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

Month: July 2012

Is stand alone stationery a transition opportunity for newsagents?

With more newsagents now actively considering changes to their business model, I ask whether transitioning to a stationery centric business is an option.

I am thinking about a shop which is no more than 120 square metres, packed (literally) with everyday stationery for immediate purchase and able to supply larger items next day. Operating on a pricing principle where easily price compared and accessible items are competitively priced and other items have a better margin.

This stationery centric model could have, in addition to an excellent range of stationery, room for the top, say, 200 – 300 magazine titles, a couple of newspaper titles and maybe a small stand of up to 60 card pockets.

In some respects, this idea is about newsagents, or former newsagents, reclaiming stationery from big business.

One reason it could work is that plenty of stationery is purchased because of immediate need. satisfy that well and you can expect to win good business.

One of the challenges with the newsagency model as it has evolved is that we do a bit of everything and, for many businesses, not one thing well.

I can think of plenty of regional high street newsagencies which could pull back to specialising, like the Office 1 business shown in the photo, standing for something in the region and drawing destination shoppers because of this.

We need to be thinking of ideas like this which are product category specific. Each of us need to be known for something. This was at the heart of my call last month for newsagents to develop their unique selling proposition.

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Stationery

Hallmark and John Sands sales data helps newsagents and suppliers

With some newsagency software programs having offered the ability to provide sales data to Hallmark and John Sands for years, it is good to see both parties making use of this to drive better value from the newsagent / supplier relationship.

Newsagents who ensure they have accurate business performance data and who share this automatically with their suppliers can be certain of receiving amore finely tuned and appropriate supply of products.

The automatic flow of sales data sits at the heart of just in time supply, enabling newsagents to better manage their inventory investment.

Now more than ever there is real value for newsagents in using technology to drive supplier relationships.

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newsagent software

Good interest in The Official Marvel Graphic Novel Collection

We have the latest issue part of The Official Marvel Graphic Novel Collection part series on display facing shoppers as the enter. The X-Men topic should generate interest because of the recent airing of X-Men on TV and that it’s a highly successful franchise.

This part series has been successful given the higher price. It’s brining in some appreciated traffic as well as working as an impulse purchase item. The key is having it where most shoppers can see.

4 likes
magazines

Will Katie Holmes sell AWW?

We are promoting the latest issue of The Australian Women’s Weekly with this display at the front of one of my newsagencies. We also have the magazine featured in its usual location and placement in a third high-traffic location through the first week.

The question we have is whether katie will generate sales. The talk across the counter is that people are not as interested in her and Tom cruise as we might have thought.

Who knows … our placement activity shows that we’re doing everything we can to make the most of what he hope will be shopper interest in Katie.

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magazines

Promoting Take 5 and the Olympic connection

We are promoting the latest issue of Take 5 and the offer of a free flag with which to cheer on the Australian Olympic team with this in-store display.

It’s a display shoppers easily see … perfectly times for the start of the Olympics in a few days. We will leave it up until the weekend – 70% of our Take 5 sales are achieved by Friday.

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magazines

More media coverage for newsagents on Darrell Lea

The interest by some newsagents in participating in a tilt at Darrell Lea received more media coverage yesterday. Several other fairfax outlets ran the story and I did a couple of radio interviews before heading overseas on business for a couple of days.

Interest has been formally registered with PPB.  Newsagents need to put their hand up if they are interested as I noted Monday:

Newsagents who would be prepared to invest in a consortium to bid for Darrell Lea need to register now.  To get a seat at the table to consider being part of an acquisition we need to know how serious newsagents are.

So, without obligating you to anything, please email me at mark@towersystems.com.au with your contact details and the amount you would invest if the opportunity met your requirements.

I appreciate it’s a long-shot query. However, given the independent structure of the channel I need to get something more solid than voted on a poll before engaging a lawyer to seek to get a seat at the table.

