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

Month: January 2008

Newsagents embrace online training

The industry’s first ever online training session, announced earlier this week by Tower Systems, is full.  The free training session on Magazine Management will be held next Tuesday.   Tower expects to announce more dates for this session next week.  The goal is to help Tower Newsagents cut time spent managing magazines and improve commercial outcomes from the category.

If this innovative training is successful, newsagents will have access to a suite of training from the comfort of their home of newsagency office – saving time and travel costs.

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magazines

Borders A&R date set

The ACCC has set January 20 2008 as the proposed date on which it will announce its decision regarding the purchase of Borders by A&R Whitcoulls Group.  If the acquisition proceeds it created a mega retail group not only covering books but also magazines since Supanews is part of the group.  The material at the ACCC website on the proposed acquisition makes for fascinating reading.

While I am comforted at the work of the folks at the ACCC on the implications for books, I am disappointed that they have not considered the implications for magazines.  Borders has achieved good magazine sales by offering a broad range of titles, many of which are imports.  If the learnings from this are applied across A&R stores, newsagents would be impacted and this would reduce competition and therefore disadvantage the consumer.

If the acquisition proceeds I’d expect to see an impact on some newsagents.  The best action we can take today to counter this is to get smart with magazines, obsess about them, focus on the titles you sell which no-one around you has – this is where I am seeing growth in my newsagencies and several others for which I have access to data.

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Newsagency challenges

Music card theatre

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It is fascinating watching customers interact with our new range of music cards based on names.  Yesterday, twice I saw people choose a card and take it across the shop to pay it for someone browsing magazines.  Beyond getting people interacting with product, it adds a bit of theatre to the location in the store where the card is played, others around look up – all good stuff in retail.

We are fortunate that this range is not in too many stores in our centre.  If that changes I would not expect the same level of excitement (and sales) from customers.

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Greeting Cards

Saliva and browsing

I watched a customer browser Woman’s Day, New Idea and the Herald Sun earlier this week. Browsing is not the right word – she read these almost cover to cover over twenty minutes, tucked away in a corner of one of our shops. I thought she was up to no good so I watched her, the whole time. She licked her fingers prior to turning each page. When she was done, she dropped all three titles near where they are displayed, but not quite right. No manners at all.

I’m okay with browsers, even those who appear to never buy anything. What I don’t like is browsers who leave their saliva behind for paying customers to touch. Who wants that?

Some days, customer experiences are wonderful. Other days, they are frustrating.

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Customers

Woman’s Day Super Puzzler blitz

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We treated the latest issue of Woman’s Day Super Puzzler quite differently to past issues. We left more stock in the Women’s Weeklies section than in the crossword section. Sales for this issue are up 50% compared to the same period for previous issues. This is an excellent result. I’ve checked with several other stores and while some show growth, none as high as ours. I take this as even more support for placement of key branded crossword product permanently with the weeklies.

What we did with Woman’s day Super Puzzler is more important than an aisle end display or some other poster program publishers like yet it has bee more successful. If only they would reward that business success more so that a pretty display. Yep, treat me like a business person, please.

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magazines

Cleo Click magazine launch

cleo_click.JPGCleo Click from ACP Magazines is a fascinating new magazine – launched today.

Extending the reach of the successful Cleo brand, the folks at ACP have created a title which claims, on the cover: everything inside is available online.  The ninemsn website has more of the pitch to girls who want become Web Queens.

I’m surprised that there is not a more significant online presence supporting the title – given the subject matter.  But, then, they are speaking to people currently offline and guiding them online so…

I like brand extensions in the magazine space and right now ACP are the masters if you look at what they are doing around Woman’s Day, Australian Women’s Weekly, Take 5 and, now, Cleo.

One challenge I see with Cleo Click is how we represent the proposition.  This is a title which has appeal beyond people who will browse women’s titles.

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magazines

Costco and magazines

Costco, a giant in warehouse retailing in the US and rapidly growing in the UK reportedly plans five stores (according to a report in The Age) for its first year in Australia. It will be interesting to see if their Aussie stores include magazines – they are a small selection of top selling magazine titles in the UK and already sell them in the US stores.

With more majors playing in the magazine space, the trend I’d expect to see in newsagencies is a decline in weeklies and high volume monthlies and growth in special interest and other titles not carried by the majors. If I am right, more than ever it will be crucial for newsagents to achieve equitable terms on these titles.

