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

Month: February 2007

Join our online petition to stop instant lottery products being geing sold in supermarkets

Please help Victorian newsagents lobby the State Government as they consider whether to grant the Greek company Intralot rights to sell scratch tickets. Intralot has been reported as saying they plan to sell scratch tickets through supermarkets. The petition is setup at the respected Go Petition here.

We have been running a petition in our shop for several days and it was with encouragement from our customers that we created this online petition.

Our customers are telling us they prefer the personal service on a newsagency. One told me that they come to us with a mind to purchase lottery products whereas he does not want to face that temptation when buying groceries.

My view is that supermarkets are already bloated with range and profits. Their employees operate like automatons. Lottery products require attention not only for accuracy but also for compliance.

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Lotteries

Newsagent ad live at 3loves online dating site

3l-newsagent-ad.JPGThis is one of the ads we have just started running at our 3loves free online dating website. 3loves is one of four social media sites we are building to drive traffic to Find It online classifieds.

Find It is being launched in partnership with newsagents – newsagents will earn commission when we start charging for advertising. We have contracted to profit share with newsagents.

By clicking on the newsagent ad at 3loves people get to the Find It database of newsagents.

We have only just started running banner ads on 3loves. More banner ads for newsagents will be added over the next two weeks. We will be tracking how many people click on the ads and search for a newsagency. This link is another reason newsagents need to place their free business ads on Find It – currently there are 1,000 newsagents listed. Only a few have loaded photos. Check out the listing for Beechworth Newsagency and my business, newsXpress Forest Hill.

3loves is achieving close to 2,000 visits and 8,000 to 10,000 page views a day. The current newsagent ad will be on a third of all pages viewed. To my knowledge this is the first time the generic newsagent shingle has been advertised online in this way. The benefit is only there for Find It newsagents as they are the ones listed when visitors click the link.

With 4,200+ profiles now online, 3loves is growing well. The interaction between people with profiles is about day to day stuff and not just dating. Having a newsagent message in the background during this contact helps us promote the channel and our local community focus without bigger business noise drowning us out.

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marketing

Find a newsagent

I’ve added a button to the right for people looking for a newsagent by postcode. As well as a text list you can see newsagents in the area by a map. Enter a postcode and click the button to start the search.

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Uncategorized

OK! retail marketing

With so much visual noise in newsagencies it’s hard for publishers to cut through. The folks at OK! have hit on a good idea with this counter unit. The key is to have product nearby for impulse purchase.

ok-counter.JPG

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magazines

Magazine loyalty program competition

mag-madness.JPGWe launched the first ever Magazine loyalty program in August 2004. We planned for our Magazine Club Card to run for six months. It’s now run for two years and five months without a break. While some individual newsagents have embraced our loyalty program with success, the most sustained success has been achieved by newsXpress newsagents.

There is more science to the Magazine Club Card program than printing a card and pitching the offer to customers across the counter or on a poster. There are rules, disciplines, magazine layout implications and day to day management changes which integrate to deliver what one magazine publisher calls the most significant sales growth achieved by any magazine banner group.

I mention this by way of background to what I really want to blog about – the new Magazine Madness promotion by Newspower. Like any parent I am proud to see how far my initial single store promotion has traveled. The Newspower execution is not as good as it could be. The purchase rules will not drive sales as much as I see in my shop. The lower redemption value dilutes the reward.

Customers are smart. A good loyalty program needs to offer a genuine reward for an achievable yet above average commitment from the customer. The Magazine Madness campaign from Newspower does not do this.

I’d welcome an opportunity to help any newsagent with any aspect of their business. If I knew Newspower were launching into the magazine loyalty space I’d have suggested they play elsewhere – not because of the competition but to ‘own’ a point of difference. Newspower has one key and exclusive asset, membership numbers. They are the largest marketing group of newsagents in the country. Their size and geographic spread could have been leveraged in a more powerful and unique campaign than any single store of a small group of stores.

Every day at my newsagency we pitch the Magazine Club Card to customers we’re seeing for the first time. We still get a buzz from their joy at the opportunity to same money on magazines. I know we continue to pull sales from the supermarkets because of the program. Locally, it is one of our key points of difference.

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magazines

Free satnav gift driving ink and toner sales

satnav.JPGOne of our suppliers sent us this cool MIO C310 satnav device as a rebate for our purchases last month. We’re using it as a prize to drive ink and toner sales. Newsagents don’t often have access to rebate products such as this from suppliers so it will be good to kick sales along and make one lucky customer very happy.

