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

Month: September 2007

Another newsagent locked out, take care

I have been in Sydney today and talked with another newsagent locked out of his computer system – he has no access to his business data. This is the risk of buying software with an annual licence fee and of providing others the ability to connect to your business without appropriate controls.

Now it looks like they will have to go to court to get their data unlocked.

If you are concerned about access to your data being blocked by your software provider ask that they disable any link into your business.

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Newsagency challenges

Cashless transactions to drive newspaper sales

According to a report by Phillip Stone, Associated Newspapers, publisher of The Standard in London, has announced the launch of a prepaid card with a loyalty component built in to drive sales of their newspaper. Customers top up online. Sales are tracked and rewards for loyalty added as value to the card.

This is something we have been working on within Tower Systems and would be keen to trial with a publisher – we can even manage top up in, say, one newsagency and, redemption from various other newsagencies.

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Newspapers

French Provincial to launch Friday

french_provincial.JPGFrench Provincial is a new title being released this Friday through Gotch. I found out about it when the publisher contacted me last week through this blog. An Australian magazine, French Provincial is designed to appeal to people interested in everything French. There is a strong emphasis in furniture, decor and food. Gabriel Gate writes for the magazine. It is from the same team behind Finally At 40 Life Begins.

If home and luxury decorating titles do well in your newsagency – think World of Interiors – then French Provincial should do well. Check with Gotch to make sure you are due to get stock.

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magazines

Successful ink campaign

We’re well into the next round of ink promotions – it’s working well, driving new customers to us, brochure in hand and asking about specific product. Regular promotions are critical if newsagents are to overcome the view exposed in consumer research that newsagents are expensive. Most sales involve two cartridges or more.

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Stationery

Wedging Krystal

wedge_krystal.JPGI feel bad but I’ve had to wedge Krystal’s 2008 calendar in between a stack of Zoo Weekly copies this morning. Zoo buyers are Krystal’s market so locating here nearby made sense. We were sent two Krystal calendars and without anything on which to display them and given that they are the only calendars in that category, I decided the wedge with Zoo was the best approach.

Publishers need to think through these things before they send stock out to newsagents. We finalised our calendar model months ago. Every extra, unrequested, title does not have a space – meaning we lose time working out where to put her. No wonder newsagents get frustrated with suppliers sometimes.

I am certain that this problem, and others I have blogged about here today, would be resolved faster if suppliers worked in a newsagency and had their own money invested. I know that my software company made some significant enhancements when we bought a newsagency.

Hopefully Krystal will sell quickly from her home wedged in Zoo.

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magazines

The magazine model fails again

get_up_go.JPGOur sales of Get Up & Go magazine have been consistent at under 5 copies a month. There was no justification in increasing our supply from eight to ten – certainly not in the sales data. The only reason I can see for increasing our supply would be that the distributor has excess product and it saves their cash if they shift that product to newsagents regardless of whether it will sell.

There has been talk this year of magazine distributors and publishers signing up to performance guidelines. This 20% increase in our supply of Get Up & Go should breach any such rules. It is not the only title where supply is increased despite sales data suggesting there should be a reduction.

Magazine distributors are critical of newsagents and lack of compliance on IT matters. Why should a newsagent comply if such compliance counts for naught when it comes to determining supply allocation as appears to be the case with this title.

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magazines

Photoshop User magazine sucks cash

p_shop.JPGPhotoshop User is a problem title. The price of $32.95 ought to have knocked it out of the newsagent supply chain – that and the fact that Photoshop titles are not selling.

We’re returning it today, weeks after not selling any copies.

This is a perfect example of why newsagents need a magazine czar or some other legally recognised mechanism which controls the titles which have access to ourt network. We cannot rely on magazine distributors do do this for us.

If Photoshop User was not billed until after recall with me only paying for sales (none) then I’d be happier.

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magazines

Learnings for newsagents from Sophie Randall

Further to my posts here last week about the new newsagency at Watergardens in which I am involved, aspects of that new business owe their inspiration to learnings from the Sophie Randall model which we launched seven months ago. Sophie, even though a card and gift shop (no newspapers, magazines, lotteries, stationery), has provided excellent learnings about card and gift buying, learnings which can apply to newsagencies as they are reinvented.

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We are even applying some Sophie learnings in our newsagency which is in the same centre – on a different level. We are also sharing the learnings with newsXpress members.

Now, more than ever, newsagents need to experiment outside their comfort zone. This experimentation needs to pursue better margin and greater control – to replace fixed margin product which will fade from the newsagency mix over time(lotteries, newspapers, magazines) and to balance the newsagency business away from supplier domination as has been the case in the past.

These are strategic moves which will provide for a bright future.

Our next Sophie location will be Epping Plaza followed by Melbourne Central.

