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

Month: August 2011

Arrogant Visa refuses to support the Australian economy

A report in The Australian Financial Review on Monday last week quoted Adam Wand, head of public affairs for Visa, the global credit card company, saying it could not collect GST for purchases made by Australian shoppers online in response to a query from the Productivity Commission.

This is Visa telling the Australian Government that it will not act as a tax collector. If we retailers act as tax collectors, collecting GST from sales in our businesses, why not Visa? They can see where the purchase is being made and where the goods will be delivered.

I see this as an important issue as it could capture billions of dollars in additional revenue for the federal government. This revenue windfall would reduce pressure on Australian taxpayers, including newsagencies. It would also deliver a fairer playing field in terms of online versus bricks and mortar shopping.

It Visa was a good corporate citizen it would have responded differently to the request from the Productivity Commission.

0 likes
Social responsibility

Baked & Delicious part 2 starts strong

bakedno2.JPGSales of part 2 of the Baked & Delicious partwork have been strong in the first few days on sale.  Our shoppers love the practical items which come with this.  They can be used right away as opposed to being another part in something they have to build over a long period of time.  This helps shoppers drift in and out of the part series.  While this may not be ideal for the publisher, shoppers do like it.

We are promoting part 2 of Baked & Delicious at the counter, along with some remaining copies of part 1.

0 likes
partworks

Out early with Father’s Day 2011

fday2011.jpgWe are out early with Father’s Day and shoppers are responding.  Sales have been good already.

One of my newsagencies has gone for more of a fun type of display with a very large Angry Bird plush item at the top of the display – it’s the big red thing at the top centre.  The dads at this centre are younger, hence the younger focus of gifts on the display.

It is important that we think of each season in the context of our customer mix as opposed to what may be traditional for the season.

0 likes
Gifts

Beware UKASH related scam

Newsagents be alert to a scam involving UKASH vouchers.  Scammers are contacting people saying they can get thousands of dollars if they pay a $250 fee using a UKASH voucher.  a UKASH voucher is like cash.  The poor customer hands over or sends off the UKASH voucher and hears nothing more.  If you are being approached to sell these make sure that your customers are not being scammed.  If you have doubt, contact scamwatch.

0 likes
Ethics

Two trade shows this weekend

brochuregha2011augustmelb.jpgThe GNS Market Fair is on in Sydney this weekend.  It it follows the Perth event last weekend it will be busy.  It was terrific catching up with Western Australian newsagents.  The second trade show this weekend is the Gift Fair and Home and Giving trade show combination in Melbourne.  This is a five day event.  If the Melbourne fair is the same as last year, we will see several hundred newsagents through.

My software company, Tower Systems will be at both.  In NSW we have 651 newsagents using our software so the Market Fair will be busy with existing customers as well as newsagents keen to switch.  At the Home and Giving Fair in Melbourne the newsagents we will see will be in gift mode – quite a different head space to if they were at a newsagency trade show.  We will also get to see plenty of gift, homewares, garden and other retailers.  This can be existing as we get to talk retail outside our usual niche …  it’s a wonderful learning opportunity.

I am not comparing both trade shows as they are very different in terms of focus and the type of event.  I hope that the Melbourne event does not pull traffic from the GNS Fair.

0 likes
Gifts

Learning from other business people

Around six weeks ago I was fortunate to spend a few days at the Small Giants International Summit.  I blogged about it at the time.  This Summit was an excellent away from the office, recharge the batteries and soak up fresh ideas experience.  It was my first time at a conference like this for more than two years. What I liked about the Summit was that it was all about small business and those who choose to work in small business – how we can improve our businesses.  Here is a video just of some of the participants commenting about what the Summit mean to them.  It was terrific to revisit what I said at the time.

You can find out more about the Small Giants Community at their website.  It’s an excellent organisation of business people with similar thoughts about business and small business in particular.

0 likes
Newsagency management

Promoting Pies savoury & sweet

cook-pie.JPGWe are promoting Pies savoury & sweet at the main sales counter between newspapers as well as with our food magazine titles.

This new ACP Australian Women’s Weekly cookbook is set to sell well if our sense of taste is anything to go by.

The cover image is mouth watering … customers quickly get what this title is about – hence our impulse purchase chasing placement.

Our plan is to leave the title here for a week and then place it in another tactical location.

0 likes
magazines

A Justin Bieber crossword title?

biebercross.JPGYes, folks, there is such a thing. I found this title overseas in my travels recently. The newsagent I purchased it from said that it sold well to young girls. Of course it would. I know I could have sold this in one of my stores where the Bieber one-shot from pacific and the Bieber photo pack sold like hot cakes.  What I like about this is that Bieber’s face could be used to introduce kids to their first crossword experience. Nice.

0 likes
crosswords

Newsagents – read the just released draft Productivity Commission report into retail

The Productivity Commission has today released its draft report into the Economic Structure and Performance of the Australian Retail Industry.  While I have only read the overview so far, it looks quite interesting.

