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

Month: April 2012

Coles shows what it thinks about the buy Australian campaign by importing Dawn French

For all their talk about supporting Australia and Aussie farmers Coles has shown their true colours by importing British comedienne Dawn French to front their FlyBys advertising campaign.

There are plenty of Australian personalities who could have fronted this campaign. Every time I see a TV or print ad I find myself thinking about the Coles decision against Australia rather than what is being advertised.

I am left wondering whether it is cultural cringe on the part of Coles or ignorance about the need for a whole of business approach to supporting Australia.

We already lose too much of the entertainment dollar spent here in Australia on overseas acts. The money paid to French would do more for our country if it was paid to a local.

Maybe I am being petty but this campaign is impacting my supermarket shopping decisions even if it takes me a bit out of the way.

How is this relevant to newsagents?  We are local businesses employing local people and investing in our local communities. We need to remind our local community of this through our words and actions at every opportunity.  We need to show that we can act far more responsibly to our country than Coles has done.

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Uncategorized

Maybe one good magazine wall is all it takes

Check out he magazine wall I saw at a Dymocks store in Hong Kong (in a shopping mall) a couple of days ago. Okay so they don’t have space for displays and promotions, but they do offer range.

By overlapping some covers they are able to fit more than 300 titles on this wall, far more magazines than we would fit in the same floor space.

When you’re paying upwards of $1,200 a square metre on rent return on space is an important factor, especially for lower margin products like magazines.

I don’t think we are in a position in Australia of moving to this approach yet but I do think it will be an active option for some newsagents as they having the changes, challenges and opportunities of magazines over the next few years.

I can see some newsagents creating a wall like this for range and maintaining premium space which is more friendly to merchandising the high volume titles.

Special interest shoppers will look for what they want, especially if those titles are in fewer location.

These are topics we need to discuss and debate. Collectively we need to work through the options.

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magazines

Papyrus Hong Kong not what it used to be

I have seen several incarnations of the Papyrus card and gift model in Hong Kong in several locations. The latest I have just seen feels like a misstep. Gone is the strong branding and the unique range of cards. Just about everything I saw in store I felt I had seen elsewhere. This used not be the case and that’s why I liked visiting their stores.

A few years ago I’d visit and purchase 10 or 12 cards. This time I bought 2.

While the shopfit looks sexy, it did not showcase the unique products I had come to expect from the Papyrus brand.

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Greeting Cards

Convenience stores strong in Hong Kong

Convenience stores are everywhere in Hong Kong. Two brands mainly – 7-Eleven and Circle K. Both have good magazine ranges with an average shop carrying between 105 and 200 titles.

While there are book / magazine stores – Dymocks and Bookazine – it is the convenience stores which appear to have most of the everyday magazine and newspaper traffic as they are on the street level and far more easily accessed.

I got to visit plenty Circle K and 7-Eleven stores. The more I visited the more I wondered what would have to magazine sales in newsagencies if 7-Eleven in Australia listen their game in terms of magazines with range tweaking, better positioning and decent personal customer service.

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magazines

Sunday newsagency management tip: Should newsagents sack themselves?

Newsagency owners lead their businesses because they paid to purchase the business. Having the capacity to fund the purchase of a newsagency does not mean you have the leadership skills to run the business.

So, we all need to ask ourselves, are we the best person for the job? Do we have the skills and vision to give to the business what it needs to navigate greater commercial success.  Do we have the energy and drive?

Having the right to sign cheques for the business does not mean you are the right person … hence the question.

It is important every business owner asks this, that we test whether we are the right leader for our business at this time. Strong leadership is on show when someone says they are not the right leader and acts on it.

So, I pose the question … are you the right leader for your newsagency and if not what will you do about it.  I’m not making a judgement in asking the question, just challenging you to look at yourself and your business.

Rather than sacking yourself you could work on your skills, vision and energy and develop yourself into a more valuable leader for this business. You could also quit, handing the reins to someone more skilled.

