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

Month: January 2008

Lovatts Valentine’s promotion

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I noticed the Valentine’s themed Lovatts crossword title so decided to place it with one of our Valentine’s displays.   People buy all manner of gifts for Valentine’s Day so why not a crossword title?

I’ll take every opportunity I can to promote several categories of products at once around a them.  It makes sense.  For Valentine’s Day we can pitch cards, bags, plush, the Lovatts Crossword title, journals, books, albums, photo frames, even pens.

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magazines

Publisher leads customers from newsagents

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Thanks to Steven Denham’s blog, I found this image of an ad from The Sun from London last weekend.  The free DVD promoted in the newspaper can only be redeemed from one of three major retailers.  This reminded me of the promotions run in Adelaide by News Ltd’s Adelaide Advertiser where redemption was through BP.

Newsagents, here in Australia and in the UK, are an important channel for newspaper publishers.  They need to nurture and support the channel at every opportunity and not drive people away.

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Newsagency challenges

Free music downloads with newspaper

PaidContent reports that the New York Daily News is to offer free music downloads for readers.  Inside the newspaper on two consecutive Sundays will be a code which provides access to three downloads from a library of 120,000 songs.

This is quite different to the launch and distribution last year in the UK of the new Prince CD with one of the newspapers.

The Daily News offer looks to me about two challenged distribution models testing to see if teaming up can make them stronger.  It will be interesting to see the results.  Personally, I prefer a promotion with an in-store redemption – this respects the retail network.  However, given the lack of a strong single retail network for newspapers in the US I can understand why they are taking this approach.

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Media disruption

The team behind newsXpress

I’ve owned my newsagency at Forest Hill in Victoria since February 1996 and over the twelve years have been independent, with Newspower and with Nextra – before joining newsXpress in mid 2005. What I looked for in a group was business building strategies as well as excellent commercial terms. While I am biased about newsXpress, since I’m now a shareholder, my relationship with this brand has been the best for my business.

While any of the marketing groups can negotiate brand based deals, it’s the team behind the brand which drives the point of difference. Below is a photo of the full-time team behind newsXpress. From the national merchandise team to the in-store Business development Managers, this team represents an exceptional resource for my business and the businesses of all newsXpress members.

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As with any of the marketing groups, newsXpress is not for everyone. It’s for entrepreneurial newsagents who want to redefine their newsagency and fish for new customers and a build a more valuable shopping basket. Chasing above average growth is hard work and not for everyone. But, then, good rewards do take hard work.

I’m glad to have good relationships with many Nextra and Newspower newsagents. Those groups, too, are not for everyone. I am sure their members would be equally complimentary of them.

Key in assessing a newsagency marketing group is to look at its goals for members and the people who will help you achieve those goals. Finding the right group backed by the right people can make your newsagency a truly valuable investment. The team behind newsXpress is a good mixture of hands-on newsagency experience as well as experience from outside our channel which benefits the brand.

The days of the independent newsagent are coming to an end. Without a well-managed brand behind your business it is easy to get lost in the rush to lure new customers.

Disclosure: I am a shareholder in and Director of newsXpress Pty Ltd.

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newsagency marketing

Counter stationery pitch

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We are repeating the counter pitch for the social stationery in the photo. Regulars here will recall we first tried this product late last year. It was a roaring success. These attractive pads work a treat with card customers. It’s great seeing someone come to the counter with a bithday card and pick one of these without a second thought.

This is exactly what the counter ought to be about – placing the best pssible up-sell product in the best possible location. The only way to achieve this is through change. Newsagents who focus only on a confectionery offer at the counter or some other set-and-forget category miss some excellent business.

I like this social stationery because it better connects with other categories we carry.

While some marketing gurus tell newsagents to ask for the up-sell or use a challenge – if I don’t offer you this then its free – I’d prefer to structure the shop and the counter to work in a less intrusive and, hopefully, more successful way.

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retail

The price of stationery

I have received considerable private correspondence about my comments here on the price of stationery in newsagencies. There is little consistency in the views expressed. They range from: all newsagents should sell stationery for the same price, to: we should always undercut the majors when it comes to price.

It is impractical for our channel to act as one on the issue of pricing of stationery just as it is impractical for us to act as one on range. These things are better left to be managed through the brands under which we operate pricing is part of the brand value proposition after all.

Establishing the price of an item requires careful thought and requires consideration of a variety of factors.  Those with whom we compete have back rooms filled with people who manage such things.  For national brands it is easier since they exert more control over the brand.  In the newsagency world brands exert less control – hence the challenge at the local store to determine the right price for the business.

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Stationery

Monopoly is coming

One of the most successful newspaper promotions I can recall is coming again. Monopoly starts in a few days in the Herald Sun. We are going to actively support the promotion and use the opportunity to leverage add-on sales around the promotion.

