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

Month: August 2009

Award winning shotfit in Cairns

newslink_cairns.JPGThis is a photo of the new Newslink newsagency at Cairns airport.  I saw it on Tuesday.  It’s a good looking shop.  Overall traditional Newslink  – well segmented, easy to naviagte.  My understanding is that they have won an award for this particular shop.

Click on the image to see a larger version.

Shopfits are a challenge for newsagents.  Too many continue to be the traditional look and feel.  Of all the designers serving newsagents only two or three really get the changes we need to make and help newsagents create businesses which can cope with these changes.

0 likes
retail

Bill Express court case update

I have received the following update from parties familiar with the court case relating to Bill Express:

The ACCC case was heard in the Federal Court in Melbourne last week,The only real respondent left standing is Bank of New York. The other respondents, Bill Express, TBI and Mobius are all in liquidation.

The Judge reserved her decision. The decision is expected within 6 weeks,

Once the decision has been handed down we will update the group and report on any consequences for the group ,and newsagents generally, of the decision.

NANA and the QNF led on the Bill Express issue while the ANF provided contradictory advice to newsagents which, if followed, meant some newsagents paid equipment leases longer than those who followed the NANA and QNF legal advice.

0 likes
Bill Express

The lottery ticket menu

fhn_lottery_menu.JPGWe are having good success with our lottery ticket menus.  We started this with the OzLotto jackpots and then with Powerball.  now, we list all games of the week this way, as a mat, at our lottery counters.

This is an easy way to guide new customers to the options for tickets.  It makes inviting an impulse purchase easy.  We have the menus on display at both main lottery counters.

0 likes
Lotteries

Promoting Health and Fitness magazine

fhn_health_fitness_aug09.JPGWe are promoting Health and Fitness magazine at the counter this weekend.  The free Betty Baxter meal replacement giveaway makes it worth pitching at this impulse purchase location.  That’s Life which was in this space has sold well so we had to make a quick decision on using the space for the next two days. Health and Fitness would rarely get spotlight treatment.  Our sales suggest the move is a gamble.  Hopefully it works for us.

0 likes
magazines

NDD exploring sale options?

I am told that management of NDD, the magazine distribution business owned by IPMG, management announced to staff yesterday that the company was exploring sale options following approaches from parties interested in the business.

Magazine distribution is a slim margin business.  The key is volume of top selling titles.  NDD is the smaller of three magazine distributors in Australia.

While the last year has been challenging for magazine publishers, distributors and retailers, there are signs of growth in the category.

It will be interesting to see in the reports of movement around the ownership of NDD are true and, if so, the impact on newsagents.

0 likes
magazine distribution

Moving Rolling Stone magazine

fhn_rstore_aug092.JPGWith the move of Top Gear to the front of the shop (see earlier post), we have placed Rolling Stone to at the exit of iur main men’s magazine aisle.  This is a quick and dirty display for the weekend.  Rolling Store is untried here so it will be ineterstingg to see how it goes – and whether the Jackson cover story works for us here.

This is another weekend-only display we have invested in.  The display took a minute to setup and who knows, we could find unexpected sales.

0 likes
magazines

Moving Top Gear magazine around

fhntopgear_aug092.JPGTop Gear has not performed as well this month as we hoped so we have moved from an in-store display to a display at the front of the shop – leading to our main Tattersalls counter.  This space became available because New Idea has performed well for us in this location this week.  We have seen Top Gear work well over the weekend previously so we are hoping to interest similar weekend shoppers.

It may seem a time consuming to move a display for the weekend.  Our view is that this is what magazine spscialists do to chase business.

0 likes
magazines

Promoting newsagency software at GNS Fair

My software company, Tower Systems, tested a promotion for the GNS Market Fair in Melbourne this past weekend. Anyone buying a system from Tower at the fair received a $1,000 credit to their GNS account. We have decided to run this promotion for the Sydney GNS Market Fair this coming weekend.

With so many suppliers investing in electronic business gateways for newsagents, we wanted to offer a cash incentive which compliments the time and money saving incentive for newsagents installing Tower Systems’ software for newsagents.

How software companies are handling the latest XchangeIT and other changes brings the choice of software into focus. We figured this would be a good time to offer an incentive on top of the Tower Advantage TM. It is also designed to help drive traffic to the GNS Market Fair – we promoted the offer this week to newsagents by fax.

Tower Systems currently serves in excess of 600 newsagents in NSW, more than all other software companies combined.  This penetration earns the company the right to call itself the industry standard software solution.

0 likes
newsagent software

Vogue magazine sell out

The 50th anniversary isseu of Vogue is a sellout in each my my newsagencies and many others based on the calls and emails I have received.  Indeed, given how soon this special issue sold out in the on-sale, I suspect that News Magazines could have sold at least 20% more copies.

