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

Month: September 2009

Freight move increases cost of magazine returns

The move by magazine distributors NDD, Gotch and Network to Toll Holdings for freight looks set to significantly increase the cost of returning unsold magazines.  One newsagent told me that their cost will go from $25.00 to $66.00.  This is what they will have to pay for stock they did not order and which has failed to sell.

Newsagents are understandably angry at this cost increase imposed on their businesses.  If distributors let newsagents return only then cover then the cost would be significantly less. NDD performs worst out of the three magazine distributors based on the data I see in terms of sell-through – meaning higher additional costs.

The magazine distribution model which makes newsagents liable for the cost of freighting titles which have not performed is flawed.

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magazine distribution

Trading Post classifieds newspaper to close

The Trading Post classifieds newspaper will cease publishing within the next four weeks.  While this has been a topic of discussion for months, there has been no clarity on specifics.  The publisher has certainly worked hard to migrate customers to their website.  In newsagencies, the Trading Post is not paying its way.

The Australian published a report stating that the print edition of the Trading Post is to close.  Telstra has published a notice with details.

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Media disruption

Soccer balls in newsagencies?

soccer_merchandise.JPGWe received 10 soccer balls today from Gordon & Gotch in one store and 15 in another.  The packaging carries ANF endorsement.  I knew we were getting soccer product because I saw it on a list of new titles I approved earlier this week.  Had I known they were actual soccer balls I’d have said no thanks.  I don’t want to sell soccer balls.  They do not fit in my newsagency.

I have no space at the counter for these even though they come in a counter unit.  Ugh! We currently have tweleve counter units and only two spaces for their use.

Soccer fans will know they can get brand name balls at sports stores.  They don’t think about buying these at newsagencies – unless there is a major advertising campaign to drive traffic.  Given that the ANF represents only 33% of newsagents, the endorsement is of dubious value. The ANF is engaging in an area which has nothing to do with an association.

This is not a smart promotion.  For it to work properly, there needs to be a narrative built around the offer.  This is done by bringing several products together with professional collateral to support the offer.  This has not been done with the soccer balls.

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Newsagency challenges

Cashing in on the Geelong AFL Grand Final win

fhn_herald_sun_geelong.JPGWe are displaying the Geelong team photo (free with the Herald Sun) today at our usual newspaper stand as well as at the lottery counter (see photo).  Based on selling out of the Geelong premiers magazine in two days, the team photo should be a hit in our newsagency.  The poster should drive good sales.  On the premiers magazine, we received extra stock today and by 8:30 we had already sold three.  Opportunistic moves like these are essential.

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magazines

Promoting crosswords in newsagencies

crossword_plate.jpgThe creative team at Tower Systems has developed another poster for use by newsagents in promoting crosswords.  I like this one more than the artwork I published here two weeks ago as I think it will stand out well against the sea of colour in a newsagency.  I also like how it represents the health benefits of crosswords.

Once we make any adjustments, based on feedback from publishing this here, I will make a PDF available for anyone to download and print locally.

We plan to use this poster in a front-of-store crossword display as well as on visual merchandising space adjacent to our main crossword display.  The poster being timeless allows us to use it when we choose.

I wish publishers would work together and fund unbranded collateral promoting newsagencies for key magazine segments such as crosswords, crafts, food, motoring and travel.  While they only want to promote their titles, a healthy segment overall is good for all publishers involved.

Tower invests in this artwork and other promotional activities for newsagents to help build a healthier newsagency channel.

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crosswords

Graduation and teacher gifts

fhn_graduation.JPGEven though the school year has a way to go, we have a small display of graduation and teacher gifts on display for our school holiday shoppers.  We have the range of plush in the photo and several other items in this growing category.  We display these items along with a selection of appropriate cards to demonstrate the context of the gifts in case it is not obvious.

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Gifts

XChangeIT update available today

Newsagents using the new XChangeIT platform has been asked to act AFTER 4:30PM TODAY to ensure they are running the new release.  This will help address some of the operational challenges of the last month – it’s an important update.  The advice from XChangeIT for noewsagents to either reset or reboot their computers as follows:

To Reset:
1. At a convenient time shortly after 4:30PM on the 30th September, right click on the XchangeIT icon (its the blue triangle) in your bottom right task bar
2. Select the Exit option. This will close the XIT application and remove the icon from your task bar
3. Go to your Start menu and select All Programs.
4. Select the XchangeIT Link and the XchangeIT Newsagent Client option. This will launch the XIT application with the new version installed.
5. Check in your Newsagent client at the top right corner just below the round picture of the world and you should see v1.0.40.
6. Send us an email to let us know you have completed the upgrade support@xchangeit.com.au

