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

Deliberate magazine placement drives food title sales

Food magazines account for 4% of our overall magazine sales and sales are up year on year. One reason is our obsession with placement. we ensure that appropriate titles are next to each other. Take our foodie titles, we place them in a line with the full cover on show. It’s careful placement like this that helps drive shopper efficiency – getting people to purchase more than one title.

By taking time and being deliberate about what titles we place next to each other, we can increase sales. This is another reason we need the right people putting out magazines – it’s not a menial task … indeed, it can be the difference between magazine sales growth and decline.

deliberate magazine placement ought to be the goal of every newsagent.

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magazines

Strong interest in The Age tabloid launch

The launch today of the new tabloid size of The Age has resulted in sell outs across all retail channels. In one of my stores, in a major shopping centre in Melbourne, every outlet with the title has sold out and none is able to get more stock. This is frustrating.

The strong interest is being driven by the excellent coverage of the new size.

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Newspapers

Magazine editor discusses whether to go digital or not

I urge newsagents to read the important and timely editorial from Lisa Mora in Vintage Caravan Magazine as she discusses whether to publish a digital version of the delightful and engaging magazine.

Lisa’s thoughtfulness about the reader experience is compelling. For me, her reasoning for commitment to print is a call-out to newsagents, especially those newsagents who do see magazines as a continuing point of difference for their newsagency business. It is special interest titles like Vintage Caravan Magazine that provide us with a point of difference on which we can rely for valuable traffic to our stores.

My view is that magazines continue to offer us a point of difference. Yes, we need to manage range to ensure it is efficient and viable. However, we need to be careful to not cut range too deeply and damage our point of difference.

Lisa regularly comments on posts here and actively engages in discussion with newsagents as she see us as playing an important role in getting her magazine into the hands of people interested in vintage caravans.

Read the editorial.

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magazines

Tapping into Your Garden sales growth

We are promoting Your Garden in the best location in our garden section to make the most of the growth reported in the recent audit results.

The year on year sales growth of 8.71% is excellent and a terrific reason for us to promote the title.  This plus the excellent cover shot.

I’d encourage newsagents to check where they have the title. Make sure the full cover is on display.

TIP: Your Garden works well when placed next to your top selling newspaper.

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magazines

Final issue of Grazia has mixed results

The final edition of Grazia magazine, billed as a collector’s edition, has achieved mixed sales results based on what I have seen in my newsagencies and what I have heard from others. In most cases, sales were at the recent average for the title or one or two copies above – delivering a soft exit for the six year old title that sought to redefine the weekly magazine space through its fashion focus.

We gave Grazia a good send off with excellent placement showing off the full cover.

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magazines

A panorama view of my newsagency

Check out a panorama view of one of my newsagencies yesterday. This captures the focus of the business and shows off how present product and don’t rely too much on posters in-store.


  
Click on the image for a large version.

This store is three months in and delivering an excellent GP, well above industry average.

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Newsagency management

Sunday newsagency marketing tip: count your messages

Stand in front of your newsagency and count how many different marketing / promotion messages confront your shoppers. By different I mean different content, different core messages and or different look and feel.

If your newsagency is like a typical newsagency, there will be at least twenty different messages to customers. The messages will lack consistency in look and feel and lack consistency in value proposition.

These messages are not marketing your business as much as the products they are promoting.

A business like a newsagency should have no more than  two (maybe three) core overall marketing messages confronting shoppers from the entrance to the middle of the store.

Provide a consistent, good, message and you;re more likely to see engagement.

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marketing

Sunday newsagency management tip: understand the value of pens

In many newsagencies I see, pen sales account for around 30% of all stationery sales not including ink and toner yet pens usually take up less than 10% of the floor space and reflect around 10% of the investment in stock.

These numbers make pens valuable, probably more valuable than newsagents consider.

With such a valuable return on investment and return on floor space, how do you treat them? Do you treat them as the most valuable and important category in your stationery department? Do you consider carefully what you situate either side of pens, in front of pens and in display to shoppers as they leave the pen area?

We know from newsagent sales benchmark data that pens are valuable not only for the revenue they generate but also for the value we derive from the traffic they indirectly generate.

My sense is that we could leverage the pen opportunity more by better staff training, more attentive management, watching product adjacencies and, maybe, tweaking margin.

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Management tip

Frivolous fun on a Saturday

I played with our AFL Beanie Kids display to reflect the drugs cloud currently hanging over the Essendon Football Club. It was a bit of nonsense fun but couldn’t get it right so I put the display back. I was looking for represent the Essendon mascots as drug enhanced compared to their competitors – like the upstanding Carlton.