Okay this may not be practical, or may not appear to be practical. I know of newsagents who have left the business, taken employment elsewhere and installed a manager who has revitalised the business. So, what may not appear to be practical today may be made to work tomorrow.

Think about the best leader for your business. If you know that it is not you, do something about that.

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Newsagency management

Massive One Direction driven traffic burst

They started lining up Thursday afternoon so by the time yesterday morning came around, One Direction fans were ready and pumped to be getting tickets to the 2013 tour. We had a great day selling tickets, One Direction magazines, posters and pre-selling the 2013 One Direction calendar.

While I was not at the shop for the sales, those who were tell me that the One Direction fans were very well behaved … much better than AFL fans at finals time (some of them can be pigs).

We have passed the predicted sales goal of $4,000 in One Direction product (not counting ticket sales). Indeed, we will pass $5,000 in 1D sales by the end of this month. An extraordinary result for 30 days of sales on the back of one band.

I have had some newsagents comment privately to me that they don’t get why I have written so much here about 1D.  In my newsagency I cannot think of a single products, band or one-off event that has generated such a valuable result in 30 days. The overall average GP achieved is 30% thanks to some non circulation product.

It’s business. The more attuned we are to what’s hot the more we stand to benefit and the better we demonstrate our relevance to our customers.

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Newsagency management

Gordon & Gotch future in play as PMP contemplates offer

On Tuesday (Apr. 24) PMP, the parent company of magazine distributor Gordon & Gotch, announced their second profit downgrade this year. Three days later, yesterday morning, I heard reports of more retrenchments, the third or fourth round this year. Late yesterday came the announcement to the ASX of a highly conditional offer to purchase the business.

Tuesday’s announcement did not attribute divisional blame for the poor profit outlook so we cannot be sure whether the Gotch business is a factor. All we can go off is what we do know … service levels at Gotch have fallen over the last eighteen months. This decline in service has accelerated over the last six months. Their much touted distribution system has resulted in oversupply of some titles and undersupply of others. What was rare for the previous three or four years was, for some of us, common. It was costing us money and was probably costing publishers money.

The retrenchments in recent months have seen magazine experts flee or be pushed off the Gotch ship. This has left the company bereft of leadership with magazine experience and insufficient people to manage their labour-intensive operation. I think this has been a key factor in the poor performance I, and others, have experienced.

Rather than trying to work on what was causing more mistakes in the distribution process, the company denied any such problems existed. I am told they would try and discredit examples I wrote about here or outright deny the facts as I presented them. Two years ago, Gotch would engage and try and learn from reported in field challenges. That stopped around eighteen months ago. It was as if they had given up and invested in spin rather than in a professional distribution operation.

To this observer, I don’t see how Gotch can function as a professional magazine distributor in its present form. Too many magazine experts have been let go. Even allowing for trimming of fat, the cuts have been too deep. Valuable experience and even IP has left the building. Rebuilding that will be challenging.

While the logistics operation is reasonably straightforward, it is in the allocations and customer service areas where the most important decisions are made. This is where the staff cuts have been feels the most from what I have been told.

A magazine distribution business with increased losses for retailers and publishers is a dying business.

What has made the situation more challenging for Gotch has been operational improvements at Network Services through the same period.

So, what of the highly conditional offer? I have no information about the offer and can only speculate.

I don’t see how the offer could be from an ASX listed company given the continuous disclosure rules. This would rule out Fairfax and Seven – all reasonable suitors in my view.  Maybe the offer is from ACP – I’d be somewhat surprised, but who knows in this marketplace.

What is certain is that magazine publishers with their titles being distributed by Gordon & Gotch would want the matter resolved quickly and the magazine distribution business sorted out and provided fresh leadership and appropriate resourcing as soon as possible. Right not Gotch cannot, in my view, serve these publishers well – publishers suffer and we newsagents suffer.

