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

Month: January 2008

Energy saving for dummies?

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Hmmm, Energy Saving for Dummies and Water Saving for Dummies.  Do we really need these titles?  Here in Ausytralia the Federal, State and Local Goverbnments have provided considerable information on both subjects.  The energy companies, too, have provided considerable information.  Plus there are websites and other communication outlets connected to environmental groups and other community groups.  So, I wonder about the value of these $9.95 books, the production of which would have consumed considerable energy.  I think I’d prefer these titles not be distributed here.

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magazines

EveryBlock challenges local newspapers

Check out EveryBlock.  This is a new media website which embraces local information and knowledge in a way not seen before.  It could present a real challenge to the puff and spin I see in so many of the free weekly local newspapers.  It collates data from a range of sources and makes it accessible by address.  Check it out.  I hope EveryBlock makes it to Australia.  Thanks to Mark Hamilton for the tip.

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Media disruption

Pregnant wedding magazines

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We are playing into traditional society pressures by placing pregnancy magazine titles next to our wedding magazine titles.  Not that it matters but I was curious about what our customers thought.  I conducted a straw poll over a couple of days and asked four under 25 customers and four over 40 customers.  All the under 25s and one over 40 said it would be better if they were separated and thee over 40s thought they went well together.  Hardly earth shattering.  In a couple of instances my question led to a chat about other magazines and from that came valuable insight.  It’s always worthwhile talking with customers in the body of the shop.

Back to the pregnant wedding placement, we are going to think about how we can dilute the visual statement that one leads to the other.

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magazines

Magalog, fascinating!

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Cleaning up some papers this morning I found magalog, a catalogue I picked up prior to Christmas and kept.  It’s from The Health and Beauty Club.  The catalogue is in the style of a magazine and that’s what interested me.  Home Hardware, years ago, launched dogalog and still run with this today.

I like the magalog because I think people will keep it longer than a usual catalogue and could browse again and again.  It’s an interesting approach to marketing and pitches the business in a way which separates them from the pack.

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magazines

Dressing for Valentine’s Day

We are getting a good reaction from customers about our Valentine’s Day display at Forest Hill. With a big Hallmark bear on offer for one lucky customer we have a good driver for card sales. We have more plush coming in to complete the display next week.

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Greeting Cards

Smart thinking

On hearing the news of the closure of the Bulletin yesterday, Ben Kay managing our newsagency at Forest Hill and Simon Frost managing our newsagency at Frankston independently of each other whipped up signs promoting the last issue of the Bulletin.  They sold out.  Fantastic initiative.

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Respectful coverage

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We have tapped into the respectful approach Who has taken to Heath Ledger’s death and displayed the product at the front of the shop – but without the visual noise we would bring to such a display.

This issue of Who is a wonderful tribute, a keepsake for any Heath Ledger fan.  I am sure it will be a huge success.

I was wrong in my expectation that another weekly would come out early and publish today.

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magazines

Supanews / Angus and Robertson, one footprint

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Landlords like tenants with multiple formats, it makes for efficient leasing. The photo from Armidale says it all. Supanews on the left and Angus and Robertson on the right. They look like two businesses but are from the one corporate family. I’d expect them to be on the one lease and a good deal.

The competition challenge for independent newsagents in any shopping centre is considerable.  I’d expect to see more joint tenancy arrangements such as this in the future.

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Newsagency challenges

Strong movie based partworks

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The John Wayne Collection and Movie Musicals partworks series continue to enjoy good success, months after the first issues hit the shelves.

The sales patterns for these titles are different to what we usually see for partworks as customers are stepping in and out of the series based on the title of the film on offer.

The latest Movie Musicals issue – Chitty Chitty Bang Bang – is a good example. The film is a much loved classic and it’s not surprising to see people buy that issue who have not purchased any other in the part series. Our challenge is how we display these, long after the launch, so we get the impulse purchase based on a specific title.

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magazines

Smartcard ticketing challenges

I was interested to read this morning that the NSW Government has dumped its ERG Smartcard ticketing project.  Despite success of integrated smartcard offerings in some overseas cities, various projects here have had rocky starts.  Of interest to newsagents, beyond the issue of commission, is the potential of a new payment type.  These cards are like cash and can, if permitted by the issuer, be used for payment for anything from a newspaper to more significant purchases.  This is, in part, what interests me.  If commuters get used to using such a card while commuting then retailers on travel routes need to accept the card as a payment method or risk losing business.  It’s like Eftpos, the more barriers we put up on how people pay for something the greater the challenge to our businesses.

