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

Month: February 2010

The craft, quilting, cross stich, knitting and quilting magazine offer

craft_titles.JPGSomeone in a comment here asked me to post a photo of what our craft area looks like.  I forget the context, sorry.  The photo shows how the craft magazine display looked yesterday morning.  Looking at it now, it certainly needs some work to tidy segments and beacon brand popular titles.

Sales of craft related titles are not what they were a year ago.  We promote them from time to time outside their usual area with little impact.

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Promoting InStyle magazine at the counter

fhn_in_style_feb10.JPGWe are promoting InStyle magazine at the prime promotional location between two busy counter locations.  The free gift makes it a true premium offer.  The can of free dry shampoo spray which comes with the issue makes displaying in regular magazine fixturing a challenge so this display also helps out on that front.

We have placed Women’s Health next to InStyle since we expect them to appeal to the same customer.

Both magazines will remain in this location until the weekend when we will review the numbers.

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magazines

Promoting Unique Cars to male browsers

fhn_unique_cars_feb10.JPGWe have created the display promoting Unique Cars in the photo to face people leaving our men’s magazine aisle.  We also have a half waterfall display in the regular location for this title.

It is good to see Unique Cars getting some attention from the publisher.  I’d expect it to respond well.   It’s certainly a popular title with browsers.  The million dollar question is how do you turn a newsagency magazine browser into a customer?  We try with our magazine loyalty program and while this does have an impact, not enough convert.

This display for Unique Cars is trying for a second bite at the browsers, as they leave the aisle.   It’s a good location because there is little competition for visual attention at this point.

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Promoting Woman’s Day at the counter

fhn_wd_feb10.JPGWe are promoting Woman’s Day at two of our counter positions thanks to the free cookbook with the current issue.  We will leave this here for three days.  The free cookbooks usually drive good incremental sales.  Like othjer magazine promotions, we are doing this of our own accord and not because we are paid a premium for the space. The newsagency channel is valuable for publishers, more valuable than c-stores and supermarkets in this regard.

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magazines

High school and uni students suffer from Fair Work Act

Students are a valuable labour force for newsagents.  Newsagencies have been a valuable learning and income opportunity for students. The Fair Work Act is changing that thanks to the minimum hours provisions.

Consider the case of “Nick”.  For three years he has worked three nights a week, after school, for between and hour and a half and two hours.  The newsagency was on the way home.  He was happy with the work and the award wage he was paid.  Now, under the new provisions, he will have to be let go since he cannot be given the minimum hours as the business closes at 6pm and he cannot get there before 4:15pm.

This story is not unique.  I have heard from at least twenty-five newsagents of with similar stories, especially in high-street and regional situations.  I’d estimate that more than two-thirds of newsagencies employ students for short hours. While it is hard to give a number of students affected without surveying all newsagents, I’d estimate that more than 15,000 students would be affected.

The alternative is for the employment to be off the books.  However, that is dangerous.

The government says it has consulted business.  Clearly, they did not consult all businesses.  Maybe it should consult and work with newsagents and students to protect the current arrangements.  They were considered fair before these latest changes were introduced.

Footnote: My newsagencies are not affected since we configured our businesses some years ago to have minimum three hour shifts.  It suited us in our locations.

UPDATE (6pm): News Ltd columnist Andrew Bolt picked up on this today at his blog.

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Newsagency challenges

Radio wants their $240 million from the government

The Australian is reporting this morning that radio stations want the federal government to give them a handout as was announced recently for the TV networks.

We hear so often, from politicians of all persuasions, that small business is the backbone of this country yet we rarely receive government largess on the scale of the $240 million for the TV networks or the billions paid to auto makers.

The case put by the government for the TV handout does apply to radio.  It also applies to small businesses like newsagencies.  We have to invest in change for us to have a future.  I doubt our need will gain any traction with any politician.  We’re too small.

This is the kind of issue on which newsagents could use their critical mass to make a point.  Imagine if every newsagent had a petition at the counter for customers to sign or if we handed out a postcard to be sent to the local member.

If we could make a loud enough noise we would get on their radar.  I doubt we would do it.  Our biggest asset, our national footprint, is rarely used by us.

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Newsagency challenges

Trader TAG set to struggle to replace Trading Post

trader_tag.JPGTrader TAG is another wannabe replacement for the Trading Post.  At $1.00 a copy and being supplied through a distribution newsagent, the numbers don’t work for me.  Trading Post at least had a higher cover price and was supplied direct.  I can’t see Trader TAG selling what enough copies to cover the space it will take in our newspaper stand.  I expect we will say no thanks to this title unless the publisher aggressively promotes it and fixes the margin problem.

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Newsagency challenges

Wired for the iPad

Chris Anderson, the Editor-in-chief of Wired magazine said the iPad-native version of their magazine would be a game changer.  Electronicista has a report on this.

