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

Month: October 2010

Why bag Donna Hay magazine?

donna-hay-oct2010.JPGI was disappointed to see the latest issue of Donna Hay magazine bagged.  As a food title it needs to be browsed – one only has to watch how customers interact with the title to understand this.  While the free pot holder is a nice gift, is that, the magazine cover and the masthead enough to get someone buy the title?  Infrequent shoppers will want to see what is inside and this is what the bag stops. In a supermarket or convenience store where there is less browsing, maybe.  But not a newsagency where magazine browsing is a key point of difference we offer.

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magazines

New magazine – Younger You

younger-you-oct20101.JPGWe received twelve copies of Younger You magazine on Friday.  This is a new title from Independent Digital Media which is owned by IPMG, the people who own NDD.

I looked through the magazine and looked at sales of similar titles and decided to give it one pocket.  To allocate this pocket I had to reduce the space allocated to another title.  Had I not early returned some stock I would have eight copies sitting in a drawer or on a shelf.

Publishers of new titles need to take more of the risk themselves rather than sending what they think we may sell or what they hope we will sell.  With so many publishers using newsagents as their bank and warehouse it is no wonder newsagents get angry about their treatment.

Had I been given the courtesy of deciding if I wanted to try this title I would have said yes.  Had I been asked how many copies I would take I would have gone for four.  Selling out of four copies is better than being overloaded.

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magazines

NEWSAGENT ALERT: Beware of new magazine titles which are not new titles

I have noticed some magazines coming through as new titles which are not new titles at all.  They have a new barcode and a new title code but the titles have been regularly sent to us before.  There is nothing ‘new’ about them.

Thankfully, my newsagency software identifies the new titles and lets me find an existing title from my stock database.  In a couple of clicks I have all the sales and returns history for the ‘old’ title associated with the ‘new’ title as well as putaway, home delivery and sub agent orders.  This simple step facilitates business as usual.

This is vitally important since it is the historic data which enables me to early return oversupplied stock. These ‘new’ titles are among consistently oversupplied magazines.

Newsagents need to be vigilant in how they handle all new titles. If your newsagency software permits, link the new title with the appropriate existing title so that you can carry forward vital sales, sub agent and putaway data.

While I do not want to come across as a conspiracy theorist, I am sceptical about the reason for the change to the barcode and title code of any magazine.  Such a move can only benefit the publisher.

Maybe newsagents could share details of titles here.  Let me start the list rolling: High Performance Imports.

UPDATE (8/10/2010 13:38) Here are more titles to add to the list:

  • Handmade Country Xmas Gifts Special Vol. 28 No. 6
  • Creating Country Threads Xmas Special Vol. 11 No. 3
  • Country Home Ideas Outdoor Living Special Vol. 9 No. 11
  • Fast Fours & Rotaries Performance Special Nov 2010
  • Fishing Tips & Techniques No. 32
  • Street Fords Australia Project Car Special No. 73
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magazine distribution

Instapaper closer to aggregating articles

In 2005 I first speculated about the commercial value to publishers of setting articles free from a masthead.  Overnight, Instapaper announced moves to a paid model.  Instapaper makes it easy for users to collect content from a range of online sources for later reading.  This opens new revenue streams for online content providors.  It will also open new revenue streams for astute publishers who climb over their current barrier of expecting consumers to buy their content from their website.

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Media disruption

Promoting the Take 5 charm

t5-lucky.JPGWe are promoting the latest issue of Take 5 magazine, which comes with a free charm and a small book of book of good fortune wishes, at – where else? – our lottery counter of course!  This issue of Take 5 is made for a lottery counter promotion.  We also have it in our impulse stand near the store entrance as well as in its usual location.

Maybe I missed but I am surprised ACP did not make a BIG DEAL about the lottery counter promotion opportunity.

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magazines

Oprah likes the iPad for magazines

Oprah Winfrey, speaking at the American Magazine Conference in Chicago says she reads magazines on the iPad according to the International Business Times.  Her continued endorsement counts for something, look at her Book Club and the last presidential election.

