A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Month: August 2012

Nick Xenophon writes about support for small business retailers on penalty rates

Nick Xenophon has responded to my email (and I am sure emails from others) supporting his private member’s bill on the issue of penalty rates:

Dear Mark

Thank you for your email to me regarding my proposed penalty rates Bill. I appreciate your support on this issue.

In recent months I have spoken to a number of small businesses and, importantly, employees about hours being reduced and jobs lost because of changes to penalty rates.

It is estimated penalty rates have already cost almost 3000 jobs in the hospitality industry. The recent Restaurant & Catering Australia Benchmarking Report also showed 18.2 per cent of businesses were closed on weekends due to penalty rates. More than two-thirds said they would cut the number of staff further if labour costs rose in the next 12 months.

My Bill will only apply to small businesses – those with fewer than 20 full-time equivalent employees in the hospitality and retail industries. Under my Bill, employees will earn penalty rates when they work more than 10 hours in a day or 38 hours in a week.

That way, employees will still be recognised for work they do above and beyond a usual week and small businesses will be able to stay open and keep employing staff for weekend shifts.

My Bill has been referred to the Education, Employment and Workplace Relations Committees for an Inquiry.

The purpose of a Committee Inquiry is to critically analyse ideas from all sides of the debate and I would welcome your input into this. You can find out more information about the Committee inquiry here.

Even though both the Government and the Opposition have indicated they don’t support this proposal, I strongly believe this is an issue that needs to be publicly debated because of the thousands of jobs that have already been lost in small businesses.

Thank you for taking the time to write to me on this issue.

We need more newsagents supporting this private member’s bill. We can do it by telling our local members to support the bill. We can also do it by making a submission to the committee.

18 likes
Newsagency management

WHO discounted 60%

I am disheartened to see WHO being discounted by 60% off the cover price to $99 for 51 issues delivered to your home or office for just $99.

While I understand subscriptions play a role in the magazine distribution model, I see no reason to make one channel so much cheaper than another, especially a channel that invests time, real estate and opportunity in promoting brands so ready to launch steep discounts.

9 likes
magazine subscriptions

Great to catch up with Tasmanian newsagents

I have been fortunate to spend the last two days in Tasmania, in Launceston and Hobart, presenting at the ANF mini conference and participating in the GNS organised trade displays.

The photo does not do the trade display justice. There were many more suppliers in attendance, bringing to Tasmania a flavour of the mainland Market Fairs.

Our channel has some strong newsagents in Tasmania, people embracing change. It also has some old school newsagents who need to create their own future.  The day in Hobart and Thursday in Launceston brought together some excellent product opportunities, business management opportunities and some good networking.

I am grateful to GNS and the ANF for being included in the events.

4 likes
Newsagency management

The same magazine – different titles and prices

Newsagents are understandably confused about Inside Fitness magazine and Inside Fitness Australia magazines. Despite the different names, prices and distributors, they are essentially the same magazine.

Click on the photo and see a page from each of the magazines next to each other.

Inside Fitness Australia is distributed by Network Services and sells for $7.95.  Inside Fitness (a US publication) is distributed by Gordon & Gotch and sells for $14.95.  But the content is more or less the same. It looks like an Australian publisher has purchased the content from the US publisher.  In such a case the distribution of the US title needs to be sorted out to avoid shoppers complaining to newsagents that they are ripping them off with the more expensive title.

I am grateful to a colleague newsagent for drawing this to my attention.

9 likes
magazines

The bookazine / magbook opportunity

I have written recently about the success we are having with magbooks – nice incremental business, selling out of some excellent titles.

Check out the photo I saw in an Airport store in Melbourne recently. Just terrific. Professional and compelling.  This display is what we aspire to in more stores for the bookazine / magbook products.  We are working with Network on these titles.

I like the fresh pitch of these – they show the products in a non-traditional light.

1 likes
magazines

Preparing advice on T2020

With several newsagents successfully building distribution businesses of a scale equal to that foreshadowed by News Limited’s T2020 plans, there is good knowledge out in the marketplace to help newsagents.

My newsagency software company Tower Systems has been directly involved many of these amalgamations.  I have asked the Tower team to prepare advice on the practicalities of amalgamating newspaper distribution territories, particularly the management of the data involved and how this is done to serve the needs of News and the needs of the new distribution business.