Don’t tell the boss I was goofing off.

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Ethics

Associations as supplier mouthpieces

It is interesting to see that Associations continue to be used by newspaper publishers to promote their changes – Fairfax this week as the tabloid editions of the SMH and Age approach and News Limited promoting thier advertiser (BMW) driven Sunday delivery of The Australian. each time an association publishes press released from the publishers they do themselves a disservice. Their members are newsagents. Everything they publish and do should be solely for their members and reflecting the collective member position.

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Newsagent representation

Good February newsagency sales numbers

I’m happy with our February trading numbers. In a year on year comparison and adjusting the 2012 numbers for the extra day, we did okay, good in fact.

While magazines, overall, are down 2% for us, women’s weeklies are up 1% – significantly against trend. Diaries are up 99% off a good base for Feb. Plush is up 174% ($4K+ for the month) and Gifts are up 275%. Basket depth for us is up 11% – showing wonderful growth in shopper efficiency.

While Valentine’s Day was an excellent season, the rest of the month has been terrific with moves we have made paying off in some of the new money areas for traditional newsagencies.

Yes retail is tough and the newsagency channel is doing it tough, newsagents working as retailers, chasing change and standing for something in their businesses are, overall, doing well. This makes a newsagency good investment as every newsagency has these opportunities.

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Newsagency management

AFR announces price increase, margin increase and redesign

Fairfax announced yesterday a 10% cover price increase for The Australian Financial Review and Weekend Financial Review effective from March 11 and March 16 respectively. These moves are good news.

As a retail newsagent however, a sub agent in the eyes of Fairfax, I’d like to see a better margin. The AFR is loss making in shopping centre newsagencies with high occupancy costs. This is true for all daily newspapers with a volume of 15 copies a day or less.

So, while I am thrilled at the direction of the move, it’s time we saw a fundamental shift for an equitable return for the retailer. The return determines how we treat the product as my post yesterday showed.

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Newspapers

Pushing further into jewellery

We are pushing further into jewellery in a couple of my newsagencies. We’re learning more about what our customers will purchase from us as opposed to a specialist jewellery store.

Right now, jewellery products are part of gift for tracking and reporting at the moment but I can see value in separating them out into their own department.  We have done this with plush as the plush numbers were skewing overall gift.

When a category dominates sales in a department and is growing at a different pace to the department there is a case for separating it into its own space.

The range of jewellery in the photo is a small selection of the broader range we embracing.

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Gifts

A better Easter display

Check out our better looking Easter display.  This is an excellent replacement for the display a couple of us put together to a week back.

This new display has action and a sense of a story to it. It’s been up for a couple of days and it is working a treat – drawing shoppers to the business.

We have bought product for growth and are displaying for growth. We;’re certain we will see this – well into double digits.

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Gifts

Here’s what newsagents want from newspaper publishers to help drive sales

In my survey last week I asked: What marketing initiatives or incentives would you like from newspaper publishers to help you sell more newspapers? Here are all the responses to this question:

  1. If it did not cut the commission.
  2. In-store prizes, ad on sale incentives, combos etc
  3. Sell the paper to us at the same ridiculous price that some subscribers pay for their paper. We could preorder with no returns for a 7 day at $2.70, $3.95, $4.95 per week.
  4. More positive attitude to newsagents
  5. Stop delivery agent under suppling so you have product to sell after lunch time would be a good start before instigating any marketing initiatives
  6. Work on a tier system for better profits/margins
  7. Pair 2 titles together, ie our local paper retails $1.50 and smh retails $2.00 both fairfax publications sell 2 for $3.00
  8. Retail newsagent only special offer, with a healthy margin to offer
  9. Extra commission because 10% is nowhere near enough.
  10. Margin must be 25%, promotion items must be 25%. The rest we can do ourselves.
  11. Assistance with meeting delivery costs.
  12. Better content, more local content, more incentives for customers to buy the product
  13. SPECIAL PROMOTIONS/COUPONS/COMPETITIONS FOR READERS
  14. Promote Newsagents to public via Newspaper or via Commercial. Incentives – Commission on all promos to be 50%, Initative – Remove atrocious attitude towards its core customers which are Newsagents, these are the faceless men & women who we do not see not the Reps.
  15. Need to have less outlets so it becomes a destination not in every servo/corner store
  16. Increase the supply so we don’t run out. When people find you have run out they stop coming Advertiseheadlines on local radio
  17. Ability to sell deals/packaged subscriptions at the counter
  18. Being able to sell them (retail) in Week Blocks would work well.
  19. Reliable supply would be a good start. Margins need to improve. If we sell 400 papers a day thats good, but we need more than $80-90 in GM to justify the prime space. The publishers should advertise the masthead in the other media more ( e.g. radio, web etc)
  20. More margin. Nothing in our store should be less tan 30% margin. Punctual supply (it is an early morning product). More advertising of Newspapers on other media. Building an emotional link between customer and newspaper brand.
  21. for them to be supplied on time and the correct quantity. Good merchandise material, ability to seek commercial customers by giving them two weeks free papers delivered , once they see the benefits they usually continue paper delivery for years
  22. In SA News Ltd runs promos giving a free paper with a $2 purchase instore, only after 2pm, normally during the week. (a waste of time) Other channels, supermarkets and conv run these promos all day, normally weekends. I’d like to be treated equally with these promos. I’d also can’t understand why my competitor is my agent and shares in my profits 50/50 simply for delivering papers the last 1% of their journey. I prefer to run out of papers rather than paper for the labour cost on a Sunday night of processing the return. I make approx $120/wk from newspapers(on a good week) and spend $20 to $40 on labour processing returns.
  23. Better posters, subscription drives, more frequent giveaways and promotions
  24. Position newspapers as a premium product, for example in an office, junior employees read news on-line; senior managers get daily newspapers on their desk.
  25. When they have incentive programs like the recent one for news ltd for the children’s books that they not supply more of the books to Coles than they do us. As everyone came to us to collect the books as we had the ability to hold books and papers for them. Make sure they look after newsagents before chains like Coles.
  26. Reward customers for purchasing paper. Something like the old accident insurance that subscribers received about 40 (or more) years ago.
  27. Do special promotions for newsagents only, be it linked with magazines or free stock.
  28. Cooperation firstly then perhaps we can look at initiatives
  29. “at your local newsagent with your paper you will recieve x (special bonus) but only at your newsagent” etc etc – showing we are the specialist retailer of print products.
  30. DEALS
  31. The promo toys etc they do with the papers would be better if we actually got a better margin for them.Would like to see them actively push news agents in their advertising
  32. Our biggest day to day problem with papers is distribution quantities, i would like more control each day, so that we get the numbers right. sales targets – $$ for increase in sales per week : same time last year.,
  33. More sales margin
  34. Fair remuneration for home deliveries would incentives the me to chase new customers – current levels of remuneration actually discourage that! Promotions that use or encourage educational involvement e.g. Attenborough series
  35. Be reliable with timing delivery of papers to us. Have extras available within an hour. produce an online app to help us track sales taking into account weather events, school hols, sports events etc etc.
  36. Higher commission
  37. The West Australian used to do a 5-week car giveaway. The customers would then have to come back to the store to put the envelopes in the box. Their new campaign is just bingo, where all they have to do is buy the paper.
  38. I would like to have simply more margin. 12.5% is not enough. Reliable delivery (They’re so often late) would also be helpful. For us newspapers is an early morning product. We promote gum, quik-eze and enos, small confectionary and milk based drinks alongside highlight magazines
  39. Less low margin promotions like kids books and aust day hats which chew up newsagents time. If their going to do promotions stick to the bingo’s and car give away’s where the customer has to buy weekday papers to enter and the newsagent isn’t involved.
  40. Reasonable 25%+ margin (the current 12.5% does not even cover costs_ – Control over supply (not all distribution newsagents are good operators and many newsagents aren’t selling their full potential because of chronic undersupply) – Gradual price increases to abate the effect of declining sales on profitability
  41. They need to stop free papers for a start. They need to stop cheap – shitty give aways that belittle the price of the paper. Customers think the paper is desperate for sales by DVD giveaways etc. They tarnish their own brand. They need to reward customer loyalty of home delivery with special giveaways ONLY for those that regularly purchase papers NOT the whole world. They could run sweeps – where each day you get a code – could run for weeks – need the whole code (issued bit by bit in daily papers) to win a prize. Like Hallmark card promotion, purchase 20 papers (and get card stamped) get a free paper etc etc. Even without commission structure changing, if it encouraged an increase in newspaper sales (rather than decrease) it is off sets the lack of commission by more sales. Also it does not encourage people to download the paper if there is not any reward system or giveaways.
  42. Pay me more money you only get what you pay for no money who cares
  43. Promote newsagents as an outlet for there paper
  44. CONSTANT , REGULAR SUPPL,Y WITHOUT SHORTAGES WOULD BE A GOOD START
  45. Higher comm
  46. There should be a sliding scale commission basis, the more an outlet sells the more commission they get. This will weed out the poor performers and encourage all agents to better handle the product. At the moment there is no incentive.
  47. To have adquate supply of papers so that we are not sold out by late morning. This is the easieast way to lose customers. To consider the supply we request for holiday times (we are a big tourist area) and not cut supply to what they think we should have. We are finding people still like to read the paper either early before work or first thing in the morning to read over a cup of coffee. To accept that sales every day are different depending on the activities in the town, tour buses and to accept that newsagents with subagents serving hotels have different day requirements. The Advertiser ran a very successful book promotion but ran out of books in the country whilst the city had plenty. Good promotion and Advertiser sales spoilt by lack of product.
  48. CUT THE GOSSIP PAGESRUN PM CBD EDITIONS.DONT PRINT NOSENCE POSTERS.
  49. Bundle offers eg 5 papers to a business eg lawyers,doctor surgeries, cafes etc. for a reduced price. i think proactive newsagents would push and make up their own deals if their was a better commission base for newsagents
  50. Marketing is ok but we NEVER get enough supplies and topups never have extras so we have stopped trying
  51. Just advertising on TV would be a start with a subscription offer.
  52. EARLIER DELIVERIES, NO GRAVEL RASH ON PAPERS. INSERTS IN 99.9% OF PAPERS NOT 80%. FORGET SENSATIONAL JOURNALISM
  53. A Representative to call occasionally to keep us informed – as Retail only info is limited.
  54. I would like to see engagement on a retail level. It frustrates me when i see papers being offered to those outside the channel at better rates than we retailers ever get i.e. get 50% etc etc
  55. None, I want a higher GP to make it worth chasing more sales
  56. Supply more papers.
  57. More promotions, better content, more local news,
  58. No more discounted offers. No freebies at movies, gyms etc.
  59. Valid content.
  60. Emphasise quality & value of product. The closer newspapers get to being free, the lower their perceived value.
  61. None, get them here on time!
  62. Have a direct relationship with us for diving sales and not through a distribution agent.