Check out the comprehensive report in The Age today for an update on iPad sales – they continue to break records.   As I said when the device launched, it is a game changer.  We, newsagents, need to revisit our business plans.  I am disappointed that this blog appears to be the only place in the newsagency channel where the ramifications of the iPad and related technologies is discussed.

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Media disruption

Brilliant cover Scientific American

the-end.JPGWe have the best opportunity in a while to drive sales of Scientific American with the latest issue out yesterday.  What a great, eyecatching, cover!

We have placed this issue near newspapers in the hope of getting more shoppers to at least pick the title up.  My sense is that they will and we will see a sales lift as a result.

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magazines

Promoting Madison

madison.JPGWe are promoting the latest issue of Madison magazine to customers as they enter and leave the store.  We have stock in an impulse stand next to the display – to leverage the display into sales.

Given the shortage of space in our temporary location we will leave this up for just under a week.

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magazines

VANA election choice for newsagents

The non newsagent Director position on the VANA board has become a contest with Trevor Mason being nominated to challenge the long term incumbent Robert Wade.

Wade has served as non newsagent and independent Director for many years.  He outside the channel view has been useful as VANA has navigated some complex issues.

Mason was behind the Futures Project which sought to use newsagent funds to embark on a commercial venture that, in my view, had no relevance for an industry association.  He has gone on to establish a similar venture outside of VANA.  I would expect that some VANA members will want to know whether he will seek to reignite the Futures Project or anything like it if he is elected.

As I resigned from VANA in April last year, my right to an opinion is somewhat diminished.

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Newsagent representation

Why the rush on advertising screens for newsagencies?

Newsagents are firmly on the radar of companies wanting to get us to take on their advertising screens.  I know of five companies who consider newsagencies to be ideal for hosting their screens.

Some want screens to be placed in windows, facing onto the street.  Others want screens in-store. There are promises of a share in advertising revenue as well as the opportunity to include your own ads.

I have been approached by several companies wanting to talk about their plans.  To date I have not agreed to meet because I am sceptical about ad screens being of value to newsagents.  Here are my concerns:

  1. Content.  If we are to give up key real estate then we need control over content.  There is no pint in running an ad which competes with what we sell.
  2. Return. I am yet to see numbers for any in-store digital signage business which is delivering a reasonable return to the host retailers.
  3. Barrier. Some screens I have seen act as a barrier to people looking into a newsagency window.  In one case, The centre of the main store window is taken up by the screen.  This stops passers-by seeing the inside of the store.
  4. Parasite business.  A product which is places next to a very popular product is considered a parasite product – it is relying on traffic for the popular product to guide its success.  That is what these screens are.  There are enough challenges to the traditional newsagency business model to indicate that we should not dilute the focus on our business.  These screens run the disk of doing that.
  5. History. The newsagency channel track record in this space is not good.

I have seen newsagencies with in-store advertising screens which promote only products sold in-store.  While the content is usually produced locally and is therefore not as slick as professional ads, there is evidence of success.

Personally, I think this is where newsagents should focus their attention – on promoting products and services available in their own businesses on ad screens.  It is far more valuable to you to get an existing shopper to buy an additional item in your store than to earn a commission from an ad which encourages them to buy something elsewhere.

Newsagents need to do their own research and make up their own mind.  Caveat emptor.

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Newsagency challenges

Attracting younger shoppers with Halloween fun

wg-halloweenentries2.JPGColouring competitions are a great way to attract younger shoppers to a newsagency.  Newsagents traditionally run these at Easter and sometimes at Christmas.  We have done it for a few years now for Halloween and each year it is bigger than the last.  This year is no exception.

The competition works on several levels.  It gets kids engaging with the store, meaning they are more likely to remember us.  (We have to get them while they are young I am told.)  It can bring family members in to see the art.  It can provide local schools and clubs a fun Halloween activity with also connects back to the business.

Of course, there is the commercial opportunity – Halloween product sales as well as sales of many other items including pens, pencils and colouring materials for competitions like this.

