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

Month: August 2010

Australia Post partners with OfficeMax

OfficeMax and Australia Post have done a deal whereby the Australia Post brand is being used to sell to launch an online office products store operated by OfficeMax.

This is a great leg up for OfficeMax as they can rely on the respected and proteected Australia Post brand to drive the business.

It is also another example of Australia Post leveraging its government ownership to take business from independent retailers like newsagents.

Sadly, the current and previous governments have not had the guts or desire to stand up to Australia Post and keep it focused on being a postal service rather than a commercial brand taking business from family run businesses like newsagencies.

If we were smart as a channel we would protest long and loud about this and fore the politicians to make a policy decision which stops Australia Post taking food off our tables.

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Australia Post

Cafe subscription promotion from News Limited

News Limited is running a cafe subscription promotion unlike any I have seen in the newsagency channel.  The number of titles per day varies by cafe.  Even the days of week of the offer varies by cafe.  This appears to be a very flexible subscription offer.

Some newsagents I have spoken with have seen full price sales migrate to the News Limited offer.  Not only do they lose the full margin sales but they have to provide a higher cost delivery service.

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newspaper home delivery

The greens and small business

I made contact last week with the three major politiccal parties to ask about small business interest and policies.  Only the Greens have responded.  They sent a copy of a media release from July 28, 2010:

Greens promote small businesses
Media Release | Spokesperson Bob Brown
Tuesday 27th July 2010, 12:00am

Australian Greens Leader Senator Bob Brown today launched a suite of measures to assist small businesses.

The launch with ACT Greens Senate candidate Lin Hatfield-Dodds was at a restaurant in suburban Canberra.

Senator Brown said that small businesses were the power-house of employment in Australia, providing jobs for 5 million people.

Senator Brown is advocating a change to banking laws to help small businesses and flagged new opportunities in the energy efficiency and renewable energy industry.

“Our measures will help small business access credit, following the downturn in the global financial markets and promote new clean energy opportunities.

The Greens initiatives include:

  • Legislation to require lenders to offer small business ‘fixed interest gap loans’ with an interest rate set at a negotiated margin above the lender’s cost of funds.
  • Capped exit fees on loans to small business at the cost to the lender of the early termination.
  • Support for the introduction of portable bank accounts to promote competition.
  • Boosting the renewable energy efficiency with a national gross feed-in tariff to create new opportunities in the solar photovoltaic sector.
  • An energy efficiency target that will create demand for energy efficiency certificates to be met by new small businesses conducting energy efficiency audits and upgrades in the residential, commercial and industrial sectors.

“The Greens have a strong record in the Senate of supporting small business across a range of issues including anti-competitive pricing and superannuation,” said Senator Brown.

“The Greens will be a voice for small business in the Australian Senate in the face of the powerful lobby of large corporations and the mining industry.

I especially like the first two bullet points in their list. It is good to see a party actually talking about small business in the election campaign.

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Newsagency opportunities

Monument magazing land grab

monument-agu2010.JPGI love it when merchandisers visit and make a change without getting permission which impacts another publisher, a change for which they are probably paid a fee.  Look at the photo and the hearder card inserted for Monument magazine.

The folks at ACP should check the photo carefully – maybe a call to the merchandising company is in order.  They may listen to you.

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magazines

Promoting Home Beautiful at the front of the newsagency

homeb-aug2010.JPGThe new issue of Home Beautiful went on sale yesterday we we decided on a display out the front of the store, facing into the mall.  This is in addion to placement in with our interiors titles.

We were short of stock for a full display and, as the photo shows, added a column of Better Homes & Gardens and Burke’s Backyard – both titles which could reasonably be purchased with Home Beautiful.

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magazines

Good Health responds to promotion

goodhealth-aug2010.JPGOne magazine which is responding well to promotion is Good Health.  We have the display in the photo placed at the entrance to the women’s magazine aisle.  This is what people see when they enter the aisle.  This afternoon I saw the perfect example of this display working.  A customer walked in, picked up a newspaper, walked toward the weeklies, noticed the display, browsed the title, picked up a weekly and then went back and picked up Good Health for purchase.

Watching customer behaviour is important in assessing interaction with displays.  I want to see interaction and then measure sales.  Without these the display is useless to me.

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magazines

Promoting Shop Til You Drop

shoptil-aug20101.JPGWe are promoting the latest issue of Shop Til You Drop at exit of our women’s magazine aisle.  While we have done the display, I am not so sure about the premium space allocation for this title.  It does not respond all that well for displays in our store – not as well as other titles.  There is only so much space and once you are done promoting what you are committed to for various reasons, it is a challenge to give space to titles you know you can lift.  That said, we are giving Shop Til You Drop a go in a good spot because we understand the obligation.

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magazines

Publishers concerned about newsagents

At the GNS Market Fairs in Melbourne and Sydney last weekend and this it was terrific to catch up with some smaller magazine publishers.  We have an opportunity to work directly with smaller proactive publishers.  That they are making the time to get to know the channel better by visiting our trade shows is encouraging.