The Vogue anniversary issue is an excellent example where the Sales Based Replenishment program from ACP Magazines would have helped the title achieve its true potential.  With SBR, sales dictate where additional stock is sent based on a clever predictive model.

I am pleased with the success of Vogue but frustrated that extra stock is not readily available to satisfy demand.

0 likes
magazines

How to create premium counter space for magazine promotion

frank_mag_display.JPGI am often contacted by newsagents and would-be newsagents through this blog asking how to create the displays I write about. The most common question relates to the counter displays and that newsagencies don’t have this space.

The photo to the left shows the display currently on-show at our Frankston newsagency. This is a space we created. Previously we had a gum display here. Now we have a smaller gum display to the side – without any negative impact on sales.

The backing for the display is a small board of MDF resting in front of the register. This could easily be a small piece of slatwall. The MDF board gives us the backing necessary to create a display our customers will see when approaching the counter.

In terms of collateral for this space, we can use material supplied by publishers – posters and cover run-ons – or create our own by copying covers.

The display materials are not as important as title selection. It is crucial that the title promoted works with your customers as an impulse purchase. It took us several months of trial and error at Forest Hill to get the title selection right. We are still fining our way at Frankston.

While I like most about this premium counter space is that it is mine. No supplier paid for it. No supplier can demand access to the space. I can use this to build the performance of my business.

Any newsagent can create this space in their newsagency. This bit of MDF is more useful, with the right title, than a more professional (and expensive) piece of fixturing.

0 likes
retail

Is this what reduced competition means?

Telstra has advised customers that if they wish to pay their bill at Australia Post or at a Telstra shop they will apply a $2.20 “payment administration fee”.  I wonder if they would have done this had the Bill Express bill payment network not collapsed?

I wouldn’t mind $2.20 to process a bill.

Newsagents price their services too cheaply if these rates are anything to go by.   How many days of newspaper delivery services do you get for $2.20?

Maybe Telstra and Australia Post are just too greedy.

0 likes
Australia Post

Creating display spaces in newsagencies

fhn_mag_displays.JPGI have been asked by several newsagents to publish a photo showing the situation of displays I have talked about here recently.  Click on the photo for a larger version.  To the right is the back of the ACP Basket Builder stand which we now use regularly to promote feature titles.  Too the left is our fixed aisle end display.  Further up on the left, next to our Darrell Lea stand, is a new feature display we have put in place – we use both sides of this.

These displays all change on at least a weekly cycle.

0 likes
retail

Finding space for Home Beautiful

fhn_home_beautiful_aug10.JPGWith promotion and premium display space remaining at a all used up, we have shuffled home and living magazines around to find space to open Home Beautiful out so that customers can see the free gift which comes with the latest issue.  We will leave this for a week or two.  The alternative was to leave the title in single face pockets and thereby hide the premium gift.

0 likes
magazines

Topped returns lead to improved magazine supply efficiency

Newsagents in Far North Queensland have had been permitted to return unsold magazines topped for almost a year. Talking to some of the newsagents involved earlier this week it was no surprise to discover that returns have dropped. Returning un-solds in a topped form makes publishers and magazine distributors more accountable since they cannot re-circulate unsold stock. Newsagents benefit through a considerable reduction in freight and labour costs.

0 likes
magazine distribution

Chasing the Women’s Health reader

womens_health_mags.JPGIn among the launch information for Prevention magazine (from Pacific Magazines and out next month) I read about the difference between the target reader for this title and their Women’s Health title.  For some time we have been co-locating Women’s Health with our weeklies.  This week, we are trying it in with Cleo and marie claire as they more accurately match the target reader.

We are always on the lookout for opportunities to co-locate titles and get an extra sale or two.  The more information we have about the target reader the smarter, and hopefully the more suvccessful, our efforts are.

0 likes
magazines

Who speaks for NSW newsagents?

NANA has made the running on the issue of the proposed privatisation of NSW Lotteries.  Yesterday’s Sydney Morning Herald reported that newsagents support the latest changes by the NSW state government.  The report quotes the ANF CEO.  The ANF CEO has been silent on this matter.  The NANA President has been the public face of representing NSW newsagents.  NANA does not support the latest changes announced on the govrenment.  Click here for a copy of their release on this matter.

The SMH report included this:

Mr Matis said wrangling over the sale had hurt the industry because finance companies were unwilling to fund potential buyers of newsagencies, thus preventing current owners from leaving the industry.

”Finance companies are loath to provide finance to newsagents, putting an unreasonable impost on them.”

I would like to see the evidence the ANF has for making such a claim, evidence of the “hurt” caused by the talk about the proposed sale so far, evidence of finance companies being loath to provide finance to newsagents” due to the lotteries proposal.  Indeed, the SMH journalist should have asked for this rather than accepting the ANF press statement.

I stand to be corrected but I doubt that the ANF has any evidence to back its claim.  I’d gladly publish it here if they do have evidence.