A useful cross-section of feedback for newspaper publishers.

For me, the key is a direct publisher / retail newsagent relationship.

5 likes
Newsagency management

I wish politicians would stop fighting over the NBN … just get it done

It’s frustrating that the opposition parties continue to fight against the NBN, using, in my view, specious arguments. This is an infrastructure Australia needs to compete in our digital economy. Every slowdown because of debate, every second-guess planted without facts in the minds of voters delays us getting access to what should be a world-class infrastructure.

Those in opposition had their chance to deliver good IT infrastructure and they ignores it. Labour gets in, acts and then the Liberls and Nats decide they have a better solution. They had their time.

In terms of the NBN, as a country we need to just get it done.

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Media disruption

Challenges for the Nook device

There is plenty of coverage online about challenges for the Nook ebook reader sold in the US by Barnes and Noble. The challenges are not limited to the Nook as there is a battle between device manufacturers for ‘ownership’ of the reader channel.

As tablet computers become lighter and have a longer battery life, readers will, I suspect, prefer a device that delivers a range of services and not just access to books, newspapers and magazines.

The ebook reader space is brutal, as Barnes and Noble is discovering. It would be interesting to see how the Kobo is going for Collins Booksellers.

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Book retailing

More evidence that Officeworks does not offer lowest prices

A diligent newsagents has sent me this comparison of the current ink prices laid out next to the same products from Staples and Officeworks.

The newsagent’s prices are cheaper for more items than Officeworks – yet Officeworks promotes that they have the Lowest Prices.

The newsagent’s prices are cheaper than most of the prices from Staples – yet Staples relies on a lazy 100% best price guarantee to make it look like their deals are better.

Yet Officeworks and Staples crow that their prices are better, using a variety of attention grabbing language in their expensive marketing campaigns.

The other big difference between this newsagent and the two national businesses when it comes to ink is that the newsagent spends very little advertising their better prices.

Maybe the value actually delivered by a business is the inverse of what the business spends advertising that they offer value.

In this election year I would like firm promises from politicians from all sides about this issue – big businesses claiming their prices are lower or the best when they are not.

I’d like to see firm commitments to fund an office within the ACCC for reporting situations where companies claiming their prices are the best can be reported and penalties easily imposed, penalties of sufficient scale to change their misleading behaviour.

In the meantime, if you sell an item for less than one of these national retailers that advertises that they are they cheapest, promote your advantage. Name and shame them. We have to stand up for ourselves.

Click on the image for a closer look at the comparison.

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Newsagency challenges

Challenging figures for Gotch magazine distribution business

PMP yesterday released their first half figures for the 2012/13 financial year. EBIT for the first half of this financial year is $200,000, 89.4% lower than for the same period a year earlier. revenue for the same period was down by 9.7% to $167.5 million.

