I was asked by mediaweek magazine to reflect on what I thought were the top five events affecting newsagents this year. It was tough because 2011 has been a big year. I tried to write thinking of the audience for the magazine – people in the media, publishers, distributors. Click here to see what I wrote.
While there are plenty of other events and changes this year which should be recorded, I needed to stay within the brief. I am happy with my final list.
I appreciate the opportunity by mediaweek for newsagents to be represented in the magazine in this way.
I’d be interest in comments from other newsagents on the big events this year as they see them.
I thought it was a great article Mark well done! however I did not like your comment regarding the “not so smart newsagents”.
Trying to be a Magazine specialist is getting harder. Overheads such as outrages rental, increased utilities costs and employee wages including associated costs, introduction of digital magazines, subscription push inserted in magazines and from websites, increased competition from supermarkets and other retail / convenience chains for example and in return a 25% commission is paid to the Newsagent (EMG excluded)
If you are being a magazine specialists are you offsetting this with higher profit margins from other departments?
I think you have been unfair regarding this statement, I do not think you underestimate at all that a lot of Newsagents are financially strapped, that is why I was taken aback by that comment. Newsagents are doing this to survive.
Derek, I did think carefully about what I wrote. Maybe my intent did not come across. What I was trying to say was that some newsagents are reacting to the need to change by dramatically cutting magazine space. Unless done under the direction of accurate sales data, it is possible that these newsagents will kill a department which is vital to their business.
If you go back earlier in the article I make the point about what we need to be able to operate a viable magazine department. I see these points as needing to be read together.
I realise that I am still enjoyong a “honey moon” period having only gained direct supply over the past 18 months, but magazines have been a stand out department for our business, probably the only one showing growth every month. For this reasin I feel it is an important department and deserves our best efforts to kepp it as strong as possible for as long as possible. We have begun to cull nonperforming titles but the aim of this is not to reduce the department so much as to better promote titles that are perfoming and give new titles a chance to prove themselves. Those that don’t will also be culled having been given a little time to work or fail. This should keep us true to our demographics which will assist with traffic flow and give us indications as to other more profitable stock lines we should carry. The business needs to be treated as a basket for continued success and magazines have their place, at least in our business they do.
Rather vocal today, must be geed up by Christmas.
All the points are valid. The comment regarding distribution / home delivery probably needs expanding. Home delivery drives about 65% of circulation so it should be of considerable interest to the media community. The demands of dealing with suppliers’ inadequate systems, poor processes and 1960’s operational methods combined with the huge expectation from customers for 100% service level delivery places enormous pressure on newsagency operators. It does not appear to be authentically profitable at any stage of the delivery process. Newsagencies can only make money out of it by short cutting, especially in areas of OH&S and wages. If home delivery prices reflected true costs there would be a serious impact on circulation.
For delivery agents home delivery operations can be such a demanding distraction it compromises their ability to be more effective in their retailing operations.
I agree with the comments that a savvy retail operator can make good money. The fact is that floor traffic to newsagencies is still strong. If we present strong headlines and covers (especially of magazines) in the right way we can impact on sales of several categories by good merchandising. We just need the time to fit it into our day.
Mark – Thanks for the reply.
I agree with what you said regarding sales data. It is hard when there is only so much room to share and not being able to elaborate.
I think you know what I am try to say though and it is difficult to define because we are all different, but yes culling for the sake of it without justification is not good for the whole channel.
ps:- Bless you mate – hope you have a good Christmas.