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

Month: January 2008

Where’s The Age?

age_jan16.JPGWe have no copies of The Age for sale in our Forest Hill location today.

We’ve been told that there was a production problem and the wrong copy printed.

Our supplier has given priority to home delivery customers – it appears there is not enough stock to even take care of that demand. I guess retail customers are second class citizens.

Nice to have the poster though.

11:30 update – we just received 45 copies of today’s newspaper.

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Newspapers

December newsagency benchmark report

Tower Systems has published my benchmark report comparing newsagency sales data for December 2007 to December 2006. It makes for interesting reading. The headlines, based on data from 39 participating newsagencies, are:

Newspaper and magazine sales fall 7% in the city and 3% in the country.

Card sales increase 6% in the city and 1% in the country.

Stationery flat in the city, strong in the country – up 13%.

The fall in newspaper sales, for a second month in a row, is concerning. Newsagents cannot ignore this trend. Newspapers continue to be the most popular item by volume and this masks the decline for many. I can understand that. While I am sure there are steps we can take to arrest the decline store-by-store, most put the newspaper out in the same place then have been for decades. No wonder customers are blind to them.

We have to respond to the benchmark data as I am confident that what my sample of 39 shows is an accurate reflection on the whole channel.

While analysing the data from the participants I was surprised at the success some were having with categories which others ignored. I might have some more to say about this after the next round of benchmarking.

By making the report widely available I am hoping to get newsagents thinking more about business and how their actions can build success.

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Greeting Cards

Chiocago Tribune dumps employment ads

In a ground breaking move, the Chicago Tribune has dumped help wanted (employment) ads from its pages except for the Sunday edition.  Instead, readers and directed to an employment website.  Editor & Publisher has more.

This is a bold move by the publisher and, I suspect, will be seen as smart years down the track.  Rather than having to navigate the migration of more ads online, they have taken the initiative and forced change upon themselves and immediately freed up resources for more appropriate content.

Newsagents could take a similar view of parts of their business and cut products and whole categories which are no longer economically viable.  No, I am not (currently) talking about newspapers or magazines.  I’d start with stationery.  Some newsagents carry some items with a sock turn of one or less a year.  We need to let go of the fear of not having what people want that one time in a year and use the space to pitch our relevance to more of our customers.

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Newspapers

A newsagency in the USA

I found an interesting story by Kevin Sieff in the Brownsville Herald by about PubliArt, a book and magazine store in Brownsville.  What makes the story interesting to me is how unique the reporter considers the store.  I wonder what he would make of Australia’s 4,600 newsagencies, each offering between 1,000 and 2,500 magazine titles.

Alejandra Davila, owner of PubliArt has a good approach to retail:

“I don’t just want to sell books,” she said, “I want to provide a comfortable environment for people to read and spend time.” Recently, she started providing space for reading groups. The store also offers free wireless Internet and sells coffee and soft drinks.

I suspect Alejandra would be aghast at newsagents who have signs up in their stores pronouncing THIS IS NOT A LIBRARY.

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magazines

Flattering, I guess

I am surprised to see News to Business paying Google for their ad to come up people search for newsagency blog when using the search engine. At first, I thought they were paying for the keyword newsagency.  However, after 30 or so clicks, I am certain they are paying for newsagency blog. I guess they think that people looking for this place would be interested in what they are seeking to sell to newsagents. I hope people don’t think I am in any way connected with them. All of the ideas, suggestions and comments here are free for anyone to use but not to sell to others.

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About us

The things customers say

In the space of five minutes last week, one customer told me about his blind wife and that he fills in crosswords for her even though he has never done one in his life, and another customer told me about the challenges his daughter is facing living with MS – he was buying some women’s monthly magazines for her and was embarrassed to ask for it.

I’d not met either customer before.  Within seconds of offering help on the floor of the shop they were sharing their personal stories.

I bet that every day across Australia newsagents and those working in newsagencies have similar personal conversations with people they have never met before.    Some days I don’t get enough and crave such a moment with a customer.  We are are privileged to have this type of personal interaction.

Sure there is a business imperative to providing good customer service.  There is a personal imperative too.  Ours are personal businesses and if we forget to be personal, we forget what retail and, in particular, small business retail, are about.

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Customer Service

Online training first for newsagents

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I’m sitting in a room next to where a first for Australian newsagents is taking place. Fifteen newsagents from around the country are participating in a training session on Magazine Management using the Tower Systems software for newsagents.

The photo shows what’s on the screen in the room where Jonathan Tay and Michael Elvey, hosts for the meeting, are located here in Elsternwick.

All fifteen participants are either at home or in the back room of their business. This is what is unique about this training session – it’s the industry’s first such online training event.

Tower is using the world leading Web Ex webinar technology to manage this and its forthcoming newsagentb training events – to cut the cost of training for newsagents and make training more widely accessible. There is no cost for newsagents – including a toll free line for the audio content.

Short training sessions like this one – it runs for an hour – regularly offered are the way to go for time-poor newsagents. It boosts compliance and gets newsagents mixing with each other who would not usually do so.