As I have noted previously when writing about the performance of Gotch, careful what you wish for.  Maybe what we are seeing is another step in consolidation of businesses involved in print.  Alternatively, we might be seeing moves which are part of what will be seen as a smart business takeover.

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magazine distribution

Talk about gifts with magazines!

Check out the gifts with the latest issue of Cosmopolitan magazine here in Hong Kong. For the usual cover price you get a bonus, current-issue, magazine, lip gloss and a make up bag. Three bonus items, for the usual price.

Looking at the package and the challenges it presents in merchandising, I should never complain about cover mounts or gifts with magazines again.

If I was the retailer I’d hope that the challenges of the package make it worth it.

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magazines

Let the blood run free

At the gift fair in Hong Kong yesterday I saw a huge range of products but this one stood out as memorable. It was part of a range of blood themed products. Bloodied towels and other items like this blood bath.

No, I’m not planning on stocking them – they just stood out.

It is amazing seeing such a vast range of products at one grand show, some exciting products which we have not yet seen in Australia.

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Gifts

Frankie magazine opportunity for newsagents

The current issue of Frankie magazine is not being sold in supermarkets for reasons I won’t go into here. This presents newsagents with an opportunity.

I’d suggest co-location – a good display in the usual location and a noter placement at the counter or toward the front of the enwsagency so that passers-by can see that you have it.

Remember, Frankie is a magazine with double digit year on year growth.

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magazines

How’s your day been?

Have you been asked this at the supermarket checkout recently? I have, just about every time in recent months. Either how’s your day been? or got much on for the day? if you are shopping early in the morning.

I don’t know these people. Okay I am a supermarket slut, I shop around and go to two or three different supermarkets each week.

These checkout people are not my friends. My day is my business. My plans for the rest of the day are none of their business.

How dare they think they can ask me personal questions so that they can tick off a KPI set by the managers at supermarket HQ.

But they are only doing their job so I guess it is not their fault.

Every time I am asked one of these scripted questions I am reminded of the opportunity we have in small business, the opportunity to be authentic, genuinely in the moment with our customers. We don’t run off scripts. We see our customers as people, friends often, rather than another number against which we are measured on how we are doing our job.

Occasionally I am shocked by an unscripted supermarket experience. It scares me actually because what if they do let their employees live like real people and have real conversations at the checkout with customers. We in small business would be in some trouble then.

I was in a Coles supermarket just before Easter looking for the chocolate-coated marshmallow hot cross buns they have had for years. Sadly I could not find them and went with a four pack of marshmallow eggs instead. At the checkout, with this as my only purchase, the Coles employee ignored the script completely. I guess you don’t need a bag she said with a smile. I agreed and blushed slightly having been caught out. They are my absolute Easter favourite she said looking side to side as if this was a forbidden conversation. Seriously. So I opened the packet and offered her one. She took it with pleasure – I still had three and that would get me home.

This was an unexpected experience from a Coles checkout person. Completely off script. I find myself thinking about it because it is the kind of natural and personal experience I want to see delivered from the counters and shop floors of my newsagencies.

While we compete with supermarkets and other big corporate businesses that can only mange through KPIs and scripts, we need to remember that being authentically personal is an important point of difference for us. We need to also understand that this only works if it is natural. Finding the balance between natural friendliness and remaining focused on work can be a challenge.

What we must avoid is controlling our employees. Them being themselves, if we hire and manage well, is a valuable asset for us.

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Newsagency management

Relishing the One Direction calendar opportunity

We are thrilled to be offering the official 2013 One Direction calendar – especially given that we have tickets for their 2013 concert going on sale this Saturday. We are not taking and chances by requiring payment in full with the placement of the order. We will have the calendars in-store in eight weeks so it’s not too much to ask. Directioners have a capacity for pre-paying – they are pre-paring for the 2012 concert by 13 months!

The calendar offer, pre-sale strategy and accompanying collateral is all part of a newsXpress initiative.

