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

Month: January 2012

Making lemonade from lemons

Check out how Allan Wickham at newsXpress Eli Waters turned around the situation of massive lottery payouts last week.  By promoting how much they paid out, they promote the money their business has put into the pockets of local shoppers. This helps the business deal with the higher than usual payouts in a more positive way than just complaining about the amount of the payouts.  Who knows, the sign could top the trick and get someone buying a lottery ticket to be part of next week’s payout.

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Lotteries

Placing People’s Friend titles together works

Placing the People’s Friend Autumn Special with People’s Friend magazine drives sales of both.  We are set to sell our of the Special and I think this is primarily die to placement above the magazine itself.  This is an opportunity for newsagents to drive sales of both titles.

I love People’s Friend because it is what I’d call a habit-based title. readers are loyal. Once they know you have it in stock they come in every week. This weekly traffic is vital to our businesses today and in the medium term.  We each need to be aware of magazine titles which fit this habit-based criteria so that we can make the most of them. Hence my obsession about titles like People’s Friend.

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magazines

Promoting ACP cookbooks at the front of the newsagency

We are embracing the opportunity of holiday shoppers and promoting a range of ACP cookbooks at the front of the newsagency.  While sales are lower than those leading up to Christmas, they remain strong enough to justify using the stand in this way.

We have given best positioning to titles related to weight loss and health … it is the time of the year for considering these after all. More than half the people entering our shop pass the stand in its current location.

We like to change the offer in the ACP basket building stand every few wells as well as changing the location of the stand.  It only takes a couple of minutes and the effort is usually rewarded with sales.

It frustrates me when I visit newsagencies and see non ACP titles in this ACP supplied and branded stand.

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magazines

Helping guys lose their gut with Men’s Health magazine

In keeping with our promotion of diet related titles in this post holidays period, we are promoting the latest issue of Men’s Health magazine from Pacific Magazines with this aisle-end display in the men’s section of our newsagency. The Lose Your Gut cover story is sure to connect with guys this time of the year … and with girls who look after their guys.  I think the feature display will work well for us and drive some nice sales.

We also have the magazine in prime position in with our men;s health and fitness section next to car, motor bike and sports titles.  This category is performing very well for us, in part because we support it with excellent positioning and because the full covers are on display.

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magazines

New newsagency sales benchmark study almost complete

I am close to completing the analysis for the latest newsagency sales benchmark study.  I have data from more than 170 newsagencies, making it one of the most comprehensive newsagency sales benchmark studies yet.  The results so far are interesting – while confirming some trends there is some good news in some categories.  I hope to have the analysis completed and published here by Friday.

These studies are quite time consuming as before any analysis can commence I check the data to ensure that it is an accurate reflection of sales for each business. The number of newsagencies being rejected because of poor data is way down this year compared to the study I did for the same period a year earlier.

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Newsagency benchmark

Excellent sales of Melway

We bought 100 copies of the latest Melway street directory in the lead up to Father’s Day 2011.  Sales were okay but not great. Ten days before Christmas 2011 we decided to make this an in-store hero product.  That is, we only promoted it in-store – i.e. not in a catalogue or any external marketing.  We struck a price which gave us just a few dollars margin. Our goal was to drive impulse purchases.  It worked.  We sold more than 60 copies.  Most were basket extension purchases.

Too often I talk with newsagents who complain that a product is not selling and that they are stuck with it.  It’s our job as retailers to do everything possible to move the product in our shops. This means trying different locations and different price points – for the products over which we have price control.

Okay so we didn’t make as much as we would have liked from the Melway product.  So what?!  We moved the stock, make more than 60 customers happy and provided them with a value retail experience which we hope counts for something when they think about us in the future.

We are constantly looking at our stock, moving it, repricing it and making sure that it is not weighing our business down. We do not see our newsagency as a dumping ground for products which don’t sell.

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Newsagency opportunities

Nothing like a good diet to sell a magazine

It’s good to see New Idea, Woman’s Day and NW all promoting diets on their respective front covers this week. With more people back into their regular routine now is the time to tap into the guilt of holiday season indulgence.  We are making the most of the opportunity by ensuring all three titles are in full face display – showing offer the diet promotion.

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magazines

Why the increase in supply of Glamour magazine?

Newsagents might want to check their supply of the British edition of Glamour magazine.  Click on the image to see how our supply from Gordon and Gotch has been all over the place with little impact on sales.  We sell one copy of Glamour if we are lucky. Gotch has supplied 4 copies, then 2, then 1 and now back to 4. There is no justification in the sales data for them supplying 4 copies. It makes me wonder if they have more stock than they know what to do with and would prefer to have us act as the warehouse rather than them.