To Reboot:
1. At a convenient time shortly after 4:30PM on the 30th September, simply shut down all programs you might have running, and save any work in process.
2. Shut down your PC
3. After 30 seconds turn your PC on again. Start your regular programs and start your XchangeIT LINK EDI program. The new version 40 with a new security key should automatically load. You should be able to continue receiving and sending files as normal.
4. Check in your Newsagent client at the top right corner just below the round picture of the world and you should see v1.0.40.
5. Send us an email to let us know you have completed the upgrade support@xchangeit.com.au

To check what version of XchangeIT LINK you are running:
1. In your Newsagent Client look at the top right corner just below the round picture of the world
2. There you should see v1.0.40 after you have upgraded.

The folks at XChangeIT have consulted widely on the release of this update including the timing to ensure that it is released at the best time possible for newsagents.

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newsagent software

Publishers should use newsagent preorders to gauge appeal

Magazine publishers launching new titles should consider offering a preorder service through newsagencies as a means of gaining consumer appeal. This could provide feedback in time to adjust print runs and thereby avoid sell-outs or over supply. Newsagents are used to offering such a facility for regular titles – called the putaway service. Indeed, putaways are a key point of difference newsagents offer magazine customers.

Offering preorders could be particularly useful for mass market titles. The Home and Away souvenir one-shot earlier this year was a good example. We ended up selling three times our allocation. I expect that a smart preorder campaign would have provided sufficient guide in a few days to provide better data with which to forecast our sales.

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Newsagency opportunities

Another magazine launches iPhone app

Just £2.39 buys a month long subscription to The Spectator magazine on your iPhone.  This was launched yesterday. An annual subscription to the print edition costs £135.  The pay as you go model will be appealing subscribers through the iPhone channel.  It is the same model selected by other magazine publishers.

If we want to maintain our position as magazine specialists (against competition from the iPhone and other distribution channels), we need to develop strategies which make our businesses more appealing to magazine publishers while at the same time ensuring our own viability in this category.

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Media disruption

Newsagents represented in another Magazine podcast

I participated another Magazine podcast for Mediaweek late last week. This is now available for download here. Those participating in the discussion included author of the Girl With A Satchel blog, Erica Bartle, and the co-director of Australian Traveller magazine, Nigel Herbert, James Manning of Mediaweek and Bendan Wood, Moderator.  In the podcast we discussed a range of magazine related topics including the bonus commission on Australian Traveller, gifts with magazines, cover price and the impending sale of NDD.

It is good that newsagents have a voice at these discussions. The podcasts are downloaded by a variety of people from inside and outside magazine publishing – I know because of the feedback to the last podcast I did with Mediaweek.

Check it out and let me know what you think.

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magazines

Promoting Top Gear magazine and free Stig DVD

fhn_top_gear_oct09.JPGWe are promoting Top Gear Australia at the entrance/exit of our men’s magazine aisle this week. While not considered a premium location, sales suggest otherwise. This location is ideal for Top Gear because it is located close to the main stock of this title as the photo shows.

We will leave Top Gear on display here for a full week, maybe longer depending on demand for the space and the performance of the title.

My only beef with this issue of Top Gear is that it is bagged, to hold the DVD. Guys love to browse magazines. Bagging Top Gear stops browsing by some and encourages damage to the product by others. Find another way to package the DVD with the magazine. Let guys browse titles. You’ll sell more magazines. Advertisers will be happier too.

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magazines

Driving sales of bags and wrap

bags_sep21.JPGThe photo shows the bag wall at one of my newsagencies.  The range has recently been refreshed and there has been a good sales kick as a result.  We know from industry sales data that newsagents underperform in terms of bag and wrap sales.  This is usually because newsagents hide the product behind cards.

Newsagencies where bags are close to the front of the store and highly visible are achieving better results.  That was the goal of the recent refresh in our newsagency.

In addition to refreshing the range, we take opportunities to create feature displays to show how bags can be dressed to great effect.  We do this, not our merchandiser – the benefits are ours after all.

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giftwrap

Missing out on the newsagency experience

What is it about Australian capital cities and newsagencies. Well, Melbourne, Sydney at least. They used to boast several good ‘full service’ newsagencies. Now they are nowhere to be seen. Instead we have convenience stores on every street corner.

I am in Sydney today and needed something only a newsagency would carry. While Sydney has a good number of News Stands, as they are called, the main CBD streets lack a newsagency or two.

I suspect that rent has a lot to do with this. Our slim margin businesses don’t work when you are paying close to $2,000 a square metre for retail space.

It’s a pity. Tourists wandering Sydney streets mixing sightseeing with shopping are missing on a quintessentially Australian retail experience.

