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

Month: July 2009

Cameron Diaz – popular covergirl

fhn_diaz.JPGCameron Diaz is on the cover of four magazines this month.  I must have been living under a rock – what has she done (or what is she doing) which warrants such attention?  This level of coverage dilutes the differences between the titles – to me at least, as someone who does not read these titles.  At our Frankston newsagency the team is creating a Cameron feature, to tap into fan interest.  I like that idea as it shows a local connection with the product.  Supermarkets, convenience stores and petrol outlets will stick with the same old boring corporate preset plan – an miss an opportunity for some fun.

0 likes
magazines

Newsagent and family killed in home attack

Newsagents are mourning the tragic killing of Min Lin, his wife Yun Li Lin and their two sons and another female relative at the weekend.  The family owned and operated the Rawson Street Newsagency in Epping Shopping Centre.  They have been clients of my software company since they bought the business years ago.  Those of us who had contact with them found them to good people to deal with.

I have opened this post for others who may want to comment.

0 likes
Uncategorized

Promoting Healthy Food magazine

fhn_hfood_jul20.JPGLike many newsagents I suspect, we are promoting the latest issue of Healthy Food at the counter and showing off the bag of goodies which comes with the new issue our today.  The bag is a brilliant offer.  This issue will sell out – as happens every time they offer this size promotion.  I am disappointed that there was no marketing collateral to promote the offer.

On the broader issue of promotions like this, our own sales data for Healthy Food shows that there is no measurable flow-on benefit to such a brilliant promotion.  Others would need to have a diffeerent experience for this promotion to be repeated annually.

Titles like Dolly and Girlfriend regularly, successfully, use gifts (tip-ons) to drive sales.  While tip-ons can be frustrating for newsagents, they can be crucial to driving sales.  From what I can see, the key is regularity.  With Healthy Food it is once a year.

0 likes
magazines

Promoting Grazia half price special

fhn_grazia_jul20.JPGWe are promoting Grazia magazine at the entrance to our main magazine aisle this week.  The half-price offer is an opportunity to introduce the title to new readers.  This is a strategy which works well for some other titles.  While our Grazia sales are low, I’m happy to try promotions like this to grow sales.

As I wrote last week, this location is proving to be a hit for us – we sold 90% of our Good Food allocation in six days.

Newsagents should be aware that in all states except NSW, this issue of Grazia has an incorrect barcode on the cover.   Click here for advice for the Tower Newsagent community.

0 likes
magazines

Mediaweek program covers magazines and newsagents

Click here to go to the Sky Business website where a video of the Mediaweek program from Thursday July 16 is available. The focus was magazines and the role of newsagents.  I was a guest on the program along with Eugene Varricchio, Group General Manager – Retail & Distribution, for ACP Magazines. It was good to participate in such a public discussion which respected the role newsagents play in magazine distribution and sales.

0 likes
magazine distribution

Sunday Telegraph missing today?

Power problems at the News Limited printing plant overnight will see some, maybe many, newsagents without the Sunday Telegraph today.  There will be  calls from customers asking, in various levels of agitation,  where’s my paper?  There are also billing issues.  For Tower Newsagents we issued advice this morning reminding how to handle this easily.

I cannot find any mention of this on the Telegraph website.   That makes me wonder if the problem is not as widespread as newsagents tell me.

0 likes
Newsagency challenges

Promoting the Powerball $50 million jackpot

fhn_pb_front.JPGWe are actively promoting the Powerball $50 million jackpot from the front of our newsagency through the shop.  We have resurrected an old (years old) vinyl sign for above the entrance as it presents a visual point of difference to the usual corporate image promotion.  We tested this with during the OzLotto jackpot and it worked well – we noticed customers noticing the sign.  Click on the image for a larger version of the photo.  we still have the corporate image display behind the counter and in our Tattersalls dedicated area.

fhn_pb_mags.JPGDeep inside our newsagency, above our magazines aisles, we have A3 posters promoting the Powerball $50 million jackpot.  Click on the image to see just one of the aisles.  Both look this good – better in real life than the photo.  Our thought here is that we want to get customers as they either head to the counter to make a purchase or leave after browsing. While Tattersalls does not recognise this extra effort, we know from our own tracking that it is good for our business.  If we can add a lottery ticket to a magazine purchase, it makes the magazine purchase that much more valuable.

Inside the shop, these displays and others we have in the store give a feel of an event, something big is happening.  Sales today and yesterday tell us that it is working – and without detracting from sales in other departments.

