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

Month: October 2011

Keeping your landlord in the loop

If you are tenant, in a shopping centre or not, it is vital that you keep your landlord appraised on what you re doing as a retailer which adds value to their centre.

Shopping Centre landlords are especially selfish and only care about the value of their property. This is why it is essential that you share every good story you have.  Here are some suggestions for landlord communication, there are items newsagents ought to send to Centre Management:

  • Newsletters. Each time you send a newsletter to your customers, include Centre management in your mailing.
  • Advertising. Send them a clipping of all ads you do.
  • Seasonal promotions. Email them a photo of any special seasonal promotion – showing the excitement you bring to the centre.
  • Press clippings. Work at getting quoted in the local newspaper.  Copy these stories and provide them to Centre Management.
  • In-store demonstrations or events. Each time you hos an in-store event, demonstration or the like, let your landlord know as this is evidence of you adding value to the centre experience.
  • Relay and refresh. each time you relay products like magazines or refresh your offer in some way, let centre management know – they could include this in their own shopper communication.

The more you communicate with your landlord about what you are doing in your newsagency the more valuable a body of evidence they will have should they be approached by another party to open a newsagency or take over your tenancy in the centre.

Banging your own drum to your landlord is a smart and vital move for any newsagent.

Some newsagents I have discussed these and related ideas with have expressed concern that they should not have to go after their landlord in this way.  The reality is that you do, it is vital to achieving better positioning when it comes time to discuss a new lease.  A proactive retailer is more valuable to a landlord.  Some landlords will not for themselves how proactive a retailer is.

We are accountable for the perception our landlords have of us.

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Newsagency management

Boxed Christmas card sales off and running

We are seeing terrific sales of boxed Christmas cards, earlier than in other years.  We are supporting the opportunity with a table full of boxed Christmas cards as shown in the photo.  We are pleased that every single pack raises funds for a charity – this was proven to be very important last year when charity boxed cards sold faster than boxed cards without a charity connection.

If previous years are any guide, we will sell boxed Christmas cards up to and including the post Christmas sale.  It is a highly lucrative component of our overall greeting card offer.

I have tried boxed Christmas cards on shelves, in display units and on tables.  My experience has been that tables work the best.  That said, the Hallmark display units for Christmas 2011 look excellent – good to see them embrace black as it makes the products stand shine.

We will move our boxed Christmas card several times over the next few months to make the most f changes in traffic floor and to combat store blindness by our regulars.  Such moves always drive a lift in sales.

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Greeting Cards

New single edition to encourage publishing by more individuals

eWeek is reporting on a product announcement by Adobe which makes publishing single use or issue content.  While touted as a way of publishing brochures and the like, I am sure we will see this, and similar innovations, as a platform used by start ups to enter the digital publishing space.

So, as devices become easier to access, software makes engaging with mobile devices easier too.

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magazines

Is the confectionery at your counter paying its way?

With convenience stores stronger than ever – they are enjoying excellent year on year sales growth in a range of categories including magazines – and with supermarkets being shopped in a convenience way more than ever, it is to be expected that confectionery sales at newsagency counters are flat or declining.

Check your year on year counter confectionery sales.  Are they up or down?  Are they  delivering a reasonable return on the space?

In a shopping centre newsagency you would need annual confectionery sales of around $8,000 just to pay for the retail real-estate.  Add a portion of labour and other business costs and you’d need to be selling closer to $20,000 a year to be making money.

So, are you making money from confectionery?  If not, consider quitting and going for something completely different.

It may be that you stay in the confectionery space but sell more relevant and short term products.  Like the Smurf themed Kinder Surprise.  This was the most popular single product on the counter in terms of unit sales for two weeks.

I think that we have to ask these questions, to challenge ourselves.  Too many newsagents resist change and this holds their businesses back.

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confectionary

How well do you run your newsagency?