If the Gordon and Gotch magazine supply system worked as they claimed we would not receive four copies of Glamour.

I plan to continue to publish details of oversupply like this to provide a record of distributors disrespecting newsagents and to document to other publishers why newsagents may not be behaving as they expect in terms of their titles.

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Magazine oversupply

Promoting Australian Tennis magazine

We  have kicked up our promotion of the latest issue of Australian Tennis magazine and some other titles with this front of the shop placement.  It faces into the shopping mall and is located next to the counter from where we sell our Australian Open tickets.  People walking past out newsagency can easily see this display. We also have Australian Tennis magazine in prominent display in our sports section toward the rear of the newsagency. This week and next are our best opportunity for selling tennis titles in Melbourne.

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magazines

Promoting House and Garden magazine

We have been promoting the latest issue of House and Garden magazine with this terrific aisle end display created by our team. We also have the magazine in prime position with other home and garden magazines.

While not a massive seller for us House and Garden, does respond to time in the spotlight. We will keep this display up for a week.

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magazines

Italian newspaper Il Globo cuts three issues a week

Italian newspaper Il Globo has cut from five editions a week to two.  While disappointing for some readers, it is more disappointing that they did not advise newsagents until today of the change to take effect today. Here is their notice:

ATTENTION NEWSAGENCIES
URGENT NOTICE
Starting Monday 9th January 2012
‘IL GLOBO’ WILL PUBLISH
ONLY 2 EDITIONS PER WEEK
MONDAY + THURSDAY

The Management of IL GLOBO has decided to reduce the number of editions printed each week from five to two, that is Mondays and Thursdays.

We are in the process of calculating the new expiry dates for subscribers and will advise as soon as possible.

In the meantime, if a client has a subscription for MONDAY only, you need do nothing at all.

If a client has only a TUESDAY subscription, please move it to THURSDAY as this has the RAI and TV Guides.

For clients who have subscriptions for 3, 4 or 5 days per week, please change to Mondays and Thursdays and we will advise of the new extended expiry date.

Thank you for your collaboration and should you need further particulars please call Anna or Walter on (03) 9481 0666.

Hmm, what collaboration? A collaborative approach would have been to discuss the change with newsagents in advance.

There is a broader question about foreign language newspapers. For many, these have been important to newsagents in recent years with sales increasing while local English dailies struggle.

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Newspapers

Good time to promote yen magazine

Kirsten Dunst on the cover of yen magazine provides a good opportunity to give the title some time in the spotlight. Dunst stars in Melancholia, an excellent current release film. The film appeals to the ideal demographic for the magazine. People who have seen or heard of the movie and Dunst’s brilliant acting are certain to at least browse the magazine … browsing is the first step toward purchase.

We have yen in an excellent position in with twenty something girl titles, next to frankie.

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magazines

Early returning the Mad magazine mega pack

I am early returning the MAD SUPA DUPA MEGA PACK because the copies I have left are, in my view, unmerchantable. While there is a nice cover sheet, the titles in each pack has old price stickers from other newsagencies.  This is not good enough.  Publishers who want to send products for a second go around by repackaging them ought to at least tidy the product so as to make it more presentable. Having a price label from another newsagency visible on product in my store is not something I am happy with.

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magazines

New Idea crossword title sells well

We achieved a 60% sell through of New Idea Jumbo Puzzler from Pacific Magazines in the first ten days of on-sale. While some of the sales have come from the crossword section, most have come from the placement in the photo – in with our women’s weeklies titles. This is where we sell plenty of our Lovatts crossword titles as well.

It is tactical placement like this which helps newsagencies drive impulse purchases and strengthens the overall performance of magazines in the business.

We have ordered more stock of New Idea Jumbo Puzzler since we think we can achieve sales beyond the initial allocation.

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magazines

That’s Life Reader’s Recipes selling well

We have sold more than half our allocation on the latest issue of That’s Life Reader’s Recipes from Pacific Magazines in less than a week thanks to their aisle end display at the entrance to our women’s magazine aisle as well as prime placement in with food titles.

While this is an easy title for shoppers to purchase with the $5.50 price point, I think that the real appeal is that the recipes are from everyday people. I’ve certainly had one customer comment with a smile that they can cook the recipes.

We have ordered more stock as we are set to sell out of our current stock.

 

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magazines

The 10,000th blog post

While I’m not a big milestone person I couldn’t let this 10,000th blog post pass without comment.

