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

Month: November 2007

Lies from POS Solutions Director

Bernard Zimmermann, Director of POS Solutions, in a blog post today demonstrates why his company is losing newsagent customers.

He says he was approached by the herald and Weekly Times (News Ltd in Victoria) for help switching Tower DOS software users to POS Solutions. This is not true.

He says the POS Solutions Windows software is the most complaint in the industry as measured by magazine distributors and newspaper publishers. This is not true.

He says that every month newsagents switched from from Tower Systems to POS Solutions. This is not true.

Tower Systems has four newsagencies in Victoria running its DOS software. H&WT did not ask POS to help. Bernard has lied, again.

Bernard has lied in his blog post in an effort to hide the humiliation of his company in the latest moves to help newsagents switch from the old non-compliant POS DOS software.

Bernard was in the room and a year ago when industry leaders including News Ltd executives, ANF executives, software company owners and newsagents debated several times the POS Dos problem at a two day conference in Melbourne. He received feedback from newsagents and others when the failings of his POS DOS software and his company’s support for newsagents more generally was debated at the ACP Connections conference in Queensland last year.

Bernard Zimmermann knows that his POS DOS software is the problem yet he uses his blog post to create noise in an effort to divert attention.

My concern is not about Tower but about newsagents. For years, recent years, newsagents paid tens of thousands of dollars for the POS DOS software – long after it was not compliant and long after DOS was dead. Their collective investment in DOS technology is wasted. The cost to newsagents of this con is enormous. This is what I hope the industry avoids by ignoring POS.

Newsagents ought to shop around carefully. Get the claims made by sales people proven. Visit the software companies and see their operation for yourself. Find out why newsagents are ditching POS Solutions.

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Customer Service

Losing the newsagency

I was in a major shopping centre yesterday and could not find a newsagency. It seems the landlord decided to not renew the lease some months ago and has not let space for a newsagency since. The only outlets for magazines are supermarkets, Big W and newspapers the supermarkets and coffee chains. Lottery products are sold from a kiosk, cards are in several outlets and stationery is, well, everywhere.

All that is missing is the newsagency shingle.

I wonder what this says to newsagents about how their businesses are viewed by major shopping centre landlords. I wonder, too, what it says to consumers – do they miss a newsagency in the centre, are they being trained to shop elsewhere?

I also wonder how newspaper and magazine publishers feel about this. There was a time some years ago when a newspaper publi9sher would not allow their products to be sold in a shopping centre where a newsagency did not exist.

Is this the newsagency of the future? Extinct? I don’t think so, certainly not broadly speaking. I suspect this is just a rogue landlord.

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Newsagency challenges

News Ltd acts on non-complaint POS Solutions s/w

The folks at the Herald and Weekly Times (the Vic. arm of News Ltd) approached me months ago looking for help to address the 180 or so Victorian newsagents using the old, out of date and non-compliant POS Solutions DOS software. This group of 180 is holding back H&WT business development plans.

News Ltd, to their credit, has said enough is enough. They want newsagents to switch to compliant industry standard software.

We agreed to help and put together an offer which helps newsagents and helps News Ltd. It is based around the same software News Ltd has purchased from Tower Systems for their own use and the same software already chosen by 1,400 other newsagents.

Newsagents use the Tower software for home deliveries, point of sale, magazine management, marketing and business management. Tower Newsagents are the most IT compliant in the industry – as measured by magazine distributors and newspaper publishers.

Victorian newsagents switching from POS Solutions DOS software to the Tower Windows software can access a one year $10,000 interest free loan from H&WT. If your hardware is up to scratch it won’t cost anywhere near that. The starting price is $5,495 (incl GST) which includes software (matching the licences you have of the POS software), on site training and two years of support.

Close to 200 newsagents have switched from POS Solutions to Tower Systems over the last two years. Plenty more have signed to make the switch over the next eight weeks.

My estimate is that POS Solutions has about 700 newsagent users nationally. This figure comes from material prepared POS Solutions which claims 1,100 users with around 400 of these being non-newsagents.