Tower will be announcing more sessions on Magazine Management and other newsagent specific topics later this week. This afternoon, the company is hosting its first user meeting – more of a general Q&A session as opposed to the training currently underway.

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Customer Service

Australia Post, ugh!

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The TIME IS MONEY brochure from Australia Post is another example of this Government owned business using its protected monopoly to take sales from small business newsagents.

Nowhere on the glossy two-page brochure does Australia Post promote postal products.

This brochure is all about printers, ink, toner and office supplies. They are promoting this to the long suffering customers who have no choice but to visit the Government owned outlets.

Without the protection of the monopoly, Australia Post could not make these offers. Taxpayers are funding their ‘competitiveness’. It’s my view that Australia Post is operating outside what is permitted under the the Act of Parliament which governs its operation.

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Australia Post

Calendars continue to sell

It’s the middle of January and calendars are continuing to sell well. We bought 1,000 additional calendars ten days ago at a good discount just for this purpose – the January sales. The decision is paying off with sales of $200+ a day some days.  We are still only discounting 50%.

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Calendars

Recycling stands

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Newsagents receive all manner of display units for seasonal promotions as well as one off use to boost a title or some other product. Space limitations mean these units are trashed as soon as their intended use is over.

Sometimes we come across a display unit which is stroing enough to be used over and over. Such is the case with the unit we’re using for Good Health magazine at our Frankston store this week. Besides using this stand three times for the title for which it was supplied – Women’s Health – we have used it to promote five other titles. It’s strong and has a small footprint – enabling it to be placed anywhere without getting in the way.

If we kept it as a Women’s Health stand we’d have it out for a week and then rest it for three weeks – otherwise customers become blind to it. By recovering the stand we keep the unit productive and maintain the original printing to promote Women’s Health when the next issue comes out.

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magazines

I Luv Mags

Linda Tresham really does love magazines as she proclaims at her I Luv Mags website. The site offers thousands of titles for sale going right back to the 1940s in some cases. I love Linda’s enthusiasm for magazines – you almost feel compelled to buy something.

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magazines

Great summer reading?

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The promotional material from the ACP magazines Connections folks is disappointing this week. Great Summer Reading is, at best, soft. It promotes several unrelated titles and the summer connection is weak at best – most of the titles are not strong on summer features.

It’s as if someone decided to promote a range of titles and need to promote a connection. If it were up to me, I’d have canned the idea.

Now, before the Connections people complain about what I’ve written, take a moment to understand that I want kick-arse promotional material which is relevant to my customers and respects the valuable real-estate I have set aside. Great Summer reading does not respect my investment. Some titles may even get a sales kick by being in this space – however, the marketing types ought to have come up with something better.

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magazines

Bic forgets newsagents

The Brand Power ad for Bic pens and markers on TV last night closed with the tag line: check out the range of Bic stationery at your local supermarket now. I guess there is no point in newsagents carrying the Bic product anymore.  I’d guess that across our retail network we have in excess of $2,000,000 of Bic product – recieving not one cent of advertising support for our shingle.

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Stationery

IBM rips Treasurer

Another win for Advertising over news content at the Australian Financial Review today with a round Post-It type ad stuck on the front page of the newspaper. From what I hear from others, Fairfax leads the world in desecrating the their newspaper mastheads and pages with these stuck on ads.

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Here is a photo of page one of the AFR once I lifted the ad off. No, I did not set out to make a mess, I genuinely wanted to read the story underneath. I wonder how many customers will want their money back? I would.
afr_jan12_rip.JPG

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newspaper masthead desecration

Free newspaper talk in London

Ben Fenton, writing at The Financial Times, reports speculation about whether The Sun and or the Daily Mirror will go completely free.  That the prospect of such a move is being discussed makes it more than one person’s thought. 

Roy Greenslade, writing for The Guardian, makes some sense of the situation facing the two newspapers and points to the more dire situation facing the News of the World.  The year-on-year 6.31% fall in sales in December is close to the sales fall I have seen for newspapers in city based Australian newsagencies for the same period.

There is no doubt that newspapers face a tough year here.  Disruption from new technology and changes in news access habits are only part of the problem.  Publishers make life difficult for themselves by working against the best network they have – newsagents.  They disrespect retail newsagents by not offering any incentive to drive retail sales growth.  They disrespect home delivery newsagents by trimming margin and refusing opportunities to keep up with CPI. 

Australian newspaper publishers who want to grow their sales in 2008 would do well to engage with newsagents as business partners.  While this would be a dramatic change, it would focus newsagent attention on growth rather than survival.

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Media disruption

Online winning in music

Ian Rogers, Vice President Video and Media Applications at Yahoo! has published an excellent post based on a talk he gave at a music industry conference in December. If you want to see online music and video trends from the inside, read what Rogers’ post, it’s further evidence of how the old media world is changing and while it is about music, the insights <em>are</em> relevant to Australian newsagents, all we have to do is accept that change is coming our way too.

