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

Month: November 2007

Watergardens update

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newsXpress Watergardens has been open almost two months and as with any new business plenty has changed in a short period of time. We are developing some valuable learnings from the new business, especially in the gifts, ink, magazine and stationery areas.

What has been most interesting is watching the development of our team as none (other than Ben Kay, Manager) had newsagency experience. While they have learnt the processes unique to our channel, we have learnt more from their diverse retail backgrounds. It is the breadth of retail experience which is helping us play outside the traditional newsagency parameters through unique displays and constant (daily) change.

We are also fascinated by the different dynamic in a newsagency which does not have lottery, bill payment or home delivery services. There is no doubt that not having these alters the retail dynamic: customers are less rushed, average spend higher and, we thing, browse time longer. There are no queues and no sense of rushing. We’re not sure if we like not having lottery products and the like, only time will tell.

One goal which is showing signs of working for us is what we would call margin balance. We are not as reliant as a traditional newsagency on higher volume lower margin products. I’ll save discussing details of what we are doing for another time.

If you are planning to visit the store and see what we’re experimenting with, please make direct contact with Ben.

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newsagency marketing

POS Solutions spin

On November 10, I published this here

At the request of suppliers and other stakeholders in the newsagency channel, Tower Systems has put together an offer to help newsagents who want to shift from the out of date POS Solutions DOS software. Newsagents with this out of date software risk becoming the excuse for suppliers ignoring newsagents. Email the Tower sales team for further information.

On November 12, Bernard Zimmermann wrote at his POS Solutions blog:

At the request of suppliers and other stakeholders in the newsagency channel, POS Solutions has put together an offer to help newsagents who want to shift from what I consider simple Tower software. Newsagents with this software risk becoming the excuse for suppliers ignoring newsagents. Email the POS Solutions for further information.

The key difference is that my post is truthful and Bernard’s is not. His company has not been asked to help newsagents to move from Tower Systems to POS Solutions.

My sense is that POS is in all sorts of trouble. I have been asked, by newsagent suppliers, to help people shift from POS. They have lost a ton of users this year and 2007 is not over – switching not only to Tower but also to other companies. I think this is happening because newsagents are sick of poor support and mediocre software. POS has become a joke at discussions about compliance with suppliers giving up even discussing possible changes with them because of the push-back they have received in the past.

Zimmermann demonstrates lack of leadership by publishing as his own work blog posts I have published here. It says a lot about their approach to software innovation. Newsagents deserve better.

UPDATE: Two hours after I posted this, Bernard put a comment on his own blog post indicating that his post was a joke. I’ll let newsagents decide who is telling the truth about software quality and customer service.

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newsagent software

How far we have come

tattoo_design.JPGThere was a time newsagents would have treated tattoo magazines like porn titles and carried them grudgingly. Today, good tattoo titles such as this Tattoo Design are as popular as fashion titles.

Smart newsagents carry them with pride and enjoy the point of different they bring to their business, they display them in good traffic areas to attract browsers.

Too often, newsagents stick tattoo titles in the corner, assuming they appeal to a limited demographic. As I noted, I see these as fashion titles and display them accordingly.

What I especially like is the bright colours – in a noisy magazine display, a cover light this can add much needed life.

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magazines

Problems with magazine returns

Newsagents in rural and regional areas are able to return the covers of magazines not sold as opposed to full copies. In the city we have to return many as full copy returns. Newsagents plan for this and usually allocate space necessary to store the build up of stock to be returned through the month.

I think there is a case for shopping centre based newsagents to be given permission for topped (cover only) returns. With rent costing in excess of $1,000 per square metre even for storage space, there is a considerable cost for full copy returns.

This is an issue for me as arrangements for off site storage of returns are about to ens. We either rent additional space in the centre or get permission to top returns. Hopefully when we approach the magazine distributors common sense will prevail.

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magazines

What a waste of money

openoffice_org.JPGWhy would anyone pay $24.95 for this Openoffice.org publication? The cover offers free office software. An average computer user would know that they can get this free software online without spending $24.95 at a newsagency on this publication – and more. $24.95 is, in my view, a rip off. And newsagents, because we sell it, are seen as part of the rip off.

This title should not have been distributed to newsagents. The distributor ought to have said no when the publisher and or importer made their pitch.

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magazines

A brilliant idea

wheels_dump.JPGMaybe I have been living under a mushroom but I was surprised to see the clip on wheels for seasonal card company units at the Frankston newsagency I bought three weeks ago. They are brilliant and make moving these promotional units around the shop – and opening and closing much easier. Try and we might, we cannot find where they are made – we want to order plenty more.

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retail

Family Circle back for Christmas.

family_circle_dec07.JPGIt is good to see Family Circle back on the shelves today even it only for a Christmas special edition.