Disclosure: I own Tower Systems.

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newsagent software

Strong calendar sales

CALENDARS_FP.JPGCalendar season is going great for us. sales are strong with no discount to be seen. After a disasterous 2005/06 season when we joined the discount bandwagon we regrouped and in 2006/07 did good business in the lead-up to Christmas. This year we are tracking even better numbers.

While some customers ask if we are discounting, few walk away looking for a cheaper calendar elsewhere. The keys are range and service – no surprise there. If you have the special interest calendar people want, a couple of dollars makes no difference.

Two years on from our horror year, it’s clear that a good range well cared for is more important and more valuable for the business than discounting early in the season.

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Calendars

Steve Irwin tribute New Idea on stamp sheet

steve_irwin_stamps.JPGKudos to the folks at New Idea and their participation with Australia Post in the new Steve Irwin tribute postage stamps. The sheet includes the commemorative cover of New Idea featuring Steve Irwin and his two children. This is the second stamp feature for New Idea and the second time a magazine has featured on a sheet of stamps. The first was when New Idea was named 2007 Magazine of the Year.

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magazines

Bargain Shopper no bargain

bargain_shopper_08.JPGBargain Shopper magazine rips newsagents off. It is supplied late in the month – so they are paid next month – in quantities which are three and four times what newsagents will sell and with a ridiculous shelf life. This is appalling behaviour.

I am early returning 26% of what I received this week as there is no justification for such gross oversupply.

This behavior is unconscionable. The publisher creates the problem with their print run and the magazine distributor facilitates the abuse of the newsagent system. This distributor – NDD – ought to know better.

The problem for newsagents is that the ACCC lets publishers and distributors get away with oversupply at four and five times what we will sell.

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magazines

Green magazines

greenmags.JPGThis is the display we have created next to the counter to promote magazines with an environmental pitch. It’s a simple display, designed to attract.

We have placed the display next to our main newsagency register point as we have found this the most effective in promoting magazines outside the top 50 sellers.

Typically, we will leave this in place for between a week and two weeks – depending on customer interest. We also add new titles as they come in.

I know the display does not look corporate – it’s not meant to. We see this multi-title approach as a service for our customers and in support of the depth of range we have.

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magazines

Command adhesive promotion

command.JPGCommand adhesive products from 3M are featuring in a long format TV commercial based around Christmas use. I have seen the commercial several times on pay TV. Newsagents not carrying the range ought to right away. It’s selling well in stores I am connected with. Be warned however – not all newsagent stationery warehouses have the full line.

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Stationery

Wellbeing, well, no…

Further to my previous post today about Conscious Living, the same health store has Wellbeing magazine for sale. We have it in our newsagency too? Why would a publisher put this stock in my newsagency as well as the health store. The shelf life and cover price makes the title of little value. Getting into two stores reduces sales in one or both so I might as well get out of the space. The health category is doing very well but if publishers like Universal are going to chase other outlets to the cost of my business why should I support them?

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magazines

Conscious Living magazine

It is disappointing to see Conscious Living magazine in a health store not far from my newsagency at Forest Hill. What is worse, is that the publisher lists the magazine as available from this health store and does not list it as being available at my newsagency.

While the two businesses will attract different customers, it dilutes the newsagent pitch as the magazine specialist. Their lack of support on the website demonstrates that we are not central to their distribution plans.

With a six month shelf life, Conscious Living is already cash-flow challenged for newsagents. I am going to re-think stocking the title.

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magazines

Kyrstal’s need for speed

krystal_again.JPGGee, ex Big Brother housemate Krystal Forscutt is busy. She was on the cover of Zoo last week and is on the cover of XBOX 360 (twice since this issue has two covers) and Playstation Magazine this month. What is odd about the latter two covers, promoting the need for speed game, is that they have each used exactly the same photo. Mistakes happen I guess, production errors they get called – we just need to not display them too close together.