This is the moment for newsagents to put up or shut up on Darrell Lea.

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Newsagency opportunities

Why we need to fight Coles and Woolworths

If we think Coles and Woolworths have too much power then we’ve seen nothing yet. In the UK, the major supermarkets each have successful local store models which are challenging the existence of local family-run businesses in high streets.

Check out the story from Get Surrey about how a local newsagent is fighting to stop Tesco Express opening in Farncombe.

I have been in several Tesco Express outlets this year. They are impressive, unfortunately.

The Tesco Express businesses are a big success, delivering a professional convenience model to local communities and offering a national outlet for suppliers of food, grocery and publishing lines. The big companies love these outlets because of their consistency.

The Get Surrey store speaks to the small shop difference:

“Little shops are the backbone of the community and now Tesco want that for themselves,” said Manisha Thaker, a long-time friend of the couple and customer at the store.

The challenge for local communities is that these outlets kill off local traditions, stories and connections. They ship more dollars out of the local economy.

They are, in my view, soulless shops.

Once Coles and Woolworths get over their hardware fight and settle in ann expanded fuel network, look for them to go after main street Australia … if they are not there already.

This is why our businesses need to be relevant, strong and ever changing.

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Newsagency challenges

One Direction 2013 calendar drawing traffic

We are thrilled to be the only retailer in our centre with plenty of stock of the 2013 One Direction Calendar at the moment and that we’ll hold this position for the next few weeks. We are making the most of the opportunity with this simple yet clear placement on the lease line, facing into the shopping mall.

One Direction fans are like bees to a honey-pot, walking across to the business and browsing the calendar. And buying.

We are known in the region as the go to store for One Direction product. Word of mouth re the 2013 calendar is already good. This is in part thanks to our pre release pre-sale which we started months ago thanks to advance notice from our supplier.

Besides 1D fans, customers for the calendars are parents, grandparents, friends and relatives. The appeal is far broader than fans themselves.

Going out early with the product is helping us get early Christmas gift sales.

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newsagency marketing

Newsagents and Darrell Lea in the AFR today

Page 9 of The Australian Financial Review today has a story about possible interest among newsagents for a tilt at Darrell Lea. Now is the time to register your interest as I noted yesterday:

Newsagents who would be prepared to invest in a consortium to bid for Darrell Lea need to register now.  To get a seat at the table to consider being part of an acquisition we need to know how serious newsagents are.

So, without obligating you to anything, please email me atmark@towersystems.com.au with your contact details and the amount you would invest if the opportunity met your requirements.

I appreciate it’s a long-shot query. However, given the independent structure of the channel I need to get something more solid than voted on a poll before engaging a lawyer to seek to get a seat at the table.

This is the moment for newsagents to put up or shut up on Darrell Lea.

Footnote: they took around 50 photos and had to go with the one of me gorging on chocolate.

3 likes
Newsagency opportunities

What magazines do you recommend newsagents carry for men?

My post here about the excellent ManSpace magazine and several posts about the equally excellent smith journal magazine have piqued interest in magazines for men.  I’d be interested in newsagents posting their recommendations of magazines for men, thinking men.  I am particularly interested in titles which are not your everyday, titles the majoring of newsagents would not have.  Share your knowledge…

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magazines

NewsPOS newsagency software lives on

Earlier this year I purchased the NewsPOS newsagency software business. While some newsagents have switched from NewsPOS to Tower Systems, around 70% continue to use NewsPOS and the team in my software company supports these NewsPOS users.

I mention this because someone is putting it out there that NewsPOS closed. It didn’t. It was acquired and for NewsPOS users it’s business as usual.

The rumours in this channel are frustrating.

5 likes
newsagent software

Leveraging People’s Friend interest

We are making the most of the three issues of People’s Friend magazine currently on the shelf with placement next to each other and with the full cover showing. People’s Friend customers are loyal to the title and to the retailer, easily rewarding the commitment of this valued space to promoting the titles.