We have placed stock at the counter, next to New Idea and Woman’s Day as well as among our food titles. It’s a good impulse opportunity – hence our co-location strategy.

Our approach with titles like this with solid brand loyalty is to push hard early and try and sell out in week one. This is ideal for cash-flow.

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magazines

Orange TV Week

tv_week_nov12.JPGI was surprised when I saw TV Week this morning, I thought there had been a printing problem. The traditional red in the masthead has been replaced with an orange. It looks off to my eye – but I’m not in their demographic. I reckon customers will ask where TV Week is because of the colour change.

Today’s design change does not do enough to help pull focus to the title in the wash of colour in a packed magazine stand in newsagencies.

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magazines

Freedom of information, not

‘Charles’, a magazine publisher, wrote these comments at this blog yesterday:

On 17 November 2007 we will be allocating newsagent numbers for our December 2007 issue.

We will be doing so based on final sales figures for our September 2007 issue.

That’s correct, sales figures 2 months out of date.

Charles says much more than what I have reproduced here so be sure to read Charles’ full comments, my original post and comments from others here.

I have lifted these sentences from Charles’ comments because they deserve special attention. They highlight a problem for publishers and newsagents – we are being deliberately kept in the dark. I have been contacted by at least eight independent publishers this year with the same complaint – lack of timely sales data from their distributor.

Magazine distributors have sales data from hundreds of IT compliant newsagents and this is enough for publishers to set print runs rather than using data which is two months old. Why this daily sales data is not provided to publishers daily is beyond me.

I’d be glad to help independent publishers with this. There may be ways around magazine distributors not releasing sales data until two months later. Contact me here.

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magazines

The grey nomads market

retiree.JPGI reckon we have enough magazines to create a grey nomads / retiree section. Besides the two specific magazine titles in the middle of the photo, there are many on the road type magazines which woule be of interest to this niche.

By bringing the various titles together and providing it a regular home we should be able to boost sales. As it is, one title is in the business / money section as it deals with finance, several more in travel, another in caravans, and so on. Careful title selection and placement could attract the grey nomads and retirees in for the magazines specifically targeted to their needs.

What I like about this approach is that it would be exclusive to newsagents. I don’t see 7-Eleven, Coles, Safeway or the others creating such a specialised category.

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magazines

Evidence of our cultural cringe

o_martha.JPGWhere is our Martha Stewart or our Oprah Winfrey? Lost in our cultural cringe I suspect.

While newsagencies across Australia have two or three magazine titles connected with Oprah Winfrey and Martha Stewart, we don’t have any for an Australian. It seems we crave more of these iconic US celebrities and their stories, opinions and supporters than we do our own.

Ita is the closest I can recall and that had a short life.

So what is it with Oprah and Martha? Leafing through the titles, I don’t get it. The content is aspirational on the one hand and adding weight to the iconic status of the two ladies on the other. As I said, I don’t get it – but, then, I am not the target demographic.

As with movies and TV shows, I wonder about the Australian voice and whether is is becoming lost. Magazines play a smaller yet important part in telling our stories, considering world events from an Australian perspective and creating local icons over whom we can fawn.

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magazines

Where is Greenpages?

greenpages.JPGI was surprised to see Greenpages on the shelves of our Frankston store but not at Forest Hill – maybe we missed the offer. Greenpages and the recently released G magazine could form the basis of a new green feature category in newsagencies. We could add to that a promotion of magazines printed on recycled material – as they do in the US – and pitch the environmental credentials of newsagencies and our suppliers.

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magazines

Expensive partworks

movie_partworks.JPGWe’re getting push-back from customers over the price for this Movie Musicals partwork series as well as the John Wayne Movies partwork series. It is the first time I can recall customers saying that a partwork series is too expensive. I agree. At $19.95 for a Chitty Chitty Bang Bang when I can buy it elsewhere for half the price, it is expensive.

It seems I am writing a bit about newsagencies being expensive at the moment. We need to hold our suppliers to account on price. With a 25% GP on these partworks, newsagents have no room to move on price. Given my knowledge of the partworks supply chain, I suspect that is the publisher in the UK influencing the retail price.

Ideally, I would like to see the Movie Musicals and similar partworks retail at $9.95. At that price we’re close to being competitive.

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magazines

Partworks impulse

p_box.JPGSimon, manager of our Frankston store has come up with the idea of using this box to promote partworks in a second location in the store. While we have a feature partworks display elsewhere, customers not regularly buying partworks are likely to miss this.

By copying some partworks covers and sticking them on this box we have at least something to move around the shop and find new partworks sales.

We know the partworks box is working because we see people browsing titles from the box and that is the first step to purchase.