I have put together some questions newsagents could ask themselves to self-assess whether they are doing a good job running their business.  There is no judgment intended with these questions.  No, I genuinely am trying to get newsagents to look at their businesses objectively …

  1. Is your stock on hand data accurate?  If you think it is, when was it last audited?  Without accurate stock on hand data you can’t assess business performance.
  2. Do you reorder stock using your computer system or using manual processes?  Experience shows that manual ordering leads to more dead stock.
  3. Do you regularly review slow moving stock items and respond to keep stock moving?  This should be done monthly.
  4. Do you comply with supplier EDI standards?  Around 50% of newsagents do not.
  5. Do you produce (or have produced) a quarterly P&L and review this?  This is vital for quality business decisions.  I get it monthly for my stores.
  6. Do you operate to a budget?  How often to you compare business performance with the budget?  This should be done at least quarterly.
  7. Do you regularly compare your business against benchmarks: occupancy, labour to sales, overheads to sales, cards to total sales, magazines to total sales, stock turn by key departments?  This should be done monthly.
  8. Do you manage theft?  I.E. track, manage and control fraud touch points in your business.  Newsagents who do not track theft are more likely to be a victim of theft.

These are important questions we all should ask ourselves regularly.  If we are not doing these minimum things in our businesses then we cannot call ourselves professional retailers.

Too often I see newsagents demand a certain level of professional courtesy and treatment by suppliers yet refuse to manage their own businesses respectfully and professionally.

There are some high-quality, professional, newsagents out there.  There are also some who complain about suppliers yet run poor businesses.  This checklist is designed to help you see where you are and to challenge you.

We need to be accountable for our own business situation and business performance. Often, success or otherwise comes back to how we run our businesses and how much we respect business data.

I’ll gladly help any newsagent work on their business.  You can reach me at mark@towersystems.com.au.

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Newsagency challenges

How newsagents can act against email SPAM

Newsagents who receive unsolicited emails can complain to ACMA about such SPAM.  Under the Spam Act 2003,

it is illegal to send, or cause to be sent, unsolicited commercial electronic messages. The Act covers email, instant messaging, SMS and MMS (text and image-based mobile phone messaging) of a commercial nature.

Lodging a complaint about SPAM email is the best way to complain about your business email address being obtained and used for unsolicited emails.  Click here to go to the ACMA page for lodging a complaint.

The other thing I’d suggest newsagents do is emailing the spammer and letting them know that you are complaining to ACMA.

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Ethics

Promoting RUSSH magazine

We are promoting the latest issue of RUSSH magazine with this terrific aisle end display created by our team.

This is a cool magazine which attracts a younger demographic so it’s nice to take the opportunity to give it some time in the spotlight.  This is an important segment to newsagents if we want to attract new magazine readers to our stores.

We’ll keep the display up for a week or longer depending on space demands.

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magazines

Magazine relay adds 25% to magazine unit sales

While it is not yet a month old, the complete relay of magazines which I did in one of my newsagencies about which I blogged recently is driving at least 25% in overall unit sales growth.

I have double checked the numbers and allowed for sales trend in the months leading up to the relay.  There is no doubt in my mind that the relay is delivering excellent growth.

The sales of some categories are exploding as a result of the relay.  For example, some categories have achieved 200% in growth.  This is extraordinary in the climate of flat or declining magazine sales.  In Craft & Hobbies, for example, sales are up 245% off a reasonable base.  Crosswords, a category which we have consistently pushed and achieved growth from, are up 80%.

The return I am getting from less than a day’s work, including planning time, is extraordinary.

Beyond magazine sales growth, there is a knock-on effect through the store.  The relay is keeping magazine shoppers in the store longer and any retailer knows that the longer shone browses the more likely they are to shop.

It is particularly gratifying to see well-considered adjacencies deliver excellent sales growth.

The best approach to a magazine relay is to start with a blank canvass, completely empty shelves.  Place your weeklies first and grow out from there.  Create shopping zones: women, men, kids, food, garden, special interest etc.

Build the display to serve your customers.  If you are unsure in your planning, spend time watching your customers browse and shop.  Talk to them as well.  Their insights could be the key to excellent sales growth.