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Greeting Cards

Great Walks magazine a newsagent exclusive

great_walks.JPGGreat Walks is a timely new title for newsagents. As I understand it, it’s exclusive to our channel – this appeals. Great Walks taps into a greater community awareness of health and fitness and an interest in walking as good for the body and soul. The media kit at the Yaffa Publishing website has some good background on the title which might help with in-store promotion.

The challenge is where to place the title – I think it will get lost in the outdoor, leisure, travel or sports sections. I see it more as an impulse buy for people looking for something different.

Great Walks is being promoted heavily to bush walking clubs around Australia. This should make newsagents a destination for walkers looking for the new magazine created just for them.

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magazines

Newsagent locked out by software company

A newsagent having a dispute with the software provider found themselves locked out of their system when they opened for business one day recently. Help from an expert showed that overnight their system had been ‘updated’ and access blocked. While the legalities of such action by a newsagent software company can be tested elsewhere, my warning to newsagents is to check who has access to your computer system and why.

No software company ought to have access to your computer system without your permission and knowledge. The story recounted in this blog post is the fourth such incident I have seen this year. It demonstrates the risk to newsagents who may find themselves in a disputer with their software providor.

I urge newsagent to bar access by outside parties. I also urge newsagents to refuse licence agreements which require annual licence fees – separate from software support – as it is through such licence agreements that access such as this is often managed.

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supplier arogance

AstroLog magazine oversupplied to newsagents

astrolog.JPGLast issue, we sold two copies of AstroLog magazine. This time, they sent us 10. There is no justification in our sales history for this level of supply – it is an abuse of our cashflow. I suspect I am not along.

The only redeeming feature is the display box. As the photo shows we have placed the title between Woman’s Day and Australian Women’s Weekly. We would not have done this had the display box not been supplied. If it does not perform within two weeks we will return all stock.

AstroLog is an example of how magazine distributors and publishers abuse the generosity of newsagents.

I am happy to take ten copies of AstroLog even though I usually sell two if they want to fund the stock for the entire on sale period. That the oversupply is coupled with a poor margin and long shelf life is an abuse of newsagent generosity.

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magazines

Google covers Australian Federal Election

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Google is making a play as a mainstream media publisher with its launch over a week ago of Australia Votes. The site uses maps, videos, web gadgets, and oter tools to provide broad coverage. It will compete directly with the election coverage offerings from News, Fairfax, ninemsn, Yahoo!7, the ABC and other media players.

The Google move is media disruption for all to see. Newsagents ought to watch this space – at play here is print sales. This is why newsagents need to be thinking outside the square when it comes to future traffic and revenue streams.

The Google move underscores a vulnerability for newspapers and newsagencies which has been denied for all too long in this country.

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Media disruption

On the road to the newsagency of the future

The moment we signed the lease for newsXpress Watergardens store we committed to investing considerable time and money into the journey pursuing what the next generation newsagency will look like. This began with casting aside many of the shop layout assumptions which have dominated newsagent shop fits for decades. We obsessed about layout, finishes, lighting and mood.

In fact, mood was key since we wanted to change the customer experience considerably from the visual noise and rush of a traditional newsagency experience.

This is the first newsagency for our designer – a big risk but also an excellent opportunity if we were to truly start with a clean slate. We has some stipulations – including the use of magazine fixtures from Europe. This photo shows part of the magazine department – you can see that the least of any cover showing is half and that many magazine are displayed with the full cover showing – how designers, publishers and editors intended them to be shown.

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The learnings (good and bad) from this store will be shared with newsXpress members as the journey unfolds – it is a key reason for opening a corporate store, to gain personal experience and to have a place where risk investment (in dollars and labour) can be made.

It is important for more newsagents to experiment, to challenge shop designers and builders, to push the boundaries of what constitutes a newsagency and to measure the results.

The opening of the store three days ago was another step in our journey but it is only early days yet. We have more ideas to try, new stock to bring in and, still, some of the fit to be implemented.

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newsagency of the future

The demise of Business 2.0 magazine

business_20.JPGBusiness 2.0 magazine is dead, literally. Tech Crunch has a report on the final issue – the October edition.

Since the title is dead I’d suggest we should stop carrying it immediately and use the space for the living. While a few punters will buy the last issues to collect, they will be in the minority. I’d prefer Australian importers of a title which has been killed overseas to immediately cease importing.

That said, it is sad Business 2.0 is closing. It was a good title. I say was because the title we have today is nothing on what I first found back in 1999/2000. Back then I found it invaluable. Today, it is a servant of advertisers. Peter Kafka has some comments on the reasons for its demise at Silicon Alley Insider.

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magazines

The partworks collector

james_bond_4.JPGI received a call late yesterday from an avid collectorof the James Bond car series. He found me through a Google search and landed at this blog. We talked for fifteen minutes or so about the challenges associated with buying partworks – through a newsagency versus via subscription. He has purchased through two newsagencies in Melbourne.

With one part of the James Bond series, the case is damaged. Now that the backing card is no longer provided it is difficult to maintain the product to the quality a collector expects.