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magazines

Hello Kitty, gee you’re expensive

kitty.JPGNewsagents have been supplied these Hello Kitty Crazy Beans by Gordon & Gotch. The price to newsagents is 90.07 cents with a retail price of $1.25. Other retailers are selling the same item for the suggested retail price of 99 cents. The pricing from Gotch makes newsagents look expensive. No wonder many newsagents are refusing to even put the stock out.

This is an example of a distributor accepting a contract for an item which disadvantages and disrespects our channel. Someone in Gotch ought to have checked I the pricing to newsagents was going to price us above other retailers. In such a situation the product ought not be accepted by Gotch.

Newsagents don’t want the expensive tag and it is easy to see where suppliers like Gotch can cause a problem for newsagents. We are returning this stock early in our newsagencies.

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supplier arrogance

Expanding the gift range

We are in the process of expanding the gift offering in our Frankston store. Whereas in the past the store focused on cheap (I’d say – tacky) gists, we have gone for a more premium offering. Already customers are respsponding. The biggest challenge is how to work with existing newsagent fixtures.

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This photo shows one of several gift areas we have created. We will be able to show a better story once we complete a shop fit early in 2008. We have especially high hopes for the top shelf flush in the photo – this is the Asthma friendly range as endorsed by the Asthma Foundation in the US.

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Gifts

Caravan and Motorhome magazine too fat

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Caravan Motorhome is so this this month that we can only fit one copy per pocket. This significantly increases the real-estate investment required by newsagents to support the title. The pub lisher thinks that they add value by putting two old issues with the current issue. I suspect market research would show that customers are as frustrated as retailers with such a useless triple pack.

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magazines

That’s Life cover up

tl_nov07.JPGI reckon That’s Life sales will slip this week because of the free clutch purse they are giving away. The purse floats in a sealed bag with the magazine and invariably covers the masthead. In half an hour I was asked three times if we had sold out of That’s Life by customers standing in front of a stack. The top magazine on the stack looked like the copy in the photo. While some customers will ask and others will pick up the title in the regular That’s Life space, some will walk out not purchasing the title.

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magazines

Beer and Brewer magazine celebrating

beer.JPGThe team behind Beer and Brewer magazine invited me to celebration of their first three issues next Wednesday night at the Belle Hotel in South Melbourne. I can’t make it because I’ll be on the Gold Coast that night. I checked with David Lippman, the Publisher of Beer & Brewer and he said he’d be glad to welcome any newsagents who support the magazine. Please email David if you’d like to attend.

Beer & Brewer appears to b a fringe title, something you’d put in the food and wine section. It also sells in cars section. Makes sense if you think about it. This is a title which lends itself to the co-location I bang on here about. For example, I think it would work on the lottery counter at the weekend.

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magazines

The social stationery opportunity

stat_sets.JPGThese are the kinds of stationery newsagents need to stock more of. These stationery packs sit between what we traditionally call social stationery and more specialist paper products such as those from Artee and Christina Re.

The two packs in the photo are a small part of a much bigger range – every item is fantastic.

Newsagents can push the envelope in this more social area as there are fewer competitors. We bust our balls competing with Officeworks, K-Mart, Big W and others at Back To School and other traditional stationery seasons yet no national network is driving in this social space. The opportunity is ours if we want it.

While some individual newsagents and the newsXpress group is playing in this space, there is room for more newsagents to become engaged.

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Stationery

Little Ears issue #2

It is good to see issue #2 of Little Ears magazine out. Little Ears is the kind of niche publication which needs to succeed. It provides an important community service – encouraging children to read – and it reinforces the role newsagents can play in niche publishing.

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magazines

Gross magazine oversupply in Sydney

I’ve been in Sydney today for several meetings and to help a newsagent in need. I am shocked at the gross oversupply being experienced by this newsagent – magazine distributors have the data to stop such criminal behaviour – it goes to shop that while noisy folk, like me, may be (overall) satisfied with supply, less vocal newsagents are at risk of poor treatment.

For all the talk of standards, today’s visit reminded me of how one sided the standards issue is. How can any magazine distributor justify increasing supply on a title achieving 50% sell through or less? They cannot. No wonder this operator, new to the industry, wants to get out.

I wonder what it will take for magazine distributors, publishers and other stakeholders to understand the gravity of what they are doing? Blood on their hands? The anguish I see and hear about make that a possibility – alarmist as that sounds. Magazine distributor management ought to visit newsagents, regular newsagents, and ask if there is a supply problem. If they have the guts to do this they should wear protective clothing.

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magazines

UK Magazine Week feedback

shop-front.jpgMagazine Week in the UK in September appears to have been a success in raising awareness of magazines in major population centres if their website is anything to go by. The photo shows how one WH Smith store embraced the promotion. While some magazine retailers would have been more resourced than others to embrace the week, that there was national focus on the category had to be good not only for the titles but also the retailers. I’d liv to see a Magazine Week run here by newsagents.

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magazines