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

Month: January 2014

Are you chasing money from the ACP / Bauer growth incentive program?

I’d be interested in feedback from newsagents about their experience in getting rebates from Bauer owed under the growth incentive program that was launched a couple of years ago.  While the program as launched is no longer, I have heard that monies owed from last year has not been paid.

The incentive program was always going to be a challenge given the way it was structured. I made this paint to the folks at ACP at the time.

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magazines

The five day training course for newsagents quietly slips away

Ten years ago the then federal Minister for Small Business Joe Hockey launched the magazine distributor and newspaper publisher mandated new newsagency training program at the offices of the ANF in Sydney. I was at the launch and supported the introduction of the training.

The goal of the five-day training program was to ensure that all new newsagents had a consistent base level of training in the operation of a newsagency, especially newsagency-specific aspects of the business.

Over time, with course materials not keeping up with real-world changes, tough training requirements from the various lottery businesses and other obligations on new newsagents, the ANF course faded in relevance.

A few months ago, the five day training requirement for new newsagents was dropped. Neither the magazine distributors or newspaper publishers require that such training be undertaken.

While it is good that this barrier to entry has been removed and that training that had become irrelevant was no longer forced on new newsagents, it’s appropriate to take a moment to think about this move and consider what it could mean, if anything. For example, does the removal of the requirement of training mean our channel is not as important as it once was? 

My understanding is that those behind the decision say the training requirement was eliminated because it was not making any difference. If that was the case they could have driven changes to the training since they had exerted control over training course content in the past.

It’s is interesting to think this through. On the one hand we want to be treated the same as other magazine and newspaper retailers but then we could worry when special treatment or attention is removed.

While I doubt we would get a completely honest answer, I’d like to know from magazine publishers and distributors whether they see us as relevant today as they did ten years ago. I think we need to ask this question. If we look at the regulation and monitoring imposed on newsagents via XchangeIT we could say that nothing has changed. But if we consider the elimination of the requirement for consistent basic training for new entrants to the channel I am not so sure.

While many newsagents are angry at the treatment of the channel by some magazine publishers and the two major magazine distributors and may not care about the training, I think we need to consider it a reflection on bigger issues, bigger challenges for us.

What do our businesses look like without magazines? I for one would not like to see this. However, I want fair and equitable supply. Unfair and inequitable supply makes me think about life without magazines – but on my terms. The removal of the training requirement leaves me wondering if the decision about the future of magazines in the channel is being made elsewhere.

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magazine distribution

Promoting magazines anywhere and the new retail paradigm of shopping 24/7

appstoremagsI was on Apple’s AppStore last night and noticed this ad: Magazines for Him. Clicking on the ad and I was offered what at first appeared to be free access to apps for Rolling Stone, Money, T3 and other titles. With many magazine apps, however, the content is not free, just the app for accessing the content. But that’s not what I wanted to write about this morning.

Seeing the ad for magazines reminded me of a fundamental change impacting retailers, including newsagents, today. We – retailers, wholesalers and product manufacturers – are in a race to get to the consumer first. The days of the shop being the place where things are bought are over. The shop is but one location. Today people are shopping in every location possible, they are shopping 24/7. That is how large online and bricks and mortar retailers see it. They are investing in strategies to be first to the consumer, anticipating their needs if possible so they can decrease the time between desire and fulfilment.

Retailers who focus only on their shop have an incomplete business strategy. Growth today more than ever required a multi-layered multi-channel strategy.

The question we newsagents need to ask ourselves individually is what are we doing to tap into the shop anytime shop anywhere mindset of today’s mobile consumer?

To get a feeling for how retail is changing: there was a story a couple of days ago about Amazon patenting an anticipatory shipping system that predicts orders.  Their algorithm predicts what you may purchase based on previous purchases and it will ship those items to the warehouse closest to you – to reduce the time it takes to fulfil your order. This is pretty amazing stuff.

