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

Month: August 2009

Newsagents cheaper than Coles

check_tickets.JPGCheck tickets cost 66 cents at my local Coles supermarket.  This makes them considerably more expensive than many newsagencies.  While Coles, and I am sure Woolworths, promotes great deals on brand name high volume items, there are other items which are expensive, like check tickets.

We could probably put together a shopping basket of ten common stationery items and compare our every day prices to the Coles everyday prices for the same items.  I expect we would be cheaper.

While such  price comparison may open a Pandora’s box, it could be key to showing your customers the value of shopping in your newsagency versus the supermarket.  Take a wander around your local national brand supermarket and see if you have this opportunity to promote your low price credentials against them.

However, before you promote a price comparison, ensure that you are permitted to do this under the terms of your lease.  I have seen a situation where tenants are not allowed to price compare against another tenant.

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Newsagency opportunities

Free in Dick Smith, not free at the newsagent

Tech living is a new magazine being published by Derwent Howard for Dick Smith where it will be available free.  The Australian yesterday reported that Tech living will also be distributed to newsagents for sale.  This is frustrating and will lead some shoppers to question why we charge for a free magazine.  This is an example of where we need to be able to say no to a title.

UPDATE: (12/8) I note the comments that the magazine is to be sold in Dick Smith stores.  I have sought claririfcation on this.

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magazines

The Saint Clint display

fhn_saint_clink.JPGWith display space at a premium this week we are launching the new partwork series The Saint, the vintage TV series, alongside the Clint Eastwood movie partwork.  We have both partworks co-located at our counter and in a display near our Father’s Day gifts.

I wish there was more thought put into the partwork launch calendar.  The rush of releases over recent weeks makes it challenging for newsagents who want to embrace the opportunity.  Partwork sales would be stronger if pre release consultation was better.

Partwork sales would  also be stronger if supply was more consistent and based on presale commitments from customers.  Some things never change in this model.

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partworks

Free coffee with Woman’s Day

womans_day_coffee.jpgWith space limited for magazine displays this week, we placed Woman’s Day next to the Herald Sun at our main newspaper stand.  This location is our highest traffic spot in the newsagency next to the sales counter.  It works for the coffee giveaway with Woman’s Day as we have been able to use the portrait poster quite effectively (we think at least).

There is only so much promotional space in a newsagency and on a day like today we have to be creative with placement..

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magazines

Promoting New Idea and the cookbook

fhn_ni_aug10.JPGWe have more magazines with promotional opportunities than we have space for.  This week’s issue of New Idea would usually get a counter position – thanks to the free cookbook.  Since that space is unavailable, we created this display in front of our newsagency.  We will leave this in place until at least Wednesday.  The same space was used successfully last week for That’s Life – with a similar type display.

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magazines

Promoting Shop Til You Drop

fhn_shoptil_aug10.JPGWe are promoting Shop Til You Drop to our customers as they leave our women’s magazine aisle.  This is on the back of an ACP magazine stand.  We have been using this space for several months now with good success – most recently for Dolly.    Even though gardening magazines are on the fixture to the left of the display, we are able to promote other titles on the display and drive sales.

This is a new premium promotion space for us.  We had to find new space when we reduced our traditional power end displays.  We reduced traditional promotional locations in pursuit of change and because we needed that space for higher margin product.  The change has resulted in uncovering new and valuable display opportunities – especially this space on show as people leave the aisle.

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magazines

Empire magazine hits the spot

fhn_empire_jul09.JPGEmpire magazine is going from strength to strength based on the sales data I have seen. It is certainly performing well in my newsagencies. We use it as a beacon brand to draw shoppers to the movies area of our magazine display. We promote titles round it which need support to find sales.

Building sales around a strong title is what we call our honey pot strategy, a strategy we us in several magazine departments to drive sales of weaker titles by using strong titles. It is terrific to have strong title like Empire in an otherwise challenged magazine segment.

I have newsagents who question me about our level of engagement aboout magazines.  They say that for 25% all magazine publishers can ask for is for the titles to be put out on the shelves.  My view is that right now magazines are a key point of difference for us.  Embracing this is crucial is we call ourselves business people.  The key is to leverage the magazine traffic into a more valuable shopping basket.  This is the pay-off for the work.