0 likes
Lotteries

Good Food magazine takes off

In six days we have sold fifteen copies of Good Food magazine from ACP.  This is already our best result for this title in our Forest Hill location.  I expect we will sell the remaining five copies in the next week.

While I would like to think that it is our display, I suspect that there are other factors are at work with the success we are seeing for this issue.  If there are not any other factors at play then I’m thrilled as it reinforces the value of the new, slim, display space we have created at the end of our main magazine aisle.

Looking at the sales data, Thursday and Saturday are our best days by far for this issue.

0 likes
magazines

Age bag campaign a success

age_bag_jul17.JPGThe campaign run by The Age for the free carry bag with today’s copy of the newspaper has been very successful – considerably more so that past bag campaigns.  More customers are coming in knowing that a bag comes with today’s newspaper than we have experienced previously.   There is good humour around the offer.  We feel good because we are the ones handing over the free gift.  I had one elderly customer today expecting to have to pay us at least something she said that it was free made her day.    Based on our experience I would expect this campaign to have lifted sales.

0 likes
Newspapers

Easier magazine returns for newsagents

With excellent progress from the recent trials of the new link to Network Services, my software company, Tower Systems, has launched a new campaign promoting its newsagency software solution.  This includes the very latest electronic returns facilities for Network and the other magazine distributors. For the first time, newsagents are able to lodge regular and supplementary returns submissions from within their software and without having to complete paperwork or re-enter data on a website.  This is a tremendous time saving.  It also benefits cash-flow.

I understand the value of the benefits from these latest advances because two of my newsagencies are in the trial.  Owning newsagencies and a software company has allowed us to finesse the solution to maximum advantage for newsagents.

Click here for a copy of the flyer being faxed to newsagents.

0 likes
Newsagency challenges

Opening the magazine to help retail sales

charlie_pickering.JPGCharlie Pickering features in the current issue of Money magazine.  This is important to know and somehow promote as he is a star on Talkin’ ‘Bout Your Generation, the hit Network Ten TV show.  He will also feature on The 7PM Project – the new nightly TV show on Network Ten which starts on Monday.  The article about Pickering makes Money interesting to Gen X, a demographic to which the magazine would not usually easily appeal.

While it is impossible for newsagents to scan through every magazine for promotion opportunities such as this article in Money, scanning through the top monthlies usually uncovers an article which can be promoted or, at least, talked about with some customers.  Recommending a magazine based on this knowledge can drive sales and further demonstrate the difference between a newsagent as a magazine retailer and all other magazine retailers.

The Charlie Pickering article provides us with an opportunity, especially if we serve a good Gen X community.

0 likes
magazines

Powerball $50 million jackpot promoted everywhere

fhn_p501.JPGWe are promoting the Powerball $50 million jackpot at every honey-pot opportunity.  By honey-pot I mean popular places where people gather in our newsagency: daily newspapers, foreign newspapers (as in the photo), magazines, the counter, across the front of the newsagency – main destinations and stopping points when people visit our newsagency.  Each display includes a list of popular ticket choices – to help guide their decision as to how much to invest.

We have set a sales goal and are supporting this with an incentive for team members.

0 likes
Lotteries

Promoting crossword magazines to lottery customers

fhn_cross_jul17.JPGWe are promoting a selected range of Crossword magazines in the lead-in to our main lottery counter at the front of our newsagency.  Crossword magazines sell well to lottery customers.  This display presents range and well known brands.  We have sought to make it visually appealing to passers-by.

We have timed this to fit with the extra traffic from the Powerball $50 million jackpot.

0 likes
crosswords

Promoting Gardening Australia for the weekend

fhn_gaust_jul09.JPGWe are promoting Gardening Australia over the weekend at the prime counter position following the success of the New Idea promotion in this same location eariler this week.

We know that Peter Cundall is popular with our customers from past sales featuring his – the article about his vegie patch is (hopefully) the hook for this issue in our newsagency.

0 likes
magazines

Gold Coast magazine continues newsagent offer

picture-016.jpgGold Coast magazine continues its 100% commission offer for newsagents this month – ensuring a good location for the title in newsagencies on the Coast.  The key to future newsagent support for Gold Coast will be how the publications moves out of the 100% commission offer.  In the meantime, newsagents can make good money from this title.

0 likes
magazines

Bagged magazine trash

fhn_trashed_magazine.JPGThis photo shows what newsagents often contront as a result of customer frustration with bagged magazines.  The bag is torn open and left to mess the area.  It damages the newsagency and the magazine itself.  Publishers like newsagencies because of our browser traffic yet they often block browsing by bagging titles.  As for the free magazine in the bag – with so many titles offering these I suspect the value proposition is lost.