While in the US a couple of weeks ago I met with a company and was shown technology that retailers like newsagents can integrate with that enables us to capture a shopper interested in a product or category before they are near our shop.

These are just two of the moves that we need to factor into our business plans. On first glance they may feel too complex for us to engage with. the reality is that these and other moves are do or die for retailers. This is the world we are in today – the rules have been set by others, we have to engage for our businesses to have value.

It may sound trite but we newsagents can do this, we can embrace the new shopping model and be relevant as a small independent retailer. It starts with becoming aware and that is, in part, what this blog post is about.

Engagement with customers is key to our future. Connecting them with us so they remember us and come back to us is key. There are various ways newsagents can do this today. Those who are not, and that’s the majority of the channel, risk the commercial consequences of a disconnect from our customers.

I’m optimistic about retail and newsagencies. Yes I see plenty of change, but this is not new. We have to face it and walk with it, changing our businesses appropriately.

On the small issue of magazine apps being available through the Apple AppStore: this is what publishers need to do – and, yes, they need to do it directly and not through newsagents. We are not entitled. repeat: we are not entitled.

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Media disruption

Promoting the business in looking for new employees

be-cosyThis is a poster at the front of a BE COSY story looking for new employees. The pitch itself is promoting the business which is smart. Whereas here in Australia we’d put out a sign saying staff wanted, many corporate Asian businesses that I have seen promote the business – probably reflecting the more competitive environment.

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retail

Tatts declares online and supermarket expansion key to growth

The Fairfax press yesterday ran an interview with Tatts CEO Robbie Cooke that all newsagents should read. In the interview to mark his first anniversary in the job, Cooke outlines what Tatts is focused on:

”In 12 months time the things I’d be looking for in the business would be a new lotteries website, new wagering website and the new brand rolled out,” he said. ”There will be marketing and investment put behind the brand and we are aiming for all those initiatives to drive online sales.”

Newsagents contemplating the required re-fit should seek clarification. There is no point spending any money today on fit-out changes that could be redundant in anything less than three years out.

Mr Cooke said he also intended to expand the distribution of Tatts’ products. The company is poised to begin selling scratch lottery tickets from supermarkets after a trial in Coles Express outlets. ”We’ve been testing to make sure that activity has actually increased sales rather than cannibalised sales from our traditional channels,” he said.

It’s not just scratch lottery tickets as I understand it. Coles Express has been selling quick picks. I’ve been told they plan to roll that model out to all Coles Express outlets – in Victoria to start and then nationally. This comment about scratchies in supermarkets is new.

I’m not a Tatts retailer but if I was I would be approaching  Tatts, the ACCC and other government entry points, all at once, to argue the significantly uneven playing field on which independent small business newsagents are forced to operate compared to our competitors such as 7-Eleven, Coles Express and, now, supermarkets. The capital cost that has been forced on newsagents for decades has assisted Tatts to have the recognition it has. Every newsagent who has spent money on Tatts mandated fit-outs has invested in the brand. Now, to find that competitors are given lower cost branding options requires consideration by appropriate authorities.

I understand that various associations are pursuing these matters – as they should. Individual newsagents who are Tatts agents should, in my view, make their own complaints. This will only add volume to what the associations do.

If I was facing a fit-out I would request of Tatts an immediate pause pending their review. If the fit-out requirements have me investing more capital than, say, a Coles Express then I would seek to have that matter arbitrated by an independent authority.

The challenge for newsagents comes back to the brand.  Coles is a strong brand as is 7-Eleven. Take the Tatts branding – Golden Casket, Tatts, SA Lotteries or NSW Lotteries – out of a newsagency and in many situations you are left with unrecognisable branding. I think this is why tatts has been so heavy-handed on branding for years – they knew that it was necessary given the weakness and confusion of newsagency brands.

It is good that Cooke has been open about his plans. Newsagents can either complain about what he has said or plan the future of their business on the basis of what he has said. The information can lead to action.