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magazine distribution

Symply Too Good To Be True sells out

We have sold out of Annette Sym’s Symply Too Good To be True 6 in several of my stores over the weekend.  Hopefully we will have our replacement stock by Wednesday – we are taking orders (with a deposit of course).  A $28.00 impulse purchase is a nice addition to any shopping basket!

We ordered extra stock yesterday and received it today.  Well done Network Services!

Newsagents who early returned stock on Friday missed good sales this past weekend.

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Newsagency opportunities

Star Trader offers newsagents 100% commission

startrader.jpgStar Trader, one of the classifieds newspapers to start up following the closure of the Trading Post is offering newsagents 100% commission for the copies sold in August.  Then, from September until December, we get 50% commission.

Since we get Star Trader direct, the 50% commission flows to us.  This makes it more attractive than classifieds titles which are supplied through newspaper publishers with whom we do not have direct supply arrangements.

We have upped our supply to give us capacity to more fully promote this title.

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Newsagency opportunities

Too many titles from Universal Magazines?

universal-magazines.JPGWith four quilting related titles on the shelves from Universal Magazines at the same time and other titles also demanding space, something had to give.  Our decision was to early return one of the Universal titles.  Retail real estate is expensive, especially in shopping centre newsagencies.  Titles with a shelf life of more than 30 days, regardless of the billing arrangements, need to come under focus as do titles from publishers who can flood a category and suck oxygen from other titles.

Giving our space for free to publishers, funding their cash flow requirements and paying to return stock which fails to sell is a very generous magazine distribution system.  Our generosity ought to be met with some obligations.

Newsagents need to be able to control the titles they receive and the volume and to know that their decisions will be honoured for the long term.

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magazines

iPads and newsagents

ipad-heaven.JPGAt the GNS Market Fair in Sydney today and yesterday on the Tower Systems stand we had two iPads on show.  One was showing how to use it in the newsagency and away from the newsagency for running the business.  That was pretty cool to show off.  The other iPad was for showing off the device itself, giving newsagents an insight into what it can do.  I showed it accessing newspapers, magazines, websites, email and some very cool iPad apps.  I also showed it it can be used to access to Tower Systems newsagent training videos and other resources.  All in all an eye opener for many newsagents having their first intercation with the iPad.

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Media disruption

Rupert Murdoch on the ipad

“As for the iPad, there will be imitators, other people in the market soon, but I believe that is a game-changer altogether,” Mr Murdoch said. ”We will have young people reading newspapers, we’ll have different-looking types of newspapers, we’ve already got new sites from independent people at the moment. It’s a real game-changer in the presentation of news.”

That’s Rupert Murdoch speaking a few days ago speaking about News Corp’s latest results.  The iPad is agame changer.  Once the current price barrier is reduced it will become more of a game changer – I say that as a regular iPad user.  Think back to the early days of the iPod, the price decline and the surge in uptake.

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Media disruption

Delicious research to help drive Moroccan cookbook sales

souk_in_the_city.JPGIn Sydney this weekend for the GNS Market Fair (which is terrific by the way) I was fortunate to have dinner last night at Souk In The City, a Moroccan restaurant in Surry Hills.  Fortunate because the food and service were excellent and because I saw first hand the popularity of authentic Moroccan cuisine.  The experience gave me plenty of ideas for how to promote ACP’s Moroccan cookbook – beyond the display we have already done.

Promoted well at impulse purchase locations, the Moroccan cookbook could do as well as the Slow Cooker cookbook in some stores.  I an certainly seeing good sales in myy own stores.

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magazines

New newsagent and gift shop software on show this weekend

My software company, Tower Systems, is showing off the latest newsagency software at the GNS Market Fair in Sydney this weekend.  Tower already serves in excess of 700 newsagents in NSW/ACT.

In Melbourne, Tower is on show at the Home & Giving Fair, showing off our gift and homewares software. There are many newsagents attending this event – a few of us are meeting Monday for drinks.

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newsagent software

Australia’s Open Gardens in newsagencies now

opengarden-aug2010.JPGThe latest issue of Australia’s Open Gardens came out yesterday.  We enjoy good success with this title – but not in the garden section where you would expect it to be located.  No, we place it at the counter as well as with newspapers – as shown in the photo.  In my experience watching this title over the years, most copies are purchased on impulse.  This makes it tremendously valuable to us.  It justifies placing the title in premium value high-traffic locations.

Watching someone pick up a weekend newspaper, browsing Australia’s Open Gardens and then adding it to the purchase is an absolute treat – that’s an additional $4.25 in margin dollars for the sale!

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magazines

Gordon & Gotch ignores sales data, sends too much stock

calorie-counters.JPGAll of the effort by around 2,000 newsagents and newsagent software companies counts for nought when a magazine distributor ignores the sales data and ships stock without justification.  Gordon & Gotch yesterday sent us more stock of Food & Exercise Diary and Calorie FAT & Carbohydrate Counter.  We still had stock from the initial allocation by Gotch.  The sales data they have in their computer system for our store would tell them this yet they sent us more stock and billed us.