While these are challenging times for magazine distributors, newsagents are even more challenged with many unable to reduce their investment in magazine inventory.

The PMP numbers show that Gotch is making less from magazines – distributing fewer magazines. I suspect there is a difference in in scale out changes between magazine retail channels. The supermarkets, for example, would get attention beyond their market share, they would demand and get greater efficiency while newsagents demand and remain ignored.

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magazine distribution

Looking for the Ellen sales bump

We are promoting the latest issue of The Australian Women’s Weekly, with Ellen DeGeneres on the cover, in several places including this frot of store display.

Melbourne is in the grip of Ellen fever with news related to her dominating local media this week. Ellen’s wife is Victorian and that provides a local connection with her and media reports about her.

I have high hopes for this issue of AWW. We’re embracing the opportunity.

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magazines

Retail newsagents want newspaper publishers to engage with them

The survey I ran on the weekend produced a not unexpected result from the 93 participants – showing that newsagents do want direct publisher engagement, more commercial focus and a resolution of supply issues – so they can sell more newspapers.

It’s a pity that newspaper publishers don’t share the same goals as newsagents.

You can see more survey results here. I will publish responses to the last question – What marketing initiatives or incentives would you like from newspaper publishers to help you sell more newspapers? – later.

Over to you newspaper publishers. You have a willing retail channel here, one you have neglected to engage with and one which could increase sales of your products.

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Newsagency opportunities

More suppliers looking to the retail newsagency channel

The rate of enquiries I am receiving from manufacturers and importers keen to connect with the newsagency channel has increased this year.

I’d usually hear from a prospective new supplier every three or four weeks.  I’ve had eight enquiries in the last three weeks. Each with very different products, most new to the channel.

The vast majority of new products I hear about would rely on existing traffic to be successful. While this is good in terms of driving shopper efficiency, I am more interested in products that deliver their own, new, traffic to newsagencies. These products (and services) are gold to us and ought to be pursued relentlessly.

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Newsagency management

Scooby Do is another terrific brand to promote

Regulars here will know that I am a fan of brands in retail and in retail newsagencies especially. Brands draw traffic and ease the sales process. My experience is that people who buy known brands worry less about price. This is why we are thrilledto have the new Scooby Do interactive product from Hallmark.

In fact, we are so certain Scooby Do will work so well for us that we have it in two locations, to face the two ken traffic routes in the shop.  We often do this – leveraging the different traffic we see to make sure that key offers are not missed.

The photo shows the counter display. We’re using the screen from hallmark to show the product off running the Hallmark collateral.

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Gifts

Promoting 15 Minute Meals

We are the 15 Minute meals cookbook from Bauer with this aisle end display.

We find that placing the price on the display helps engage shoppers more – but we’re not sure if this is shoppers new to the range. regardless, promoting the price helps in our situation.

I’m not a fan of the free cookbook stuck to the cover of the main product. These stuck on cookbook gifts have been overdone and don’t add value.

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magazines

Is it time newsagents ceased as directors of newsagent-owned enterprises?

Newsagents sit on the boards of various businesses supplying newsagents including stationery wholesalers and associations. While I am sure they discharge their duties to the best of their ability, it is appropriate to consider whether newsagents are the best directors of these business enterprises.

Newsagent owned businesses, and associations conducting commercial activity to newsagents, operate in a commercial world quite different to a newsagency – distribution or retail. This is why I question why newsagents make the best directors.

Directors are usually paid fees for their time. Are they worth it ? Are their decisions adding value to the businesses? Are the boards they sit on performing well? Would they get a gig on the board of a competitor business?

I know from my own experience on the ANF board in 2003/04 that newsagents bring personal baggage to the boardroom table. I saw a lack of commercial savvy and a disinterest in due diligence and transparency.  Bill Express is a perfect example of a bad decision by directors ill-equipped to make the decision. Before I resigned I expressed concern at the excess of the ANF Board meeting bar tab – a 45 minute fight ensued which I lost. They spent more time arguing about this than matters of serious commercial consequence for newsagents.

I have other stories I could share of my own and from others. If only newsagents knew.

Boards ought to be focused on big picture issues, setting direction and holding the employees of the organisations to account. Too often that is not the case, giving the competitors a free kick and wasting member and shareholder funds along the way.

These newsagent owned commercial enterprises collectively turn over well over $100 million a year.

Isn’t it time we populated the boards with quality commercial directors as competitors of these businesses do?

19 likes
Ethics