Newsstand in Brazil

For removal of the guide fee and payment of Public Use Area (Tuap) without delay, in accordance with the Municipal Tax Code, the Official Gazette of the Municipality today, 11 days, in nine pages listing the holders of newsstands and magazines must attend until the last day of the month, the Regional Inspectorate of Licensing and Inspection (IRLF) closest to your establishment.

The listing of the Municipal Public Order (Seop) informs that the re-registration will continue in monitoring equipment, documentation and limited to the aspects of exercise in an authorized activity. In time, the holders and their partners, if any, will be called to attach photos in the authorization.

In another act in the same publication, four pages of Seop bring the list to the owners of newsstands that have canceled their authorizations to use public area, not to present themselves for re-registration started on convovação notice of the Official Gazette of the day August 6, 2009.

Items such as cigarettes, mobile recharge card and DVD sales help

Traditional newsagents are making a difference and adopting the system miniconveniência. In addition to newspapers and magazines, CDs, DVDs, books, cigarettes, prepaid mobile phone, candy, soft drinks and many other items are part of the extensive list of products which are now sold on newsstands. In the State of Rio, more than 3,000 points, with 300 in Niteroi, according to the Union of Newspaper and Magazine Dealers in Rio Janeiro. The investment is over U.S. $ 60 000.

“Much of this value is to pay for the bodywork, the ‘home’ of an hireling. Not counting from local rates. Instead, he will not need to invest in goods since the publications are contained, “says union president Francisco Escopano.

With gross profit of 30%, Escopano says the average income ranges between R$ 6,000 and R$ 3,000.

“The profit varies greatly depending on the banking, the public and the amount of items that the laborer works. On average, a panel of 12 square meters can handle up to 2000 titles of magazines and newspapers, “says Escopano. “A good knowledge about the reading habits of clients can greatly help in planning purchases and therefore the business results,” he added.

A survey of ToolBoxTM, consulting firm specializing in point of sale, drew a profile of bunkers throughout Brazil. To establish the profile, 3,352 establishments were visited (a total of 16,000 stalls served by the national distributor of Publications – Dinap – throughout the country) between July 2009 and July 2010. The study indicates that 40% of newsstands visited bill up to R$ 900 per day. Revealing that retail as a new channel of convenience in Brazil, the survey showed that 68% of the market stalls visited gums and candies and 52%, chilled drinks. Since the service photocopying is present in 12% of the stalls.

Another important fact: most of the stalls and South East does not offer credit cards and debit cards. The percentage was 30%.

“The acceptance of credit or debit card at newsstands is still very small in the whole country when compared to other retail channels. The banks need to modernize both the infrastructure (rusty metal, visual pollution, lack of proper distribution of products) and in the customer relationship, “says Luiz Sedeh, ToolBoxTM development director, responsible for research.

According Sedeh, the retailer must take into account the consumer and the “Shop” (who pays).

“An example of these two figures is the purchase of stickers for children, but who pays is the father. Convenience is just to satisfy two audiences, “said Sedeh, suggesting that the banks had a space set aside by pharmacies. “With the new law, pharmacies can not sell anything other than medicine. If the bank is close to a pharmacy can fill that gap, “he adds.

Dimensions – The newsstands and magazines may not have longer than six meters wide and more than three meters.

“Today, to open a bank it must have a distance of 400 meters of one another. Rule that did not exist before. That’s why we still see many stalls right next to each other, “said Escopano.

Diversifying products

A descendant of Italian, hired Francis Panaro, 85, has worked for 62 years with newsstands. Owner of the banking space in the center of Niterói, he said that the signatures and forced the advent of the Internet stands to diversify their products.

“Newspapers have been the most sold product at a newsstand. Today, fighting for space with items like cigarettes and cell phone recharge card. We have a great diversity to compensate, “says Panaro, who has a turnover of about U.S. R$ 40 000 in your bankroll.

To attract customers, the newsman Alexandre Mattos, 41, installed a plasma TV 42 inches inside his stall.

“As my strength here is the DVD sales, I decided to put this plasma TV. She is also a lure to attract customers. When you have the game, the dealer gets crowded, “says Matt, who has his stall near the Ferry Building.
For 15 years in business, Matt wants to make the banking 24 hours.

“It will be later this year. Just do not define when exactly yet. As a nearby booth was installed PM, I feel safe to extend my working hours, “the newsman plans, which currently is open from 6 am to 22 hours.
Working for 26 years as an employee of Banking Barca, Ailton Rosa, 39, plans to have its own bank.