Footnote: the moves by tatts are not unexpected. I have foreshadowed them for some time for several years at the Newsagency of the Future workshops.

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Lotteries

US shoppers damning of target data breach

The ramifications of the data breach affecting more than 100 million shoppers at US retailer Target will continue for sometime – not only for target but for retailers generally.  The TV networks have been running stories of shoppers switching to cash because of the breach.

The Huffington Post published a piece yesterday about Target specifically, the implications for the company and how it is and could respond.

While Target is a massive business, the risks and implications are the same for newsagents given that each transaction involves customers giving us information, some of which could some times identify them. The Target breach is making shoppers more vigilant. We would be well served to be on the front foot.

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Social responsibility

Wall of inspiration brings good vibes to the newsagency

nx-careshareWe setup this wall on Saturday to promote more of the inspirational / positive / happy / good feeling products we have in-store.

This range of signs, part of a broader range of inspirational products we have deliberately sourced, had been placed with gifts on the shop floor and they were getting missed, lost in the colour of other products.

Putting the inspirational signs on the wall with black A2 card as backing helps them stand out and be noticed – and that is key for a products like this where the words and design do the selling as they touch the heart of the shopper.

Our placement with the black backing also helps draw people deeper into the shop as the black backing makes this wall stand out if people glance around the business.

We have a deep discount store a few doors away from us with products similar to these – not exactly the same and certainly not of the same quality – but they are chasing the same customer. It is a thoughtful display like this that separates us from the deep discount competitor. While we will not attract someone only buying on price, we will drive impulse purchases from people shopping from their heart.

Products like this, products purchased to express a feeling or emotion for personal use or for giving as a gift are vitally important in newsagencies. Greeting card customers especially will purchase them.

Click on the image for a larger version.

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Gifts

Convenience stores battlefront

UK supermarket giant tesco is taking on c-store giant 7-Eleven in Thailand with the opening of a new model called 365. My understanding is that this is a trial of a new smaller-format c-store.

In Australia we see Coles and Woolworths continuing to change their core supermarket model and, to a lesser extent unit now,  play with alternative retail models. This new tesco model is something to watch.

Tatts gets this too – why else would they embrace 7-Eleven and Coles Express and treat them differently to newsagents.

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Newsagency challenges

Why is it overseas magazines still take so long to get to Australia?

magazines-christmasMy newsagency like plenty of others I am sure has Christmas themed titles still arriving from our magazine distributors. International shipping has changed dramatically in recent years. Many online retailers offer free fast shipping on low margin items.  Hence the question: Why is it we can get single copy overseas magazines here on time but not bulk copies?

I am certain that we could grow magazine sales if we got overseas titles sooner.

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magazine distribution

A good Australia Day impulse line for newsagents

grow-koalaThis Grow Koala – just add water – is an ideal impulse line for around the time of Australia Day. It’s an easy purchase due to cost and the fun factor. Good margin too. We have plenty of opportunities to grab extra $$$ from core product purchases with smart buying for the counter.

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Gifts

Do you have people asking for off-book cash payment to avoid penalty rates?

A newsagent told me last week that for the first time they are planning on paying two staff members off-book, with no record of their employment. They employees asked to be paid the regular award week-day per hour amount including the equivalent of super but for Saturdays and Sundays – responding to the prospect of having their hours cut by the owners who would work themselves to save money.

I am sure this story is not unique: that there are many employees keen for what are usually penalty rate hours – like today – who would happily work for regular pay given the prospect is regular pay or nothing.

Have current and prospective employees asked you to work off-book?

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Newsagency management

Yen cover helps newsagents reach an important demographic

magsyenlordeThe cover of the latest issue of Yen features Lorde, a singer songwriter from New Zealand who is achieving extraordinary success internationally – including the cover of Rolling Stone magazine. Her success is extraordinary for someone so young. Her fans are loyal and engaged on social media – this issue of Yen is being discussed by them on Twitter and Facebook.