I particularly like that the draft recommendations call for action on the retail tenancies:

COAG should ensure that all current National Retail Tenancy Working Group projects are fully implemented. It should also re-examine the outstanding recommendations from the Commission’s 2008 retail tenancy report with a view to expanding the work plan of the National Retail Tenancy Working Group.

I also like their recommendation on the Fair Work Act:

The Australian Government should, within the context of the current system and consistent with the maintenance of minimum safety net provisions for all employees, examine retail industry concerns about the operation of the Fair Work Act. This should include consideration of options to address any significant obstacles to the efficient negotiation of enterprise-based arrangements, that have the potential to improve overall productivity. The post-implementation review of the Fair Work Act, which is to commence before 1 January 2012, should provide the appropriate review mechanism. The first review of modern awards, scheduled for 2012, is a further opportunity to address concerns that relate specifically to the operation of relevant retail awards.

The report also makes recommendations around the handling of GST on online purchases.  It will be interesting to see if Amazon and others engage here on this issue as they have done in the US.

The ANF made an excellent submission on behalf of newsagents.

It is time for the government to engage with retail and support this sector of the economy.  For decades government has thrown truckloads of cash at mining, auto and other sectors.  Retail needs help, not handouts, but structural reform to enable us to be competitive.

All sides of politics have let retailers down for decades.

1 likes
Newsagency challenges

Beware the phonecard offering more than 50% margin

I have heard of newsagents recently being offered a margin of more than 50% for physical phonecards. This type of margin is unsustainable. You run the risk of selling a phonecard which will stop working before your customer has used up all of the credit. You wouldn’t want to be at the shop if that happens, when they customer blames you for them losing money.

The only reason I could see a phonecard company selling phonecards with a retailer margin above 50% is because they are desperate for cash. While extra margin for your business might be attractive, there is a real risk that this short term cash gain could do harm to your reputation.

What if the phonecard company pushing the bonus margin cards runs out of cash? What if they shut down as a result? What if your customers are left without a working phonecard?

I know a bit about phonecard company margins and offer the advice in this post as a genuine warning to newsagents who may not know of the risk inherent in such an unsustainable retailer margin.

0 likes
Newsagency challenges

Symply Too Good cookbook promotion

symply-aug11.JPGNewsagents who are wondering about all the Symply Too Good To be True stock which they received yesterday need to know that the titles will feature in two upcoming issues of Take 5.  The Symply cookbooks will also not be billed until September, giving us until October 20 to move the stock.

We are getting in early in one of my newsagencies with this triple pocket display featuring Symply Too Good to be True #1 through #6 on an impulse unit which faces shoppers as they enter the store.

We will replace this with a fresh promotion for the range when the Take 5 promotion hits.

Our sales data indicates that half the sales of these cookbooks include two or more editions.  The key is to display them together.

0 likes
magazines

Better looking VTAC Guide works at the counter

vtac-impulse.JPGThis year’s VTAC Guide looks better than it has in the past. The bright and more appealing cover make it and easier product for us to place at the counter. For years this guide looked like a manual produced by the public service, which it was.

Anyway, in one of my newsagencies we have this year’s VTAC Guide at the counter and it is selling well. It’s terrific to see someone come in to purchase something else and add the VTAC Guide to their purchase. Every dollar helps, as they say.

We plan to move this title around, chasing sales, over the next few weeks.

0 likes
magazines

Another display promoting Feast magazine

feast-water.JPGCheck out the display created by the team at another of my newsagencies promoting the new Feast magazine from SBS and Pacific Magazines.

You can see shoppers stop and look at the display – it stands out that much.  This is what a good display is all about, drawing attention to a product.

I love the look of celebration about the display.  The magazine is a celebration of food and food travels.

0 likes
magazines

Promoting the bugs partwork reissue

magbugs.JPGWe are promoting the reissue of this bugs part series.  We’re not going all out because of space and because it is a reissue.  We will watch supply and space carefully.  With Father’s Day under way, then Halloween and then Christmas, display space in just about any newsagency is at a premium right now.  I’m not against the reissue, just concerned about whether it is too soon.

0 likes
partworks

More newsagents spending time behind the counter

More and more newsagents are finding themselves rostered in sales roles in their businesses as they work to cut labour costs. Cutting hours is a move many newsagents are reluctantly taking in response to tough retail conditions.

The risk of this approach is that the business replaces people who appreciate behind the counter work with those who are not so keen to be there.

Newsagents who are finding that they are spending more time behind the counter need to approach this work with a view to the bigger picture and with gratitude that they have this option.

Don’t be angry about it. Embrace it. If you have other staff behind the counter, be one of the team when you’re there. Use the opportunity to lead by example, for the good of the business.

I read a book a few years ago, How Starbucks Changes My Life. I think that newsagents who have had to roster themselves behind the counter because of tough times might find this book helpful, especially if you are not happy in a behind the counter role.

