Business Ideas

How to Be a Newspaper Dealer(2-min read)

I did this by asking around and by calling a couple of (legitimate) newspaper dealers. And so here’s what I uncovered about newspaper dealership. It works pretty easy so if you are interested, then try looking for the person/s in-charge of delivering newspapers in your area.
 

Newspaper dealership works on consignment. What does consignment mean? In my own terms, it means that the producer of a good will ask for the seller to display the good in the seller’s store. The seller does not buy the goods for display, the producer just sorts of lends his products to the seller (or asks the seller for some stall space). For any sold items, profit is shared between seller and producer. Any unsold item will be taken back by the producer, at no cost from the seller. Mutual benefit here is that the producer gets to market his goods for very minimal costs, while the seller gets to sell more products and charge mark-ups, without the risk of overbuying goods for sale.

This set-up is significantly different from the traditional buy-and-sell model (which is actually more common for business start-ups) wherein the seller buys the goods for his sale upfront, and any unsold item will be a cost/loss to be shouldered by the seller. Note though that not all products may be sold by consignment.

 

So that’s how the set-up works. You buy from newspaper dealer newspapers at discounted prices (like Php16 for a broadsheet that you can sell at Php20, the broadsheet’s printed price). The margin that you earn (Php4 for this example) is already your profit margin. And what happens to the copies that you were not able to sell? The dealer will buy these back from you the next day at the same price as you bought them. So you see? No spoilage, no outdated, ‘expired’ products. Just sell what you can and return the rest to the dealer. 
 
This way, you don’t have losses (not unless the cost of selling such as renting a space or delivery to doorsteps is higher than what you earn from sales). Other than that, you need not worry about not being able to sell all of your daily products. Lastly, newspapers are usually delivered very early in the morning (4:00am) or late at night (11:00pm-12:00mn) depending on location. So this is the time when you buy your newspapers for sale within the day. This is also when you return for refund the unsold ‘expired’ newspapers you bought yesterday.

 

 
So four things: talk to a newspaper dealer, know where they deliver and unload the newspapers for sale, know what time they deliver and unload these., and agree on the newspaper purchase price so you can gauge your mark-ups.
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