Approach the relay with as few barriers as possible.  I have done relays with some newsagents who have all manner of excuses on why some locations should not change.  They want sales growth but are not prepared to engage in necessary risks to chase this.

It is important to remember that changing magazine locations is easy.  If you discover that you have made a mistake, you can easily change it again.

Seven years ago the MPA (magazine Publishers Australia) published a handbook and video to guide newsagents on undertaking a magazine relay.  While that content is a bit out of date today, it would be a useful guide to newsagents unsure of where to start.

I’d urge every newsagent in Australia to undertake a magazine relay at least once a year.  Be sure to measure the results.  Let me know how you go.

PS. I used my newsagency software to look for opportunities when planning the relay.

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magazines

Express Media drops full copy magazine returns

In a bold and welcome move, Express Media Group (EMG) has announced to newsagents the dropping, permanently, of full copy returns.  This cuts the cost of returns for newsagents.  It also demonstrates that ENG accepts accountability for a commercially viable scale out to newsagents.

This move on top of the 75% margin for the first stow re-launch issues of Truckin Life, the two-month trial of higher margin for all EMG titles and the switch to four weeks on-sale makes for a package of bold and welcome changes for newsagents and their relationship with Express

Here’s a to do list for newsagents to maximise the opportunities:

  1. Contact Express on (02) 8719 3503 or at circulation@emgroup.com.au or by going to http//newsagents.emgroup.com.au to make sure that you have enough stock of their titles especially Trucking Life.
  2. Check out the title range and be sure you are placing titles to make the most of the opportunity.
  3. Train your employees to help you make the most of the opportunity with better placement and good product knowledge.

Newsagents have an excellent opportunity here to demonstrate how much they value a publisher engaging with them.  Other publishers are watching the moves by Express and how newsagents do or don’t react.  Please don’t let the channel down.

I and others and been highly critical of Express.  Their moves in recent weeks show that they are prepared to listen and change.

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magazine distribution

The Steve Jobs legacy for newsagents

While much has been written abut the sad passing of Apple co-founder Steve Jobs, for me, the message of his life for newsagents is to face challenges and innovate through them.

Steve made computers cool, music devices fashion items and the mobile hone, well, plenty more than a phone.

He turned an uncool business channel into something relevant and valuable.

For an insight into the man, watch this video of his commencement address at Stanford University in 2001.

Inspirational.

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Newsagency management

Apple releases a greeting card App

Apple this week released a greeting card App for for its devices.  Hallmark is cool with the move.  The share price for American Greetings (John sands) dropped 10%.

The Apple move will have a short term impact on greeting card sales but physical card innovation will protect and drive sales.  As people settle in with sharing emotions through a ‘card’ some are likely to consider doing the same in print … especially with marketing from card companies and retailers indicating that a card on the mantlepiece is of more value than a text message which can be deleted.

I am not surprised by the Apple move.  More will come too, not only in the card space but also more innovation challenging newspapers and magazines.  This is what we must expect in this mobile content platform world.

Our job as retailers is to run card departments which are professional, appealing and comforting.  We need to understand that buying a card is an emotional experience and connect with our shoppers appropriately.

We need to deal with card companies which evolve their products and work with us to evolve the shopper experience.

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Greeting Cards

Coles school sports promotion rip-off

The Coles school sports promotion is a rip-off in my view.  According to a recent report in The Australian (Sept. 5 pg 8), shoppers need to spend $700 to earn enough points for a school to get a $3 (RRP) skipping rope.

I’d have parents from a nearby school spending less than $500 in one of my newsagencies in a year yet I happily give them products worth $50 for free when they ask.  This makes my small newsagency more valuable to the school than Coles.  Plus I don’t demand they shop with me.  I want that to occur naturally as it is more likely to stick if it does.

Indeed in each of my newsagencies we give a significantly higher percentage of revenue to community groups than Coles appears to with this promotion.