“It is my greatest dream. Despite a good salary, an average of R$ 3,500 per month, have your own business is something else. One reason is to stop working from Monday to Monday, with no gaps, like today, “said Ailton, who won 7% of everything it sells.

Already Marcos Gonçalves dos Santos, 48, has worked for four years in banking Three, in Fonseca.

“He worked as a dispatcher in a bus company, when I was unemployed. On the street where I live in Tribobó, had a closed stall. Wanted to know who was the owner and asked why it is closed. And informed me that there was no one to work, it was then that I offered to run the business, “he recalls. “A year later, the opportunity here in this bank better Fonseca and accepted,” he says.

News Agent Business

Business Presentation

Although he works in the same niche of a newsstand, a magazine sells newspapers and magazines, offering these products in a practical, safe and close to other consumer choices. Usually installed in commercial, passenger terminals or major financial centers of circulation, they attract visitors and customers in search of news, entertainment or information, would prefer to purchase newspapers and magazines enjoy more space and amenities (parking, restrooms, security , comfort, facilities etc.). not available on newsstands installed on public streets or sidewalks or in other establishments.

The magazines do not require permission Terms of Use for newsstand (installed in sidewalks on public roads) that in most cities in the country, is issued by the local municipality and that often depend, bidding and public lottery.

Market

According to the IRC – Institute of Movement Checker percentage of sales of subscriptions to newspapers and magazines (made directly by publishers and media companies) increased by 6% in 2000-2004, decreasing in the same proportion, the percentage of sales made loose by retail trade (newsstands, convenience stores, magazines etc..)

This change has required retailers in this segment a greater degree of specialization, broad range of products and conveniences that add value to products marketed to customers (safety, comfort, parking, opportunities / proximity, etc..) Features found in magazines.

His regular customers are the regulars of the establishment that the magazine is installed (roads, airports, shopping malls, etc..), With differences between the preferences of consumers as (social class, gender, age, etc.).. Therefore, a good knowledge of the public attended and their reading habits, can help greatly in planning purchases and, consequently, the results of the business.

Location

The choice of business location is surely one of the most relevant to the success of a magazine. To define the local entrepreneur should also consider several important factors such as concentration and purchasing power of potential customers, proximity of competitors and complementary rather than competing services (banks, pharmacies, cafeterias, etc..), Security, parking, transportation, visibility, as well as others that may become attractive and convenient for its management and consumer access to their establishment.

The feature that circulates in the public place is also of great importance, being the locations with the highest level of permanence of the attendees (roads, airports, hospitals, etc.). More recommended.

In general, local high-traffic, such as shopping centers and department stores, hypermarkets, airports, bus stations, subway stations, hotels, restaurants of major hospitals and universities bring good results.

When deciding the location the entrepreneur should pay attention to particular aspects of a home’s cost, such as installation (reforms and adjustments), maintenance (rent, condominium fees), infrastructure (energy supply, water, etc.). determinants of profitability and viability of the business.

The location and structure of the property shall be in accordance with the Urban Master Plan – PDU of the municipality for more information the developer should consult the mayor of your city, since the PDU is, according to Federal Law 10,257, which is compulsory for all municipalities country with more than 20,000 inhabitants.

Specific legal requirements

The project is not required to obtain specific record, along with regulatory agencies or entities for regulated activities, the entrepreneur simply obtain the required registration with the bodies of commercial companies in general.

The corporation is also not subject to technical responsibility, ie, it is not necessary to keep the company on its staff, along with a qualified professional body or class council oversight of regulated profession.

Remember, that in accordance with the Statute of Children and Adolescents, newspaper or magazine to publish photographs on the cover materials and harmful to the formation and moral development of children under 18 years must be sold in sealed packaging and opaque. Resellers that are found in irregular situations will the sanctions contained in the ECA.

To register your business you need a professional accountant. He can help you identify the best tax regime for her magazine in addition to providing the legalization of this to the organs responsible for the appropriate entries. The main organs where your business must be included are:

- Board of Trade;

- IRS

- Department of Finance;

- – INSS;

- Union of Employers (company will be obliged to collect at the constitution and the 31st of January each year, the patronal union contribution);

- Mayor of the municipality (for consulting and obtaining the permit);

- Caixa Economica Federal in the system “Connectivity Social – INSS.”