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Media disruption

Holland Focus magazine

holland_focus.JPGNewsagencies have an interesting collection of magazines appealing to people from other countries. Take Holland Focus it’s a unique title with limited appeal yet crucial to the point of difference newsagents offer. The challenge is where to locate the title – in travel, women’s interests (where we have British and French titles) or with foreign language titles?

Holland Focus is a title we gladly keep aside for regular customers. This put away service drives repeat business and differentiates newsagencies from many other magazine retailers.

The mix in any newsagency is dependent on the demographic and whether the newsagent has requested certain titles. In our case, we have a good range because it’s something we have fostered for years, along with foreign language newspapers. It’s a growth area for us and this is important because of fluctuating sales of the higher volume weeklies which all other retailers sell.

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magazines

Leveraging the monopoly

Stapled to the official Australia Post Order Form was the real reason for their junk mail in our post box – a one page sheet announcing: 1 DAY ONLY, 10% OFF STATIONERY.  This is further evidence of the Government owned business using its monopoly to take retail sales from independent retailers like newsagents.

The previous government said that Australia Post only offred retail products as incidental to portage products and services and that it would never abuse the monopoly to take retail business from others such as newsagents.

It will be interesting to see is the new Labor Government addresses this issue, whether they allow Australia Post management to continue to use government protection of their monopoly to take retail sales from family run newsagencies.  The stakes are high.  There are unions in Australia Post to consider as well as mums and dads who own newsagencies along with their tens of thousands of employees.

It all comes down to interpretation of the Act of Parliament under which Australia Post operates.  My reading is that the stationery flyer attached to the postal service form is not permitted under the act.  But I would take that view, it suits me.   A person or body less conflicted than me needs to look at this and advise the Government on how to navigate the issue.  If Australia Post is left to its current pla, there is no doubt jobs in newsagencies and other businesses will suffer.

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Australia Post

Free content at Wall Street Journal

It was only a matter of time before the new owners of the Wall Street Journal removed the price barrier to key online content.  Rupert Murdoch forecast as much months ago.  The announcement a couple of days ago is the first step of what many expect to be complete elimination of the subscription model.

It will be interesting to see how the folks at the Australian Financial Review react.  Despite their statements prior to Christmas that nothing would change, the Board will tolerate red ink for only so long.  The following passage from a report in The Australian yesterday makes a clear case for the free model – it’s about eyeballs.

“At the moment, we sell it to about 1 million people at a theoretical $US50 million ($55.8 million) a year,” Mr Murdoch said.

“But of that $US50 million, it costs probably $US15 million in costs of just getting subscribers and looking after them — so it’s (really) $US35 million. We think when it goes from 1 million subscribers to 20million people watching it around the world, that there will be more than enough advertising to make up the difference.”

I know of newsagents who will feel little connection with the store about the moves at the Wall Street Journal.

Newsagencies have been built around a paid model for accessing news and information, is changing.  Free newspapers in capital cities, free daily newspapers home delivered (in many US cities) and free high quality content online all challenge our model.  This challenge is an excellent opportunity, it is not something to ignore or fear.  I suspect many newsagents are doing both.

I would like to see newsagents engage in robust open debate in 2008 about their future in the face of the changes in how people access and consume news and information.  Such debate would guide better business decisions by newsagents and would-be newsagents.

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Media disruption

The Age trumps Hillary

Congratulations to the folks at The Age newspaper for pulling focus from the front page story about the passing of Sir Edmund Hillary with another garish and hated by customers stuck on ad – this time for their own newspaper. See for yourself how awful this looks…
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As for the offer on the ad, I don’t care for it. I’m a retail newsagent and have no interest in driving customers from my business to home delivery.

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newspaper masthead desecration

Make something great: with magazines

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We are using the theme of Make Something Great for our new magazine feature near one of our register points. 

Each title has been chosen because it’s about making something things: quilts, cross stitch, scrapbooks, cards, dolls, bears, knitting and beads.  Since newsagents are the only retailers of many of titles covering these subjects it’s a blue ocean opportunity for us – no competition and therefore, to me, a no-brainer. 

This promotion backs onto last week’s theme of holiday activities.  As usual with this display at the counter, customers walking up to purchase one item are making an impulse purchase of another from this display.

Newsagencies have excellent traffic.  It takes little effort to leverage that to above-average basket size (average spend per customer).

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magazines

Diet diary

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The Diet Diary on the cover of Good Health magazine this month is sponsored by Baker’s Delight. If you go to a Baker’s Delight store you’ll see copies of the diary being given away to customers.

Newsagents near a Baker’s Delight would do well to strike up a co-promotion deal with them – it would have been good if ACP had put this together as part of the promotion. I’d like Baker’s Delight stores to promote the magazine in newsagencies and newsagencies promote healthy products from Bakers Delight stores – with the diary as the link.

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magazines

Blogging frustration

As you can see from the formatting, we’re still dealing with the rapid migration from Movable Type to WordPress for managing content.  We have a new design which should be live Monday.  This will make posts easier to read.  Sorry for the inconvenience.

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About us