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

Month: August 2011

Express Publications seeks to appease newsagents

Responding to newsagent concerns about magazine related cash flow, Express Publications yesterday announced to the newsagency channel that from September 7, 2011 their titles will have four weeks on-sale and be distributed in the first half of the month where possible.

This is a significant move by Express, one I am sure newsagents will welcome.  I am pleased they have made the move but am frustrated that it has taken so long.

The other issues for Express Publications to address are the cost to newsagents of returning unsold copies of magazines and the bagging of magazines.  These two issues are connected since bagged magazines are heavier and this increases the freight costs newsagents bear in returning unsold stock.

Publishers who want a healthy and engaged newsagency channel will address these issues.  We only make money from sales.  Everything else is an overhead – hence our desire to rein them in.

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magazine distribution

Herald Sun newspaper covers front page news headline

sunsep30.JPGJust like the Courier Mail, the Herald Sun has an ad stuck on the front page, covering part of the main news story of the day.

This ad placement, covering news, shows how News Limited treats news when there is a buck to be made from advertising.

Some customers were angry yesterday, directing it at Woolworths – I guess because it is so easy to be angry at rich supermarkets … they are a bit like banks like that.

While the Herald Sun placement is not as insensitive as the placement by the Courier Mail, it is bad enough, covering the main headline of the day.

For many years News Limited was (maybe is in some places) aggressive toward newsagents about placement of their newspapers, saying that the front page was vital to driving sales.  Now that they appear happy to compromise their lead news story of the day I guess their opinion about what drives sales has changed.

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Newsagency challenges

The obligatory street directory promotion for Father’s Day

fathers-melways.JPGWhile satellite navigation devices are ubiquitous, there is still a marketplace for street directories, especially at this time of the year as Father’s Day gifts. The team at one of my stores has put together this excellent display promoting the Melways Street Directory.

While sales of printed street directories are not what they were a few years ago, they do warrant promotion – there is a noticeable sales lift as a result of the attention we give the product. Also, there appears to be fewer retailers stocking street directories now so the competition on price is less.

We are not promoting any special deals, just promoting the product to leverage seasonal interest around Father’s Day.

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Gifts

Promoting 30 Days of Fashion

mags-30days.JPGWe are promoting the 30 Days of Fashion campaign by ACP Magazines with this high profile aisle-end display facing out into the shopping mall.

I like the display as it promotes the overall campaign while also giving appropriate attention t the titles we want to sell under the banner of the overall event.

We have a number of promotions planned to support the 30 days event beyond this display.

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magazines

Art of Knitting not so good

mags-artknit.JPGThe second time around for Art of Knitting part series does not appear to be going as well as expected if the sales data I have seen plays out for the newsagency channel. Our sales have been nowhere near what we expected and not a patch on the sales we achieved when this partwork first hit Australian shores.

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magazines

Courier Mail newspaper covers Daniel Morcombe front page story

coriermail-shame.jpgInsensitive.  Appalling.  Disgraceful.  Greedy.  Shocking.  These are just some of the words one could use to describe the ad for Woolworths stuck over a page one story about Daniel Morcombe in today’s Courier Mail newspaper.

What does it say about News Limited that it would rather take the money of a giant supermarket chain than give this heartbreaking story respectful coverage.   Oh, there will be excuses and explanations.  The fact of the ad stuck over the story is there for all to see.

News Limited ought to be ashamed of selling out to Woolworths and covering up this story.  The company should apologise.

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Ethics

Queensland newsagents face 100% increase in insurance premiums

Queensland newsagents have been shocked by the insurance premiums being charged for the next year.  Many have premiums which expire next month, organised through a QNF endorsed insurance broker.

If what I am told is right, a change of ownership of the broker has played a role in newsagents being hit with a 100% rate rise.  I expect that newsagents will flee the broker if this exorbitant rate rise sticks.

I don’t see any justification for a doubling of insurance fees, including the floods at the start of this year.  Insurance companies build reserves for such events so that they do not double rates the year after such an event.

I’d be interested in hearing what newsagents are being charge for insurance – I am sure others would too.

