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

Month: October 2011

Weather patterns and magazine sales

Tyler Brûlé, Editor-in-chief of Monocle magazine, has written an interesting piece for the Financial Times about how print media engagement  changes with weather patterns.

While the UK news trade still has to pull itself into this century, retailers in the Baltic countries recognise the relationship between weather, dimmer days and media consumption. The Swedes and Norwegians have become particularly good at understanding what constitutes a proper media diet and how it changes with a rise or fall in the mercury.

There is no doubt that print media consumption changes in Australia with the weather.  Reading this piece by Brûlé makes me wonder if we could be smarter in leveraging weather opportunities in our newsagencies.  I appreciate that some of us do this now as seasons change – garden magazines in Spring for example.

I think that Brûlé is writing more about leveraging the weather as we find it today.  For example, shopping centres fill when it is raining outside.  What if we were to create a display of great magazine reading to enjoy while in front of the fire and a glass of red or a soup?  I could see this working.

It’s not often that we created displays which respond to the conditions of a single day.  Maybe we should experiment.  It’s certainly a way to position the print experience and drive sales of print products in our newsagencies.

I am grateful to a regular here who shared the link to Brûlé’s article.

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magazines

Liking the Rod Sims led ACCC

While it is early days in his tenure, I like some of the comments from new ACCC Chairman Rod Sims.

Sims’ comments last week, for example, as reported in the Australian Financial Review on Tuesday (pg. 5) about unconscionable conduct were interesting.  Sims flagged brining more action on behalf of small and medium sized businesses against big businesses which have acted, in the view of the ACCC, unconscionably.

In the newsagency channel  given the size and dominance of some of our suppliers and given some behaviour, there may be a better opportunity for ACCC engagement is the ACCC under Sims is true to his words.

The area of concern on my mind at the moment is magazine distribution.  While network Services has improved its approach and I do see light at the end of that tunnel (and, no, it does not sound like a train) Gordon and Gotch is less engaged than I can recall in 30 years in this channel.  They consistently oversupply with more than half the titles they currently supply being cash flow negative (loss making) in some newsagencies I have seen data for.  Despite claims and promises, those in control of Gordon and Gotch appear unwilling or unable to deliver an equitable (for newsagents) supply model.

So, bring it on ACCC.  Take a look at the magazine distribution model.  Check out your files as there is plenty of data already in these at the ACCC.  Resource an inquiry.  Talk to publishers of all sizes, newsagents, consumers and the distributors.  Make the interviews and discussions public so we can comment.

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Newsagency challenges

Leveraging Justin Bieber interest again

Given how the Justin Bieber card / photo pack from Network Services sold for us (4 reorders), we have placed the latest issue of Girlpower Popqueen at the counter.  Bieber is still very popular with tweens. The launch of a new fragrance with his name on it in Australia today will have Beiber shoppers out so we might as well make the most of the opportunity.

This is a good example of taking action based on a title cover.  If we left this issue in its usual space we would have missed impulse purchases by Bieber fans and those who buy for them.

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magazines

Halloween is here!

We have had an excellent run up to Halloween today, terrific sales, plenty of new customers.  All departments have benefited from the promotion.  Even though the day itself is on a Monday there appears to have been no slowdown in interest.  Indeed, sales are up more than 15% on last year.  What other department in your newsagency delivers this sort of growth?  Plus at greater than 50% margin!

I’m thrilled that halloween is a well established season, giving us something after Father’s Day and before Christmas.

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Gifts

Smith Journal sells out, again

On Friday we sold the last copies of Smith Journal.  So, we sold out of the publisher allocation and the stock we ordered when we ran low.  I mention this as Smith Journal was one of the titles I have written abut recently which many newsagents early returned, in the first few days of it arriving in store and weeks ahead of the cut off for early returns to avoid having to pay for the stock.  My guess is that the newsagents who early returned have collectively cost their businesses around $6,000 in revenue.  Business can’t be that tough four them.

Smith Journal is a welcome new title.  I’m confident sales will continue to grow.  Newsagents would be nuts to ignore this title … it’s set to be another frankie.