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magazines

Cleo at the counter

We’re having success with featuring single titles at the counter – when we effectively give the counter over to the promotion – as you can see with this promotion for Cleo magazine.

I love this display. It’s bold, attention-grabbing. I had nothing to do with it and am grateful to the team member who conceived and executed the idea.

8 likes
magazines

The next stop for newsagents on Darrell Lea

Newsagents who would be prepared to invest in a consortium to bid for Darrell Lea need to register now.  To get a seat at the table to consider being part of an acquisition we need to know how serious newsagents are.

So, without obligating you to anything, please email me at mark@towersystems.com.au with your contact details and the amount you would invest if the opportunity met your requirements.

I appreciate it’s a long-shot query. However, given the independent structure of the channel I need to get something more solid than voted on a poll before engaging a lawyer to seek to get a seat at the table.

This is the moment for newsagents to put up or shut up on Darrell Lea.

7 likes
Newsagency opportunities

What I think about the future of newspaper home delivery for newsagents

I was talking to a newsagent the other day who said oh that’s right, you think newspaper home delivery is dead.  I don’t think it’s dead, actually.

While I don’t see much upside in newspaper home delivery as a stand-alone operation or a smaller scale operation as it has been in the past, I work with newsagents who are building larger and successful home delivery businesses.

Indeed, I have signed off on considerable investment by my newsagency software company in a new suite of enhancements in the newspaper distribution facilities in our software.  I would not be spending into six figures enhancing newspaper distribution software if I did not consider there was upside for my newsagent colleagues and my software company.

So, my actions answer for me.

Yes, there will be mass consolidation of newspaper distribution businesses over the next two years. The reality is this has been going on, quietly, for the last few years. I know newsagents running warehouse operations that have grown through acquisition. These are good businesses.

The wash up is that newsagents running loss making distribution businesses as well as retail businesses can concentrate on what they do well.  I am hopeful that a result from this will be better retail newsagents.

While there is no obvious upside in the future of print newspapers, there could be considerable upside in a professional locally based distribution business.  It’s this opportunity that gets me investing my own money in better newsagency software.

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Newsagency management

Fairfax to migrate to compact size sooner?

AdNews is reporting that Fairfax hopes to migrate The Sydney Morning Herald and The Age to compact format ahead of the target date of March 2013. I’d like to see this. The fanfare of switching to the new format would provide an excellent opportunity to shin a light on the titles and hopefully drive some over the counter engagement.

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Newspapers

Promoting AWW Puzzle Book 15

We are promoting AWW Puzzle Book 15 next to AWW as well as in our crossword section. But it’s this placement with AWW from where we will sell most copies.  This is because of our space commitment. It’s worth it to get good early sales … I’d say that most purchases are on impulse.

Newsagents should check where they have the puzzle book. Next to AWW is best in my view.

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crosswords

Chasing weekend magazine sales

This past Friday, Saturday and Sunday we have had Better Homes and Gardens and Australian iPhone placed between newspapers.  The BHG placement is easy – we do this every weekend and love the reward of sales from this location. I decided to place Australian iPhone here because of the free iPhone case with the magazine. It’s a freebie ideal to the target shopper.

Now that it’s Monday we will switch the titles here as we see a different shopper through the week. What we place here depends on a mid morning review of the new titles in and their covers.

1 likes
magazines

Did Adam Scott win?

The front page of The Age newspaper today has a stuck on ad for Motorpass covering promotion of its coverage of Adam Scott’s tilt at winning the British Open. Taking the sticker off it turns out the headline was a promotion for finding out the results online or on the iPad.

Yeah, I still don’t like these stickers.

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newspaper masthead desecration

Sunday newsagency marketing tip: get serious about being local

Ryman stationery in London offers delivery of ink and toner in selected London boroughs within 90 minutes. That’s pretty cool since businesses ordering ink and toner have probably run out or are just about to run out. This is the next big push of online businesses – same day delivery … giving online shoppers a timing experience almost equal to in-store shopping.