Structure

Although business can be operated in modules or kiosks, installed in places of great movement of people and limited space of up to 8m ². A Magazine default, but requires a space of about 40m ², organized with shelves to accommodate magazines, door-newspapers and counter “checkout” with exhibitors for products of “impulse buying” (chewing gum, candies, sweets, lighters, key chains, etc..), and cigarettes, phone cards, lottery tickets, etc..

The checkout counter should still be sufficient to accommodate an end of sales (POS) or a cash register and be willing to allow full vision of the store.

The premises shall have windows, which will be posted the day’s papers and product promotion.

Personal

This activity requires little use of manpower. In a general manager, with the help of 1 or 2 employees (depending on opening hours) are sufficient.

Equipment

Few equipment is required in this type of venture. Normally only one cash register or sales terminal, with their accessories are sufficient (bar code readers, printers, tax, keyboards, etc.)..

Raw Material / Goods

The acquisition of the goods must be well planned and will vary according to the characteristics of the establishment, especially consumption habits of customers.

The main items sold are:

- Newspapers

- Magazines

- Books.

Alternatively, consider the sale of:

- Sweets

- Chocolate – adhesives;

- Lottery Tickets;

- Cigarettes.

Organization of the production process

Service and Sales – A magazine will usually open to the public service as the business hours of the establishment that is installed (be it a shopping center, passenger terminal, medical center, etc.)..

Although many journals adopt the model of self-service and organization of products into sections making it easier to service, this limits the customer relationship to the time of closing the sale. Acessóriasao service activities are the organization of the display, record sales (billing, opening and closing of the box) and product packaging.

As part of the sales process is vital to conduct research on the interests and preferences of the local patrons and guests of the (shopping, road, hospital, etc..) Where the magazine is installed. This information will give the entrepreneur to establish conditions which publications of interest to your target audience and define the product mix of its magazine.

Purchasing and inventory management – Before the newspaper or magazine hit the shelves of the store is a set of key tasks, essential in the work of a magazine, among them the acquisition, transportation and control of goods sold (inventory and definition of mix products).

For the entrepreneur to operate in this segment is required to register with publishing houses where you will receive an identification code itself. The magazine or its owner are considered consignee, because the products are removed in the form of “consignment”.

Publishers and distributors provide the material and establish quotas for each product. Each dealer receives a minimum lot of products, defined in terms of a pre-assessment of potential / location.

The consignee must remove the products first, you may not return all the material that was not sold (stranding). The distributors pre-determine that certain types of publications are not part of this process.

It is essential to the preparation of a scale for visits to publishers, taking into consideration the dates on which issues will be available. This step is extremely important because that is when the exchange is accomplished by grounding the new publications.

The withdrawal of products from publishers and distributors and is a daily task. Generally collection of papers is done at dawn on distribution points or delivered directly into the magazine when negotiated in advance. The collection of papers can be carried out by own staff or outsourced to carters.

Owning your own vehicle, although not essential, may be useful at this stage of activities.

Requests for back issues should be considered carefully because, if the client withdraw from the purchase will be the entrepreneur with more than a beach.

Administration – These are activities related to business management, including cleaning the store, control and payment of suppliers, employees and taxes, relationship with the Accountant, distributors of newspapers and magazines, etc..

Automation

There are specific packages for the automation of magazines and newsstands qu can be purchased directly from suppliers (Easy Banking, Banking 2000, Aldea / Magis, Data Vision, San Diego, etc.).

Some distributors Dinap (April) and Chinaglia (Globe) provide applications that enable integration with the dealer, facilitating the automation of its operations, through features such as:

Registration and control of sales, by operator and total received (checks, cash and cards)

Customer base, products and suppliers for automated queries of products, inventory items, customers, etc..

Inventory module with inputs and outputs launches of products in stock, assignment, control / calculation of the kind of hit the beach / return, label printing, etc..

- Promotions

- Reservations

Accounts Payable.

Distribution channels

Although there are already virtual journals on the Internet, the stores located in malls, airports and shopping malls are the majority in this segment.

In the shops of brick and concrete, the very selling point is the distribution channel of the magazine.

Investments

The investments required for the establishment of a newsstand are conditioned to standard business, acquisition of a commercial hub, buy furniture, equipment used and training of the initial stock (although most of the products is recorded), totaling about $ 60,000 , 00.

Working capital

Working capital is the amount of financial resources the company needs to maintain to ensure the dynamics of your business process. While much of the goods for sale (magazines and newspapers) are contained, ie, the supplier will only be paid after the sale, significantly reducing the demand for working capital in relation to other business segments, the need for adequate financial control is not eliminated.