This is a state issue. The NSW state association should have the carriage of this issue, not a national body which the majority of newsagents ignore.

The question about the privatisation of lotteries is one for the politicians.  They have to make a political decision based on the needs of the state.  Unfortunately, the track record of privatisation, at the federal and state levels, is not good on a range of fronts.

What I do know is this, NSW newsagents receive more promotional support and in-store marketing assistance from NSW Lotteries than retailers of lottery products elsewhere.  From a retailer perspective, the current situation is good for business.  The government needs to understand the potential impact of its changes.

0 likes
Lotteries

Notebook magazine looks damaged

noteboog_magazine_trash.JPGThe revamped Notebook magazine which went on sale today is overshadowed by the damage to the promotional card instered in the magazine to pitch the free beauty hints book with the magazine. Most of the copies we received have cards which are ripped or bent.  They make an otherwise good looking (but thinner) magazine look secondhand.

If a publisher wants send magazines to retailers with something sticking out, they ought to ensure that their valuable stock is appropriately packaged.  They suffer and we suffer.  This is an easy issue to resolve in the logistics operation.

On the revamped Notebook, while it looks good, it is not as good as the original product.

0 likes
magazines

Ben Cousins on the cover of GQ magazine

cousins_gq.JPGWe are promoting GQ magazine above the Herald Sun at our main newspapers stand from today thanks to the Ben Cousins cover story.  Ben is big news in Melbourne.  Hopefully, our opportunistic placement drives good sales of this title.  We will leave GQ in this location for the next week and see how it goes.

UPDATE (13/8): This issue has sold well in the first day including from this newspaper display.  We have ordered extra stock.

0 likes
magazines

Promoting That’s Life and cash prizes

fhn_thats_life_aug08.JPGWe are pitching That’s Life at the counter from today, bumping the Open Gardens magazine which has not performed as expected.

The Deal or No Deal scratch card giveaway on That’s Life and regular strong sales for us made the decision to feature the title in this prime location easy for us.

That’s Life and Take 5 and great titles for delivering a good mid-week boost.

0 likes
magazines

A newsagent thief?

A colleague sent me an email about a thief who stole crossword magazines from his newsagency but left the tops. Is this the work of a compassionate former newsagent or newsagent employee?

0 likes
magazines

The challenge for newsagents in publishers charging for news websites

The announcements last week by News Ltd and Fairfax that they will introduce a paid model for their news websites needs to be carefully considered by newsagents.

Despite what publishers and some analysts say, it is a step in migration. Eyeballs have migrated online as have many advertisers. Introducing an access charge is the last step in replicating the print model online. As much as they can at least – classifieds are free online so it will be hard for publishers to bring that revenue stream across.

Charging for access is a challenge for newsagents because it may work. Publishers may find that they have a model which generated better than expected revenue. If this happens they will look to cut more loss making areas from the print model. It makes sense. This is where there will be a challenge for newsagents. Our relevance will diminish.

If the move to charge for content is not successful then both publishers and newsagents will have challenges. Publishers will need other ways of covering the costs of journalism. Newsagents will need traffic generators to replace newspaper customers who will migrate to other online news sources.

For too long, we have sat idle and watched sales move online. Most of our time has been invested in complaining. Sure some have created websites but these tend to be copies of a traditional newsagency. That won’t work.

The move by the publishers should be a call to action to us to be bold in pursuing our future.

0 likes
Media disruption

Cairns newsagents positive on the future

I was fortunate to spend some time with newsagents in Cairns yesterday morning at the QNF regional conference. They are a cheerful and positive bunch, focused on building their businesses. It says something about their commitment to the industry, the QNF and their businesses that so many come out for the day of business presentations and networking.  It may also relate to the beautiful part of the worl in which they are located.

Talking to some of the newsagents there reminded me of the tremendous diversity across our channel. Magazines I struggle to sell in suburban Melbourne sell out for them whereas magazines they struggle I sell out of. There was a good conversation of how we are not a one size fits all channel.

0 likes
Newsagency opportunities

iPhone focus for magazines

Seventeen magazine in the US yesterday launched an iPhone app.  Launched in association with an online shopping service, the app is interesting because it apparently delivers the publisher a clip of shopping purchases by Seventeen readers using the shopping service.  This is another way publishers will monetise online traffic.

0 likes
magazines

Is the Trading Post close to closing print edition

Sally Jackson writing in The Australian yesterday reported rumblings that the Trading Post may close its print editions.  Most newsagents looking at sales data this year compared to 2008 and 2007 would see this as a natural step.  No matter what promotions are tried, the Trading Post has been unable, based on the data I have seen, to deliver a sustained sales increase.

In our own case, we have significant prime real-estate allocated to the Trading Post.  Based on our rent, we need a net return of at least $2,000 a year to break even on rent.

0 likes
Media disruption
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011