Here’s the tip – if you consider your newsagency to be local and committed to local service, why not offer same day delivery of ink and toner?  I bet if you offered this you could wrest business away from online stores and bigger businesses nearby.

But you would need to promote it widely and regularly: on your car, shop window, flyers … all over town and through personal contact with businesses.

Yes, there would be challenges around your stock holding. Work through this. get to know your customers. Stock to their need.

If being local is a point of difference for you, live it! This is just one example.

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marketing tip

How much time do you spend on staff training?

we newsagents like to think that we provide better customer service than bigger retailers selling the same products we sell. We say that our people have better product knowledge, are more friendly and more helpful than our competitors.

I wonder if this is the case.

When was the last time you provided training to your employees – professional product-based training?  This should be at least monthly and based around key brands you sell. You’ll find some suppliers keen to work with you on this.

Product training for our teams could provide an excellent sales boost.

8 likes
Newsagency management

InStyle magazine is hot!

InStyle magazine is hot, selling very well. In fact, we have ordered more sock to ensure we can satisfy our customers. The magazine looks terrific and the free gift of a Biore skincare product makes it even more appealing.

Our sales have been helped by an aisle end display on our busiest aisle end – facing shoppers as they enter.  Until we ran low we featured the magazine in a full face display in the usual location for InStyle.

1 likes
magazines

The Guardian editorialises about the future of UK newsagents

The Guardian newspaper in the UK yesterday published an editorial about the future of the local newsagent in the UK.  Here’s the start:

How did you last buy a newspaper? Scanned through the self-checkout at the supermarket? Added to the £20 of unleaded from the local petrol station? Our own circulation research suggests that only about half of readers will have bought Saturday’s Guardian from a newsagent (it’s more Monday to Friday).

Be sure to read the rest.

Newspaper publishers here and in the UK have played a role in newspapers being accessed in all these other outlets. They preferred mass access because they did not think people would seek out their product. In my view, publishers did not trust their own product.

Next, they played with the product, made the purchase be about DVDs, collector cards and the like.

But they are not to blame for the demise of the local newsagent in high street Britain. No, each retailer is responsible. We are accountable for our own situation. We have seen change coming for years and we have talked about it. Too many have wanted others to fix it for them. Some have denied – like the climate change deniers.

Our future is up to us now more than ever before.

Read the editorial in The Guardian.

My Newsagency of the Future sessions earlier this year were about these topics. The new sessions I ran last week expanded on the theme.

We are in the fight of our life. Before us we have wonderful opportunities which could lead to wonderful growth of our businesses.

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Media disruption

New comms platform from Network streamlines newsagent communication

Network Services has streamlined its communications with newsagents and they are keen for feedback from newsagents. The new comms, Network News, takes a fresh approach at sharing information.  Here’s what they have to say about Network News:

Network have been doing a lot of research to try to improve their communications and one of the outcomes is their new Weekly Newsletter “Network News”.

Network News was designed by Newsagents for Newsagents. Over 600 Newsagents and influential industry partners have contributed to refining this promotional communication.

1. The main findings/changes in their research led to the below changes:

  • Reducing the number of emails (consolidating the majority of promotional emails into this single weekly form – reducing promotional emails by more than 40%)
  • Reducing the size of emails (changing formats and restricting image sizes – reducing size by almost 60%)
  • Making communications newsagent relevant (avoiding talking to the end consumer)
  • What is it?
  • Where should it sit?
  • What is special about the issue?
  • How is traffic being driven to newsagents?

Network have also included NETonline helpful hints that may benefit many agents.  Branded “Delayed Billing” products to ensure agents are aware which products aren’t charged straight away. Direct click-thru to more information or required page of NETonline.

What do you think?

7 likes
magazine distribution
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