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Ethics

Good start to 2011 calendar sales

caln-bartel.JPGOur Bartel 2012 range is selling well. This is the first start of our broader calendar offer which will hit the shop floor over the next few weeks.

Getting in early with good margin calendars is important in establishing your position in the category.

We will not discount calendars until January 1, 2012. I can’t think of any reason for newsagents to discount calendars before then.

This year many newsagents have a better opportunity with calendars following the collapse of REDGroup retail and their calendar Club operations. While I understand that Calendar Club will emerge, my understanding is that it will not be in as many location as in the past.

The collapse of Cardeaux will also help calendar sales in newsagencies, especially at this early stage as they were notorious for discounting from the start of the season.

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Calendars

Australian Travellersupport drives results

austav.jpgI’ve been a strong supporter of Australian Traveller magazine here over the last year. This has been vindicated with the latest audit result. Sales for the magazine were up 17.93%. This is a terrific result. It demonstrates to newsagents that their support for the title can drive sales … an increase in sales means we get to bank more margin dollars.

I am seeing growth in sales for Australian Traveller by placing the title with women’s magazines and not in the travel section.  This placement with weeklies is what the publisher recommends.

The latest audit result should be enough to get more newsagents behind this title.

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magazines

New Hallmark Recordable Storybook ad

Check out the latest (adorable) advertisement for the Hallmark Recordable Storybook range. This ad features new titles just added to this popular interactive range of gift books.

It is so much easier selling products which are promoted on TV, especially products backed by an international brand such as Hallmark.

These Hallmark Recordable Storybooks have been a hit, opening up a whole new marketplace for us. Customers love them.

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Greeting Cards

Supporting Maxim magazine

mags-maxim.JPGWe are supporting the second local issue of Maxim magazine with this half waterfall display in-location. With the first issue selling out for us we are keen to grow that initial interest even further. The market to which Maxim appeals is important to us, it’s why I want to be sure we cultivate it – with this type of support in our magazine department.

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magazines

Promoting Take 5 and Symply Too Good

t5-sym.JPGWe have been supporting the free Weight Loss journal from Annette Sym which is on the cover of Take 5 with a prime location placement and to support the sale of her cookbooks.  Once this feature ends tomorrow we will be promoting the Symply Too Good books with our weeklies as well as with food titles.

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magazines

ACCC agrees to collective bargaining for newsagents with NSW Lotteries

The ACCC today issued a draft decision proposing to allow NANA, the Newsagents Association of NSW and ACT, to collectively bargain with NSW Lotteries on behalf of member newsagents for the next five years.

While this is a good move for NANA and NANA / ANF members, the biggest challenge lottery agents face is the migration of shoppers online.  The best way we can counter this is through the experience we offer in our shops every day, with every transaction.

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Lotteries

Newsagent injures arm delivering overweight newspapers

A newsagent has injured his left arm delivering heavy Sunday Telegraph newspapers. With time off work, physiotherapy and other expenses associated with this workplace injury, the cost will be considerable.

With the Sunday Telegraph and other newspapers often weighing more than that recommended in the ANF commissioned Nery report of 2006, there is a question for News Limited to answer about the occupational health and safety challenges they present with their overweight newspapers.

Newsagents can’t split the Sunday Telegraph into two pieces. News is not paying for two deliveries anyway.

Newsagents are an agent for News, operating as a contractor under the control of News. News sets the price, terms, conditions and controls the weight of the product.

While I am no lawyer, I’d expect News to have some, if not full, responsibility for the OH&S situation where its products are concerned.

I’d be interested to hear if other newsagents or newsagency employees have sustained injuries delivering heavy newspapers.

Click here to read what I have written over the years about the Nery report and overweight newspapers.

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Newsagency challenges

How can newsagents cut costs?

The media section of The Australian this morning carries a report about a drive within News Limited to cut costs by 5%.  While this is a story abour News Limited and its costs, there are two levels on which newsagents could consider this story:

  1. Newspaper distribution is a considerable cost for the company.  How much will there be an expectation that they can find cost savings in the distribution model?  Based on their research of the distribution model I’d expect them to be targeting significant savings through the forthcoming distribution changes.
  2. The second issue is one about our own costs.  When was the last time you reviewed your operating costs?  When was the last time you acted on reducing your costs? For many newsagents the answers would be never and never. From insurance to rent to labour we need to look at our costs and operate as lean as practical.  Don’t make excuses.