We also engaged with Smith Journal as  title in our recommendation program – as shown in the photo.  Our team suggested that people who like Smith Journal may like Triple J or Slam.

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magazine distribution

Promoting Australian Women’s Weekly

We have been promoting the latest issue of The Australian Women’s Weekly with this display in one of my newsagencies.  Sales for this issue have been excellent in the first few days, stronger than recently experienced.

This display placement is good as it’s between our women’s magazine aisle and greeting cards – being seen by shoppers across two key product categories.  We can see from the sales data that our AWW activity is driving impulse purchases.

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magazines

Appalling customer service from an arrogant Qantas

The decision by Qantas yesterday to ground its entire felt as its next move in an industrial dispute with several unions is appalling.  In a week when shareholders delivered a 66% pay rise to their CEO, the CEO and Qantas board have decided to disrupt and financially harm tens of thousands of businesses and hundreds of thousands of passengers instead of showing leadership by working through the dispute.

I don’t care for the excuses of Alan Joyce.  There is no excuse for disrupting business in this way, none whatsoever.

Joyce announced the grounding late on Saturday.  How are businesses supposed to respond overt the weekend to make over arrangements for Monday?  My newsagency software company usually has between six and ten people on return flights every week, myself included.  Our small business has been significantly disrupted.  We have extra costs.  Thanks Qantas.  Alan Joyce has his 66% and the bully boys of the board think they are making their point.  Makes me feel like they don’t care.

In my view, the point Qantas is making is we don’t like the game so we are taking everything and going home.  This is the sort of behaviour parents hope their kids grow out of.

The Qantas boards should grow up.  They should have realised the damage of giving their CEO 66% while refusing a fraction of this to others would create difficulties.

I have many clients and friends in the tourism industry.  They are gutted by this move.  Travellers due to arrive this week will not arrive.  These business are still recovering from the impact of cyclones and a tough economy.

Why Qantas would wreak a man-made tsunami on business, especially small business and the tourism sector, is beyond me.  Sure, they will say they are doing this for the good of the airline, to protect shareholder value.  I don’t believe that line.

I have no doubt that the unions lodged ambit claims.  They usually do.  Negotiations need to be approached with this knowledge.  That said, as a frequent flyer I want the people flying the plane to be happy and well paid as my safety depends on it.

My travel plans this week are disrupted and while I have been able to make arrangements with Virgin for two flights, I have two more flights which are proving to be a challenge to resolve.  The time spent already has a cost which I am sure Qantas will not are about.

Besides the disruption and cost to passengers and business, there is the damage to brand Australia.  My sense is that it will be considerable.

The Qantas action certainly leaves me wondering where this move fits in their longer term plans for the airline.  I also wonder if there is a political motive.

As a Qantas Platinum level frequent flyer I am appalled at the decision by Qantas.  I do not support it at all.

I notice that Alan Joyce has been in the media today with all manner of excuses including that they chose to ground the fleet yesterday, and not another day, for safety reasons.  Nonsense.

I’ll close with a quote from Ita Buttrose.  This is what she tweeted on twitter yesterday:

Leaders lead by example; Alan Joyce should have said no to a pay rise this week. Very disappointed in the Qantas board and its chairman.

Please excuse me for being off topic with this post.

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Ethics

Recommending other magazines

We have been playing with an approach of recommending other titles a browser of a title may be interested in at one of my newsagencies.  In the example in the photo, someone looking at Australian Tattoo is suggested to take a look at Heavy Duty. Our goal here is not to block the purchase of Australian Tattoo but hopefully grab this purchase along with a purchase of Heavy Duty.

One of the reasons I own newsagencies is to experiment.  This idea came from one of our team members at this newsagency.  I think it’s brilliant.  They created the artwork in-store.  It further personalises our magazine offer while at the same time inviting browsers to look beyond what they think may interest them.

I’ve left the team in the newsagency to play with this innovation themselves, I’m keen to see where they take it.

I like the idea because it shows off a terrific point of difference around our magazine offer compared to other nearby retailers offering magazines.  I think this is what we need to do, to be creative in our approach to magazines rather than retreating as some newsagents appear to be doing.