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Stationery

Valentines Day promotion

Valentine’s Day sales are usually made two or three days out from the big day. This year we’re seeing sales kick in sooner thanks, in part, due to this outpost we’ve been able to negotiate for a low price with the landlord. We used to run an outpost on another level but with Kmart going we felt we’re better off building noise on our level. Others tell me their sales are tracking well too.

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Greeting Cards

Chocolate pornography for Valentine’s Day

The Valentine’s Day product which seemed like a good idea at the time.

Karma Sutra chocolate, how could this NOT be great for Valentine’s Day? We saw the samples and laughed. Yeah, a bit edgy with the designs but fun. And chocolate, who doesn’t like chocolate?

Plenty it seems. We’ve had our Karma Sutra Valentine’s Day chocolate out on display for two days and the complaints are rolling in. Some sales too, but more complaints. I am guessing that our complainers have not looked in some of our cards.

Below is a photo so don’t scroll down if you’re likely to be offended.

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We picked the product as a point of difference from the usual Valentine’s Day fare. Those who have bought it like it for this reason.

Worst case if it does not sell is that we get to eat it.

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marketing

GNS the newsagent owned wholesaler competes with newsagents

Newsagents are fighting with the stationery wholesaler they own to stop newsagent competitors getting equal deals.

GNS (Group Newsagency Supplies) was established decades ago in NSW to give newsagents access to stationery at competitive prices. Now, with offices up the eastern Seaboard, GNS is the largest supplier of stationery to newsagents. It is 100% owned by newsagents.

Imaging the surprise when newsagents discover GNS branded product in non newsagent retail outlets – such as the Licenced Post Office shown in the photo below. In the yellow box is GNS branded product also sold in the newsagency next door to the post office.

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GNS is transparent about supplying non newsagent retail outlets and I have no quarrel with that. What is wrong here is GNS supplying GNS branded product, the newsagent funded brand, to non newsagent outlets. I might also have an issue with the price GNS charges non newsagent outlets if I knew the pricing arrangements for them.

Why does this matter? GNS is the first to complain when newsagents purchase stationery elsewhere. They berate newsagents saying that they should support the warehouse they own. This also applies to GNS. The best way for them to lead newsagents to be loyal is for them to be loyal to their shareholders.

The newsagent who brought this situation to my attention has been treated poorly by GNS with no answers provided as to how GNS branded product gets on the shelf of the post office.

I am a shareholder in GNS and my newsagency buys its stationery from GNS.

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Newsagency challenges

Instant scratch petition support grows

Signatures on our petition to call on the Government to not allow the sale of scratch lottery tickets in supermarkets are growing. Without any pitch or fanfare customers read the sheet and sign up. More are commenting across the counter with extra comments about Coles and Safeway. If more newsagents put this or a similar petition out I am sure we could have thousands of signatures in a few days and surely the government would have to take notice.

I don’t want instant scratch tickets told in supermarkets because this would reduce sales in my newsagency and that would have a knock on effect through the business. I am sure most newsagents in Victoria would agree with me.

Unfortunately, the industry association does not seem engaged with this issue.

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Lotteries

Magazine brands driving consumers online

Magazine publishers are building extraordinary online traffic for established print brands.

Last year the Magazine Publishers of America published the Top 10 Websites Associated with Magazine Brands as collated by the Media Industry Newsletter. The growth experienced by some of these magazine websites is extraordinary. Take Vanity Fair – pageviews up 64% November 2006 over October 2006; unique visitors up by 65%. That’s extraordinary growth. Other magazines are experiencing similar: Premiere; Popular Science; Time; In Style; Men’s Health.

What’s interesting yet not unexpected is that many of the titles experiencing extraordinary growth in online traffic are experiencing flat or falling sales over the retail counter. Take Popular Science: 1,055,038 unique visitors. Great online growth while at retail the science category in retail is falling – down more than 10% in 2006.

Magazines are not dead. Many titles are using their online presence to stay in touch with readers as well as attract people new to the brand. Some categories are fading and the retailer challenge is to balance real-estate up to reflect this.

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magazines

Newspaper ditches newsprint

Wired has the story. Okay, it’s a small circulation title with legal listings. That does not diminish the significance of the move.

I first read this story about Sweden’s Post-och Inrikes Tidningar somewhere else last month and thought it was not worth blogging about. Then, today, I heard Cemeron Reilly of the Podcast Network and James Farmer, the online Community Editor for The Age debating the role of ‘citizen media with Jon Faine on ABC local radio in Melbourne. Farmer was talking down the impact of online on mainstream media. Reilly batted well for the disruptors. Farmer would have us believe that most blogs are a waste of time and irrelevant. Traffic says otherwise. Feedback at blogs says otherwise. Blogs provide a better opportunity for transparent democracy than mainstream media could ever offer.

Mainstream media has lost its monopoly on access to the masses and it’s struggling to come to grips with that.