I don’t know how long the interest in 1D will last but as I noted a week ago, One Direction has been responsible for more than $4,o00 in additional revenue for one of my newsagencies this month – not including concert ticket sales.

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Calendars

Promoting the AWW Cakebaking cookbook

Check out the display promoting the The Australian Women’s Weekly Cakebaking cookbook.

This display is situated one side of the wide entrance to our newsagency, making it hard to miss. Shoppers see the display as they enter the centre from the carpark.

We have ordered extra stock already as we think this title will be a hit. It’s come in at the right time … given interest in cakes and that we are, apparently, in cake baking season.

In addition to this display at the entrance we also have the title in prime position in with our ACP cookbooks. Our plan is to move it around over the next few weeks – while newsagents have the title exclusively.

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magazines

Changes to small magazine publisher meeting

I have had to change the date for the Sydney meeting with small publishers. I should have a new date sorted our by next week.  In the meantime, the Melbourne meeting is just a week away: Friday May 4 @ 10am. Tower Systems Head Office. 3A Lynch Street Hawthorn.  It will provide a forum where small and independent publishers can talk with several newsagents around issues of mutual interest.

Topics to be discussed include: Supply; Early returns; Marketing; Magazine distribution; Ranging. There will be opportunity for other topics to be covered.

Small and independent publishers wanting to participate should email me atmark@towersystems.com.au.

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magazine distribution

Newsagency software facilitates consolidation in newspaper distribution

For years my newsagency software company has been working with consortiums of newsagents in several states on various newspaper distribution consolidation models.

While each model is quite different, they all have a common goal at their core – to leverage scale to create a commercially viable newspaper distribution operation.

At one end we have newsagents buying up runs and managing these out of their original premises or a nearby small warehouse. At the other end we have large operations with a mid-size business structure. In between there are several other models.

All look for the retail newsagent to be the shop front of the distribution business, collecting home delivery payments and sometimes managing stops and starts and other customer queries.

Some of these consolidation models have been in existence for close to ten years. Others are just starting now.

While there are some in the channel who want the channel to solve the challenge of consolidation which is now, finally, being brought on in the open by News Limited, I know there are others who have the view that market forces should prevail and the channel should not try take care of those who have not adapted their business models over the years.

I lean toward the more commercial market forces view.

There are newsagents who have invested and through this have created for themselves a commercial advantage. They are entitled to that advantage – just as I am through my software company and the work being done with various consortiums to leverage the consolidated distribution model through software enhancements.

We are in the midst of extraordinary change in our channel. We all must embrace every opportunity for and aspect of change if our respective businesses are to make the most of the opportunities. What we do and the rewards we achieve are part of the free market system.

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Newsagency management

Showing the free DVD with AWW

The team at my newsXpress Knox store are tech savvy smart and retail smart. To make the most of the free DVD, Fat, sick and nearly dead which comes with the latest issue of  The Australian Women’s Weekly, they are playing it on our customer displays. These are located just above a counter display we have promoting the title. Click on the image to see what they have done in detail. Simple. Tactical. Successful.

Newsagents are the best magazine retailers for engaging at a store level with opportunities outside the square. ACP and other publishers need to take more notice of this. Okay each of our stores does not have the volume of a supermarket. But we sure support the brand more and we get behind excellent offers like this Fat, sick and nearly dead DVD.

To recap our work for this issue of AWW: we have it in a waterfall in the usual location, we have a display on an aisle end and we have this display.

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magazines

A second crack with Australian iPhone

We are having another crack at driving sales of the latest issue of  Australian iPhone magazine, a title which has already performed very well for us – we even ordered extra stock. This time we are giving the magazine time as the feature title in the new space we have created in our men’s magazine section.

It is early days for this new promotional position we have created. We are still feeling our way with what will work here. I think that process will take take at least three months. by then we should know what titles work best here. Who knows, hopefully Australian iPhone helps us with that.