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Newsagency opportunities

Loving passionate customers

fhn-cal-2010.JPGWe had a customer visit one of my newsagencies yesterday looking for a calendar for Cairn Terriers.  $67.00 later she walked out with three calendars – two regular size and one slimline.  This is what calendar sales are like at this point in the season, people feeding their passion or getting in early to serve the passion of a friend or loved one.  Dog breeds are especially popular … and lucrative with two or more calendars in many sales.

We are having a great calendar season and it is only just getting under way.  The keys to the success are our range and the layout of this in-store.  In terms of range, we have focused on interests our customers are passionate about.  As for layout, we have the calendars in a high traffic but browser friendly location.

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Calendars

Daily Telegraph cover price disrespects newsagents

I was in Sydney today and picked up a copy of the Daily Telegraph at the airport.  There, on the masthead, it crows that it is still only $1.00.  That is nothing to crow about News Limited.  While your ad rates, the source of most of your revenue from newspapers, have risen over the years, you have forced newsagents close to being the working poor.

In the eleven or twelve years (please let me know if I am wrong) that you have held your price at $1.00 rent for newsagents in shopping centres has gone up at least 70%, labour costs have gone up at least 70% and business expenses have gone up at least 100%.

Over the last twelve years publishers have pushed newspapers into more outlets, diminishing the return from the newsagency newspaper real-estate even more.

I would love to see a public debate between newsagents and News Limited on their cover price strategy.

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Newspapers

Magazine distributor profit drops 42%

In the Annual Report for PMP Limited which was released last week, the Gordon and Gotch magazine distribution business reported a decline in revenue of 4.6%, to $408.9 million, and a decline in profit of 42.4% to $7.5 million.

The report notes that PMP has undertaken some restructuring including redundancies.  Newsagents would have seen this in the last year.

My understanding is that more redundancies are on the way which will impact newsagents.

While some newsagents will take pleasure from the bad news for the Gotch operation, I am concerned for a number of reasons:

  1. To improve the situation Gotch will need to cut costs and increase margin – moves which would not be good for newsagents.
  2. They will probably look at how they can increase sales.  Every additional bundle of magazine they distribute improves their situation because the logistics overhead is there regardless.
  3. Would they consider extending distribution beyond the newsagency channel?  remember, they are paid based on volume distributed.
  4. I wonder if the Gotch situation is a tail reflecting what we have experienced or a warning of greater challenges to come in the magazine space.
  5. If they are unable to arrest the decline will they look at alternatives which are not palatable to newsagents?

A couple of years ago, publishers and distributors said that the magazine sales decline was temporary and impacted by external events.  It has been going on for too long and impacting too many levels in for this to be the case.  Publishers, distributors and retailers are all reporting declines.  It is the retailers who carry the largest cost since we have only one income source and that is highly speculative.

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magazine distribution

Promoting the outdoor room

theoutdoorroom.jpgTower Systems, the newsagency software company I own, has published a coupon promoting the outdoor room, the new magazine from Pacific Magazines, for printing on receipts using the Point of Sale software.  The coupon is available from the downloads section of the Tower website.  I’d be happy to send a copy to any newsagent wanting to use this with other software.

The coupon / ad can be printed on a receipt based on what the customer has purchased or just included on all receipts.  This type of receipt based marketing is proving successful at attracting customers to return andeven to get customers to make an additional purchase while in the newsagency.

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magazines

Promoting The Monthly

monthly-asange.JPGWe are promoting The Monthly above our newspapers.  The Julian Assange cover looks good and leverages his high media profile of late.

My only complaint is that the folks at The Monthly send out very little marketing collateral.  This month it is two cover run ons.  No poster, nothing else.  Hardly enough to create an impression.

We are relying on our placement with newspapers to drive sales for us.  It has worked well in this location before.

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magazines

Selling the Collingwood Grand Final souvenir

collingwood.JPGWe have placed the AFL premiers souvenir, A Cakewalk for Collingwood, in the only logical place for it today, between the Herald Sun and The Age newspapers.  Based on questions from customers yesterday about the Knight poster I’d expect the souvenir to sell very well over the next couple of days.