In this newsagency, magazine sales are growing at an excellent rate, thanks in part to innovations like this.

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magazines

Halloween rush drives sales

We have experienced a terrific rush on Halloween product over the last two days.  yesterday in the shopping centre was excellent.  We have now sold 95 of the Halloween voice changers.  We priced these as a loss leader, to attract Halloween shoppers and drive sales of other full margin halloween products  It worked.  We used the voice changers as we where the only shop in the shopping centre with them.

It is terrific seeing kids drag parents across the mall to look at the Halloween products and then see the parents enter into the business to purchase other items – with one or two Halloween items.  I saw that several times yesterday.

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Gifts

Promoting the Melbourne Cup connection

Putting their Melbourne Cup themed That’s Life next to newspapers this past week has worked.  Just look at the two covers from yesterday, they complement each other beautifully.  Even yesterday, four days into the on-sale, this placement resulted in impulse purchases.  We are always checking magazine covers for tactical placement opportunities.

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magazines

Has there been an increase in magazine promotion in supermarkets?

It feels to me like there has been increased marketing activity in supermarkets with magazines.  This week, for example, Woolworths has a box of cereal for $2 if purchased with Woman’s Day.  There is a floor stand at the end of the cereal aisle.  It’s a terrific promotion.

This promotion would be entirely supplier funded.  The stock, the floorspace and the merchandising would have been paid by the promoted suppliers.  It’s how supermarkets work.

It feels to me like we don’t see as many of these promotions in newsagencies.  I am guessing this is because we do not have the consistent format or supermarkets or the one stop buying power for a such a large network of stores.

Magazine publishers need to think about these promotions before they give supermarkets a better value proposition than newsagents.  Do you really want to migrate a magazine shopper from the newsagency channel, because that is a consequence which could flow from these better value promotions?

Newsagents offer the lowest cost sales and promotions opportunity for publishers.  Supermarkets have a higher cost base which will only increase with their market share of magazines.

While some newsagency marketing groups access some excellent deals, the broader channel is missing out and this poses a risk for magazine publishers and for newsagents.

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magazine distribution

Promoting crosswords to businessmen

I travel a bit and see plenty of guys passing time doing crosswords, sudoku and other puzzles in newspapers.  However, back at the newsagency we tend to focus the promotion of crossword and puzzle titles on women.  I am trying something different at the moment.  Yesterday, I placed copies of the latest issue of Lovatt’s BIG Crossword next to the Australian Financial Review.  We still have stock at the usual location so we won’t lose sales to regulars.

While it is true that most crossword and puzzle purchases I notice are to women, I see plenty of guys doing them.  I want to find a way to increase sales of these titles to guys.  If it works by placing them next to newspapers then job done.  If not, I’ll keep trying things.

This is the sort of activity we have to engage in if we want to make the most of the current magazine opportunity.  Being magazine specialists means that we hunt down magazine sale opportunities, relentlessley.  Many times the reward is more sales.

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magazines

Using Geoffrey Rush to sell a photography magazine

We are promoting the latest issue of digital photography + design with ideal placement, showing off the full front cover.  Geoffrey Rush on the cover, in a brilliant photo, is enough for us to give this issue extra attention.  He was on the 7PM Project on Network ten this week, he’s getting coverage for a new movie as well as for an upcoming play.

I figured that all the attention on Rush could lift sales of digital photography + design – hence the placement.

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magazines

Promoting the launch issue of Wine Companion magazine

We are supporting the launch of James Halliday’s Wine Companion magazine with this in-location display in our women’s / food aisle.

The launch of this magazine is a major move in the wine title space.  It should get shoppers looking not only at Wine Companion but also other titles in the segment.

James Halliday is well known to wine lovers.  His name on the title should help drive interest.

I’d urge newsagents to check where they have this title.  It is worth making sure it is not left in a pocket hidden.  Put it in the spotlight.  the best time to let your customers know that you have a new title is to give it some time in the sunshine.

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magazines

Crema magazine supports newsagents

Check out the Tweet today from Crema Magazine advising that the next issue will be available from newsagents next Monday.  It is good to see publishers promoting title availability from newsagents.

