues of the sessions can be found on

https://nfrnonline.com/grow/retail-standards/

Training session topics include:

• It doesn’t have to be difficult - Getting the basics right ever day

• Shrink management - Reducing your known and unknown losses

• Display Techniques & Solutions - Capitalising on Consumer shopping trends

• Profit Tips - Taking a more proactive approach in a declining marketplace

• The Pros and Cons of Introducing a Category Management partner into your business

• Knowing your rights - guidance and advice on how to manage your expected service levels

• Using SNapp or iMenzies – Helping you to understand the world of online account

management

Sub Retailing Summary

There are a number of existing newsagents whose news account is sufficiently low to the

current carriage charge paid on a weekly basis actually means the category is traded at a loss.

In other cases outlets can’t enter the category because of large deposit requests.

In short there are a growing number of outlets who are looking for an alternative route to store

for their news supplies. As long as you are prepared to follow the correct process and operate it

in a professional manner a clear and growing profit channel can be opened.

Additional support, advice and profit calculators are available online at

www.nfrnonline.com/grow/news-mags/subretailing/

There are a number of ways to maximise and grow your HND business.

Below is a short but not exhaustive list:-

• Accept vouchers - Publishers invest significant amounts of money in this highly

successful strategy

• Sub retail - Many stores and other outlets are looking for an alternative supply route for

their news category

• Market your business, get involved with the community

• Approach services with waiting to see if you can supply their magazines

• Up sell magazines and even non news products to existing customers

• Become involved in Publisher initiatives - A recent News UK HND activity produced

46,000 new customers

• What about a letter or parcel delivery service in the local area

• Be on the front foot - approach competitors and see if they would wish to sell their

rounds so they can concentrate on other aspects of their business

• Manage your relationship with your news Wholesaler

11. Growing Sales

National Newsagent Network is commonly known

as N3 and is a NFRN Company that you can join up

with like minded retailers.

N3 offers a complete News Category Management

solution and much much more.

Learn more and apply to join N3 today

For more information contact us on:

N3 Helpline: 0800 917 8884*

Email: [email protected]

* FREE from UK landline phones only.

Charges may apply from abroad or from a mobile phone.

NEWS NEWSPRO News and more direct to your door

Store Door2

NFRN Connect: 0800-121-6376 We do so much more - visit our portfolio at: www.nfrnonline.com

Documents

RETAIL STANDARDS NEWS DEVELOPMENT - NFRN...To request a pack which includes posters and shelf cards for free, please email [email protected] Newspaper and Magazines ‘on