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

Month: February 2008

Grabbing the magazine up-sell

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At the risk of upsetting publishers we have taken the two two pockets of waterfalls from three busy magazine titles permanently to display six other titles.  We place the six titles based on colour and appropriateness for the women who mainly shop in this part of our newsagency.

Sales of Australian Women’s Weekly, New Idea and Women’s Day have not been affected.  Sales of Money, Your Mortgage, Better Homes, Women’s Health, Burkes Backyard and Good Health are up thanks to more eyeballs seeing them.   We refresh the mix of titles weekly and often make decisions based on title covers – we want covers which draw attention of those looking at the main display.

For years newsagents have been told to full waterfall high volume weekly and monthly titles.  By taking back the two two pockets we can lift other titles while not hurting the feature title.  This is a win win isn’t it?  certainly the basket data we’re looking at suggests our efforts are rewarded.

Newsagents are too regulated by some publishers and distributors and this stifles those of us who want to be entrepreneurial in chasing magazine sales.  I appreciate it’s easy to call for freedom and harder to implement.  I wish publishers would be more encouraging rather than chasing a common, lower, goal.

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magazines

Smile while you steal

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This is the sign in front of the Artline markers graffiti artists seem to like in Frankston but don’t want to pay for. We’re trying a bit of humor. Hopefully we won’t have to take the step of putting the markers elsewhere and away from our wall of pens and markers.

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Stationery

Promoting fresh magazines

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Further to my earlier post today about Good Health magazine, here is evidence of the value of promoting early in the sales cycle.

The new issue of Women’s Health came out yesterday, with posters and other material from the publisher. We created an aisle end display and sales kicked as a result.

I want my business to be known for promoting fresh product. The display for Women’s Health does that. People who see the new issue of a magazine first in my newsagency will be more likely to respect my store as the go to place for magazines.

Publishers need to understand the need for newsagency relevance and support us with in-store marketing material accordingly.

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magazines

The early bird and Good Health

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The early bird gets the worm, or so the saying goes. Good Health magazine came in a week ago and we duly displayed it in several locations and sold 60% of our allocation in the first five days.

Yesterday, we discovered that Good Health is the feature magazine for the ACP Connections marketing promotion this week. Too late I say. We’re now low on stock and while we could order more, they won’t come until Friday at the earliest by which time the promotion opportunity is lost since we would be a few days away from our next promotion.

Marketing promotions for specific titles need to be scheduled for the on sale day and not a week later. While the publisher will see this as me complaining, the alternative, and more appropriate, view would be that I want to maximise sales and that for most magazines this is early in the sales cycle.

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A window of love

Simon Frost at our Frankston newsagency executed one of the Valentine’s Day marketing suggestions I posted here last week.  He created a window of love on our front window.  While the photo below looks a bit scrappy, in person it works a treat!

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We have the pens behind the counter.  Customers ask for one, write their message and return the pen.  This is interactive retail and it’s fun.  The buzz at the front of the shop as a result is excellent.

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newsagency marketing

Rieu drives sales again!

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Andre Rieu’s popularity here in Melbourne has been proved again this week with the excellent sales for the Melbourne Observer newspaper.

The exclusive Rieu story on the front cover works a treat at attracting interest.

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Newspapers

CIA: print in decline

the early edition quotes Doug Naikin, Director of the CIA’s Open Source Centre:

What we’re seeing [in] actuality is a decline, a relatively rapid decline, in the impact of the printed press – traditional media.  A lot more is digital, and a lot more is online. It’s also a lot more social. Interaction is a much bigger part of media and news than it used to be.

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magazines

Who are you rewarding?

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If you’re running a VIP Club or some similar loyalty program in your newsagency you might want to take a careful look at your numbers.  A business I have been working with recently was giving away thousands of dollars a year for nothing.  Sure, they were growing, but at a rate no better than others around them.  They we rewarding average behaviour. 

A good loyalty program rewards customers for going beyond the average.  If you reward just average behaviour you achieve nothing for your business.  The alternative is do a Coles and offer little or no reward – that’s what their FlyBys program is, a nothing reward program.

I created the industry’s first magazine category loyalty program in mid 2004.  We still run it today because of the growth it drives and for no other reason.  We regularly benchmark our performance against our region and state.  The moment we’re below a KPI we have set for ourselves we will either stop or change the program.  There is no point in being emotional about this.  It’s business. 

Be wary about the claims by newsagents around VIP / loyalty card success.  Ask to see the numbers.

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Mobile phones and magazines

Folio Magazine has published an update on US magazines which are testing the use of mobile phone readable barcodes on advertisements.  While the is more about advertiser connection with consumers, it will also provide publishers with interesting data on use of technology.

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The privilege of serving

When I asked the customer yesterday if they would like to renew their about to expire Tatts player card yesterday they said no and looked away.  Noticing a tear I asked if everything way okay even though I could see it wasn’t.  (Why I asked such an obvious question is beyond me.)  My customer had earlier in the week found out she did not have long to live so renewing the card was not an option and the question reminded her of what she is facing.