What will really drive interest in moves like this is a new pricing model, setting iPad content apart from print content.

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Media disruption

Sharing newsagency supplier rewards

wine_sharing.JPGWhenever we receive a supplier reward we share it with the team.  The latest kitty to share is four dozen bottles of wine, some beer and some movie passes.  We don’t make alcohol available to any employees under 18.  Those 18 or older get to choose their own bottles of wine – we line it up in the back room for selection as this photo from yesterday shows.

It’s important that everyone working in the newsagency understands opportunities like these supplier rewards.  By sharing what we receive we help them understand more about opportunities beyond the income the business received from selling items for which there are other rewards.

Occasionally, we will use rewards as customer gifts but not often as we have plenty of these throughout the year from other promotions.

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Newsagency management

Strong Valentine’s Day sales

We achieved excellent numbers across the various stores I am connected with yesterday for Valentine’s Day related product.  While cards were at the core of the success, gifts and chocolates performed very well too.

In each situation, sales were ahead of last year.  Curiously, the two locations which performed the best are loacted in areas of considerable social and economic challenge.

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Greeting Cards

Diabetic Living display a hit!

Our Diabetic Living display at the counter is driving an excellent result with 40% of our stock sold in three days.  This is ahead of the sales we usually achieve in the first three days of on-sale.

Not every magazine reacts this way to placement in this premium location.  The key is to learn which titles work well here and which do not.

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magazines

Would you take firm sale magazines?

In a discussion with a small publisher yesterday they asked whether newsagents would take their products on a firm sale basis in return for 45% commission.

This is becoming a more common discussion point in the smaller publisher circles as they look for ways to break free from the traditional magazine supply model.

In addition to the firm sale commitment, they would be looking for guaranteed placement – not so much in a premium location, but certainty as to location of their title.

While the 45% is good progress, I would like to see a margin of more than 50%.  This would make the title very interesting.  Oh, and not a one off based on a sales stretch like with the latest issue of Cosmos but permanently in return for firm sale and placement guarantee.

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magazines

Nightline report showcases the Hallmark brand

ABC’s Nightline program last night in the US ran an excellent report on Hallmark Cards.  Starting out about Valentine’s Day cards, the report went behind Hallmark and provided perspective on the company responsible for more than half all cards sold.  The story also covered Hallmark innovation – something we are benefiting from with the Hallmark sound cards. Here is the Nightline story:

This report reinforces what I write here about brands.  Hallmark is a respected brand.  While anyone can produce a greeting card, Hallmark owns the feelings of respect, trust and innovation associated with their brand.

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Greeting Cards

Promoting the Susan Boyle book at the counter

susan_boyle_book.JPGWe have made space at the counter to promote Susan Boyle, Living the Dream at the counter.  We are confident that this book will appeal to our customers at Forest Hill.  To drive sales, we have the book priced at $19.95 as we felt the list price of $24.95 was a bit high.  While I expect the majors to undercut us, our price should be close enough.

I am am pleased that newsagents were offered this book and that it was for more than the usual magazine margin.  While the book is not for everyone, being given the opportunity is always welcome.

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Newsagency opportunities

Pitching Valentine’s Day

valentines_gifts.JPGLike most newsagents, we are pitching Valentine’s Day with promotions for cards, chocolates and gifts.  Most of the gifts we have chosen will fit in our gift department after the day is over so the risk is not that great in terms of product selection.

What surprises me about Valentine’s Day is that few magazines engage with the opportunity.  I’d say we have no more than four titles with any coverage worthy of display with Valentine’s Day gifts.  Maybe publishers don’t see the opportunity.  I’d certainly like to play more in this space along the lines of gifts which are guilty pleasures.

One idea I had for a monthly would be a wraparound cover which can be removed after Valentine’s Day.  This could see the title promoted in advance of the day with a Valentine’s Day pitch and then revert to the more traditional pitch after.  Yes it would be some work but it may also help drive sales.

Sales for Valentine’s Day have been okay.  The next three days are the key of course.  I read somewhere that 75% of Valentine’s Day cards are sold in the last 48 hours.

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magazines

UK magazine numbers make interesting reading

Men’s Health in the UK is the number one title in the men’s magzines category in figures reported in The Guardian yesterday.  At 250,577 copies it is 20,000 ahead of nearest rival FHM.

The interesting trend out of the UK is the decline in what they call lads’ magazines.

The lads’ weeklies Zoo and Nuts suffered the biggest year-on-year declines for the second successive ABC period. IPC’s Nuts retained third spot among the paid-for titles, despite a 24.4% decline to 176,835, down 6.2% on the previous six months.