Why should I be surprised that small businesses do more for local schools and clubs than one of our giant supermarkets?  I’m not.  I think that the Coles campaign in purely profit driven and 100% cynical.  It sucks that shoppers buy in and think good on your Coles for doing this.

I don’t spend any money advertising the $50 I give the school either.  It frustrates me the tens and maybe hundreds of thousands of dollars is being spent advertising the promotion.  This should be given to the schools and not media outlets.  Coles should rely on word of mouth – if they were serious about helping as much as possible.

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Ethics

Promoting Sesame Street products

We are promoting activity books from Five Mile Press at the front of the newsagency (ideal for school holidays) including Sesame Street titles.  Shoppers who pass this then pass a Sesame Street plush display – the brilliant and highly successful Sesame Street Lamppost from Jasnor.  Locating the two items close together like this helps drive sales of both.

Regulars here would know that I love well-known brands.  Branded products are easier for us to sell.  Sure cheap China product may have a better margin but it’s not as good today as a year ago and will only get worse.  I’d rather have the brand focused traffic than cheap-ass shoppers looking for cheap China product for the long term health of my newsagency.

Sesame Street is one of those brands – easy to sell and it supports a healthy margin.

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Book retailing

Grouping Italian food magazines helps drive sales

By grouping the three Italian food titles as we have done in the photo we are more likely to achieve sales of two or more of the titles.  We regularly go through or magazine department looking carefully ad adjacencies, trying to make them more relevant to our shoppers.  The result is an above average increase in magazine sales, making the time spent worth it.  I do this work myself.  It is not a task newsagents should delegate unless they are not the magazine specialist in their newsagency.

With more than 30 regular food titles, grouping them by region and or cuisine makes sense.  We even adjust when there are magazines which devote an issue to a category which is located away from the usual place for this title.

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magazines

Promoting Marie Claire magazine

We are promoting the latest issue of Marie Claire magazine with excellent positioning in the usual location for this title as well as co-location with this display opposite the women’s weeklies titles – the highest traffic stopping point in our magazine department.   This is a new promotional space we created a few weeks ago and it is working a treat for us.

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magazines

Transitioning magazines from print to digital

“My goal in life is to find a way to transition from [selling subscriptions] to selling access to a branded experience,” Sauerberg said. “Not just changing the price, but redefining the product in a way that creates a branded experience.”

This is Bob Sauerberg, president of Condé Nast speaking at the 2011 American Magazine Conference and as quoted in a report published by ADWEEK.

The US marketplace is far more dependent on subscriptions than Australia.  This is a reason they are approaching tablet computers differently to here, at the moment.

The best short / medium term opportunity Australian magazine publishers have to stem declining sales and even grow in some areas in newsagents.

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magazines

Extraordinary response from newsagents to benchmark study

I have received the best response yet to a request for newsagent sales data – to my request earlier this week of the Q3 newsagency sales benchmark study.  In three days I have received more sales data than I would usually get in ten days.  This suggest considerable interest in the outcome of this particular study.

Please follow the link above for details in participating.  The result will be a health check on sales across various categories in the newsagency channel.

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Newsagency opportunities

Is a capital city newspaper planning to stop home deliveries?

Two sources have suggested to me that a capital city newspaper in Australia will announce the end of newspaper home deliveries before the end of this year.

I am not sure it is as simple as the rumor put to me however.

Both Fairfax and News know that such a move would damage newspaper home delivery across the country.  I suspect that if there is to be an announcement, and remember this is only a rumor, it will be that the current arrangements, maybe of in house publisher managed direct to subscriber home delivery, are replaced with a completely different model.

What gives this rumor credence if moves I have heard being made by the publisher involved, moves which suggest they are about to cut back.

Why publish a rumor?  Sometimes airing a possibility heightens debate which can help turn around a decision.

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newspaper home delivery

ASIC, the reserve bank and the federal government failed Australians on EFTPOS issue

Where is the federal government on the EFTPOS fees issue?  Nowhere.