This is because it is industry practice the developer having to commit to minimum quotas for sales of products supplied by distributors, in addition to the management of working capital of a company involved and other factors, which require the attention of the entrepreneur and to avoid correct events such as:

- High levels of inventory (other products as well as magazines and newspapers).

- Low volume of sales;

- Increased sales volume term (greater than the timing of receipt of payment deadlines)

- Variation of the various costs absorbed by the company;

- Increase in financial expenses, due to the instability of the market;

- Increased default rates;

The entrepreneur should have a budget control drive so as not to consume resources without prediction. In addition, it must prevent the deletion of values ​​beyond the set pro-labor, since at any resort to joining the company should remain in it, enabling the growth and business expansion. Thus the company can more rapidly achieve self-sustainability, encouraging the formation of a net working capital (and reducing the need for working capital use of third party resources or contributions made by the entrepreneur) and adding more value to new business .

Costs

The cost to open a newsstand one should be estimated considering the following items:

-Water, Electricity, Telephone and Internet access;

-Rent, communal maintenance, safety;

-Acquisition of goods;

Advisory-accounting;

-Storage and transportation expenses;

-Selling;

-Hygiene products and cleaning company and employees;

-Advertising and Publicity of the company;

-Resources for corrective maintenance;

-Salaries, fees and charges;

-Taxes, taxes, levies and charges;

Diversification / Value addition

There are magazines to diversify their activities by providing service of sending and receiving faxes, sale of lottery products, cigarettes, sweets, among other items.

However, please note that a striking feature of the magazine is the expertise in selling magazines and newspapers (which differ from the sales of these items at supermarkets and convenience stores and non-specialized stores).

There are magazines that focus more with your offer, specializing in the sale of religious magazines, competitions, journals, character or hero of national content or imported.

In the case of choice of specialization, the entrepreneur should take extra care with identifying the characteristics of the target (volume of demand, incomes, preferences, etc..), Since the profitability will come from a very narrow band of consumers, that can derail the deal.

In the case of magazines, journals specializing in characters and heroes, the entrepreneur may choose to market other products relating to the characters of comic books, puppets, books, movies, DVDs, among other items.

The option for diversification or specialization must be grounded in a careful survey of the needs and characteristics of the target audience. This identification can take place through market research.

The added value is through the provision of convenience to the consumer (safety, leisure, parking, kiosk banking 24 hours, etc.).

Disclosure

Disclosure of the journal can be done through brochures and advertisements, especially in neighborhood newspapers. They can also be distributed direct mail, besides the use of banners, displays and advertising reports near the establishment.

The facade of the store should be attractive and inviting to the consumer. The array of products inside the store also has a fundamental importance in order to encourage the customer to purchase.

The store layout should provide free movement, correct lighting and colors appropriate to obtain a relaxed and pleasant stay of the client.

Tax Information and Tax

The banking segment of magazines and newspapers may opt for the National EASY – Special Regime Unified Collection of Taxes and contributions payable by Micro and Small Business, introduced by Complementary Law No. 123/2006, if the gross revenue of its activity does not exceed R $ 240,000.00 (micro) or R $ 2,400,000.00 (small business) and respecting the other requirements of Law

In this scheme, the entrepreneur may collect the following taxes and contributions, through just a tax document – DAS (Document Collection of the National Simple):
• Income tax (income tax entity);
• CSLL (social contribution on net income);
• PIS (Social Integration Program);
• COFINS (contribution to the financing of social security);
• ICMS (tax on movement of goods and services);
• INSS – Contribution to Social Security on the company (Employer Contribution Pension – CPP)

As the Supplementary Law No. 128/2008, the rates of the National EASY to this branch of activity, ranging from 4% to 11.61% depending on the gross revenue earned by the business. In the case of early activity in the same calendar year of the option by the National EASY, for purposes of determining the rate in the first months of activity, the entrepreneur will use as accumulated total gross revenue, revenue in the month of determination multiplied by 12 ( twelve).
If the State in which the entrepreneur is engaged in the activity provide benefits exemption and / or replacement for the GST tax, the rate may be reduced as appropriate. At the federal level reduction may occur when dealing with SIP and / or COFINS.

PERSONAL MICRO ENTREPRENEUR – If the annual gross revenue does not exceed R $ 36,000.00, the entrepreneur can qualify as an entrepreneur Individual – MEI, ie without a partner. In this case, the payments of taxes and contributions will be made monthly in fixed amounts as follows:

The entrepreneur does not need to collect the above taxes (not by the unified system), except: ICMS and ISS independent billing when due according to the type of business, for this case:

I – No employee
→ R • $ 51.15 as an entrepreneur’s social security contribution
• $ 1.00 monthly ICMS – Tax on Goods.