Personally, I like working the shop floor and time behind the counter. Every customer interaction is an opportunity. Every time I learn something. That said, I appreciate that my work week has plenty of diversity – I can’t say how I would feel if I had to do sixty hours a week there out of necessity.

0 likes
Newsagency challenges

Cramped magazine display in Kuala Lumpur

kl-newsagency.JPGCheck out this photo of a busy newsagency / kiosk in Kuala Lumpur sent to me by a regular visitor to this blog.  Talk about a different way of displaying magazines.  Maybe this is the type of display some newsagencies will migrate to as we try and cut the overhead cost of carrying such a broad range of magazines … especially those of us in shopping centres where just the floorspace of our magazine department costs $125,000 or more a year.

0 likes
magazines

Book sales up and digital content sales up

bookcorner.JPGFurther to the recent discussion here about books, book sales are up by more than 20% year on year in my newsagencies.  I think that the market for remainder books will be strong for some years to come.  But it will not last forever.  As we have seen with music, the refinement of content accessibility devices will drive shoppers to digital content.  There is nothing we can or should try at the retail end to stop this.  Our best approach is to make the most of today’s opportunity and to plan to make the most of what will happen tomorrow.

In the meantime, I am thrilled with a 20% increase in book sales and with being able to tap into more revenue from digital platforms.

0 likes
Book retailing

Promoting Cosmopolitan magazine

magcosmoaug11.JPGWe are promoting the latest issue of Cosmopolitan magazine with this display at the entrance to our main magazine aisle.  We also have a pocket of Cosmo in the impulse unit out the front of the newsagency as well as a couple of pockets with women’s fashion titles.  This placement gives the title coverage at three key yet quite separate touch points in the business.

0 likes
magazines

Newspapers promoted on the streets of Auckland

img_0394.JPGMany of the street corners of Auckland have a newspaper vendor just like the one in the photo … located outside the Westfield Shopping Centre down by the harbor.  They all look the same: well sign-posted, accessible, an easy way of buying a newspaper.

Passing so these newspaper stands reminded me that we have nothing like this (that I can think of at least) back in Australia.

They must work, otherwise why keep them there, the cost would be too great.

0 likes
Newspapers

New Coles formats deliver double digit growth

The new Coles retail formats which I first wrote about around two years are delivering the retail giant double digit growth according to a report in The Australian Financial Review on Monday (page 56).

This is an excellent result for a major format change.

There was a time when newsagents implementing a new shop fit could expect similar growth. The numbers are not so strong today because our shop fits are not delivering change equal in scope to that currently being implemented across Coles.

Now before newsagency shopfitters get angry, I think that the problem with our shop-fit changes is that we newsagents are not being bold enough in our direction to designers.

The change in revenue we achieve is a measure of the change we deliver in the design.

With shopping centre rents increasing at least 5% a year, a major re-fit needs to deliver at least 10% to justify the investment.

If you have not seen one of the new format Coles store I urge you to do so.

0 likes
Newsagency challenges

Promoting the launch issue of Feast magazine

magfeastaug11.JPGWe are promoting the launch issue of Feast magazine with this display on one of our gift tables which faces shoppers as they enter the newsagency.

We also have Feast with our food magazines as well as a pocket located with our weeklies.

We have a plan which goes beyond the launch week to support the title through the on-sale to help connect shoppers with Feast and our business.  This plan includes a more ‘set’ display which connects with the title itself.

New Australian magazine titles are good for business.  Yes, I understand the frustration expressed by some here yesterday about the subscription offer in the launch issue of Feast.  I accept that subscriptions play an important role in the circulation mix of many magazine.  A healthy subscription base helps publishers in selling advertising and advertising is what helps keep these titles afloat and coming into our shops.

What I don’t want to see is the US style subscription discounting of between 50% and 75%.  That would be a killer to retail.  Australian publishers I speak with understand that.

Our competitors are petrol, convenience and supermarkets.  Not subscriptions.

I’d urge newsagents to get behind Feast.  Let’s lock shoppers into the newsagency channel for this title.

0 likes
magazines

Promoting the Cadel Evans cover stories

magnicadel.JPGHere’s what we with New Idea and Woman’s Day yesterday to promote their Cadel Evans cover stories.  In addition to this impulse purchase driving placement with newspapers, we also had the titles on show facing into the shopping mall, on our in-store weeklies impulse unit and in their usual location.

It’s great to see both magazines running positive stories.  While these may not sell as much as scandal, customers certainly comment on feel good stories.  They are commenting on Cadel’s win since we claim him as Victorian.

0 likes
magazines

Promoting Burke’s Backyard

magburkes-jul111.JPGWe have been promoting the latest issue of Burke’s Backyard with this display facing onto the dance floor since the on sale.  While we have just moved the display you can see in the photo, we are still actively supporting the title with a beacon branding position (prime position) in with garden titles in our magazine department.  During the rest of the on-sale we will also maintain a pocket with weeklies given that many magazine shoppers don’t go part this part of the magazine department.

0 likes
magazines
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011