Crema Magazine was created in response to Australia’s rapidly expanding coffee lifestyle.   It’s a good title to carry if your newsagency is in or near a coffee precinct or serves customers who love coffee.

While not a high volume title, Crema Magazine reinforces you as a magazine specialist.

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magazines

Maybe we should consider petitions to help with landlord challenges

Reading the story about the rent challenges facing independent book retailer St Mark’s Bookshop in New York made we wonder whether we should try their approach of having customers sign a petition of support.

While major landlords the world over have shown a reluctance to listen to anything, a petition may help in our situation should the rent dispute get to a tribunal or some other independent arbitrator.

Key to St Mark’s getting signatures is their well established tradition.  This comes down to the value their shoppers see in the business remaining.  I have shopped at St Mark’s.  It’s certainly a different, more personal and more enlightening experience than shopping for books at one of the big-barn corporate bookshops.

We need to ask is whether our customers would feel strongly enough about our newsagency businesses to sign a petition of support for us. If not then we need to think about what we can do to make our businesses that valuable in the eyes of our customers that they would sign a petition for us.

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Customer Service

Björk shows us the new world

Icelandic artist Björk is showing us a new world with the release of Biophilia and iPad app top coincide with the release of a new album. eBOOK NEWSER has more on this.

What is innovative is the direct access across multiple platforms being embraced by Björk.  For me, this speaks to the new world of mobile access to digital content.  The app lets the reader / listener interact with the music and personalise the experience.

Many look at the iPad and compare it to print and say they like the feel and small of a book.  Fair enough.  Björk is showing off a completely different experience which you cannot get with a book of a CD (or vinyl for that matter).

For me, the Björk release epitomises why digital innovation will continue to migrate consumers from the print experience.

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Media disruption

Promoting Better Homes and Gardens magazine

Click on the image to see the bold display we have been running in one of my newsagencies promoting the latest issue of Better Homes and Gardens as well as a Christmas Gift Subscription offer we have.  This display is at the front of the newsagency, facing into the mall.

I’ve written previously that I am not a fan of larger format billboard-type displays … unless they work.  This display does work.  The title is the key here.

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magazines

Monsterous mini plush perfect for Halloween

We have these small keychain mini plush items as part of our Halloween offer.  They give teens and adults an opportunity to connect with Halloween.  We are seeing them purchased for personal use as well as for gifts, adding nice value of Halloween sales this year.  We are on track to beat last year’s Halloween figures.

 

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newsagency marketing

Putting magazines together on a newsstand is driving digital sales

According to a report yesterday at PaidContent, putting magazines together on a digital newsstand and away from other digital content is helping drive sales.

Condé Nast is the latest publisher to claim a boom in digital magazine sales from the launch of Apple’s Newsstand two weeks: the publisher of Glamour, The New Yorker, Vanity Fairand Wired says that new subscription sales, per week, across all nine digital editions, was up 268 percent, with single copy sales up 142 percent compared to the previous eight weeks.

I think that our concern about print subscriptions and other retail outlets is misplaced if you take a long term view.  What publishers are playing which here and an entirely new channel from which we make zip.  Kudos to the publishers and Apple for doing this.  It’s what I’d do if I were them.

That said, what is happening here is another reason we need to get the Australian magazine distribution model right for newsagents.

I think that magazines present us with good opportunities in the short to medium term.  If some or all of us get the magazine distribution model right we can profit from opportunities.  I say some because I know of some newsagents who have turned their back on magazines.  That’s okay.  More for me.

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magazines

My Family stickers from The Sticker Family in the news

The page three report in The Age yesterday about the popular My Family stickers was odd for a page three story.  Hardly news.

Yes, there are some people who think the stickers are sinister.  However, the majority who notice the stickers like them.  You only have to stand out the front of a newsagents with the My Family stickers pull up banner.  I do this at the front of one of my stores and every few minutes someone stops and has a look, always with a smile.

We are still selling between $2,000 and $3,000 a month of these stickers.  This is in part helped by the constant evolution of the range.

So the report in The Age does not make sense.  A more interesting story is how newsagents have become the go to retail channel for these stickers, reinforcing our connection with the Australian family.

