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

Month: September 2007

newsXpress newsagents scoop QLD awards

At the ANF-Q Awards announced in Bridsbane Saturday, newsXpress members did very well:

Retail Newsagent of the Year: Warrick & Jo – newsXpress Gympie
Runner Up: Mark & Shelley – newsXpress Sarina

Employee of the Year: – Bec – newsXpress Sarina
Runner Up: Andrew Sutton – newsXpress Harbourtown

Distribution Newsagent of the Year: Monterey Keys News – Gold Coast.

As a Director of newsXpress of course I am thrilled for the success of members, employees and the group as a whole. More broadly, newsagents taking time out to recognise the best operators is good for the industry.

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newsagency marketing

Crikey! magazine loved by kids

crikey_sep07.JPGNo sooner had I moved copies of Crikey! magazine from the children’s section to the high traffic dance floor than a boy, four or five, stopped his mum to point out the title. That was Friday. Saturday I saw the same situation play out again. The brand recognition for Bindi and Bob Irwin is exceptional with this demographic.

Crikey! is a title we will co-locate to the front of the shop so that children know we have it – building habit. We have a group of titles, like Crikey! now, which demonstrate breadth of range and reinforce the point of difference offered in a newsagency.

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magazines

Word of mouth, newsagency customers and the future of print

time_die.jpgI continue to be surprised at the conversations I get into with customers in my newsagency. I was asked yesterday if we had Time magazine. Certain we would have a copy – we rarely sell out – I walked to where Time is usually displayed and, sure enough, we’d sold out. The customer was concerned because ours was the fifth newsagency he had visited yesterday looking for a copy of Time. He said he never reads the magazine but had to get this issue.

Curiosity got the better of me and I asked why. It has a story about how people die, was his answer. Then, after a pause, while he appeared to play back in his head what he had said he added, how to nearly die, near-death experience. I checked our computer to see if we had copies elsewhere. My friend told me, Time has a story. Important story. That’s why I want it. He was reinforcing the purpose of his mission. English was not his first language – he wanted to make sure I understood. He touched my arm as he said, more slowly than before, about how you nearly die and come back. Then his face lit up with a huge smile.

I told him I could try and order the magazine but he said no he had to find it today. He thanked me, turned and left to continue his search, smiling.

The brief encounter replayed in my head through the afternoon and evening – I was thinking about word of mouth and how we seek out products and services based on what we hear from others – who seeks online versus who seeks offline, and why.

I am interested in reading about near death experiences too and my shopper’s comments piqued my interest in the Time magazine article. Instead of embarking on my own journey of newsagencies to find Time, I broke the chain, betrayed print and went where I was certain I could find the article. Within a couple of clicks I was reading The Science of Near-Death Experiences by Daniel Williams at the the Time website. Guilt aside, I was satisfied in finding the article.

There are several issues on my mind here:

Print. My newsagency and thousands like mine exist to satisfy the desire for printed copies of articles such as this one in Time on near death experiences. We rely on people like my customer who want the occasional copy of magazine through to the weekly fix of two or three titles. His experience, driven by word of mouth is completely different to my own. With quality content such as the Time article available online and free I have no doubt that my experience will become the norm. This is why I write here about the need for newsagents individually and collectively to navigate to the newsagency of the future.

The experience with the Time article perfectly illustrates the supply chain challenge – the article online can be reached by people for a lower cost and with less environmental damage than the print version. Both have good revenue models around them so it is only a matter of time before we see some titles depart print altogether.

Supply. Time is a magazine where supply based on sales history does not work. A great cover or good word of mouth can make i a sell out. It would be good if there was a better way to manage supply so retailers can service the demand. It turns out that we have had several customers ask about this specific issue of Time this week – we don’t sell many and could have easily tripled our sales.

Backorder certainty. If I could place an order in my point of sale system and guarantee, immediately, that I can supply, I’d pick up more sales like this one. If I could guarantee supply by, say, Monday or Tuesday I am certain I could convince my customer to buy form us.

The community connection. The encounter yesterday reinforced to me the personal connection newsagents have with their community. My customer would not have had the same experience in a supermarket, petrol outlet or a convenience store. Okay, they don’t sell Time – but they do sell other titles about which there would be questions. All they do is sell. Newsagents service. Publishers need to remember that.