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magazines

Bagging British House & Garden

fhn_house_garden.JPGThe latest issue of British House & Garden came to us sealed in a bag with the current issue of Country Homes & Interiors and 25 Beautiful Homes. We sell all three magazines. The price of the bagged pack is less than buying the three separately. This is a good example of a magazine publisher driven promotion I wrote about last week. While, overall, I like promotions like this, I don’t see the sense for imported publications. This is a very different market than for domestic publications. I suspect that the bagging of the three was not even on the radar of the distributor here.

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magazines

GNS Melbourne trade show report

The GNS trade show in Melbourne this weekend has been successful. I know that yesterday’s numbers were on par with last year. Today’s numbers were good too. Newsagents were feeling good about business and the economy, plenty are investing in their businesses. This is a good sign. Some of the product talk I heard from newsagents was about new business opportunities but not enough.

It was good to see some suppliers expanding their offering and new suppliers participating expanding the traditional newsagency offering. We need to see more of this.

GNS opened the trade show to newsXpress and Nextra as well as Newspower. This sends a strong message to newsagents about the role of marketing groups. It also gives newsagents an easier choice between the three.

I have been going to GNS first since they started in a small room in Sydney many years ago. They have come a long way. For a business owned by newsagents it is a good success story.

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newsagency marketing

Good first time newsagency for sale

Someone I met through this blog has placed their small newsagency in southern Melbourne suburb on the market.  It is in a high street situation with good potential.  My knowledge of the business suggests it is a good opportunity for a first time newsagent.  It has Tattersalls which generates good traffic.  I’d be glad to point anyone interested to the brokers.

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Newsagency for sale

The business name says it all

compassionate_hair_studio.jpgPlease excuse this off-topic indulgence.  I thought I’d share a photo I took last week of a business I drive past regularly of The Compassionate Hair Studio. What a brilliant name. Does this make other hairdressers not compassionate?  Are they compassionate in their cutting?  In how they treat customers?  Jokes aside, they stand out and I remember them.

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Uncategorized

Playing with gift hampers

gift_hamper_love.JPGWe are playing some more with non-seasonal gift hampers in a couple of our stores.  The one in the photo is for love.  We have included several things someone would want to give to a partner or would-be partner.  We have tried to go for a variety of items in the box for each of the hampers we have made – to reflect several categories we have in-store.  We have made hampers for new baby boy, new baby girl, general female birthday, farewelling a co-worker and love.

While we have used hampers at seasonal times, this is our first concerted effort to drive sales outside of major seasons.

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Gifts

The Monthly looks back on track

fhn_monthly_jul09.JPGAfter what look to me like a couple of challenging months for The Monthly, the magazine has come out with a great looking issue.  The Nick Cave cover is stunning and works particularly well in traditional newsagency fixturing.  This is an excellent example of using the cover to cut through the magazine range in a newsagency.  While the masthead is important, the content of the latest issue is what gets an infrequent reader picking up a title.  we will pitch this title with our newspapers as well as the usual location.  The second location is earned by the stunning cover.

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magazines

Newsagency suppliers help Lin family reopen newsagency

NANA, the NSW Newsagents Association of NSW & ACT, has thanked the newsagency industry suppliers who have worked together to help the Lin family reopen their newsagency following the tragic death or Min Lin, his wife and three other family members.  NANA has done a terrific job co-ordinating the suppliers in difficult circumstances.  I am speaking from personal experience of what they have done.  NANA’s work is an excellent example of what an industry association is about.  They have done this work without promoting it or seeking to use it as a membership drive.  Well done NANA.

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Social responsibility

Express Publications in the spotlight

Jarryd Moore writing at his Unboxed blog intensifies the spotlight on Express Publications, a company about which I have written in this place.  Express Publications recycle what to me looks like junk, magazines without dates and with price stickers from months and even years past.  These old magazines are sent in sealed bags on a merry-go-round, on trucks which spew out carbon emissions.  There is an environmental story here.  There is also a story of the space these bagged magazine take up in newsagencies.  Finally, there is a story for the advertisers.  I wonder what they are told about circulation and readership?  Be sure to jeck our jarryd’s blog post and add your voice on this issue.