I bet I am not along in receiving more stock of these two titles yesterday without justification.  It would be good to know how much newsagent cash was sucked out of our businesses by this decision to send us stock without taking into account sales data.

Magazine distributors need to understand that they have an obligation to supply on a fair basis.  Supplying when the sales data shows supply is not necessary is a blatant cash grab.  Either that or the sales data we are sending is an absolute waste of time.

Yep, it’s been a frustrating week on the magazine distribution front.

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magazine distribution

Making room for another Bride magazine

melbourne-bride.JPGWe received a truckload of Complete Wedding Melbourne from Network Services and published by Universal Magazines yesterday.  We had no spare space in our wedding section so we decided to take Melbourne Bride off the shelf and early return this.  I chose this title because we had sold one copy in six weeks and because it was distributed by Network Services – the same distributor wanting more space in this section.

On Melbourne Bride, I need to sell a copy a week to cover my costs.  As it is it will cost me close to $10 to return the unsold stock.

No wonder some in magazine publishing and distribution circles say we have the best magazine distribution system in the world.  That’s because newsagents are the bank and we fund half the freight.

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magazine distribution

Drowning in Puzzler Collection

puzzler-collection.JPGA few issues back Network Services increased our supply of Puzzler Collection by around 50% without justification in our sales data.  Since the increase we have continued to sell around the same volume.  We have supported the title with co-location – crosswords and in with our women’s weeklies titles.  Network’s response will be that we can early return and use Netonline to adjust supply.  That would be a lame and ignorant answer.  A fair and efficient magazine distribution system would not have created the problem in the first place.  The extra copies sent have sucked just that little bit of extra cash from us and how many other newsagency businesses?

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magazine distribution

Using downtime between major retail displays

cosmobride-aug2010.JPGWe found ourselves with nothing to feature on the back of the ACP Magazines stand – yes, we use the back and the front – so we decided to place Cosmopolitan Bride in the location for a few days.  Everyone leaving our women’s magazine aisle passes this display as they leave.  While this is not a display which will win a visual merchandising award, it is a tactical display which will drive browsing.

Sometimes publishers are too busy rewarding pretty displays while ignoring lessattractive displays which, well, sell magazines.

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magazines

Promoting The Monthly with Julia Gillard

monthly-aug2010.JPGThe latest issue of The Monthly, out today, has Julia Gillard on the cover.  I was surprised that we did not receive any marketing collateral with which to promote the title in-store.  So, we created our own to build the in-location display in the photo.

The Gillard cover story will be popular regardless of voting intentions if promoted in good impulse purchase locations.  Hence my disappointment about lack of marketing collateral.

We have placed The Week in two pockets directly below The Monthly to try and attract sales for its Gillard cover story.

We also have The Monthly in a pocket above The Age in our newspaper stand.

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magazines

Promoting Symply Too Good To Be True 6

symply-too-good-aug2010.JPGWe are promoting the launch today of Annette’ Sym’s new cook, Symply Too Good To be True 6, with a strong display capping our two busiest magazine aisles at newsXpress Forest Hill.

While the price point is high, it is reasonable considering the content in the publication – this is not a magazine or cookbook, it’s a 28 day weight loss master class from Annette.

We are also taking the opportunity to refresh interest in Annette’s other five successful cookbooks.

The Symply Too Good To be True 6 display create by Jane will remain up for at least a week.

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magazines

Talking about the future of magazines

Wither magazines? is an excellent blog post by the respected Jeff Jarvis writing at his BuzzMachine blog.  Publishers, newsagents and distributors ought to read his its points of advice for magazine publishers.

While it may be seen as stupid to link to a post which contemplates life after print, it is vitally important that we understand trends and opportunities overseas so that we can better plan for our businesses here.

There is an extraordinary difference between magazine publishing, distribution and retail in the US compared to Australia.  But that difference plays out only in terms of a time line. As I commented at Jeff’s blog:

As a specialist retailer of magazines in Australia I, sadly, agree with your points. Publishers ought to engage on these for their future.

In Australia, we have 4,000 newsagents, specialist retailers of magazines. Each selling between 1,000 and 2,000 different magazine titles. Our channel was created by publishers in the 1880s and today they continue to exert considerable control.

While the publishers pursue (at varying degrees of speed) their future, newsagents are somewhat contractually stuck in a model which binds them to a print model.

Our asset is our community connection. Our Achilles heel is that we have 4,000 CEOs who cannot agree on working together to find our future in a world where print fades as a delivery mechanism for news and information.

A terrific opportunity for newsagents today is with publishers who engage directly with us and who publish content which is relevant to our communities: geographically local communities, special subject interest communities and economically and socially connected communities.

Newsagents can play a role here.  Look at the tremendous success of SA Life, Tasmanian Life and similar local publications. At the high volume end as well as at the low volume end, we can work with proactive publishers for mutual success.

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magazine distribution