I know that business is business but some days, encounters with customers are wonderful – you can’t put a value on the experience.

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magazines

Stack em high …

bold_aa2.JPGStack em high, watch em fly – it’s the mantra most often repeated in retail. Since we are revamping stationery and art supplies, we are quitting some now discontinued brands. Hence the SALE tabl to the left of the photo. To balance this, we have placed our Double A paper display. We have been running this every four weeks or so since we started selling Double A paper earlier this year. A large display like this at the front of the newsagency works well – and proves the stack em high motto. While many newsagents will say they donlt have space for a display like this, we see having it as essential if we are to leverage the traffic into the shop.

The box of five reams of paper sells very well, often with a newspaper.

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Stationery

IT news for newsagents

Click here to download a copy of the latest technology news for newsagents from my software company, Tower Systems. Software is emerging as a unifying force for newsagents – it’s the driver of compliance, gateway to supplier relationships and the means through which newsagents can more aggressively compete.

This is the era of data in newsagencies. Respect for good data = a successful newsagency.

Tower Systems serves in excess of 1,430 newsagents. Our nearest competitor has, by out estimation, around 700 newsagents as customers with two thirds of those running out of date DOS software which does not comply with supplier standards. By publishing IT news we are seeking to demonstrate there there is a better way to run your newsagency and enjoy the benefits of data compliance.

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newsagent software

Go Vegetarian! magazine fits perfectly

go_vegetarian.jpgGo Vegetarian! is a magazine I ought to be critical of if I am consistent with my postings here. The low cover price and sales mean it will be cash-flow negative. However, I like Go Vegetarian! It fits perfectly into the healthy living and eating space we have created between our food and cook book titles and our health and fitness titles.

We have been specifically asked about vegetarian food and nutrition titles. Hence our support even though at $2.50 Go Vegetarian! will be cash-flow negative. The bigger picture view is positive. Plus, it reinforces our point of difference in the healthy eating / living space. I am glad we have this title.

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magazines

Rugby World Cup at newsXpress newsagencies

Take a look at the best promotional poster you’ll see for the 2007 Rugby World Cup:

nx_rwc.jpg

newsXpress newsagencies are getting behind this sporting event as a show of support for the Wallabies and to inject some fun into their stores.

By connecting with major events such as the Rugby World Cup, newsXpress is strengthening the community connection for its stores and taking promotion beyond the traditional newsagency seasons.

Disclosure: I am a Director of newsXpress Pty Ltd

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marketing

Cross promoting wedding magazines and cards

wedding_magscards.JPGWe are having a crack at adding value to the new Hallmark wedding promotion by displaying two wedding magazines alongside the display. While we have plenty more than two wedding titles, we didn’t want to overpower the Hallmark pitch – it is really a card, wrap and gifts promotion after all. We will cycle other magazine titles through the display every few days.

We are fortunate to have the fresh eyes to see opportunities like this and the resources for execution. I see an opportunity for card companies, magazine publishers and other suppliers to newsagencies to work together to prepackage cross category promotions such as what we have done for wedding magazines and cards.

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Greeting Cards

The Monthly looking good

monthly_sep07.JPGThe Monthly is producing excellent, retail friendly, covers this year – they demand to be given the full face treatment and not left to languish in traditional newsagency magazine fixturing.

This month’s issue with Maxine McKew on the cover is a good example of how well they are reading trends. Maybe it is just our demographic – The Monthly is showing strong sales growth in me newsagency even if it is off a low base.

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magazines

Tobacco getting too risky?

Stories about stings being played out to catch retailers selling cigarettes to underage customers are growing in number. Some catch people behind the counter doing the wrong thing while others appear to be entrapment. Regardless, selling cigarettes is getting to be more complex than the margin justifies. While we have been out of the category or ten years, I do know of others doing very well. The key appears to be big, well managed and with good staff training around compliance. It’s those selling $1,000 or less a week where compliance slips, managing stock is a challenge and the cost challenges the return.

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Newsagency challenges

Driving newspaper sales with a price cut

sun_uk.JPGImagine one of Australia’s daily newspapers cutting its cover price by 43%. That’s what has happened with London’s Sun from News International this week. 35p down to 20p. Consumers would be happy – such are the benefits of a competitive marketplace where there is considerable choice in newspapers. The price drop apparently applies only in London. This story caught my eye because Australian newspaper publishers do follow overseas trends: DVD and other giveaways to boost sales (but publishers here are not as addicted as in the UK), free newspapers – to name two. With newspaper sales flat at best it would not surprise me to see publishers play with cover price in some markets to drive sales. There is more background to this story at followthemedia.