II – With an employee
In this case the entrepreneur collects monthly, in addition to the above values, the following percentages:
• Retain the employee’s 8% return on Social Security;
• Disbursement 3% of employer Social Security on the employee’s remuneration.

Conclusion: For this segment, as well as LTD MEI, the option for Single National will always be very advantageous aspect of the tax, as well as the opening of the establishment of facilities and to comply with additional obligations.

Legal Grounds: Complementary Laws 123/2006, 127/2007, 128/2008 and Resolutions CGSN – Steering Committee of the National Simple.

Events

The main events are the industry conventions and meetings sponsored by the distributors themselves, affiliated with dealers.

General Contracting

ANER – National Association of Magazine Publishers

http://www.aner.org.br

NNA – National Newspaper Association

www.anj.org.br

APROBAN – Owners Association of the State Bank and is reviewed de São Paulo • End: Rua Barao de Itapetininga, 151 – 6 º andar – Cj. 65 / S. Paul

DINAP -. National distributor of Publications (Abril Group)

End United Nations Avenue, 7221 4th floor Pinheiros São Paulo

Phone: (11) 3037-3636

http://www.dinap.com.br

Fernando Chinaglia DISTRIBUTORS

Av Engenheiro Roberto Zuccolo, 74 Ordinance B

Vila Leopoldina São Paulo

Phone: (11) 2195-3242

www.chinaglia.com.br

IRC – Institute of Movement Checker

Alameda Santos 200, Suite 72

São Paulo – SP

http://www.circulacao.org.br

Technical Standards

There are no specific technical standards to regulate this business segment.

Glossary

Head of page – Top of the page. Noble space should be reserved for publication of important texts, titled occupying the whole width of the page.

Header – This is the name given to the top of the first page of a newspaper. It contains information such as date and logo, number, year, name of the director or editor in chief and address of the headquarters. On the inside pages, it uses the wire-date.

Notebook – Each of the sets of folded sheets, with at least four pages, which make up the newspaper.

Beach – The number of unsold copies of the print run of an issue.

Closing – Conclusion of the editing work. Who should be closed so concerned about the quality issue as to compliance with the industrial schedule. Must be willing to reopen the issue when an unexpected material requires, but only with permission of the managing editor. The delay in closure affect the printing and distribution of the newspaper.

Pasta – Sheetfed (single, not double) included in a paper notebook. Can be scheduled in advance or serve the need to increase or decrease the number of pages scheduled for an issue.

Mancha – useful space to print one page. The stain Sheet measures 54 cm by 33 cm wide.

Headline – This is the main news of the day and should receive the most important title of the first page.

Circle of entries extracted from leaf, available in http://www1.folha.uol.com.br/folha/circulo/manual_edicao_m.htm

Business Tips

Examine in detail and carefully choose the installation location (point). Look closely at the flow of people passing by to have a rough idea of ​​the consuming public, their preference and consumption potential.

To ensure the regularity in the receipt of all newspapers and magazines, with appropriate setting quotas to distributors. Carefully negotiating quotas and returns.

It is important to have phone cards and cigarettes, which do not make money, but attract the customer. As for the candy and gum, as well as help in the flow, have a good profit margin.

Specific characteristics of the entrepreneur

It is important to note that this type of business requires the entrepreneur’s skill in interpersonal relationship, among other skills, especially flexibility – you must have creativity and a willingness to listen to what customers think about existing products and suggestions for new products suggested and services, as well as naturally to guide customers in choosing the products, goodwill, persistence and patience.

Listening and observing – the entrepreneur should talk to other professionals and suppliers, visit similar establishments, set the target (which determines the style of business), learn to negotiate and conduct market research to identify the region’s potential, needs market, trends, etc.., complement the characteristics of the entrepreneur in this sector.

Well, depends on where you intend to install the business, if a company is close to eg, good, near a school or a very busy bakery, newsstand, but you can not not see a lot of money? but gives a bit of work. You need to return the magazines every week, you must have a good control of everything. The good thing is that you have no prejudice, because you do not sell you return. To build a bankroll you need to ask permission at the town hall of his city.

Soto conclude, yes it is a excellent business but if you decide to do it in Brazil you need to be very organized to ensure that you can make it a a good source of income.