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magazines

Promoting Timeout with newspapers

We have been promoting the latest issue of TimeOut Melbourne with newspapers. It makes sense not only because of the nature of the title – it’s an impulse purchase title rather than destination for us. The Mexican cover story is very current and this is another reason for promoting TimeOut Melbourne in a high traffic area.

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magazines

End of Financial Year Finance offer for newsagents from Flexirent

Flexirent, a company used by many newsagents to fund newsagency computer system and other purchases, has announced details of an end of financial year offer – a two-month payment holiday to start off each new deal between now and June 30. Click here for details.

Flexirent financing is easy to arrange and can be tailored to suit a variety of needs. Just about any capital equipment supplier to a newsagency can deal with Flexirent.

 

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Newsagency management

A tough day at the office for the Murdochs

The coverage in the media of James Murdoch’s appearance before the Leveson inquiry yesterday is most comprehensive in The Guardian.  Click here to access the coverage.  Is suspect that the newspapers back in Australia won’t have as much coverage.  This is a massive story in the UK and it is growing in coverage in the US given the possible legal implications there.

Yesterday we got the closest look ever at evidence which may suggest political favours in return for endorsement of a political party by a newspaper publisher.

Watching some of James Murdoch’s testimony live on TV I kept wondering what might have been had there been no cover up following the original phone hacking claims. I also wished that some answers were clearer, more certain.

This story has a long way to go.  It is deeply relevant to Australia given the campaigns that have run is some News Limited newspapers. Some of these campaigns in some of the newspapers reflect poorly on the journalism profession and the role which newspapers used to play in informing the public with fair and balanced reporting.

Some commentators say it will ultimately lead to the divestiture of print from the News organisation. Who knows?

I got to read a bunch of British newspapers today and found myself coming back to The Guardain and wishing what we had a newspaper like that in Australia.

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Ethics

Excited to be in Hong Kong to look for product

I am in Hong Kong to attend the gift and premium fair as well as taking care of work for my newsagency software company. With more than 4,000 exhibitors promoting a diverse range of products I’m looking forward to traffic generating and basket filling items which will work in a newsagency.  The last time I was at this trade show was in 2009.

While in Hong Kong I’ll get to catch up on some exciting retail trends bordering on the newsagency offer.

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retail

Ah, Anzac Day…

Anzac Day is like Australia Day from a retail perspective … very quiet. While newsagents will no doubt be busy bringing in the usual last Wednesday of the month spike in magazine stock, the day is one of the weakest in terms of sales.

Frankly, I wish landlords would close centres all day given the traffic we see.  This is where high street newsagents have more control and can therefore better manage costs of a day like today.

That said, if you find yourself in your newsagency today and not much in the way opt shopper traffic, embrace the opportunity:

  1. Do a magazine relay.
  2. Do a stock take.
  3. List stationery items you have not sold in six months and make that difficult decision.
  4. Take everything off your sales counter and rebuild it from scratch with fewer conflicting messages.
  5. Rop everything off the wall behind your counter and use the space to create a compelling single message offer.
  6. Rip everything inn your front window and create a fresh and cleaner image for your newsagency.
  7. Revise your roster with a goal of cutting labour costs by 10%.

We are responsible for what we achieve in our businesses. A quite retail day can provide the time to work on the business.

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Newsagency management

Promoting Mother’s Day at the counter

We are promoting Mother’s Day at the counter with the display in the photo – click on the image to see a large version of the display.

This display is what customers see when we are serving them at the counter. The creative team in-store has done a terrific job, making the Breville food processor, to be won by one lucky Hallmark card customer, the centrepiece.

I much prefer this single-purpose back wall display to the displays I often see in newsagencies.  Here we have a clear and consistent message which connects with promotions on the shop floor and which is promoted through our external marketing.

Too often newsagents use the back wall as a storage place for products they don;t know where to place. This can lead to a confusing message.

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Gifts