What started on January 27, 2005 with a tentative first post has evolved considerably over seven years, 10,000 blog posts and 27,180 comments.

I didn’t really have a plan when I started the blog other than to write occasionally about life in my newsagency.  Within the first few months that changed as I realised I could use the blog to write about issues beyond my own business,  issues affecting the newsagency channel more widely.

I have learnt plenty along the way – from the practical of writing for public consumption to learning to be more accepting of alternative views to mine.

I think that my voice has changed as a result of blogging. I think that my other writing, away from this place, has improved.

I am proud of the blog being a record of some of the challenges (and opportunities embedded in these challenges) faced by newsagents, those who work in our businesses and those who work with our businesses.

I am pleased to have been able to use the blog to document appalling treatment by some of newsagents.

For what it’s worth, I think the most important issues I have written about are:

  1. Australia Post and the economic harm the government owned post offices continue to wreak against newsagents. Both sides of politics are to blame for this.
  2. The failure of successive governments, the ACCC and suppliers to be fair in their treatment of newsagents through deregulation. Today’s print media distribution model disadvantages newsagents while giving commercial advantages to our competitors.
  3. The failure of magazine distributors to provide a model which is fair. They hold us accountable for the financial liability yet do not provide reasonable business levers with which to manage that liability.
  4. The disruption of print media and the impact this will have on the traditional newsagency business model … and the opportunity for financially rewarding change.
  5. The failure of many newsagents to manage their businesses for day to day profit. Too many newsagents expect their pay day when they sell and do not realise that their pay day is today, tomorrow and next week … and that this determines what they will receive when they sell.
  6. The failure of the leadership of the newsagency channel: in 1999 to lead through deregulation; and,  in the mid 2000s to put the needs of newsagents ahead of their own ego and interests.
  7. The day to day … sometimes mundane stuff about hiring and firing people, customer theft, employee theft, how we did things, why we did things.  These narrow focus topics often led to some wonderful comments which added tremendous value to what I wrote.

I smile when a supplier contacts me saying that they rarely read the blog but have been told about a post relating to them … yeah. I know that posts and comments are being noticed when people complain about the blog or me in an ill-informed or derogatory manner.

This is a place of conversation. Everyone is welcome to join in. If I am wrong, tell me.  If you want to apologise, do so.

In terms of actual achievements, that is for others to judge.

We go into 2012 with some good progress having been made in 2011.   Morrison Media, Universal Magazines, Express Media Group (EMG) and Pacific Magazines are closer to newsagents in part as a result of engagement here, showing that publishers follow posts and comments and respond in pursuit of a more valuable relationship.

I don’t have a plan for the future of the blog, never have. I’ll write about that which I want to write about … to reflect the newsagency narrative and to help and represent newsagents.

I care passionately about the channel and its place in Australian society. What we have is unique, important and valuable. It is also vulnerable. We all in this channel need to work hard to combat our vulnerabilities and to play to our strengths.

To the visitors, 1,100+ every day, and to the commenters, responsible for 27,000+ published comments, thank you for being part of this thing.

Let the blogging continue…

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About us

I wish magazine distributors would not make me pay for their optimism

I am disappointed with receiving five copies of Australian Geographic Outdoor magazine late last year. This is the first time we have received this title and three copies would have been enough, two even.

I’d prefer a magazine supply model where my shop is not used as a warehouse.  For a first time allocation, go low and let me order more stock as needed. If a distributor or publisher is bullish about how a magazine will perform they should take more of the risk rather than transferring that to newsagents.

The other challenge is finding space. Since we have not had this title previously we have to take a pocket from another title. Ah for a magazine distribution model which understand this and respects newsagents and what they have to do to manage a finite allocation of retail display space.

It’s my money at risk here – magazine distributors should be more respectful of that.

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magazine distribution

OMG! … A Kardashian only magazine? We’re saved!

Just when we thought there could be no expansion of the intrusion on life by a Kardashian, there is a report out of the US of the possibility of a Kardashian magazine. The last thing magazines need is gimmicks and fluff content. People passionate about the magazine medium love good content, something worthy of picking up, reading and putting down … and repeating the process many times over with an issue.  All I’d was to do with a Kardashian magazine is to use it to line the bird cage or the pet litter box.  OMG says it all.

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magazines

Promoting Better Homes and Gardens

We have been promoting the latest issue of Better Homes and Gardens magazine with this aisle end display.  I love the summer feel created by our in-store VM expert … perfect for this time of the year.

We are chasing extra stock as we’re certain to sell out of our initial supply.

We will leave this aisle end display up for a week and then migrate to an in-location display.  We are also promoting this issue of Better Homes and Gardens at the sales counter.