I hope to publish something in the next few days to quell the in some quarters that what News is asking of newsagents is not technically possible. It is possible. Others have done it already and I’ll explain how.

11 likes
Newspaper distribution

Surprise discount for magazine launch

ACP has send out subscription offers for Women’s Fitness magazine in advance of the launch of the title early next month.

I can’t recall a subscription discount of this quantum in advance of the launch of a title. I’d prefer to win regular shoppers in retail before chasing the subscription deals for a new magazine title but that’s me.

The flyer (click on the image for more detail) was sent by ACP to subscribers of at least one other title recently.

11 likes
magazines

Has if magazine missed an opportunity?

The Kath and Kinderella cover story on the current issue of if magazine should generate additional browsing of this niche title.  The new Kath and Kim film is getting extraordinary media coverage and this is why I’d expect people to be interested in the cover story even though they may not have heard of if before.  This is why I am surprised we did not get any extra copies.  I appreciate every copy costs but having the first cover story about the home grown movie would be an opportunity for promotion to a wider audience.

5 likes
magazine distribution

Connecting with magazine fans

Checkout the Girlfriend magazine Twitter feed and see the buzz they create prior to the launch of the next issue (out today). Reading the posts and feedback you get a feel for a magazine very engaged with its readers. Knowing about this can help us understand the articles of particular interest and to tap into reader passion.

I appreciate we don’t all have time for this type of research … but a few minutes spent online can be illuminating.

0 likes
Newsagency opportunities

More discounted magazines at the airport

Travellers through the Qantas terminal of Sydney airport can get $5 off selected magazines if they purchase their food at a participating food vendor. There is already the ACP buy 3 for $10 deal.

I still think the best magazine promotion is the Magazine Club Card I launched in mid 2004. Buy 11 magazines over 8 weeks and your 12th magazine is free up to the value of $10. This drives shopper loyalty to the business and engagement with the whole of the category. The discount is earned by above-average behaviour.

8 likes
magazines

PMP full year results

Newsagency may find the results for PMP, the owners of Gordon and Gotch, interesting.  Gotch revenue for the year was down 13.3% at $358.5M with an EBIT of $1M. They are reporting a 9.8% decline in magazine volume for the year. The outlook for the year is a further decline in magazine volumes. The company is focused on more cost reduction.

0 likes
magazine distribution

Western Australian retailers dealing with Sunday trading

Newsagents I spoke with in Perth on Monday has mixed reviews of Sunday trading which started this past weekend in Western Australia.  Some were thrilled with the sales while others were concerned that labour costs would see it loss-making day for them.

While I do wish there was a solution to paying double time on Sundays (we should support Nick Xenophon’s private member’s bill on this) we need to structure our businesses for success.

Sundays are an opportunity, especially in shopping centres and on busy high streets as they bring traffic we would otherwise not see.

  • Greet your customers. With so many new faces on a Sunday you need to given them a memorable (in a good way) customer service experience.
  • Sunday deals. Consider Sunday only promotions. This shows the business as offering value and leverages the bonus traffic. Promote these outside your business.
  • Schedule Sunday work. Ensure there is work for your team if the shop is not busy. Bring forward some weekday work to Sundays.
  • Look at your data. Once you have some Sundays under your belt delve into your data and understand what’s different about this day.  I often see opportunities not available on other days of the week.

In any market with Sunday trading small and independent retailers like newsagents need to suck it up and embrace the opportunity.

4 likes
Newsagency management

106 2013 One Direction calendars and counting

We have sold 106 of the 2013 One Direction calendars over the last few weeks. At $24.99 each.  It helped that we were the only retailer in our region with the calendar for the first few weeks.

We are confident of selling between 200 and 300 of these calendars this calendar season.

The 1D calendar and related products make our newsagency appealing to a young and valuable demographic – and those who buy for them.

Tapping into the 1D fan base is part of our own strategy for building our own newsagency of the future.  It’s a strategy focused on several age groups and built around a commitment to brands.

While the $2,648 we have banked so far from the 1D calendar is not enough to retire off, it is welcome revenue too many others have not pursued.