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magazines

ACP Magazines in a reality TV show

TV Tonight is reporting that ACP Magazines will feature in a 10 episode observational series set in the ACP offices of Cosmopolitan, Cleo, Madison, Dolly and Shop Till You Drop.

This should be good for us, bringing focus to the medium and showing what happens behind the scenes.  Maybe we could find a way to leverage the show.

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magazines

MPA focus shifts from publishing

On Friday, Magazine Publishers of America announced that it is changing its name to MPA. The new tagline for the body is The Association of Magazine Media.  The change reflects a shift of focus by the organisation away from print.

This is relevant to Australian newsagents as it is further evidence of a shift in focus by magazine publishers, albeit in the US this time, from print to other distribution channels.

Newsagents are lagging behind their suppliers in investing in new revenue streams.  While some are innovating, the channel is not.  Leadership is lacking on considering the future.

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Media disruption

Condé Nast launches new online offer

US magazine publisher Condé Nast continues to innovate in seeking revenue from digital publishing with the launch on Monday of Golf Digest on Demand, a golf-instruction video series that will sell for UA$9.99 per month, AdAge reports.

This move takes interaction between readers and Golf Digest to a new and more interactive level.  It represents the new paradigm of what we used to know as magazine publishing.

Newsagents who are concerned about magazines containing advertisements for subscriptions are likely to be equally concerned about magazines which advertise their iPad apps and other digital products such as Golf Digest on Demand.

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Media disruption

Halloween 2010 passing Halloween 2009

halloween-oct2010.JPGWe are only two weeks in and already Halloween 2010 is well on the way to passing Halloween 2009.  Yesterday, with the lull in trade thanks to the AFL Grand Final replay, our team took the opportunity to completely refresh our main Halloween display.  Click on the image for a larger version of the photo.

An average Halloween product sale for us is $25.00, making it a rewarding season for gift related items.

The new people attracted into the store by the Halloween window display are also buying other items – cards and magazines especially.  This is where a Halloween promotion pays off.  It gets shoppers seeing your store in a different light.  It especially attracts a younger shopper and this is vitally important to newsagents.  Some of these new shoppers will stick.

Getting people to not see us as a traditional newsagency is vitally important to us. Seeing the new traffic results reinforces my optimism.

We have been doing Halloween for five years.  We can see from our numbers that this year will be the best.  What is interesting is that most of our sales so far have been from new shoppers attracted by the display and not our existing customers.

In our new temporary location we are directly opposite The Reject Shop. They did Halloween last year and there was a 25% cross over in our ranges.  On every item they were considerably more expensive.  It will be interesting to see their pricing policy this year.

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Newsagency opportunities

Three ‘new’ magazines from Universal to clog newsagent shelves

bonuspacks.JPGWe received three new ‘titles’ from Universal Magazines yesterday.  I say ‘titles’ because they are actually packs of old titles bundled together to give them another go around.  If we are to keep this stock we have to find space for the new product.  If we do what Universal wants, we have to carry this stock for three months.

Had I been asked if I wanted my cash, retail real-estate and labour used in this way I would have said no thanks.   I am satisfied with the range I have of fresh backyard, scrapbooking and quilting titles.  I certainly do not need these packs which contain product which has failed to sell previously. I do not need more old bagged product acting as a barrier to a happy browsing experience.

Just how many times can a title be sent out before it is considered dead?  How is this recirculation accounted in reports to advertisers?  How is it handled in an audit situation?

It is an abuse of the newsagency channel that we are sent this stock without approval.  While Network Services and Universal Magazines will say that they have every reason to believe these products will sell, their justification will not take into account the costs newsagents incur in carrying the stock.  Their behaviour shows little belief in that.  If they did believe the titles would sell then they would have requested a top only return.  Instead, they require a full copy return – maybe so the titles can be sent out again.

Universal will complain that I am targeting them.  They set themselves up for this complaint by bundling old product and sending it out to newsagents expecting us to fund their decision and expecting us to fund the costs of carrying the stock.

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magazine distribution
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