I enjoyed talking with an avid partworks collector – it was a privilege to access his insights and learn of his experiences.

The conversation highlighted the considerable difference in service between newsagencies. Partworks are exclusive to newsagents, we ought to respect them with amazing customer service. If a newsagent is not interested in delivering such service they can choose to not receive any partworks.

The conversation also highlighted the value of a collector. This gentleman wanted each partwork issue to be available in pristine condition when purchased. Fair enough I think given the total amount invested in the series. This is why newsagents in the partworks space need good processes to protect the collections – down to using removable labels rather than permanent labels some use. Small points like this matter.

I know I bang on here about partworks – the commercial data is proof that they are financially rewarding across multiple categories in newsagencies.

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partworks

Cosmetic surgery magazines growing

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We now have three cosmetic surgery titles in our newsagency – in addition to other titles which include articles on cosmetic surgery. What does this say about Australians and cosmetic surgery? Of course, from the TV shows we know that interest is strong. These premium magazines feed off that interest. In a commercial sense, I am fascinated by the potential for a segment here. Next week we will try a display next to our high selling weeklies to see what happens to sales.

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magazines

2008 calendars kick off

fam_plan_cal.JPGWe are carefully watching the publisher calendars this year – while we have canceled most, some sneak through like this one. Our concerns are margin and shelf life. The calendars we have ordered directly generate more than twice the margin so, naturally, we prefer them to these units. Also, the titles we have ordered are integrated – we ordered each for a reason – whereas titles like this not ordered by us has to be placed somewhere. Finding a relevant location for one off product is challenging.

We can see from sales already that taking control of the category will be financially rewarding for the business.

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Calendars

Annoying bagged magazines

jumbo_puzzle.JPGBagged magazines are a problem in newsagencies. Take this Jumbo Puzzle Pack built around the That’s Life brand.

A customer today came to the counter and asked what other titles were in the pack – she didn’t want to get a puzzle book she had completed. Fair question, I thought. There was no indication on the outside of the pack so I opened to check out the titles. Happy, she bought the pack.

Too many customers open the pack and leave the mess in the body of the shop for you to put back together and try and create something salable. There has to be a better way with these bagged magazines – a way which works for publishers and newsagents.

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magazines

Yahoo!7 free online classified push

Newsagents wondering about the shift of classifieds from print to online ought to read the story by Michael Sainsbury on page 33 of yesterday’s Australian. It reports that Kerry Stokes’ Seven Network plans to offer free classifieds. Yahoo!7 has no major print investment at risk with a pitch for free online classifieds. Newsagents have missed an opportunity.

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Media disruption

newsXpress Watergardens – more photos

Here are three more photos from the new newsXpress Watergardens store which opened yesterday. The photos were taken by Graham Randall, one of the founders of newsXpress and a key partner in the store.

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Our opening yesterday was without fanfare. Since this is the first corporate store we wanted to oopen and tweak a bit before we have a big bang opening. We are likely to time the loud launch with the opening of another greenfield location in Melbourne by a newsXpress member early in October.

I am a happy partner in the Watergardens business because it provides another newsagency in which I and my team at Tower Systems can experiment on ways to help our technology help newsagents boost sales, save time and increase profitability. Software companies often talk about these goals. It is my experience that it is when you use your software yourself behind the counter that you start to truly understand what is capable.

The same is true for newsXpress. The company itself owning and operating a newsagency provides us with personal experience learnings beyond member feedback.

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newsagency of the future

Beware of marketing group fine print.

Be sure to read the fine print of any marketing group agreement. Check out how ling you are locked in and the penalties for leaving the group. I saw one newsagency marketing group member agreement the other day with this clause:

For a period of one (1) year after expiry or termination of this Agreement the Franchisee undertakes not by itself or by its Directors or its Shareholders either directly or indirectly to join with or take membership of any group marketing/buying venture competitive with or similar to … provided that the Franchisee may conduct a newsagency business without restriction.

Okay, so the landlord requires the newsagent to be in a group. The newsagent joins XXX group. The newsagent decides, after a year or so, to move to another group and resigns. XXX requires the newsagent to sit out from any marketing group for a year. The newsagent cannot breach the lease requirement that they are in a marketing group and must stay with XXX. Catch-22.

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Newspaper marketing

Now this is local sports reporting

The Orlando Sentinal demonstrates an amazing local connection with extraordinary (by Australian standards) online reporting of high school football including game by game previews. A check of Aussie newspaper websites and I cannot find such extensive local game coverage. As one who consumes most news online, the Sentinal model is excellent. As a newsagent, I’m happy that Australian publishers aren;t there yet.

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Media disruption

Gambling in supermarkets

I will be angry if instant scratch tickets are to be sold in supermarkets and convenience stores as appears may happen according to reports in the press today. It would be another example of government turning its back on small business.

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Lotteries