8 likes
Calendars

Australian Country a good anchor for country section

The latest issue of Australian Country magazine from Universal Magazines is the anchor title for our country section at the moment. The cover is clean, reaching outside the country category to appeal to other shoppers. I urge newsagents to seek out the title and ensure they are using it as an anchor title. Sales of country titles are surging for us – in part because we have devoted specific space to them close to the busy area of our women’s magazine aisle.

1 likes
magazines

Promoting Woman’s Day bonus offer

We are promoting the Woman’s Day recipes+ bonus offer with promotion in several locations including this one . It’s a good value offer. recipes+ inside Woman’s Day makes the overall package a bit physically unstable. We are countering this by keeping pockets full.

2 likes
magazines

Changes in TV should motivate newsagents to embrace change

There was a time when owning a TV broadcast licence was a licence to print money. As if the many cable competitors and the downloading of TV shows were not enough competition for free to air, the networks are now faced with video on demand.

Check out the story at gigaom about the re-launch of Arrested Development (a brilliant sitcom) on the Netflix VOD platform. This and similar moves with other shows is developing VOD as a platform to compete with the traditional distribution channel.

The reminder for me is that none of us can run our businesses expecting traditional supply channels to work for us in the future. How people buy much of what we sell is changing rapidly … as is happening in TV.

2 likes
Newsagency management

Lotterywest drives community connection for newsagents

It was an honour to speak at the Lotterywest Business Adventure 2012 conference in Perth yesterday. This full day business development event attended by 160 retailers, mainly newsagents, was packed with practical advice and help for building stronger and more relvant retailers.

I was taken by the unique community focus of the Lotterywest pitch. From the official opening by WA Premier Colin Barnett (also minister responsible for Lotterywest) through to other speakers from Lotterywest, the connection with the community was front and centre.

In making grants totalling more than $100 million a year to community groups, Lotterywest encourages retailers to pitch that buying a lottery ticket is helping the community.  This fits with the Unique Selling Proposition of many newsagents.

From the home page of the Lotterywest website (click on the image) to in-store collateral to the TV campaigns, Lotterywest actively promotes the important community work being done thanks to the grants it makes of money for community groups.

It’s a powerful message, one that it important to WA newsagents. With the Barnett government committed to continued government ownership of Lotterywest it is a message sure to continue for years to come.

If I was a WA newsagent, I’d build my community connection message around and including this.

6 likes
Lotteries

The frankie opportunity

As the audits continue to show, frankie is an important magazine for newsagents. We promote it several times through the on-sale and for the rest of the time we have three pockets of the title in our women’s magazine aisle as shown in the photo. Below this we have four more pockets of frankie. It’s very noticeable to anyone entering the aisle.

When we promote the magazine we do it in a billboard fashion on the aisle end as well as tactically at the counter or elsewhere.

1 likes
magazines

Promoting How Your Body Works

Check out the display the creative team at one of my newsagencies has put up for How Your Body Works.  It’s bold, eye catching and sure to help us make the most we can from the launch of this partwork.

I love how the stock has been used to create a background for the poster.  This is smart visual merchandising.

It’s at the front of the shop attracting browsers from the mall.

6 likes
partworks

Moshi Monster central

Bringing multiple Moshi Moster products together like this continues to be a smart move, driving purchases of multiple products.  We are finding this small Moshi Monster display working well at the ticket sales counter. I’d urge newsagents to group Moshi products together.

0 likes
magazines

Timely Internet Security magbook

We are promoting the just released Internet Security magbook with newspapers as well as with our tech magazines.

I suspect the newspaper location will work well as it’s the type of title people with an interest in online security will purchase on impulse.  This is not a title people will visit seeking out – hence our placement in a high traffic impulse location.

We need more titles like this, titles that reinforce magazine range as a point of difference. Newsagents will reject special interest titles like this at their peril.

1 likes
magazines

Thanks for feedback on Newsagency of the Future

The Newsagency of the Future video has been up at YouTube for 7 days and it has been viewed more than 370 times.  This is way more than I expected.  I am thrilled with the feedback from people – newsagents, suppliers and others.  There have been plenty of questions from newsagents about their specific situations.  I have also received suggestions on other areas to cover.

I have to say I was unsure about taping the the Newsagency of the Future as each session is different, an evolution from the one before. This time I have to stay more on script. But it appears to work.  I am thinking about breaking the discussion of the future up into action points and making a video about each.

To see the Newsagency of the Future video click on this link.

12 likes
newsagency of the future