How we consume media is changing. In a small way I’m covering some the change in this blog – in the context of change impacting Australian newsagencies. There is no point resisting such inevitable and good-for-the-community change. Indeed, we ought to embrace it. The challenge is how we in small business deal with this when our suppliers do not adjust their behaviour.

Take computer magazines. Sales in the category are in free-fall. The top selling titles are doing okay but outside these five or six titles, everything else is in trouble. Newsagents are still being supplied at quantities reminiscent of the halcyon days. This is sucking their businesses of cash. Fixing the problem is taking newsagents away from adjusting their businesses elsewhere to address the challenge of consumers accessing online what they used to buy in a newsagency.

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Newsagency challenges

Free WiFi at the newsagency

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We have changed approach to offering free WiFi in our newsagency, using now the calmer blue posters to skirt our main display window. The original posters were getting lost in the visual noise of the shop. Plus we felt that WiFi users are more likely to be people outside the shop than inside. These window posters are generating queries and that’s great.

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Web 2.0

Windows Vista titles slow to market

The launch of Windows Vista is not as well supported by magazine publishers as previous Microsoft Windows upgrades.

As of today, Australian newsstands have one dedicated Windows Vista title plus APC and PC Authority with good Windows Vista coverage.

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This lack of Vista product may be sue to delays in local distribution of overseas titles or due to the decline in the computer title category in favor of accessing more timely information online. If Vista rolls out like iTunes titles, we will have three or four in the next few months – too late to capitalize on the considerable interest today.

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magazines

Newspaper home delivery costs

In the 1990s Australian newsagents made, on average, 26% of the cover price per home delivered newspaper. This includes delivery fees. Today, based on data from a sample of newsagents in four states, the average gross profit has fallen to 21%. This has come about because home delivery relationships have moved from being between newsagent and consumer to publisher and consumer with the newsagent a hired delivery service provider.

While some newsagents have altered their businesses to cope with the revenue squeeze, many have not. In one state we are seeing GP as low as 11% on some newspaper offers. This does not cover the costs of managing, wrapping and delivering the product. There is no doubt that GP per titles delivered will fall further this year.

In a flat (decaying?) market, GP and therefore cost pressure will increase significantly. One way newsagents can make the relationship more profitable is to take it beyond newspaper home delivery. Successful newsagents regularly market to their home delivery customers and through this achieve good stationery and other sales; they are visible in providing the service – well branded vehicles and employees; they promote to acquire their own home delivery customers outside of what the publishers do; they focus on their own costs. Unsuccessful newsagents deliver the newspaper and that’s it. This is where decay in newspaper sales will hit the hardest.

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Newspapers

Ralph display causes a stir

ralph-feb07.JPGNewsagents across the country have setup feature displays for the latest issue of Ralph magazine as part of their commitment to in store promotions. Our display has offended some customers. If any more complain we’ll take it down. While we need to promote the diverse range of titles we carry, there is no point in getting our most regular and valuable customers, women 35 and older, offside. Part of the problem for us is that our feature display areas are right next to our women’s magazine area.

I was talking to the owner of a petrol outlet and asked why they don’t do displays like this. His answer was blunt: what and upset half my customers? No way. I suspect that the newsagent displays will hel;p boost sales in these non compliant petrol outlets.

I want to promote Ralph and other men’s titles – I’ll find a better wan to do this without our core customers.

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magazines

Shuffling magazines

As part of the magazine shuffle I blogged about yesterday was the move of Notebook and Real Living from the interiors area to the high traffic women’s area. These are hard titles to locate. Their covers suggest interiors but inside they cover a broad area. They are like several other new and refreshed titles which cross segments and make placement challenging.

mag-womens.JPG

We’re not sure that this is the right location – only time and data will tell us if the move is right. The challenge is where do they belong if not here?

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magazines

Health magazines given greater prominence in layout change

Sales of health magazines are booming, growing more than 10% in 2006 compared to overall magazine category growth of just under 4%.

Responding to this growth and the opportunity of several new titles, we have broken with traditional newsagent magazine layout thinking and moved the Health category to better real-estate.

mag-health-a.JPG

Our health titles used to be wedged between wedding and children’s titles. Now they are located near the top of our busiest magazine aisle and next to the popular food section. The move helped us address a location dilemma – the placement of food titles which focus on health such as the Better Homes Diabetic Living.

A side benefit of the move is people finding new titles when they get to an area their favorite titles used to be. Given the frequency of customer visits many become store blind so changes in magazine locations can boost sales.