I published this photo in response a question from a publisher on another blog post about bagging magazines.

I doubt we will ever be able to stop back issues being bagged with the current issue of a magazine.   I at least hope we see a reduction.  There must be better ways to promote magazines.

0 likes
magazines

What happened with Just cars?

fhn_just_cars_jun.JPGSales of Just Cars dried up in our newsagency for the last issue.  We sold one copy, a fraction of what we usually sell.  It was displayed in the usual place with the same space allocation – a half waterfall.  Nothing changed around it.  This collapse of sales is out of whack with the performance of other motoring titles in our newsagency.  Is this just us or did other newsagents experience the same with Just Cars?

0 likes
magazines

Powerball jackpots to $50 million

We are in for an excellent week thanks to Powerball not going off tonight.  the $50 million Powerball jackpot is set to drive excellent sales in newsagencies and other lottery outlets.

We have our plans ready to dress the store, run promotions and make the most of the opportunity – for our business, our team and our customers.

Given the hoopla over the $90 million we will need to educate customers about Powerball compared to OzLotto and find new ways to make the $50 million first division opportunity enticing.  Syndicates are key to this, based on recent experience.

0 likes
Lotteries

Shift in magazine performance last quarter

While I am yet to complete the newsagent sales benchmark study for the April / June quarter, I have completed my magazine analysis.  Overall, magazine sales in the sample group of over 100 newsagencies are down, on average, 9%.  This is based on a same store year on year basis.  What is interesting is that the decline is lower for the weeklies and major monthlies.  Weeklies are down 4% and major monthlies are down 5%.  This is a change in the trend which I saw in the January / March newsagent sales benchmark study.

There are more newsagencies reporting growth than earlier this year.  However, this is balanced by some reporting considerable declines.    In most cases, the larger declines appear to be related to economic conditions.

The sales benchmark study involved data from more than one hundred newsagencies covering April through June 2009 and the same period in 2008.   I removed newsagencies at extremes from the dataset where the extreme results appeard to be completely due to local factors.

0 likes
magazines

Magazines and newsagents to feature on TV today

I’ll be on the Mediaweek TV program on the Sky News Business Channel today at 2:30 with james manning, Editor of Mediaweek magazines and Eugene Varricchio, Group General Manager – Retail & Distribution, ACP magazines.  It should be a broad discussion including magazines, magazine distribution and the role of newsagents.

0 likes
magazines

Promoting Hello magazine at the counter

fhn_hello_jul15.JPGWith the Michael Jackson Tribute edition of Rolling Stone currently sold out, we have moved the latest issue of Hello to the counter.  This is the location from which we sold the most copies of the Rolling Stone issue – brilliant impulse business.  I am confident that this issue of Hello will perform as well here.  The keys to success for this type of sales register promotion is lack of clutter around the offer and that it is a relevant offer.

0 likes
magazines

NDD overloads with Sudoku

fhn_ndd_sudoku.JPGMagazine distributor NDD sent us this More Sudoku title yesterday.  A check of our data shows that supply was not warranted.  A check of the performance of other Sudoku titles shows that supply was not warranted.  We don’t need more sudoku titles!

More Sudoku is a good example of imported magazine junk which we do not need in Australia.  We have plenty of locally published Sudoku titles – more than the soft segment of the crossword category needs.

While NDD will say that sales of the title justify distribution of the title to newsagents, I would only believe this with evidence.  NDD is paid a fee to ship the title out to newsagents and a fee to process returns – if this title is managed under usual arrangements.  Newsagents pay for the title and carry the cost of floor stock for the shelf life.  Newsagents and the publisher have a risk.  NDD does not.

NDD is developing a track record for responding to my blog posts like this with threatening correspondence from their lawyer or similarly threatening  correspondence from their General Manager.  The last letter sounded like a kid in a playground as it said what about Gotch and Network, the other two magazine distributors.

The best response from NDD would be to kill off cash-sucking titles like More Sudoku,  and set fair performance benchmarks which make NDD commercially responsible for the fringe product they push on newsagents.

they have good titles like Notebook, Vogue and Gardening Australia which cause newsagents little or no grief yet they also have trash like More Sudoku which sucks cash and space for little return.

I don’t mention Network and Gotch as often as NDD here because they account for fewer oversupply issues in my experience.  Also, I have considerably more control over the titles and quantities I receive with them.

While blogging here has improved my personal situation with NDD, there are fewer oversupply situations than previously, I know from what I see in other newsagencies that mine is not a universal experience.  Their attention to my supply should be equal to their attention on supply to all newsagents.

0 likes
magazine distribution