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magazines

Darrell Lea in damage control

Darrell Lea sent out another fax about its liquorice promotion today, this time apologising for poor communication with its non-company stores. It is disappointing that it has taken three days to respond but worse that they do not see how disrespectful their action in only promoting corporate stores is. Non corporate outlets like mine seem to be of little interest to Darrell Lea.

I love the Darrell Lea product and have been happy to have it at my Forest Hill store for years. This year, however, they have botched their licensee relationship and I wouldn’t be surprised to see some quit as a result.

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confectionary

XBOX 306 cover(s)

krystal_360.JPGFor some reason XBOX 360 magazine has been produced with two covers this month. Everything is the same except for aspects of the cover image.

I can’t see a reason for doing this – it won’t get the title additional retail space and is more likely to lead to confusion among browsers.

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magazines

Magazine covers and the election

mag_covers.JPGI wonder how much browsers take notice of magazine covers. Here are two which were on the shelves in the month leading up to the election. In hindsight, they provide a commentary of the result. While both titles are not top-sellers, the covers would have been seen by many.

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magazines

Magazines on your iPhone and iPod

Digital publisher Zinio has announced the launch of magazine content for Apple’s iPod Touch and iPhone units. Zinio will initially offer free digital editions of monthly magazines targeted to the iPhone user. US titles announced include:

American Photo, NME, Black Enterprise, Playboy, Car & Driver, Popular Mechanics, Kiplinger’s, Saveur, Lonely Plant (Espanol), Technology Review, Macworld, Viv, Men’s Health, Woman’s Day, Outside’s Go, And more…

This is a very significant move, especially for the iPhone device. Not so much because magazine content will work but because it further disrupts the supply chain between publisher and consumer – of which newsagents are a vital part in Australia.

Based on previous experience I will receive several emails from newsagents complaining about me talking magazines down. They say I should not comment on innovations such as this from Zinio. It is exactly that head in the sand approach to change which has leaft newsagents behind others on many fronts.

The best way to approach change is to pick up your surfboard and ride the wave at the top.

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Media disruption

Darrell Lea late notice

Yesterday we received a fax from Darrell Lea dated November 16 advising the planned promotion about which I blogged earlier. The fax says the promotion of 80 cent 300g liquorice will run from November 19 through 26. A couple of things surprise me – their front of newspaper promotion was on the last day and they let us know about the promotion the day after they ran the stuck on ad on the newspaper.

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confectionary

Free training for newsagents

Here are details of the final series of free Tower Systems user meetings and training sessions for 2007. All newsagents are welcome to attend. At each session we’ll deliver training in the software, preview our next update and answer any questions. Anyone is welcome to attend – watching us interact with our customers is a great way to evaluate Tower Systems.

Perth: 28/11 at 2pm – 5pm (open day)
Perth: 29/11 at 9:30am – User Meeting
Melbourne: 30/11 at 10:00am – New Owner
Melbourne: 30/11 at 1:00pm – User Meeting
Geelong: 3/12 at 10:00am – User Meeting
Albury: 4/12 at 11:00am – User Meeting
Sydney: 5/12 at 10:00am – New Owner
Sydney: 5/12 at 2:00pm – User Meeting
Coffs Harbour: 6/12 at 10:00am – User Meeting
Canberra: 7/12 at 2:00pm – User Meeting
Brisbane: 11/12 at 10:00am – New Owner
Brisbane: 11/12 at 2:00pm – User Meeting
Rockhampton: 12/12 at 10:00am – User Meeting
Hobart: 17/12 at 11:00am – User Meeting
Launceston: 18/12 at 10:00am – User Meeting

Book your place by email.

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Customer Service

A makeover is coming

We are preparing to implement a makeover of this blog next week. We are aiming to make the blog more appealing to the eye and easier to navigate. There may be a few bumps as we transfer the 3,000 or so posts, comments and other details associated with the blog. We are also establishing an independent domain: www.newsagencyblog.com.au.

Today, we’re upgrading our blog software in advance of next week’s moves so please excuse any outage.