Where is ASIC on the issue?  Nowhere.  I would have thought that ASIC could pursue ePAL for misleading conduct.  The still could I guess.  Will they?  Probably not.

Where is the Reserve Bank, the organisation which created the situation? Nowhere.

The federal government – especially Nick Sherry Small Business Minister and Wayne Swan Treasurer – has let retailers down.  They have ignored us.  When we wrote, they replied with noise and no substance.

The opposition was a little better but not much.

No, it was up to Aldi, a foreign owned supermarket group to fight the fight which government or its agencies ought to have taken on … representing small business retailers like newsagents.

Thanks to the Aldi action we now have some banks retreating and saying they will not increase fees for now.  We need to keep this pressure on … on the banks, on ePAL and on the politicians.

Who thought that putting the big banks plus Coles and Woolworths in charge of managing EFTPOS and setting fees was a good idea?

If Nick Sherry really cares about small business he would engage on this issue and actually do something.  Instead he spends his time making speeches telling retailers what he thinks they are doing wrong.

The Opposition would garner significant small business support if they came up with  an alternative plan on the issue of EFTPOS fees.  Rather than trying to kill the government, they could show alternative leadership on this issue.  It’s ripe for them to make a move and show that they can create positive plans.

All in all retailers have been let down by everyone except for the work of Aldi.

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EFTPOS fees

Another Groupon magazine subscription offer

It is disappointing to see Time magazine being offered for 73% off for a one year subscription with a Groupon deal.  While only 8 have signed up so far, the deal has quite some time to run.

Discounting a products this much must discount it in the eyes of the consumers.  Do the publishers want to indicate their the content in Time magazine is worth that little per issue?  I thought this was a premium title.

I understand the place that discounted subscriptions play in the magazine sales model … but 73% off?

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magazine distribution

Promoting Dirt Action magazine

We are promoting the latest issue of Dirt Action magazine with best-position placement with trail / motor bike magazines as well as a feature co-location aisle end display.  This is the 150th issue of the magazine and on offer for one lucky customer buying the title is a $15,000 Yamaha Race Replica bike.  These are good reasons to give Dirt Action some time in the spotlight … which is just what we are doing with our placement and display.

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magazines

Promoting school holiday opportunities

We put together a display promoting products just for school holiday shoppers and it worked a treat.  Craft items, toys, kites, games, party supplies, Halloween items … they all work as part of the school holiday opportunity.  This promotion is deliberately not about price … as the marketing collateral indicates.  No, it’s about letting parents know that we have a range of products which can help families through the school holiday period.  The collateral we are using connects beautifully with the opportunity.

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newsagency marketing

Newsagents need to embrace multi channel marketing

Grant Harrod, CEO of Salmat, writing in the Australian Financial Review on Monday called on retailers to use multiple channels when promoting to consumers.

While much has been made of the rise of online retailing and explosion of new media, the reality is that people have diverse media habits and purchasing preference.

I agree with this and most of what Harrod has to say.

Newsagents are competing in a tough retail marketplace in tough economic conditions.  We cannot rely on what we have always done to drive traffic.  Just one or two campaigns a year are not enough.

No, we need a consistently delivered multi-channel approach if we are to have any hope of competing with the major retailers which offer what we sell.

In my own newsagencies I embrace the multifaceted newsXpress marketing: catalogues delivered to homes every six to eight weeks, commercial TV advertising, commercial print media advertising, monthly customer newsletter, a fresh flyer out the front of the businesses every month, in-store radio, a social media campaign, a local online yellow pages like campaign and a word of mouth driven campaign.

I see this mix as the bare minimum for any newsagency group.  I like the diversity as it means that the business is not relying on one activity to drive new shopper traffic.

For individual newsagents there is a challenge as the costs can be prohibitive.  That said, there are some options which could fit into a single store budget, especially in regional and rural areas.

Now more than ever we need to market our businesses and do this via more channels than we used to in the past. Changing times demand we change our approach to so much of what we do, including marketing.

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marketing
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