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Newspapers

Cashless sales cost

Check out this report from Finance Markets about cashless retail:

The days of scratching around for coins in your handbag or pocket to buy a newspaper or sweets could be numbered. 16% of people said they often do not buy daily items such as a coffee or a newspaper because they do not have change or do not want to break into a note.

Consequently, MasterCard has launched a new generation of ‘Tap & Go’ cards which allow people to purchase items costing under £10 simply by touching a chip card against a reader.

HSBC bank and retailers such as McDonald’s and Coffee Republic have already signed up to use the MasterCard system, which is called PayPass. It has been introduced in certain parts of London and will be rolled-out to the rest of the capital later this month with the remainder of the UK in 2008. It is expected that 5 million of the cards will be issued by the end of 2008 and will be recognised by 100,000 retailers.

Be sure to read the full report. This type of cashless trading is what the Myki system for Victorian public transport is/was being built on – the project is a year late due to technology issues. With major retailers signing up to support the UK MasterCard project it is afir bet it will come here.

Notice the first example in the story? Buying a newspaper. The risk for the retailer from cashless trading is the per transaction cost. While it will be lower than current credit cared costs, it will be interesting to see how it compares to the cost of transacting in cash.

Newsagents are at the end of the food chain on things like this. Our independence works against us because of what suppliers say are difficulties in negotiating deals with KPIs and disciplines built in. Maybe this is where the major software providers with 500 or more sites can help newsagents compete through a common platform.

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Newsagency challenges

Branding stationery: Crayola

As part of our mission to bring in strong brands as we rebuild our stationery department, we have made a considerable space and stock investment in Crayola. Here’s how it looks in store as of this morning:

crayola_wow.JPG

This display is at the end of one of stationery aisles and has been created to draw people in.

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Stationery

Elevator magazine for baby boomers

elevator.jpgElevator magazine launches next week. It is good to see the publishers offering newsagents bonus commission for the launch issue. They have asked newsagents to place the title at the front of the store. I think this request is too vague. I would be more specific and request that Elevator be placed between Australian Women”s Weekly and Woman’s Day in the main women’s magazine display. I’d also ask that it be featured on on an aisle end – especially with the team behind Kath and Kim on the cover. Finally, I’d make sure all team members are aware of the magazine and its content so they can make comment as appropriate.

Someone asked me yesterday if there is a market for Elevator – a magazine for baby boomer women and men. While I am no expert, the answer has to be – for the right title, yes. Time will tell how Elevator travels. I think it’s two month on sale will work against it as will the dual gender focus but I’m not a publisher and don’t have access to the research they would have supporting their launch strategy. What the market does not need is another Life – the ABC title.

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magazines

A better way to upsell in retail

part_move.jpgFor around six weeks we have had partworks displayed on our dance floor in an area we use for promotional displays. Yesterday, we compacted the display and moved three titles into the location in the photo in front of one of our lottery counters. While minor in effort, it is moves like this which are important to newsagencies.

Allocating time every morning to move product in the front part of the shop maintains a fresh feel and helps the newsagency itself drive upselling for you. Whether it is this partworks display or something else, it is essential we regularly change our upsell pitch at this entrance – it is this constant change which drives sales and basket efficiency.

I see this work as far more valuable and reliable than asking employees to ask customers if they want fries with their purchase. By making the store itself do the upselling your counter team can focus on being with the customer rather than pushing product onto them.

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newsagency marketing

The Duracell bunny comes to town

duracell.jpgIn rebuilding our stationery department we have chosen Duracell as our core brand of batteries. We have committed to a decent range. An unexpected surprise was the gift of the Duracell bunny in the photo. Given the legendary status of the bunny, we are going to run a competition and give the large bunny to a lucky customer.

Our commitment to Duracell has come out of our commitment to the best brands in each category. I see little value in newsagents promoting house brands when we cannot match the multi million dollar house brand campaigns of the majors. We will do better riding on the coat-tails of major brands by stocking their product instead of a newsagent house brand which means nothing. While this will cost us some business at the low end of the market, it will win us business at the top end.