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magazines

Only four US newspapers to be left in five years?

A report by the University of Southern California Annenberg School for Communication & Journalism speculates that within five years only four US daily newspapers will in print.  While there are plenty who disagree with the prediction, the report which is about the US being at a digital turning point is most fascination and challenging.  Included in the report is this prediction about retail:

8. The Internet will continue to create shifts in buying habits, at the expense of traditional brick-and-mortar retail.

The most current Digital Future Study found that 68 percent of Americans buy online, and 70 percent of online buyers said their online purchasing reduces their buying in traditional retail stores.

“We are seeing only the beginning of the shift in American purchasing habits brought by the Internet,” Cole said. “Five years from now, the traditional retail landscape will be completely different than it is today.”

Makes one wonder about long leases with restrictive permitted use clauses.

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Media disruption

Is the Drive section about to be cut from The Saturday Age?

I have heard that home delivery copies of The Saturday Age in some parts of Victoria will soon not have the Drive section in the newspaper.  Home delivery customers who ask about this, I am told, will be pointed to the drive.com.au website. Retail copies of the newspaper will continue to have the Drive section.

None of this sounds right. Why would a newspaper cut out such an important section of the newspaper? Many people used to purchase The Saturday Age for the car advertisements in the Drive section. Maybe more are going to the website and the print version has become redundant. If that is the case why eliminate it from home delivery copies and not retail copies?

Maybe this is just another rumour about newspapers which is not true at all, too early or only has some hints of truth.

Maybe there are some out there who can enlighten us.

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Newspapers

Why the oversupply of Owner Builder magazine?

Click on the image to see the supply and return data for Owner Builder magazine over the last twelve issues for one newsagent who contacted me earlier this week.

With a sell-through rate of 26%, 33%, 8% and 47% for the last four issues, I can’t see why Gordon & Gotch continues to supply at such a rate.  I wonder if the publisher of Owner Builder magazine is aware of this oversupply and the financial cost it is having on the newsagency involved.

Look at the data from November 2010 and look at the supply increases from then. I can’t see any reason in the sales data for Gotch increasing supply as they have done.

Think about the cost to the newsagency channel if such oversupply played out across the channel or even, say, 25% of the channel. Beyond the cash, labour and real estate cost faced by newsagents, there is the wastage of paper.

I am confident that the publisher of Owner Builder magazine will say that it is not in there interests to oversupply.  I’d accept that if there was a reasonable explanation for the supply as being experienced by the newsagency which provided me with this data.

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Magazine oversupply

Why the increase in supply of Luxury Travel magazine?

Our average sale of the imported Luxury Travel magazine is one copy.  I can’t understand, therefore, why Gordon and Gotch would increase our supply from two copies to five.  Is it a publisher decision or a distributor decision? Either way, we have considerably more stock than we could reasonably expect to sell.

Click on the image to see our sales history and the unwarranted supply increase.

Australian Traveller is our hero travel magazine. It gets premium space and extra pockets. It responds with sales. It’s easier for me to support a title with a good track record than invest in space and inventory for a title with such low sales.

I understand that publishers are doing it tough.  They choose to be in the business. Don’t make me your business partner and financier by supplying extra stock when not justified by the sales data.

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Magazine oversupply

Do I really want to sell Scoop Travel magazine?

I was surprised to see Scoop Traveller magazine turn up in-store. We have not had this title previously and we have no spare space for more travel titles. Has Network Services asked if they could send us another treble title we would have said no thanks, there’s no room at the inn. Sadly, it does’t work that way. Network sends the title, bills us and expects us to find space. It’s a poor system which requires newsagents to accept full responsibility but which provides us with no reasonable control over our obligations.

Scoop Traveller is about travel in Western Australia. I don’t think it will sell that well. Based a conversation with our local flight centre we are more likely to sell travel magazines relating to Queensland, Europe and the US – not WA.

Scoop Traveller looks like an okay magazine. I just don’t think it has a place in my newsagency. I wish I was asked before they grabbed by time, real-estate and cash.

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Magazine oversupply

Promoting Melbourne Wedding & Bride

We are promoting the latest issue of Melbourne Wedding & Bride magazine from local publisher United Media with this aisle end display as well as a full waterfall in with our wedding related magazine titles.

Melbourne Wedding & Bride magazine is a good value title among wedding titles. Customers like it, they tell us and show us through purchases.  Hence our keenness to support the title with a feature display.  It is easier to display a title which responds well to time in the spotlight.

We will leave this display up for a week and then find another way to support the title.

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magazines
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