It will be interesting to see which state in Australia gets it’s integrated ticketing system up and running first.

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Newsagency challenges

The Bulletin magazine closes

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The Bulletin, the magazine for which Australia’s first newsagencies were created in the 1800s and Australians longest running magazine, is closing.  The current issue is the last according to the ACP Magazines’ announcement.  Given the link to the reason for which we were created, this is a sad day for newsagents.  Sure, the Bulletin was not a shadow of its former self.  It’s closure must give us pause to contemplate our own longevity as a channel – not in a doom and gloom sense but thinking about the future and the opportunities before those of us with the guts to seize them.

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magazines

Loudspeaker management

I received this from a newsagent who participated in our Tower Systems online business management event yesterday:

I had my phone on speaker phone sitting at my computer which is next to where my staff unpack magazines. When I got off the phone and wandered down to the front of the shop to discover a different shop to the one I had before the online meeting. The good ideas you raised had been put in place by one of my ladies (with big ears!!). We have a magazines display with our papers, on the front counter, and a wire display frame near the lotto counter. She wants to know if she will have time tomorrow to tidy and rearrange the whole mag section. Such keenness has never been seen.

So the moral of the story is, the next online meeting make sure my phone is on max volume.

I love stories like this – people taking initiative based on new information.  That it was overheard makes it all the more special.

Part of the session yesterday was about found space, you know, the space we create out of thin air in retail off of which we can sell products. The best found space is that next to or near products which generate considerable traffic – newspapers, lottery counter, high volume magazines etc. While suppliers push us to display their products where they think they will work, it is often when we act as retailers and place products where we see opportunities that sales kick on.

Tower Systems is hosting these free business building meetings to help newsagents grow their businesses.

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magazines

Co-ordinating suppliers

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The folks at Notebook have supplied this heart as part of the point of sale for the current issue – it connects with Valentine’s Day. While I like the connect, I’d prefer the publisher and other suppliers to work together for seasons like Valentine’s Day.

By the time we bring in our greeting card, confectionery, gifts and other messages it can get a bit confused.

Getting Notebook on the same page as the card company offer as a minimum would make sense and reduce conflicting seasonal messages. This would make it easier to promote Notebook in the broader Valentine’s display as well as in magazines.

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magazines

Bracing for Heath Ledger coverage

The passing of Heath Ledger is sad, especially of one so young and with so much potential. His star status will mean newsagencies will be extra busy for the next couple of weeks starting with today’s newspapers (the Herald Sun today devotes the first seven pages to the story). One only has to look at the Google News listings to see how big this story is on the world stage. Who magazine will lead on Friday with what is sure to be massive coverage by the weekly magazines. I wouldn’t be surprised to see one of the weeklies due Monday publish early.

While it may sound mercenary, newsagents could consider taking orders to ensure fans get their copy of Who, and any other magazine with a Heath Ledger feature in the next few days. We will need to create displays based around the story and co-locate titles.

How we handle major news stories like this says something about how relevant we see ourselves as being. Our competitors in the newspaper and magazine categories – supermarkets, petrol outlets and convenience stores – will do what they usually do and have stock in the right slots on the right shelves. We can prove our relevance by going the extra mile and owning the story. Many newsagents did this with the passing of Steve Irwin.

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magazines

Magazine power ends

I received an email from someone asking about the aisle end to which I refereed in my post about our Wheels magazine display earlier today. In addition to our Wheels feature, we have this display for Burke’s Backyard.  (All photos are from our Forest Hill location.)

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And we have this display for InStyle magazine.

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Plus we have several other magazine displays to drive impulse sales. Not everyone has the space or the resources to run with displays like this. We have found that in our situation the effort is rewarded.