Imagine the impact on your bottom line if you were successful at cutting costs by 5%.  Every cent saved would hit your bottom line and benefit you this year and when you come to sell.

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Newsagency challenges

South Australian newsagents upbeat despite News Limited

South Australian newsagents I spoke with at the Ancol Trade Expo in Adelaide yesterday were upbeat about business despite the uncertainty surrounding newspaper distribution caused y the News Limited ‘study’ into the future model of newspaper distribution.

Many newsagents now realise that they need not wait for news to decide since they can make decisions themselves about the future direction of their own businesses. It was good to hear of the proactive plans of some newsagents. It was also good to hear people ‘owning’ their future by embracing change before change hunts them down.

My only criticism of the day is that I would have liked to see magazine publishers and distributors represented.

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Newsagency challenges

Feast achieves 50% sell through

feastmagazine.JPGWe have passed sales of 50% of our initial supply of the launch issue of Feast magazine and there is no indication that sales will end. I think that sales of this magazine will occur right through the on-sale – that is certainly what we are seeing with the launch issue. This is another reason for not early returning, especially with the launch issue.

On the numbers we have done, Feast is in our top food titles this month – well done Pacific Magazines and SBS..

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magazines

The Block magazine sells well

theblockmag.JPGWe sold 35 copies of The Block in one of my newsagencies. This is three times our initial supply. I’m very happy with the result. Most of the sales were achieved at impulse purchase locations: with newspapers and with women’s weekly magazines.

While sales have slowed now that the TV show has been off the air for a week, this one-shot from ACP Magazines has enjoyed a terrific run – well done to everyone involved.

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magazines

The Important Community Connection – a Newsagency Marketing & Management Tip

When speaking at conferences and workshops I am often asked by newsagents to help them address flat sales. The discussion often come back to what the business stands for. When I ask what do we stand for? A common answer from independent retailers is community connection, being local. This is often said by newsagents with a less than complete community connection strategy.

Being connected with the local community is a good unique selling proposition when most of what is sold is available from other businesses, usually bigger businesses.

By trading off the local connection, independent retailers connect with others who are community-minded.

In just about any retail business, more could be done to connect with the community. Here are some questions you could ask yourself to test the community connection of your independent retail business:

  1. What local charities does the business support?
  2. What local schools does the business support?
  3. What local organisations is the business connected with?
  4. What local events does the business actively participate in?
  5. Have you compared the savings of shopping locally at your business compared to further away? Do you communicate this?
  6. Do you buy from local businesses where possible? Do you promote this?
  7. Do you promote your business with other local businesses?
  8. Does a representative of the business attend events and charities supported by the business to make awards?
  9. Do you hold events in the business for local groups – art shows, competition entries and the like?
  10. Do you participate in local government business forums?
  11. Are your employees encouraged to share in your community involvement?
  12. Are you part of the local traders association?
  13. Are local organisations able to publicise events in the window or using other resources of the business?
  14. If your newsagency closed, would the community care?

This last question is the real question: If your neewsagency closed, would the community care? Would what you perceive as your value be lost and noticed? If the answer is no then your community connection is not as good as it could be.

Connecting your business to the local community is not something you can fake. It must be genuine from the owner of the business right through. You need to pursue as many touch points as possible for the sake of the business and to demonstrate and drive value for the community.

There are initiatives independent retailers can take to help the local community and build a mutually beneficial community connection. Here are 20 ideas for your consideration:

  1. Establish a what’s on noticeboard in your window or on a wall for promoting local events.
  2. Sponsor a locally focused newsletter which covers issues of local interest. Create this as a forum for local groups to use.
  3. Link to local clubs and groups on your business website.
  4. Talk to your local council – they are bound to have suggestions on ways you can connect with the local community.
  5. Create or support a local traders website.
  6. Collect change from customers for local charities. Track what you collect and keep your customers aware of the value reinvested in the community.
  7. Talk to local schools, do they have activities which you can support and for which they promote your business?
  8. Sponsor an annual encouragement award at a local school and present the award yourself.
  9. Talk to local health and nursing facilities. Do they have needs which you can meet with excess stock?
  10. Create a newcomer pack with other businesses and deliver this to families new to the area.
  11. Support at least one local sports club. This is best done through either uniform sponsorship or sponsoring a regular award.
  12. If appropriate to your product mix, offer products from local businesses and individuals.
  13. Offer to sit on local boards and committees for groups known for doing good work in the community.
  14. Offer space in-store for community groups to promote their work.
  15. Office space in front of your store for community groups to run a sales stall.
  16. Offer your front window a couple of time a year for a community group to promote their work.
  17. Support local causes – offer to have petitions available for customers to sign in your store.
  18. Write to the local newspaper about local issues – let your passion be seen.
  19. Run local events which connect with the local community. The nature of the event will depend on your business niche and skills of locals nearby. For example, you could sponsor a local art show.
  20. Price compare popular items in your shop with bigger businesses further away. Promote your savings for the local community as a point of difference.

Newsagents with consistently strong community connections can rely on this to deliver better business. The return for the community is greater support from the business for community activities.

I suspect there is a big difference between the community connection of a retail business in the city compared to a regional area. Regional businesses tend to be more community focused as they pull their customers from a smaller pool.

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marketing tip

Excellent Visual Merchandising For New Idea Daffodil Day Fund Raising

daffodil-watergardens.JPGClick on the image to see the excellent display created at one of my newsagencies by a very creative team member.  It is an excellent promotion off the current issue of New Idea – the sale of which raises ten cents for the Cancer Council through their Daffodil Day campaign.  The display was conceived and created in store – I had nothing to do with it so I’m not claiming any kudos.

What I love about the display is the way it connects the magazine with the fund raising drive and that it educates shoppers about the work of the Cancer Council.  The display shows a care for the broader mission – beyond pure sale – and that it does this in a creative and non-corporate way.

I am a big fan of local and personal displays over the billboard displays which have a sameness.

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magazines

Father’s Day Book Sale Drives Traffic

fathers-books.JPGWe are continuing to enjoy excellent sales from our Father’s Day book sale.

While we use dad themed books to drive traffic,we have an excellent range catering for all sorts of situations – for dad and beyond.

Books make a perfect basket builder.  They are easily purchased on impulse.  A good range gets you known as a destination store for books as gifts.

With women being our biggest shopping group, we have found that appealing to them is key to any promotion – hence the selection of books we have connecting with Father’s Day.

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Book retailing

Newsagents told change is coming and you’re on your own by publishers

While I was not at the forum at the ANF Conference in Melbourne this week which featured John Hartigan CEO of News and Greg Hywood CEO of Fairfax, I have heard from several people who were there.

The key message on the future of print and an impact on distribution appears to have been: we will do what is appropriate for our publishing businesses in dealing with change in print media.  Feel that rationalisation of distribution is needed.  That there will be no compensation for newsagents.  Newsagents: you are on your own inn terms of your own businesses.

Some of us have been saying this for quite a while. We need to act in our best interests.  What is galling is the restrictions applied by some News Limited outposts on newsagents who do try and act in their interests.

John Hartigan in his opening comments talked about recently being in the US and seeing Apple TV and noted that it is not in Australia.  Um, it’s been here for three years.

Kudos to Hartigan and Hywood for fronting the conference.

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Newsagency benchmark

Leveraging Kim Kardashian’s wedding

kardashians.jpgI don’t understand the apparent fascination with the Kardashian family – they are famous for being, well, famous.  That rant aside, Who magazine (out yesterday) has an excellent photo spread of Kim Kardashian’s wedding.  It a certain good seller given the timing of the publication and the photos.  What is especially interesting is the coverage online for this issue of Who. E! Online has a story.  The Kardashians themselves are referencing it on their Facebook page, mentioning Who specifically – this is certain to drive fans looking for the magazine.

The Kardashian coverage is an excellent opportunity to drive magazine sales this weekend.  We can prove our relevance by getting behind this.

The same story in People in the US has been a huge hit.  This further underscores the opportunity for newsagents.

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magazines