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magazine distribution

Listen to Rupert Murdoch explain his pay for news plan

Further to my post earlier this week about the announcement by Rupert Murdoch that News Corp. would charge for access to its news websites, go to this link at Crikey.com to listen to the full conference call.  This provides a more complete context.

This is the media story of the week with more than 4,500 stories online and 10,000 blog posts. It has sparked a huge debate as to whether people will pay for content.  The only way publishers will find the answer is if more of them throw up models.  The current approach clearly has financial challenges for them, something had to change.

The ABC yesterday published an excellent report on the charge or die imperative newspaper publishers are being told they face.

Personally, at this stage I don’t see myself paying for online news.  But who knows? As we found with iTunes, the distribution channel (iPod, iPhone) is the key.

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Media disruption

Calendar season has started

Calendars have started arriving an they are selling, even at this early stage.  We are getting them out as soon as they come in – you can’t sell stock from the back room.  The race is to convert the value of the stock to cash before the account is due.

We have customers who have preordered from us on the basis of the extensive range we carried last year.

Our calendar sales were up 38% last year.  We anticipate double digit growth this year based on our buying decisions and how the other key departments are travelling.

We do not plan on discounting calendars until 2010.  This was our policy for the last calendar season and it worked for us – in the face of discounting in our centre.

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Calendars

Success with donna hay kids magazine

fhn_donnahay_kids.JPGThe latest issue of donna hay kids magazine is one of the most successful we have seen.  In less than a month on sale we have sold 80% of our stock.  This title will sell out.  We have driven this result by a good display in our food section and proactive co-location with our weeklies – sometimes on the flat stack and other times in a magazine pocket.

No one asked us to do this extra work.  we did it because it made good business sense based on a great looking cover with excellent visual cut-through.

donna hay kids magazine is a title customers will buy if they know it is out – hence the importance of co-location to drive a great sales result.

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magazines

Promoting the magazine combo pack

fhn_aww_goodhealth.JPGWe are participating in an interesting trial with ACP Magazines promoting the Australian Women’s Weekly and Good Health in a a newsagent’s version of a combo pack for $10.95.  This bundled offer saves the consumer $2.80.  Magazine combo packs like this are popular among UK publishers – particularly in supermarkets from what I understand.

The trial should give ACP sales data with which to assess bundled offers.

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magazines

Promoting Australia’s Open gardens magazine

fhn_open_gardens.JPGWe are promoting Australia’s Open Gardens magazine at the counter as part of our proven strategy for this title.  If we repeat last year’s success, we will be sold out within a month.  We will leave it on display at the counter for up to a week and the co-locate in our garden section and with women’s weeklies titles.  In the third week we will promote the title with our newspapers.  Few newsagents promote in this Australia’s Open Gardens way and they miss sales.  Even though the cover price is $17.95, avid gardeners love this title.  It is terrific to see a Saturday newspaper customer at the counter upgrade from a $2.00 sale to a $20.00 sale.

Newsagents with healthy gardening magazine sales ought to consider shifting this title to a prime location for a few days and see if they have the same success we expect.  It’s a tremendous opportunity for us.

My only frustration is that the Australian Open Garden Scheme website does not promote newsagencies as a place from where to purchase the title.  They could easily list all stores with the title or, better still, offer a search by postcode.

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magazines

Lazy marketing of Aust. Country Collections

fh_country_collections_bag.JPGAustralian Country Collections takes up double the retail space in newsagencies this month because of the copy of an old issue of Life magazine included in the browser unfriendly plastic bag.  I don’t see the value in such lazy marketing – Australian Country Collections is a popular title for us.  It is also popular with browsers.  Bagging the magazine may hurt sales.  Given the success of Life magazine I do not expect it to be a factor in driving sales.

I call this lazy marketing because it is not creative.  Unfortunately, it is one of the most popular marketing tactics used by Australian publishers.

I’d suggest that there are more effective and creative ways to drive sales of this title than bagging it with an old unrelated magazine.  That is what this post is really about – calling on the publisher and other publishers to be innovative in how they seek to drive sales in newsagencies.  Bagging magazines is out of date and encourages waste in terms of unecessary freight as well as for the plastic bags.