Newsagents tend to see magazines as set and forget products. In some respects, with 1,300+ titles in stock, moving categories can be too daunting to contemplate. Our simple move took two hours of researching and planning and another hour and a half to execute. It was like playing a puzzle game, moving block by block and sometimes going backward until the goal was achieved.

The move is less than a week old so it is too early to assess any impact. We’ll measure carefully and adjust as guided by sales data.

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magazines

Maxim launches Monkey – the world’s first weekly digital men’s mag

The World’s first weekly digital men’s magazine has arrived and it’s 100% FREE forever! Yes! Give us your email address and every Wednesday you’ll get a link to the latest issue of Monkey. It’s honestly the best way to break the back of your week!

That’s the pitch at the Monkey website. Monkey is from the UK publisher of Maxim. I signed up and checked out a copy online – the product looks well targeted. I bet it’s a success. Curiously there was no age check to access what some would consider soft porn.

The publisher has opted to replicate the print experience at the moment. I’d expect this to change with time given the facilities available online.

I bet the readers of Australia’s now defunct Explode magazine find their way to Monkey.

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Media disruption

Blogging for David Hicks

I am ashamed that my country is prepared to sit on its hands as the justice we claim to crave and fight for is trampled and human rights are ignored.

I don’t know what David Hicks did, if anything. I do know that he has been held prisoner and denied justice for more than five years. I also know that our Federal Government has seemed disinterested in pursuing justice for one of its citizens. The government’s inaction and ignorance on David Hicks’ situation appalls me.

We know from the prosecution that Hicks never shot or threatened anyone yet we there cases in Australia where someone is convicted of far worse and released from jail after two or three years. Our politicians have become paralysed by American insecurities. We have been caught in the web of fear which has, of itself, made America weaker.

It is time for Australia to stand up for itself and for one of its own.

I hope that this blog entry in some small way adds to the voice online about the injustice meted out against David Hicks at Guantanamo Bay every day. It joins 680,000 Google references to David Hicks.

Bring him home.

Resources:
Wikipedia
Fair Go For David
The President Versus David Hicks
David Hicks campaign site
Latest coverage from The Age newspaper
Michelle Grattan commentary

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Uncategorized

Howard Government small business scandal

Four months ago I wrote to Senator Coonan, Minister for Communications (Minister responsible for Australia Post) presenting evidence which I claim shows Australia Post breaching the Act under which it operates. I’m still waiting for a reply. Well, I have received a reply but when you lay it next to my letter it does not address even remotely any of my concerns. It’s an off the shelf document right out of Yes Minister. The Minister’s office promised in a letter six weeks ago that I would receive a reply. So far, nothing. In the meantime Australia Post pursues newsagents and other small businesses relentlessly through its government owned stores.

Tired of waiting to hear from the Minister, I sent this letter yesterday. Here’s one paragraph from the letter which sums up my position:

In that past, correspondence from your office and others in the Federal Government shows you hiding behind the Act. If you are right and the Act permits Australia Post to sell non postal related items in greater numbers, the Act must be changed. A government established and owned enterprise with monopoly core products and services such as Australia Post ought not be permitted to use its monopoly supported brand to compete against small businesses, especially when the government has stripped those small businesses of any monopoly products and services they had.

The treatment of newsagents by the Howard Government is a scandal. That the government profits through its protected 863 retail stores competing with newsagents ought to shame it. Without media coverage, people won’t know the harm being done to small business.

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Australia Post

Kmart closes, customer traffic falls

kmart-closed.JPGKmart has been a key traffic generator for all the businesses on level 2 at Forest Hill Chase for 18 years. It’s closure on Jan. 31 has delivered an immediate drop in traffic past our door. It is too early to assess the sales impact. It will be at least 9 months before a new Target opens.

We knew the Kmart closure was coming but have felt somewhat paralysed as to what to do in advance. Only time will reveal the impact. In the meantime, it is driving us to work harder on the business, ensuring that our offering is the best it can be and that we’re driving good word of mouth.

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Newsagency challenges

Lottery petition draws early success

petition-intralot.JPG

Our petition has been out for less that a day and customers are registering their opposition to any move by the State Government which would see scratch ticket lottery products available in supermarkets such as Coles and Safeway / Woolworths. They are also writing comments which make it clear they think that the two major supermarket companies have too much power.

We’re not promoting the petition – it’s on a clipboard on the counter without any other material – making this early response most encouraging.

Here is the petition people are putting their name to:

We, the undersigned, are concerned citizens who urge the State Government of Victoria to ensure that lottery ticket and scratchie games are sold only in independent small businesses in Victoria to protect jobs.

The Bracks Labor Government and Intralot would do well to consult Victorians before they seal a deal to put scratch ticket lottery products in supermarkets.

Name and address details have been covered for privacy reasons.

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Lotteries