I urge newsagents to place this issue of Yen magazine next to Frankie and ensure that both full covers are on show. By engaging we can achieve incremental business and demonstrate that we are relevant to a demographic that is weak for the traditional Australian newsagency.

If you do engage with this issue of Yen as I suggest, also think about your suppliers in other categories – what products do they have that you can sell to the Yen / Frankie shopper? This is where we have opportunities with magazines. It is how magazine traffic can be more valuable than the 25% GP we make on a magazine. The magazine is the lure, the profit is what you do with the catch.  However, this requires us to be engaged retailers.

This latest issue of Yen is an opportunity not to be missed.

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magazines

Bauer continues to oversupply Elle

magselleThe allocations experts at Bauer have increased our supply of Elle Australia on the back of a sell through of less than 50%. Five issues in and this magazine is loss making for us and, I suspect, many newsagents. We have promoted the title, given is excellent positioning, co-located a couple of issues and ensured the full cover is on display. It’s not working yet Bauer thinks we need more stock.

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magazine distribution

Stunning cover on Vogue Australia

magvogueblanchetteThe Cate Blanchett cover shot on the latest issue of Vogue Australia is stunning – better than in the photo I took on the weekend. We are leveraging the value of the full cover by ensuring it is completely on display – placing it in a usual magazine pocket dilutes impact. I urge newsagents to check their placement.

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magazines

Sunday newsagency management tip: take selfies of your business

Selfies (pictures of oneself) are all the rage: sexy and not so sexy. They feed off and into the obsession with living life publicly. They are facilitated and encouraged by the ease of sharing through social media.

The easy access to cameras on phones and other portable devices make selfies easy, allowing people catch moments they would in past years have only had a memory of.

Why not selfies of your newsagency business? … pics of your business, you and your people in your business. Not thought out too much, not setup, not for any reason other than catching moments in your business.

Here’s my management tip, yes, management tip, for today: take selfies of your business every day for a month. Don’t look at them. At the end of the month, scroll through them be open to what the photos tell you about your business. Look for opportunities in then images: opportunities for product placement, new products, better engagement with your business and other changes.

My experience is that the photos will show you thinks you have not seen before in your business. This is why taking selfies of your business is a management tip.

If a month is too long and you can’t wait – do it for a week.

Yes, this is unconventional management advice. We are in unconventional times. Think about it. years ao, the lines between the different types of retail businesses were clear. Today, the lines are not clear. Specialist retailers are challenged by department stores and others stepping into their space, we newsagents are stepping into other retail channel space. This breakdown of specialisation requires us to look at our businesses differently and any idea is worth trying if it shoes us what we have been missing. This is why I love the idea of selfies of your retail business – it will show you thinks you’ve not seen before.

You could take the seflies idea and give it to a team member. In fact, it would be ideal for a younger team member. Tell them to take the photos and not show anyone for a week or a month. See what they see. This could be gold – being able to see your business through the eyes of someone of the selfie generation.

You could also get a customer engaged – or all your customers: make a competition out of it. But don’t let them submit photos until the month is up. make sure they know you don;t want setup photos.

The more I think about this idea the more ideas flow. Play with it … see what you can learn about your business and consider how you can use that to grow your newsagency in 2014.

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Management tip

Sunday newsagency marketing tip: loving your community for Valentine’s Day

Embrace the love theme of Valentine’s Day but focus on your community. Cut out hundreds of hearts and ask your customers to write what they love about your town / community.

Put the hearts on show – so people can read the messages. Create a display in or on your window or create a tree-shaped frame onto which the hearts can be placed as leaves.

The completed tree or display, hopefully overflowing with heart-shapes with notes of what people love about their community becomes an inspiration for you and everyone who participated and looks at the finished art.

Let your council, chamber of commerce, community groups and schools know. Maybe invite a gold coin donation for each heart for a local charity. Let the local paper know as this is the type of local community story they should love.