Three promotions I would like to see for a title like Australian Country Collections are:

  • Sampling.  Give newsagents copies of A5 samplers to hand out to customers.  These should have one or two brilliant articles which showcase the usual content of the magazine.  They should have a box on the back for us to place our business stamp.  Have a welcome note from the editor in which they pitch newsagents as great partners of the magazine – i.e. make this sampler a win win.
  • Give away a gift of genuine value.  Promote this on pay TV with a budget conscious campaign.  people need to buy the magazine to get the free gift from the newsagent across the counter.  Make the gift only available from newsagents and promote this on the TV commercial.  This gets our buy in.  Make sure the gift is relevant and valuable. Smart newsagents will seize the opportunity to sell customers into putaways – almost guaranteed sales.
  • Co-location reward.  Reward newsagents for sales growth.  This will help fund labour and real-estate involved in co-locating the title in pursuit of new readers.

Each of these ideas is about newsagent and publisher engagement in a common goal.  Bagging a free old magazine is not about this – quite the contrary.

If magazine publishers are to achieve break-out growth, they need to engage in break-out marketing.  An average newsagency will have 1,000+ different titles on the shelves at any time.  That is a lot of noise with which to compete – for newsagent and shopper attention.  Hence the importance of a genuinely break-out campaign.

Magazine publishers doing the same old stuff in marketing their titles train newsagents to do the same old stuff.

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magazines

Promoting Father’s Day

fathers-day-blog_sr.jpgThis is a copy of the artwork we have developed for for Father’s Day for our four Sophie Randall card and gift shops in Melbourne.  We do not use collateral from card companies other than header cards – hence the need to create our own seasonal pitch.  Father’s Day tends to be promoted with a more traditional look than other seasons.  We wanted something lighter but still emotive.  For those interested, we did the artwork in house and paid $6.00 a poster to have them professionally printed on think card.

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marketing

News Corp. to charge for websites

“Quality journalism is not cheap,” said Murdoch. “The digital revolution has opened many new and inexpensive distribution channels but it has not made content free. We intend to charge for all our news websites.”

This is Rupert Murdoch speaking yesterday at the company’s announcement of its results.

This is a bold move, to charge for news websites. It will be interesting to see if it happens and, then, the impact on traffic.  The plan is certainly generating considerable discussion online.  In the meantime, sites like AOL are busy hiring their own writers to create content.

I am not sure what I think about charging for content online.  You can’t feed families with a free model.  We need to see models like the News Corp. plan to test what will work and what will not.

What I don’t understand is the News Corp. policy on cover price for their print product.  The cost of producing newspapers has risen while cover prices, for the most part, have remained static over the last ten years.  Newsagents only make money from cover price.  In real terms, our return from newspapers has fallen over the last ten years. A quality distribution system is not cheap.

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Newspapers

Violating my retail space

pop_science_ugh.JPGMagazine merchandisers can be frustrating.  Too often, they move titles around and take liberties with our retail space.  Take the header card a merchandiser put in place to promote Popular Science in one of my newsagencies.  This blocks our coproate image header card.  I think, but cannot be certain, that they moved Popular Science to above the science magazines.  We usually have Scientific American in the top two pockets – to beacon brand the serious science segment.

We have told merchandisers they are not to move anything, change anything or put up displays without permission.  When they ignore this they disrespect our business.

Ugh!

I understand that publishers want to drive sales of their products.  The best way for them to do this is to partner with newsagents in a business like way rather than by taking over part off the business.  In the case of Popular Science, we have beeen told to place this title with men’s interests.  This is where we have most stock. a pocket in the science section is part of our ownco-location strategy.  Cursiously, the merchandiser did not violate our Men’s interests area display.

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magazines

Sony launches new e-readers

Sony overnight officially announced two new e-reader models: the Reader Pocket Edition (US$199) and Reader Touch Edition (US$299). They will be avauilable in the US in a few weeks. Sony also announced price cuts for books – dropping from US$11.99 to US$9.99. Once content hits a sweet spot and the devices have functionality consumers want sales will skyrocket and there will be an irreversable shift in medium.  Like with the iPod.  Business Week has a good perspective on Sony’s announcement.

The challenge for newsagents is the disruption to news and information distribution.  We are middlemen.  Over time, we become redundant.  This is why we have to create our own future.  This is why many of us are evolving our business model.

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Media disruption