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Uncategorized

Full price pens

parker_waterman.JPGHigher end boxed pens are usually supplied with two price stickers. The RRP and a special price. We didn’t receive the special price stickers so put the pens out at full price. A month later when we realised we fixed this, we discovered that it didn’t matter. The pens are selling well at their RRP. A check of our sales team reveals that not one customer has queried the price. It turns out that no one nearby has our range so we are providing a service for which a premium appears to be accepted.

I am not suggesting that newsagents gouge on price. Rather that we understand our market position and take this into account on price. Oh, and just because a discount opportunity is available, it does not mean that we should always take it.

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Stationery

Christmas magazine tip

christmas_mags.JPGPutting the Christmas editions of Food Ideas, Good Taste and Table next to each other and next to our top selling weeklies is working a treat. They will sell out today or tomorrow.

When putting magazines in a such a premium space we look for titles which compliment each other and are likely to encourage multiple title purchase. Yes, we obsess about magazines. We see every unplanned purchase as a victory.

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magazines

Calendar magazines

calendar_mags.JPGI have lost track of how many magazines have free calendars with them at the moment. Some are excellent value and others quite mediocre. Some are poorly attached and detract from the magazine.

I wonder if all these freebie calendars detract from calendar sales? Some newsagents think so. While there must be an impact of so many free calendars being available, I can’t quantify this in terms of sales of calendars in newsagencies.

I am not suggesting that publishers refrain from the calendar giveaway, I can see it makes sense. I guess the purpose of this post is to acknowledge that there are some unintended consequences.

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magazines

Newspapers support Amazon’s Kindle

Check out the list of US newspapers which have a subscription offer for the Amazon Kindle device. Prices range from US$5.99 a month for the San Francisco Chronicle to US$13.99 for the New York Times for a month. While I doubt the Kindle will catch on as a newspaper reading device, support from publishers of these newspapers will make it a device to at least watch from a newsagent perspective.

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Media disruption

Momiji dolls in Frankston

momiji_frankston.JPGThe range of Momiji dolls we put into Frankston two weeks ago is selling well. We were unsure how they would go in a newsagency setting – especially given that this location did not have much experience with premium gifts.

Momiji dolls fit the collectible category and we know that newsagencies are already well visited by people who collect things: partworks, magazines, trading cards… This focus on collectibles is driving other gift related ranging decisions for the Frankston business.

We also stock cows and horses in ther Frankston store and both have people working on the collection. At between $35.00 and $75.00 each, these are nice collections for people to work on.

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Gifts

Check how many magazines you got

FB_dec07.JPGNewsagents may want to check how many copied of Fisherman & Boatowner they received last week. We usually receive three copies. This month they sent six. On inquiry I was told it was a re-launch. Okay, that’s fine. Don’t use my cash to support the publisher’s efforts – not when we sell, on average, two copies of each issue.

Once in two years we have sold three copies – no justificati0on for a 100% increase in supply.

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magazines

Who is celebrating Darrell Lea?

dlea.JPGThe photo shows a closer look at the ad stuck over the masthead of today’s Age newspaper. It offers a 300g bag of Darrell Lea liquorice for 80 cents.

It’s a good deal, but there is a catch. You have to go to the website to find the participating stores – as if people with the coupon in their hand have time for that. No, they will think of their closest Darrell Lea location.

My newsagency at Forest Hill is not listed as a participating store. In fact, I can’t see any newsagency listed as a participating store. From what I can tell the list is corporate stores only.

Maybe the marketing people at Darrell Lea are smarter than me because I would have thought that tying in this promotion with a newspaper and through outlets which sell newspapers and the Darrell Lea product would have been smart.,

I know we will get customers asking about the deal. Should I tell them to go to a Darrell Lea store? Of course not! Given the floorspace, labour and stock investment I have made in Darrell Lea for the last five years or so, I am not about to tell my customers to go elsewhere. Now, we’ll come up with a response which hopefully does not direct them elsewhere.

This is a disappointing offer from Darrell Lea which, on the surface, appears to disrespect its non corporate stores.

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confectionary