It was a sad moment made all the more difficult because of a line of customers behind her.  It was a busy Saturday.  She picked herself up, smiled and said she was off to treat herself to a new hairstyle.

I’m not the only newsagent with a story like this from yesterday or any day for that matter.  Our businesses are very personal – in part because we are local and in part because we are small.  That we (the owners) spend time behind the counter also makes them personal.  It is a privilege some days listening to and talking with customers.  The confidence they show is moving.

While running a financially profitable business is important, being emotionally profitable – if I can put it that way – is more so.  I find that it is this emotional connection with our customers, those we know and those we do not know, where newsagents make a real difference in the community.

Thinking back to yesterday, call me soppy, but I should have renewed the Tatts card and paid for it myself.  Ah, hindsight… 

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Customers

Bravo Coronation Stret

I’m not a big TV watcher and rarely commit to a series as I find the formula approach boring.  That said, I have to confess to recently stumbling across Coronation Street on UK TV and, well, I’m now a regular of six week standing.  Hey, it’s only 30 minutes a night.  What I find interesting is that The Kabin is a focal point on the show.  It’s the local newsagency.  Every couple of episodes there is a reference to newsagency specific issues.  Friday it was scratch tickets and magazine returns.  I’d much rather see stories around goings on in a newsagency than a mass merchant focus in a TV soap.

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Newsagency challenges

Directory shares tumble

I was interested to see some overseas companies shed up to 25% of their share value last week. Idearc in the US and Yell in the UK are among those affected. I see this as a reminder to ensure balance in business. Newsagents risk pain by depending on one supplier, one product or one category too much. This is why we need balance. It’s why smart newsagents are moving into new product categories which compliment their existing offering.

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Newsagency challenges

Aisle capping promoting magazines

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We are experimenting with category based aisle displays at our Frankston store.

While this does not serve individual titles well and will frustrate some publishers, it allows us to showcase a category of titles and thereby, hopefully, introduce customers to dept of range they may not have seen before.

This type of display, covering several titles in a category, demonstrated our point of difference. While I want the top selling titles to do well, I need the lower volume titles, the titles other retailers shun, to do well too. Lower volume titles are out point of difference.

Yen is benefiting from this work. People drawn to the display with Marie Claire and Vogue as centrepieces see Yen and are buying it. Vogue sell too, but it would anyway.

What is happening with Yen is interesting to me because two or three years ago, newsagents were paid a pittance by a company called InSite to promote Yen. InSite arrange for considerably more stock. The cost of carrying this and the space required was not covered by the small marketing fee paid. The InSite approach was a failure, not worth the additional cost. Now, through what we’re doing at Frankston, where we have the space available for such displays, we are achieving better results for Yen.

I wish publishers and distributors would reward newsagents for growth. Rewarding success and treating us as business people would see more newsagents make better business decisions. InSite was based around a micro fee for compliance. Our approach at Frankston has nothing to do with compliance – it’s about what’s good for the business.

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magazines

Valentine’s Day tips for newsagents

Here are some free Valentine’s Day marketing tips for newsagents included in the Tower Systems weekly email bulletin sent yesterday:

Kissing booth: raise money for a local charity, $2.00 a kiss;  Make sure it looks like an old style booth.

Red lips: paint some big red lips on the side of your face for the day and ask for a donation to a local charity;

Sweethearts candy: put a tray of the old style sweethearts candy at the counter and offer one to each customer;

 

Graffiti wall: It could be paper, a window or a white board, encourage customers to write messages of love. For this idea to work, it has to be bold.  We’ve already had positive feedback on this idea.

 

Each of these Valentine’s Day marketing tips is about engaging with customers and that’s what retail is all about. These regular marketing tips are a free service for Tower Newsagents and others to use as they feel appropriate. We are happy for the ideas to be passed on. It’s our way of adding value to our newsagency relationship.

 

We tend to focus on ideas which can be implemented locally and without cost. We especially like ideas which add to the fun and theatre of business.

 

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Greeting Cards

Chinese New Year with a bang

Several of us celebrated the New year last night with a dinner at Bok Choy in Brighton.  It was wonderful to experience the misci and dragon in the restaurant and the fireworks on the street in front.  The photo below does not do the fireworks justice, just after I took this, we were engulfed by noise, flashes and smoke.
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Chinese New year is an important season for newsagents.  It is not ‘minor’ as we have seen it in the past.  While we have ‘played’ in my newsagencies, last night told me we’ve not done enough.  Next year we will go bigger, brighter and have way more fun.

I see a Chinese New Year season as embracing multiple categories and including some serious retail theatre in-store to celebrate the season and what the year will bring.

While over dinner last night I learnt about how the Chinese celebrate, last week, I was at a Chinese New Year dinner at a Malaysian restaurant.  It was different again.  Both experiences underscore for me the opportunity to embrace the various asian cultures and how they celebrate Chinese New Year.