I was in our local Reject shop yesterday and they cover the low end well. I think it dishonours the Newsagency shingle if we try and compete with the reject shop.

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Stationery

Classic John Wayne Collection

The first five movies to be released through Australian newsagents in the Classic John Wayne Collection part series are: Part 1 – The Searchers; Part 2 – Rooster Cogburn; Part 3 – Hell Fighters; Part 4 – Rio Bravo; Part 5 – Stage Coach. I am told that some rights are still being negotiated – hence the lack of a complete list.

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partworks

And the point of the SMH blog is?

Natasha Hughes took a shot at fashion and beauty magazines in her blog post: Bag the mag? at the Sydney Morning Herald yesterday. The post appears to be more of a lure for comments than any substantial comment. The conspiracy theorist in me asks if it has been timed to coincide with the ACP 30 days of fashion pitch. That aside, of particular interest is some of the comments posted. This comment sums it up:

If you think one monthy mag costs you about $10 – well thats $120 a year (thats if u buy just one a month!). I know i would rather spend that $120 on a massage, or a night out etc . so many better options out there. Go to your local library and read them for free if you really must.

Ouch.

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magazines

Promoting The Age Good Food Guide

good_food.jpgThe Age 2007 Good Food Guide (and it’s Sydney cousin) provide newsagents an excellent opportunity to promote fresh product and drive some good impulse business. This year we capped a card aisle with this display prior to Father’s Day. Sales have been excellent – all included other product meaning it’s not a destination purchase.

The more we actively promote fresh product such as the Good Food Guide the more we reinforce that we’re up to date. This is on my mind because too many newsagencies are set and forget businesses in my mind – too few changes are made and customers become store blind.

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magazines

Bazaar offer displays badly

bazaar.jpg

Some magazines are a challenge to display properly when they some with giveaways. This month’s Bazaar does not fit traditional fixturing well and no alternative has been provided for a front of store display. The gift is valuable yet we cannot do it justice. Some days you have to leave things in a less than ideal state – this is one of them.

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magazines

Feeling like a school kid

Tattersalls marked us down for putting non Tattersalls product on their counter. They did not give us bonus points for promoting their product on our Newspaper stand – and breaching publisher display rules.

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Lotteries

Promoting my newsagency

nx_nl_sep07.JPGWe have released our September newsletter and placed it at the front of the newsagency. We have tweaked layout and content based on feedback.

This issue reinforces the launch of Little Ears magazine, promotes our green credentials (we have been buying carbon offsets for more than six months now), our commitment to cartridge recycling and that we’re a lucky place to shop. It also promotes our Spring range of magazines. The newsletter genuinely connects with in-store features and promotions.

As it must be, content of the newsletter is personal to my newsagency – it’s important we reinforce the local nature of our businesses in such communications.

We have found that more shorter stories work – this is one of the changes this month. They reflect the breadth of our offering and speak to a broader community. What we don’t want is the newsletter to feel too commercial – like one big ad.

While suppliers, magazine distributors and publishers mainly, are selfish want aisle end promotions and measure us by our compliance in creating these, I’d suggest that initiatives such as this newsletter are as valuable and they take our offering beyond the four walls. Plus they promote the whole of the business and this makes for a healthier newsagency channel.

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newsagency marketing

Spring magazine promotion

spring_mags.jpgWe have redressed our Father’s Day magazine display with this display of magazines with a Spring theme. Usually we would be bigger and bolder with a Spring theme but space issues right now preclude this.

This Spring display has been up 48 hours and we have sold product off the display. Our plan is to switch titles around Thursday to give other titles coverage.

We will leave this display run a week as there are two new title launches next week for which we need front of store space.

A newsagent called me Monday to suggest that these front of store display defeat the purpose of the full range of magazines and that we are stopping customers browsing. They may be right. The sales data from my shop suggests that more customers buy from the front of the shop than anywhere else. Observation shows many do not browse magazines. These front of store strategies are designed to lift the efficiency of lottery and newspaper sales – the two categories where more than 60% of sales are those products and nothing else. By focusing on the front of the store we have improved efficiency considerably.

Since this display is not promoting a single publisher’s titles it will not be recognised by them as valuable. I’d argue that newsagents need to do more of these whole of category displays rather than single publisher or single title displays.

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magazines
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