The Australian newsagency is the last family owned business where the entire family can shop and fine interesting and entertaining things to buy.  We are a natural fit for selling a product which shines the spotlight on the family, whatever glorious configuration that may take.

The My family stickers reinforce connection … exactly what our newsagencies do.

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Newsagency opportunities

Another way to display crossword titles

Check out the display of crossword titles at one of the airport outlets.  I can understand why they do this – to get more stock per square metre of lettable space.  It’s all about return on rent.

In my experience, crossword shoppers will look for the titles which interest them.  It could be argued that for the regular crossword buyer, showing the full cover is not essential.  What this display challenges is the occasional crossword buyer who may pick up a title on impulse, based on the cover.

We are experimenting with this type of magazine display in a couple of special interest areas, where we receive few copies of a title, but not in Crosswords.

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crosswords

Promoting The Australian Women’s Weekly

We are promoting the latest issue of The Australian Women’s Weekly with this excellent display at our high traffic counter location.   This display is also easily seen from passers-by in the mall.

AWW remains a very important title for newsagents, especially in the first ten days of on-sale.  This is why we do displays like this, promote it with newspapers and promote it at the front of the newsagency in an impulse unit facing into the shopping mall.

 

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magazines

Tripping Weed the new convenience product?

In Auckland today I noticed a few convenience stores selling a product called Tripping Weed behind the counter.  One retail person responded to my query whispering that it was legal marijuana.  It was expensive and that only reinforced his claim / promise.  I would have thought that the name of the product was enough to at least remove it from display.  That said, this is a country which still displays tobacco products in retail stores.

Here is some of what the supplier says on the website about the product:

Tripping Weed is 100% Legal and Natural Herbal Product. It is an extremely powerful hallucinogenic with mind altering properties, If you have not used salvia divinorum before, we recommend you start with a low strength (10x) pack and try the stronger smoking blends as you look to increase the intensity of your Salvia experience.

It’s fascinating what you see for sale in some countries.

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retail

Are newsagents killing sales of Australian 4WD Action and other magazines?

Newsagents sell 37% of all copies sold of Australian 4WD Action according to publisher Express Media Group.  Supermarkets and other distribution channels  account for the remainder of sales.

This 12 year-old title has a 70% sell through at retail.

Sales of Australian 4WD Action are declining in newsagents and growing in supermarkets.

Why is it that sales of Australian 4WD Action are declining in newsagencies?  Early returns is one reason.  I have been shown data, without identifying the newsagencies, where newsagents have early returned, leaving insufficient stock in the businesses to even get close to their average sell through.

This early returning action is driving sales of Australian 4WD Action down in some newsagencies.

If this is happening for Australian 4WD Action is it happening for other titles?  I think so.

In thirty or forty newsagencies for which I have seen data there appears to be no commercial reason for early return.  Indeed, these businesses are suffering financially as a result of the early return activity.  They are losing guaranteed sales.

Connecting this information with what I know form other publishers, it appears to me that ill-considered and sales killing early returning is at epidemic proportions in our channel.  If this is true, the implications could be most serious for us.

Beyond creating a self fulfilling prophecy about the future of magazines, there is the implied invitation for publishers to find other channels through which to see and distribute their titles.  I’d do that if I was a publisher and saw that retailers would rather send a title back than get guaranteed sales from it.

The data I have seen for Australian 4WD Action suggests a very serious problem which we all need to address for the future health of our channel.

The folks at EMG (Express) are particularly concerned since they have recently announced:

  1. Moving from full copy to topped returns, saving time and freight costs.
  2. Bonus margin for two months, giving a newsagents an opportunity to reengage in EMG titles.
  3. Shorter (4 week) on-sale periods, better for cash flow and space allocation.
  4. Better allocations for newsagents, leading to a higher sell through.
  5. A new customer service team to help newsagents, queries are handled quickly.

The early returning of the latest issue of Australian 4WD Action gives EMG a message that these moves are of no interest to newsagents.  That is not a message we want to give off at all … unless we want to kill off magazines in our newsagencies.

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magazine distribution
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