This is about more than selling cards, scratch tickets or red packets.  It’s about understanding the culture and how we can better connect.

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newsagency marketing

Corporate Express watch

First there was the rumour overseas that Corporate Express and Staples, the largest US office supply retailer were in merger discussions.  these were later denied.  Then, as Forbes reports, the story won’t go away.

If, and, yes, it is a big if, the talks lead to a merger, the implications here in Australia could be considerable.  Staples has an excellent retail network in the US.  Their entry in Australia would give Officeworks a run for its money in the mass retailer model of office and related products.

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Stationery

Learning from Barack Obama

Zac Echola has written an excellent blog post about access to news in today’s world. The post tracks how he kept up to date with Barack Obama’s win in the South Carolina primary over a week ago. Pointedly, he notes

News that I care about comes to me, despite the source.

Zac mentions Facebook and Twitter as sources for news about the Obama win.  I’d venture to say that most Australian newsagents don;t know what Facebook and even fewer would know what Twitter is.

This is further evidence of why we need to reinvent ourselves. Not completely and not overnight but step by step so that when our customers access and consume news the way Zac does we have alternative traffic generators inn our business.

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Media disruption

Selling confectionery

We’re applying to a couple of councils for permission to sell prepackaged sealed confectionery. The process is a bureaucratic mess – wasteful busy work. This is prepackaged confectionery for goodness sake. It frustrates me how councils waste small business time and money on these things.

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confectionary

Advertising on radio

To hear our first radio commercial for Sophie Randall, please click here. The commercial will air 89 times over the next six days on Melbourne radio stations GOLD104 and MIX101. We chose these two stations for their demographic reach. The commercial is as much about airing to suppliers and possible landlords as it is to promote the business to consumers.

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Gifts

Treasures of the Earth

Given the high rotation TV commercials running at the moment for the Treasures of the Earth partwork series, we decided to give it prime space at the corner of our counter at Forest Hill. As always happens when working in the shop, we sold two as we were setting up the display.  One customer ssaid to her daughter – there it is, I told you they’d have it.  You can’t get a better response to a TV commercial than that.

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We will leave this display in place for two weeks and then decide whether to re-locate.

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magazines

Let’s Get Engaged!

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I was surprised to see this new magazine in one of our newsagencies. Let’s Get Engaged! looks good – right on target for the demographic.

What is odd to me is that we received it at Frankston but not at Forest Hill where wedding magazine sales are stronger. Some days the magazine supply model makes no sense at all.

We have the title next to the wedding secti0n but are wondering if we should have some fun and put it with the sports or car magazines.

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magazines

Get well bear

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This little bear with his leg in a cast and a crutch under one arm is a popular gift purchased with a get well card.   We have him and other card giving occasion bears located near our card display.

The message is simple, while flowers are nice, the don’t last that long.  Appropriately themed bears work for get well, graduation, bon voyage and even new home.  By ranging them near the card aisle, we’re getting gift related sales which would otherwise go to the local florist.

What is interesting to me is lack os resistance on price.  At Frankston, for example, this range of plush is selling well at traditional gift shop prices.

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Gifts

Being worn down

I spent time yesterday with a newsagent who has been in the business two years. He is considering selling up, cutting his losses he says. He is tired of the daily grind, not the hard work, but the battles with out of date business practices. His core beef is with magazine distributors – over supply of low selling titles and under supply of top selling titles.

There is nothing new in this. Newsagents of many years standing will say, yeah, so what? This chap is it the crossroads all newsagents face – to accept out of date and anti competitive business practices and make the best of it and chase growth in other product categories or get out. I expect he will get out.

While magazine distributors will say they supply what is best for newsagents, the view in each newsagency is different.  Regulars here will have seen some of my evidence of magazine supply decisions which don;t make sense.

Newsagents have their money on the line. Few others in the magazine supply chain have an equivalent risk without associated control. Distributors are paid to move stock. Publishers rely more on ad revenue than retail sales.  Newsagents only make money if a title is sold.

Newsagents carry the theft risk, they pay for stock prior to it selling. Plus they do not control supplies. Again, distributors will disagree and say they are giving newsagents more control than ever. It’s not enough. Too often we have to react to a supply problem. The internal systems should not pass the buck of oversupply to newsagents, it should not expect us to pay for stock to sit on the shelves for three months. It should not increase supply when sales are flat.

Too often a magazine distributor, one in particular, will chase money and cut you off even if you’re a few days late and have a good explanation. They want your cash for stock you didn’t order and may not even sell because it’s theirs and bugger you. Their thug like treatment of small businesses in some instances is shameful and breaks the will of some.

None of this is new, especially here. I’ve invested too many keystrokes in writing about the challenges of magazines. I love the category and desperately want it to grow. The problem is the system all to often works against that and us.

So, back to my friend from yesterday afternoon. We need people like him to stay in our channel. His fresh-blood approach and energy are important to broadening our view. Yet our preparedness to accept mediocre magazine distribution practices may well see him leave. I hope not.

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