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magazines

December benchmark project

Following success of the November benchmark project I have decided to run one for December for Tower Newsagents.  To participate, please send a Monthly Sales Comparison report: tick the box (lower left corner) to exclude home deliveries, set your first date range (on the left) to December 1, 2007 to December 31, 2007 and the date range of the right to December 1, 2006 to December 31, 2006.  Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au.

If you have switched your newsagency to the MPA magazine categories, and I hope you have, I’d like a second Monthly Sales Comparison – this time for the magazine department and with the category analysis ticked (lower right corner).

I’d like to complete the benchmark by the end of this week so reports within the next two days would be appreciated.  Once December is done I’ll conduct a similar study for six months to December 31.

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magazines

Can’t see Marie Claire

marie_claire_glasses.JPGNewsagents who stack the latest issue of Marie Claire into their shelves will obscure the title because of the free sunglasses stuck to a bit of cardboard inserted into the magazine. One alternative is to remove these and have them behind the counter – but you lose the in-store promotion opportunity and lump in extra labour to manage this and space requirements to store the sunglasses. Ugh. Damned if you do, damned if you don’t.

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magazines

Not another computer magazine!

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Well, it’s not a magazine, more like a book but distributed as a magazine.  Computers, Windows and the Internet has out of date content.  By any measure, it is useless – except for the distributor and publisher who unlock cash from newsagents given that we pay for it six months before it unsold copies are die to be sent back.  This title is a con and the folks at NDD know it.  It should never have been published let alone distributed.  Last year we returned everything sent and this year they increased our supply.  Yep, a con!  Sure we can early return – but it has come in too late for that this month so we’re out of pocket for at the very least 30 days.

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magazines

Welcome back ACP

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It’s good to finally receive some marketing material from ACP Magazines’ Connections newsagent in-store marketing program. I wonder how many newsagents started using their Connections aisle ends or windows for promoting other product?

Publishers need to realise that magazines are published 52 weeks a year and we’re open 52 weeks a year. Turning off marketing support provides us with an opportunity to find other uses for the promotional space as my post earlier this week showed.

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magazines

Another weekly magazine?

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I have nothing against the Scots.  I am sure that this magazine, No1, or Free or whatever it is called – (yep, I am confused) is a good seller in Scotland.  As the masthead says, it’s the top seller.  But do we really need this title in Australia?  We are straining under a mass of imported weeklies from the UK already.   Now we have to find retail space for this new title – in an area already short of real-estate.  This is a title I, as magazine czar for all newsagents, would have NOT allowed to our channel.  The sooner we collude and block access to titles like this on current terms the better.

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magazines

Holiday magazine display

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The photo shows our latest magazine feature display – magazines themed around holiday activities.  It’s at our Forest Hill store.

You’ll see we have gone for a mixture of children’s activities as well as places for adults to visit.

 As with previous display, magazines have sold of this stand almost right away. While this is, in part, due to the location next to a busy register, it is also due to providing context for the purchase of the titles. Sometimes leading customers to a purchase works well.

The display has been up since Friday last week and we have already topped some titles up twice.

There is no doubt that the demographic of our newsagency (and most newsagencies I suspect) changes during the holidays. We seize this change as an opportunity to win new customers and make money visitors to the area. Each week for the next few weeks this display will change to try and tap into the holiday demographics.

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magazines

Online user meeting for newsagents

In addition to the free magazine management training event I blogged about earlier, Tower Systems has announced its first online user meeting.  This free forum connects newsagents using the Tower software along with some experts from within Tower.  Most of the meeting will be spent answering user queries – newsagents learn well from listening to questions others ask and taking on board the answers.

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About us

Online magazine management training

Tower Systems has announced the newsagency channel’s first ever online magazine management training session for Tuesday January 15. The session filled in no time. Using the latest web event hosting tools, newsagents will be able to participate without having to leave their own businesses. Connecting to the Internet for visual content and using the telephone (toll free) for audio, everyone gets to participate as if they are in a function room together.

More training sessions will follow including more on magazine management.

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About us

Being cheap

envelopes.JPGI was surprised to see bundles of old greeting card envelopes on a table for sale in front of a newsagency last week. I thought what a cheap message this gives to browsers. Any spare envelopes we have in my stores we keep behind the counter for customers who bring cards without an envelope or to give to customers who may need an envelope for some reason. They are not something I’d sell.

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Greeting Cards

We’re back

Boy it’s been a frustrating 48+ hours for this blog and those working behind the scenes.  Traffic to the blog was crashing the server on which we were residing in Sydney and the server host took us offline.  That was Monday.  Thanks to the stellar efforts of our web developer, Richard Lee, we’re back online.  To achieve this Richard migrated us from Movable Type to WordPress.  There are some kinks to iron out but, overall, we’re back!