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Uncategorized

Valentine’s Day chocolate and endorphins

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Valentine’s Day is an opportunity to shine around the Darrell Lea brand. These boxes of chocolates work very well next to the card display. I especially like that the folks at Darrell Lea have provided the range with a slim stand – to enable it to fit with greeting card and other Valentine’s day displays.

While those in young love will go more for plush or similar, dare I say, soppy, gifts, the more mature in love will go for an exquisite box of chocolates – to release those endorphins. Hmmm, endorphins reduce the eaters sensitivity to pain. Now I understand why chocolate works on Valentine’s Day!

We dohave balance in our Valentine’s Day offer: cards, choloolate, mugs, plush and books.  All categories are performing well for us.

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confectionary

Take 5 promotion held back

Take 5 is one of two magazines ACP Magazines wants us to promote this week as part of their Connections program.  They have sent an excellent in merchandising kit.  The magazine itself comes with a free make-up compact – a compelling offer.

While I expect the ACP marketing team are hoping for an increase in sales.  I suspect that their allocations team don’t hold the same hopes – they cut our supplies by 10%.  It seems a sell through hovering at 80% is enough of a reason to cut supply and cause this promotion to probably not reach its full potential in our newsagency.

Magazine publishers amaze me sometimes.

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magazines

Australia Post expensive for HP, Canon, Epson ink

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The latest catalogue promotion from Australia Post, running Jan. 28 through Feb. 17, is a rip off in my view.  Take page 5 (see photo) – HP 56 + 57 twin pack.  The Australia Post price is $69.95.  The price in my newsagency is 10% less yet I don’t have the buying power of thousands of stores nor do I have a government protected monopoly pulling people in.

Australia Post will charge you $22.95 for a Canon BCI-24BK twin pack.  Our price is 13% less.  Australia Post will charge you $43.95 for a HP 21 + 22 combo pack whereas at newsXpress Forest Hill you’ll pay 8% less.

Australia Post is clearly not the place to be buying printer ink and toner.  We beat them on price.  We also beat them on service – at Australia Post you have to stand in the conga line for ages to have your question answered.

It is bad enough that a government owned and protected retail channel competes directly with a small business like mine.  That they rip their customers off as they are with their current printer ink specials is appalling.

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Australia Post

Off to the Producivity Commission

I’ve been invited to participate in one of the public hearings of the Productivity Commission next month. This is in response to the written submission I made on behalf of newsXpress and newsagents in shopping centres more generally. I am grateful to have an opportunity to comment on the draft report and provide further information on challenging retail tenancy situations newsagents find themselves in.

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Newsagency challenges

Newspaper relevance in the UK

If the future of newspapers is on your mind, read the sobering column by Roy Greenslade writing at The Guardian about a recent study which showed that of those who did not read a newspaper regularly only 3% consulted a newspaper website regularly.

The competition for eyeballs if fierce – not only for news content but across a range of areas well served by magazines and other media outlets.

Our challenge as retailers is how we configure our businesses so they are flexible to cope with changes forecast in the study to which Greenslade refers. For many newsagents, there is no option as these issues are not being canvassed sufficiently by newsagent shopfitters and designers.

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Newspapers

Thin computer magazines

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If size is a measure of health then I wonder about the future of computer magazines. What we have on our shelves today is Australian titles which are half the size they used to be two years ago.

The size of the magazines means they need less space and this is leading to a reduction in space allocation – our second time in a year.

The content content of computer magazines is changing too, morphing into a broader focus than their roots – in an effort to find new readers I guess.

It gives me no pleasure to say that I preduct we will see some closures in the computer magazine segment this year. Their traditional consumers are accessing more current information online.

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magazines

Early start to Valentine’s Day

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Even though Valentine’s Day is still two weeks away, sales are strong.  Cards, plush and gifts are all selling well.  Going out early with our display was a good move.  While we don’t embrace the season as much as they do in the US, we’re getting there – I am keen to provide a more complete environment through which people walk for major seasons such as Valentine’s Day.

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Greeting Cards

The future of newspapers

Thanks to Leonard Witt’s excellent pjnet blog I have been fortunate to find the following podcast, The Future of Newspapers, from San Francisco based public radio station KQED. The 51 minute podcast is fascinating. Australian newsagents should listen as should newspaper executives in Australia who publicly say that it’s business as usual for newspapers.

I am unafraid of the changes which are so evident in the distribution of news and information overseas. They present opportunities for newsagents to reinvent themselves and have more control over their business future.

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Newsagency challenges

Biggest Loser cookbook out now

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The Biggest Loser cookbook has arrived in time for the start of the new TV series on Network Ten so we’re featuring it at the counter.

While I am unhappy that we are not making traditional bookseller margin on this title, my goal is to sell the stock I have while interest is high and before payment is due on the stock.

Titles like this are a challenge for newsagents. They have a high price point, are challenging to locate and often do not receive the customer respect when placed in with magazines. hence our decision to feature it at the counter and try and move the stock quickly.