There is no commercial goal here. No, this is a marketing idea designed solely to deepen the connection between your business and the local community.

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marketing

Fly swats the perfect Australia Day impulse purchase

flyswatWe’re maintaining our attention on impulse purchase lines beyond Christmas and the school holidays. Our buying focus is on items that connect either with a season or some other opportunity that is relevant to us and our customers. These Extendable Fly Swats are part of a range of items we sourced for selling around Australia Day. They’re a bit of fun and useful – perfect for this time of the year.

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Gifts

Dealing with changes in lottery fit-out requirements

Further to my brief post yesterday about changes to Tatts lottery fit out requirements, any newsagent facing a re-fit in the next three to six months should, in my view:

  1. Immediately write to Tatts asking that they timing be put on hold until they, Tatts, issue new guidelines. Explain that you have heard that some Tatts area representatives have acknowledged that the guidelines have changed. Seek immediate clarification. Send the letter by registered mail, fax and email. If your fit in weeks away, mark it URGENT.
  2. Take time to look at a 7-Eleven with Tatts products. Their spend requirement is minimal – less than $5,000.
  3. Take time to look at a Coles Express with Tatts products. Their spend requirement is minimal – less than $2,000.
  4. Review your business plan and determine from your projections over the course of ownership of the agency what a justifiable capital expenditure on the Tatts fit-out would be. In other words, spend according to your business plan and not the Tatts requirement.
  5. If Tatts is immovable, bring the matter before an appropriate mediation / dispute resolution authority in your area: QCAT, VCAT, CTTT, Small Business Commissioner.
  6. Also advise the ACCC of what you are required to do and draw their attention to the different standards for 7-Eleven and Coles. While various associations are making a collective case, individuals should too.
  7. Spend what is commercially appropriate to your business.

I am confident in my information that Tatts employees have advised some Tatts agents that there has been a change to guidelines.

If I was facing a re-fit I’d immediately put it on hold until I know the facts and revisit my commercial plans. It would be unwise of Tatts to pressure you i the absence of documented clarity on the changes.

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Lotteries

Refresh your view of your newsagency business

WARNING. This is a crazy idea. You could feel foolish for trying it. That’s the worst case. The best case is you get to see your newsagency through fresh eyes and from that flows ideas for making your business more successful. Okay, here it is:

Go to your shop at night time. Leave the lights off. Put a chair on the middle of the shop floor. Sit down. Take your shoes and socks or stockings off. Put a blindfold on. Soak it up. What do you smell? What do you hear? Is there any sense of place that you get from being there.  Be still for fifteen minutes or so thinking about this. Breathe deeply. How does your shop smell? Does it have a smell? If not, why not? Then take the blindfold off and look around you for another fifteen minutes. Finally, get up – with your shoes and socks or stockings still off – and walk around the shop. Take in the environment you are in control of. Let the ideas flow. If you want to take it to a deeper level, lie down on the floor on your back and look up and around – kind of up-skirt your own shop while it’s empty!

Your future is best created by you.

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Management tip

Broaden the appeal of Valentine’s Day with a broader gift range

valteacupsThe range of gifts we sell at Valentine’s Day is only limited by the range of gifts we carry. There was a time when Valentine’s Day was about plush and chocolates. Now, with the season being embraced by more, we can sell all sorts of gifts. We’re having a crack with a range of retro-themed mugs. I love the retro music theme and so do our customers.

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Gifts

Mollie Makes magazine in supermarkets

magsmollimsuperI was surprised to see Mollie Makes in a Woolworths supermarket yesterday. I see this as a specialist title, too fringe / specialist for the limited pockets in a supermarket. Makes me look at them even more competitively.

A difference between newsagents and supermarkets on magazines is our range in niche titles. If supermarkets enter this space I’d be concerned.

If you’re reading this blog post because you did a Google search for Mollie Makes – buy your copy at your local newsagency and support independent small businesses … we’ll love you for it!

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magazines