 

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About us

Blog issues

We are experiencing some technical challenges which are causing this blog to float in and our of consciousness. We apologise for this and are working with our host and the supplier of the blogging software to sort the issues out.

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About us

Magazines – a 52 week a year business

Publishers apparently think that retailers are closed with little in the way of point of sale materials provided with magazines today. We have been resourceful at or Forest Hill location and created a display for the new issue of Women’s Health. We used black and white copies of the cover to create a canvass on which to feature the magazine.

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Publishers who complain about lack of support from newsagents ought to realise that retail is 7 days a week, 52 weeks a year.

While our Women’s Health display shows that newsagents can be resourceful in creating displays, not every store has the resources we have to get a display like this done efficiently – hence the reliance on the point of sale packs from publishers.

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magazines

Refreshing magazines for the season

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We worked through or magazine categories last week and refreshed displays to reflect the summer season.

With space limited we cannot always give enough real-estate to some categories so we allocate space based on seasons – hence our decision to lift the profile of fishing, caravans and boats in this latest series of changes. This involved us allocating another column so we could create a three pocket masthead display for each feature title. Sometime toward the end of summer the focus will change again.

We see this work as an essential part of managing (obsessing about) magazines.

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magazines

It’s all in the sign

half_price_calendars.JPGWe have been offering 50% off calendars since Boxing Day at or Frankston location but it is only when we took stock from two of our spinners, put it in the box you see in the photo and labeled it Half Price that our customers really started to take notice.

While it’s not pretty, it’s working. The spinners are okay for the leisurely browsers but this side of the New year it’s about the bargain and that’s what the box gets across.

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Calendars

Matt the milkman

I opened the door to face Matt, a young guy in his early twenties who was visiting houses in my street to announce that he had just taken over the delivery of milk and bread to my area – he promised on time delivery of fresh milk and bread every day and a couple of movie passes and a t-shirt if I signed up today.

Besides that he had taken the time to visit and ask for an order- I can’t ever remember a newsagent doing this anywhere I have lived, Matt was bright and cheery, he believed in his offer and he was dressed in a uniform appropriate to his generation and product which gave me the feeling that he could deliver on his promises.

Now, Matt could have been a paid recruiter who has nothing to do with the day to day business. Who cares? The key is that the shopfront presented well and this made the business offer more appealing. Building confidence is crucial in that first contact. This is why I bang on here about newsagents needing to look at their businesses from the outside in – from in the mall, across the road and even miles away in houses where advertising literature is received. What do our customers see? Are they as store blind to us as we are ourselves? Too many newsagents are living in the dark ages, running set-and-forget retail businesses where nothing changes

The company behind Matt had made sure that the detail was right – that he knew his products, looked good, have a special offer and and was well trained in making the pitch. It is this attention to detail which we newsagents often fail to address. In store, uniforms are often not enforced, name badges missing and the sales pitch across the counter confused. Outside our stores we often cover our windows, clutter our messages and allow suppliers to control how our businesses look.

Being visited by a milkman asking if I wanted milk home delivered was a surprise. The professionalism of the offer was even more of a surprise.

With more national retailers competing with our newsagencies than ever, we need to be energetic, focused and current in our approach to our customers – in-store and outside our bus8inesses. We need to be like Matt and make people take notice and realise that we do have a current an relevant offer. Otherwise, standing still will cause our relevance to fade.

Footnote: I didn’t order milk or bread as it does not fit my schedule.

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Newsagency challenges

Growing stationery sales

stationery_relay.JPGFour months ago we started rebuilding the stationery department at our Forest Hill location. The project has delivered year-on-year growth of 29% in revenue from stationery for October, November and December.

The growth can be tracked back to immediately after the rebuilding project was completed.

We quit a ton of old stock, reduced range in some categories, increased range in others and focused more than ever on national brands. The net profit benefit of the project is extraordinary – it paid for itself including labour and capital investment in the first quarter.

In undertaking this project we have exerted more management control over stationery, as retailers and not as servants of a wholesaler or any other party. We dis our research and backed our own judgment and it has paid off. Crucial, in my view, to the project was that it was undertaken by someone who was not store blind to the stationery department in our newsagency.

We are now implementing the same strategy at our Frankston location but with attention focused on the needs of that demographic.

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newsagency marketing