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Newsagency challenges

Girlpower and shag bands

With ‘shag’ bands in the news over the weekend, the latest issue of Girlpower magazine is a challenge for newsagents since it has bands bundled with the magazine.  Some newsagents are asking whether they should promote this issue.  For other definitions of shag branbds, check out urban dictionary.

Maybe I am disconnected but the ‘shag’ bands story sounds like a beat up.  I’m happy for the magazine to be on the shelf.  If it was removed for this then the magazine shelves would look quite bare.

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magazines

Model Orbiter partwork

model_orbiter.JPGThe Model Orbiter partwork launched today. Actually, launched is not the right word.  We received stock but no collateral.  You can’t promote new partworks without collateral.  I am sure there will be an excuse.  It is not good enough.  Collateral should arrive with the stock as this is when we allocate space and have resources for creating displays.

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magazines

Why is the ANF sponsoring a soccer TV show?

anf_sponsor.jpgI wonder how many newsagents are aware that the ANF sponsors the Goal of the week on the football stars of tomorrow  TV show and website.  The sponsorship is poorly executed in that there is no explanation on the website about the ANF or newsagents, there is nowhere to click to get to the ANF to get this information and it is based around a logo which the majority of newsagents do not use.

Maybe I am missing something but I cannot see the value to newsagents in this sponsorship.

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Ugh!

Promoting Geelong premiers magazine

fhn_geelong.JPGWe are promoting the Geelong AFL Premiers 2009 one-shot title at the counter this week.  At $15.00 a copy we’re happy to use this premium space to try and drive impulse purchases of this title.  Since we have limited supply we may have to replace the display after a day or so.  As we saw last week with the AFL record, using this space for non major publisher product can have its rewards.

Unfortunately, some publishers don’t see it this way as they want premium space for their titles.  I’d agree if they paid the rent.

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magazines

Older women beat older men any day

I love older women customers. In my experience they are more cheerful and enjoyable than older men customers.

By older, I mean 75 and over.

Older women tend to know what they want, they enjoy a laugh and they are prone to flirting, yep, flirting – I like this on a slow day at the counter.

Older men tend to grunt rather than speak words, they rarely laugh and often don’t know what they want.

The older women lottery customers are the best.   They share secrets, have a laugh and, if you are lucky, tough you for luck.  I don’t mind being touched for luck.  I enjoy them enjoying shopping in the newsagency.  Even if they have a ticket which has not won they are usually cheerful and ready for a new dream from a new ticket.

Older men lottery customers are more likely to wonder why they are so unlucky.  Occasionally, I find myself thinking that they have probably brought it upon themselves.  not even a good smile can crack a response.

Thankfully, newsagencies attract more women customers than men.  This means more good times in my experience.

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Newsagency opportunities

Magazines at the show

bhg_show.JPGI was at the Royal Melbourne Show yesterday and saw stands pitching showbags based on magazine titles from ACP and Pacific.  It was good to see their brands represented. In another pavilion there was a stand devoted to Better Homes and Gardens.

These stands made me wonder what facilities, like stands, we could access to promote their brands and our newsagencies.  In shopping centres, existing tenants can take casual leasing.   Maybe we could split this with a publisher, they provide the stand, collateral, a deal on subscription sales and product deals and we staff the stand and include something to drive traffic to our newsagency.

Operating a magazine title based display like this would give us something different to pitch in such a casual leasing situation compared to the usual books, back to school and Christmas offers from newsagents.

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magazines

Underage tobacco campaign in the UK

Steve Denham is running a good campaign on behalf of newsagents and independent retailers on the issue of sale of tobacco to underage customers.  He is lobbying politicians and regulators in pursuit of fairness for all retailers of tobacco products and not just a focus on bricks and mortar businesses, particularly the easy target independents.

Newsagents in Australian states with tougher regulations would do well to read about Steve’s engagement on this issue.

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Newsagency challenges

Missing the magazine discount

fhn_yours_price.JPGThe issue of UK magazine Yours which came off sale yesterday sold for a 28% discount in the UK.  Not so here.  Our price was $4.95 as usual for this title.  I am surprised that the UK discount was not run here.  I would have thought that using a cover price discount to drive sales would work here – especially in this cost conscious time.

Yours is one of more than 30 UK titles in this segment in our newsagency.

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magazines

Sales of AFL Grand Final record double

Our sales of the AFL Grand Final record are more than double last year’s.  This is part due to our more proactive promotion and part due to the two teams playing.  Even though it’s a once a year title, it is cash-flow positive and generates around $1,500 in sales.  Most sales are in addition to the desitnation purchase.

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magazines
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