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Book retailing

More free training for newsagents

Below are the details of more (free) online training opportunities for newsagents using the Tower Systems software. The new courses on offer are:

Magazine Management Jan. 29 at 10am. This session will cover all aspects of magazine management; from Arrivals, Returns, Putaway Management and over/under supply. This session will be repeated several more times.

Re-Ordering 2pm Jan. 30 at 2pm. Learn how to make the most of the Tower software’s advanced reordering functions. Learn how to create an order electronically, send it to suppliers, then once the stock is in arrive it automatically without extra work.

Business Discussion: chasing magazine growth Jan. 31 at 11am. Join us for an overview of magazine performance by MPA category, suggestions on steps you could take to increase sales and discussion involving everyone on ideas they use in their businesses. A great free business building opportunity for all newsagents.

New Owner Training Jan. 29 at 2pm. Have you recently taken over a newsagency? Well then this session is for you. It is designed to give all new owners an overview of the software and its capabilities. We will cover all the things that new owners find challenging, from balancing registers to arriving stock.

Each session will run for between 60 an 90 minutes depending on questions and discussion. To book, please email bookings@towersystems.com.au.

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magazines

Australia Post leverages the monopoly

The government owned Australia Post retail outlet opposite my newsagency at Forest Hill was closed today.  Yes, they pick and choose how they interpret the Act of Parliament under which they conduct their retail network.

Today’s closure is arrogant and demonstrates the value of their monopoly.  An unprotected business could not close today.  No major shopping centre landlord would stand for it.

I am annoyed because I rely on Australia Post to draw people to our end of the centre.

if it’s good enough for an independent small business to carry the cost of public holiday penalty rates then it’s good enough for a protected government owned retail chain.

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Australia Post

Bit late for a diary

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We received more copies of the Australian Country Collections 2008 Diary today.  While I am pleased that they have delayed billing and have provided 33% commission instead of the usual 25%, it’s not enough.  For us to move these diaries we need to be offering at least 25% off.  The publisher ought to have provided this stock to newsagents at between 60% and 75% off.  This is what more mainstream publishers are offering for 2008 diaries now.  This scale out, without request by the newsagent, is an abuse of our retail network.  It is a good example of an unfair magazine supply model.

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magazines

Pick Me Up magazine confusion

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I had a customer ask which was the current issue if Pick Me Up – she was buying it for an ill neighbour.  It is frustrating having local and imported magazines with the same title and design – oh, an such a big difference in price.  No wonder customers get confused.  I’d prefer to be able to show the difference easily – maybe a sticker – local edition – at least something to help customers.

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magazines

Momiji dolls at the counter

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Further to my previous post this morning about displaying product at the counter, at our Frankston location we have a small display area right at the front of the shop, on the corner of the counter.

Sherie created the display Momiji dolls you can see in the photo – it’s an excellent display with the fan in the back and the silver base, framing the Momiji dolls well – better than my photo shows.

While we still have them where we first displayed Momiji dolls ten weeks ago, in the few days we have had them at the counter they have worked better.

Sure, it makes sense – the right product in front of people sells. The challenge is to manage the space, cycle product through and create a display with context.

We are successfully chasing gift sales in each of our newsagencies. This is as much a counter offer as it is an offer in the body of the shop.

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Gifts

A lazy magazine display

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Short on time last week and with or usual main counter magazine display stand in use elsewhere in the newsagency, we took the lazy approach and moved an old mini ACP Cookbooks stand to the spot next to the counter.

That was six days ago. A check of sales data today shows that the lazy move was good for the cookbooks.  Of course it was!  Location, location, location.

Yes, sales are up.  On Friday and Saturday I saw the stand work first-hand.  On each day, a customer came to the counter with greeting cards and while being served, reached across and bought a mini cookbook.  The sales kick we have achieved by moving the stand is greater than if we had done a pretty aisle end display.

Even though the stand is an ancient relic and is usually banished to the back of the shop, in the right place it works.  I’d say this is primarily because customers can see the full cover of each book.  Sure having the product in front of people is important as well.

Our commitment is to change our various counter upsell offers every week. This space next to the main register is proving to be very successful for magazines – clearly no matter how old or ugly the stand itself.  So, we’ll keep at it, moving magazines around, creating subject related featured which underscore our depth of range.

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magazines

Promoting Chinese New Year

Here is the first part of our two-part Chinese New Year promotion – we have most of our stock coming in this week.  In this initial display we have Chinese New Year cards, red packets and Tatts lottery gift pack ideas.

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The display is at our main lottery counter.  You can see the Herald Sun stand and then an ACP magazines stand to the right in the photo.

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Greeting Cards

Free DVDs and grumpy customers

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The Age and the Herald Sun each have free DVDs with the newspaper today – shows from the 2008 line-up for the nine and ten networks respectively. Each is a good promotion – a perfect newspaper tie-in.  My only beef is the grumpy customers who have their newspaper home delivered and come in to claim their free DVD.  Two in ten try and push ahead of others and demand the DVD as a right.  It’s a challenge some days.

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Newspapers