I think we are seeing this here, certainly in stores I am connected with.  The men’s health, fitness, bike and sports magazines are either holding their ground or growing while the lads’ magazines are static or falling.  Maybe this is because of a shift in buying patterns.  This would not surprise me as more people learn to buy magazines with fuel and convenience purchases elsewhere.

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magazines

Finding Trailzone magazine

trailzone_cover.JPGI like their reproduction of the Trailzone masthead on the bag they produced for the magazine.  While I am not a fan of bagged magazines, at least they have ensured that people looking for the title can find it on our shelves.  The publisher’s effort shows that they understand retail.

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Fighting Streetfighters

streetfighters_coverup.JPGA merchandiser representing Streefighters magazine visited, moved the title to a better position and put in a header card.  All for the one copy we were sent.  I’d accept this intrusion if they paid for the space but they don’t.  I choose which titles get premium space based on the revenue they generate as well as the opportunity for additional revenue.  Merchandisers are supposed to get permission before they go and make changes like this.

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iPad and comic books

Wired has a report about the iPad and its usefulness for publishing comics.  There are good reasons the Panelfly comic book reader should work: you can buy content vis iTunes (Marvel content is US.99c) and the size is comic book friendly.  The Panelfly website has the pitch:

Your local comic book store in your back pocket.

I expect we will read reports like this wwith increased frequency over the next few months.

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magazines

Magazine, newspaper sales decline in January

newsagent_sales_benchmark.jpgThe latest newsagent sales benchmark study reports a 7% unit sales decline for magazines and a 4% unit sales decline for newspapers in Australian newsagencies in January 2010.

Comparing unit sales for these and other key newsagent categories, the newsagency channel’s only sales benchmark study analyses sales for January 2010 compared to 2009 on a same store basis.

Deeper analysis within data for the magazine department shows weekly titles are at the core of the decline. This must concern newsagents as the weeklies are key to magazine department profitability. In some newsagencies, the weekly titles decline was in excess of 20%.

The other result of interest is the decline in special interest magazine titles. Previous sales benchmark studies have reported this as one of the strongest performing categories.  The january study shows it as vulnerable.  I’ll wait for further study to see if this is a one-off.

Within the newspaper department, foreign newspapers continue to buck the trend, reporting unit sales growth of 3% for January 2010 over 2009.

As previous newsagent sales benchmark studies have shown, newsagencies in rural situations fared considerably better than their city counterparts.

The good news is growth showing in new (for newsagents) departments such as Ink, Gifts, Calendars and electronic voucher product. There is plenty of evidence of newsagents successfully shifting focus to new money areas and away from more traditional products. These departments are upsides for newsagents and anyone considering buying a newsagency.

While the decline in core products is a concern, it must be noted that this is a comparison for one month.  Trends can only be considered when comparing longer periods.  I decided to look at January as a result of discussions with a couple of newsagent suppliers who wondered about performance given anecdotal evidence they had seen.

I undertake this sales benchmark study through my software company, Tower Systems.   The 135 participating newsagents are a small but reliable and compliant subset of the 1,650 strong community of newsagents using the Tower software.

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magazines

Helping Madison magazine

fhn_madison_feb1010.JPGMadison magazine is not doing so hot for us.  Some months it is break-even, often it loses money once we pay for the retail space and labour.

I decided yesterday to engage more with the title and help it find buyers.  The first move I made was to place a quantity of Madison next to our stack of Australian Women’s Weekly.  This is at the entrance to our busiest magazine aisle.  I’ll see how this goes for the week and decide what to try next.

I had thought about putting Madison in a pocket above newspapers but felt that the title did not fit that location.   AWW feels light a good fit to me – customer behaviour will tell me if that is right.  The decision yesterday was helped by the nice contrast in colours of the covers of both magazines.

Publishers should take note of these moves which many newsagents make to help titles.  Sometimes, a strategic placement is more important that a big bold display.

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Moving the AFL Record

fhn_afl_feb1010.JPGWith demands on display space at their peak in our newsagency (and I am sure many others) this week, we moved our AFL Record display from the counter to our main newspaper stand – next to the Herald Sun.  We also have product located in our AFL section.  We ran this title with newspapers last year with considerable success.  We will leave it here until next week when we will move it again.

A newsagent called me yesterday to talk about how many times we move titles.  he wanted to know why we bother for 25%.  What that is a fair question, my view is right now magazines are a key point of difference for us.  We need to seize every opportunity – hence the constant changes.  I just wish we were valued at more than 25% of cover price.

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magazines

Promoting Take 5 and free Corn Thins

fhn_t5_feb1010.JPGWe are promoting Take 5 at the counter this week.  The free pack of Corn Thins encourages us to do more than just place it on the shelf.  we’re tight on space so stole some bag rail space.  We’ll leave this up until the weekend if stock lasts.  While this issue is a challenge to display, the free gift is one I;d expect to connect with Take 5 customers.

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