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magazines

Promoting Wheels magazine

File this under careful what you wish for. A few weeks ago I complained about ACP Magazines shutting down supplying in-store display materials over Christmas. Well, the drought is over and we have more material than we can reasonably use. Burke’s Backyard is this week’s feature title. Then, today, we receive display material for Wheels. Rather than take down Burke’s or the display we have for InStyle on our traditional aisle end displays, we have created a new space – next to newspapers, for Wheels:

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We chose placement next to the newspaper stand since we feel it is more appropriate to the Wheels target customer. Time will tell. Hopefully the folks at ACP will be happy with this even though it is not a power end display.

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magazines

Great Woman’s Day add-on

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The free cookbook with this week’s issue of Woman’s Day is the best magazine add-on I’ve seen in a long time.

Shoppers know the value of the cookbook – as opposed to glasses, tea towels and other items where the value is less understood. The other aspect of the cookbook which I like is that it’s part of the broader ACP Magazines brand.

We are supporting the cookbook giveaway by placing the title in several locations and drawing attention to the offer.

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magazines

Rap-Up not worth it

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Rap-Up is a good magazine for the target market but it’s not working well enough in my newsagency.  I cannot justing the pocket the single copy occupies.  With these single copy titles we either need more and some support to grow the sales or to cut the title.  I have decided to do the latter.  The space saved in the music section will be used well to support another title.  Rap-Up is a title which could benefit from a magazine czar who has access to newsagent sales another data – who could help the title find a better home.

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magazines

Signing up for Myki

We have signed on to sell Myki cards and recharge at our Frankston, Forest Hill and Watergardens newsagencies. Myki is the new electronic ticket wallet being introduced by the Victorian State Government later this year.

I am writing here about our decision because it’s something I need to be transparent about. My criticisms of Myki remain – the State Government is not supporting small business with the new ticketing model. That aside, my assessment is that I’d rather have Myki available in my newsagencies than not.

7-Eleven have signed up and there is a risk that newsagents will lose valuable ticket traffic to convenience and other retail channels. Rather than see that, we have accepted the Myki terms and will wholeheartedly support it with promotional material in-store.

I’d note that this is a new product category for Watergardens and Frankston since it is only at Forest Hill that we offer Met tickets currently. Even at Forest Hill, the numbers were low enough to mean that the Myki terms are not that bad. If our volume was considerably higher we’d be worse off. They quarterly payments for as a base are what make Myki acceptable.

Given the feeling of many newsagents, I feel like a bit of a traitor in making this decision. However, I see it as right for my newsagency and many others. Maybe enough signing on will strengthen our case at the negotiating table with the Transport Ticketing Authority.

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Newsagency challenges

Good things come to an end, temporarily

I am grateful for the run of Super 7’s OzLotto jackpots in recent weeks. The $20 million first division prize pool, which went off last night, made for some excellent additional traffic and strong sales – not only this week but over the last three weeks as it built up. Every week the dreams of the punters grew – I like that about lottery sales, you get to hear some wild dreams. Oh well, it will jackpot again soon…

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Lotteries

Plush therapy

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The chap in a suit walked into the shop, headed straight to the display of bears and other plush and thrust his arm deep inside.  Therapy he said when I shot him a glance. 

While this happened in one of our gift shops and not a newsagency, it made me think about therapeutic opportunities we provide in retail.  I am sure people visit a newsagency for the comfort of memories from their old home in our foreign language newspapers or to fantasise in the pages of car or travel magazines or to buy a dream with a lottery ticket. 

The chap withdrew his arm from the bears and told me he likes to visit every few days, he finds touching the bears calming.

 

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Gifts

Wal-Mart cuts 1,000 magazines

Wal-Mart, the largest retailer in the US, has cut 1,000 magazine titles from its stock file. While some titles are no longer published, most are. Titles such as The Economist and the New Yorker< Business Week and Better Homes and Gardens. See the New York Post coverage here and the MediaBistro take here.

The decision by Wal-Mart focuses attention on magazines. It will get other US retailers thinking and maybe cutting. It will stop some new titles launching. It will make some consumers question why they read magazines – if it’s not at Wal-Mart it can’t be that good.

Wal-Mart has to do what is right for its shareholders. It always has. Ask any family connected with a small business in middle America. This giant retailer has, in my view and the view of many, wrecked many small towns and treated many employees appallingly. So why expect them to support a socially important media channel?

Maybe the Wal-Mart decision is an opportunity for small business in the US? That’s how I see it – despite my bias against Wal-Mart. However, such a Pollyanna view of the world is probably not practical.

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