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

Month: December 2013

New Year resolution for newsagents

While the best personal resolutions are those we keep to ourselves and work toward without being all look at me, people and businesses with common interests can gain from sharing resolutions that serve our common goals. With this in mind, here are resolutions / goals I have for the newsagency channel for 2014:

  1. Achieve meaningful change to the newsagency magazine supply model.
  2. Encourage more newsagents to be engaged retailers and not shopkeepers or agents … to be more responsible ourselves for our own success or failure.
  3. Being more active in challenging newsagents who seriously let the shingle down and thereby negatively impact how shoppers view our channel.
  4. To enjoy the business more embracing that it’s my choice to own the business and my responsibility for what happens here.
  5. To rely less on suppliers for guidance of our future.

Please, add more resolutions that can serve our channel as a whole by us collectively engaging.

11 likes
Newsagency management

Correction on miss-reporting re Lotterywest

A senior media adviser to the WA Premier yesterday contacted me re my blog post about reports of a sale of Lotterywest being on the government agenda. Here is what they said:

Please note the State Government has not stated that Lotterywest is being considered for sale. The story you refer to on WAToday was incorrect. Comments from the WA Treasurer about asset sales were misinterpreted by the reporter.
We have made contact with the reporter and, where possible, the outlets that reprinted the inaccurate story to correct the report.

For your reference, I have attached the audio excerpt of the WA Treasurer’s interview on ABC local radio, where the discussion on asset sales occurred.

Here is the excerpt of the WA Treasurer’s interview:

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Lotteries

The perfect time of the year for trivia products

triviaWe’re enjoying good results from sales of trivia products as people stock up for New Years Eve parties and other gatherings to follow tonight.  This range is selling especially well to baby boomers and Gen. X. While there are apps on smart phones covering trivia, these card packs are preferred.

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Gifts

Promoting Girlfriend to holiday shoppers

magsgfWith shopping centres full of kids and teenagers it’s a perfect opportunity to shine a light on Girlfriend magazine. We have this impulse floor unit in front of the main magazine aisle. This placement will be seen by twice as many as would usually walk past or see the title. We’ll give Girlfriend seven days here.

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magazines

Dealing with the breach of privacy by magazine distributor Gordon and Gotch

Further to my post Friday about the breach of privacy by Gordon and Gotch with their publishing of email addresses of many newsagents they claim to be delinquent in paying accounts, The Office of the Australian Information Commissioner offers newsagents an entry point for complaining about the breach and requesting it be investigated. In the states where there is an active Small Business Commissioner you could also complain there.

Before complaining to the OAIC, you will need to complain to Gordon and Gotch. I’d suggest you put your complaint in writing to:

David Hogan
General Manager
Gordon & Gotch
26 Rodborough Road
Frenchs Forest NSW 2086
FAX: 02 9451 6157

I suggest a letter to Gotch documenting the breach of your privacy and asking what Gotch intends to do about the serious matter. Make note of the Privacy Act and that you consider Gotch has breached this.

If newsagents whose email addresses have been published tin the communications about delinquent accounts do not complain to Gotch about the breach the company has the opportunity to consider that it has done nothing wrong.

If you’re on the list and you think its too hard to do anything, think about how a supplier might react if they have access to this list of newsagents how have now been publicly tagged as being late at settling their Gotch account.

In my view, Gotch needs to right this wrong.

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magazine distribution

Ad covers barcode on Melbourne Bride

magsmelbournebrideIn a production blunder, the ad booklet for Rydges stuck to the latest issue of Melbourne Bride magazine covered the barcode.  The ad booklet is also falling off when browsers put the magazine back on the shelves. Part of the problem is the thickness of the magazine and the flimsiness of the ad booklet.

I’ve removed the ads because of the barcode issue and because they were getting trashed. Whoever is responsible for this Rydges ad booklet should reconsider this type of advertising. It doesn’t work.

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magazines

Zombies are hot!

magszombiestarsThanks to a slew of TV shows and movies, zombies are hot right now. We have achieved excellent sales of zombie-themed gift lines, toys and calendars. We’re trying to tap into that interest, somewhat obscurely, with placement of the latest issue of Australian Sky & Telescope to attract impulse purchases as a result of the Zombie Stars cover story. Okay, it’s a long stretch – hut someone in the fog of post Christmas cheer may buy a magazine they might otherwise not have given a second thought to.

For the record – I’m not into the zombie thing. The TV show The Walking Dead is not my taste even though I can do a good zombie impersonation after a drink or two.

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Impulse lines

Magazine placement fun

magsplacementI mucked around a few days ago and put Fortean Times with the Ghost story for Christmas cover story next to Time with the Pope on the cover as their Man of the Year. I had a laugh to myself (yeah, small things…) and was about to put them back in their positions when a customer told me I should’t make fun of the Pope.

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magazines

Sunday newsagency marketing tip: host a singles dating event

This is a crazy idea that could just work. Open your newsagency one evening for a singles speed-type dating event. Get guys browsing their areas of interest or areas they thing reflects who they are and then bring the girls in to check them out.  Or vice versa.

In our magazine and card departments we have excellent segmentation of interests to help facilitate such an event. Change the lighting to create a mood and put on some food and drinks.

This could be a unique event that could be loved by the community. It could also get you coverage in the local media.

If I had a newsagency in a country town I’d certainly try this.

Footnote: this idea resulted from something I saw in my newsagency Christmas Eve. A couple in their forties came in holding hands. The lady asked where our surfing magazines were. I took them to the section. She told me that they met surfing twenty years ago and every Christmas since she’s bought him a  surfing magazine.  I wanted to hug them. What a tradition!  It made me think about how people connect around common interests and newsagencies are good retailers for serving those interests.

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marketing

Sunday newsagency management tip: reconcile your bank account regularly

A newsagent recently told me that they reconcile their accounts with their bank account every six months when their accountant does their books. This is crazy. My recommendation is that you reconcile your bank account at least weekly and preferably daily if you bank daily.

By reconcile – and as someone without any accounting training – I mean reconciling all income as recorded in your computer system to your bank statement and your computer accounting records. This work should be done by you or someone you trust but who does not have control of the cash in your business. It does not need to be done by your accountant – despite what they may say.

A newsagent discovered employee theft earlier this year that had gone undetected for several months because they did not regularly reconcile their bank account to daily takings records.

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Management tip

WA State Government confirms sale of Lotterywest to be considered?

Even the discussion of a possible sale of Lotterywest that we have seen recently is disruptive to newsagency businesses and their plans – as we saw was the case in the lead up to state owned lottery enterprises elsewhere in Australia.

While WA Today reported on this prior to Christmas, it really only reached the radar of newsagents over the last couple of days thanks to Twitter.

I expect there will be considerable lobbing from newsagents, community groups and others calling for the government to retain ownership of Lotterywest for the benefit of the community. You only have to look at Lotterywest’s approved grants page to see the valuable community connection. I’d be surprised to see this continue under private ownership.

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Lotteries

We’re selling plenty of fans this summer

fansThese fans are a perfect product to have at the counter. In the lead up to Christmas and since we have had customers purchasing two and three at a time. What really makes the fans a business hit is that they are bought on impulse. They drive margin dollars per sale and push the business overall to an above average gross profit performance given the GP we have on them.

The display unit is excellent – it explains the product well and makes merchandising easy.

We have been on a mission to drive impulse purchases for some time as part of our business plan to deliver a better than average overall gross profit performance for the newsagency. It’s a thrill to see it working.

I write here about only a few of the impulse items we have success with. In many cases the items that work best do so for some local reason. This is where we need to be the best retailers possible – to create our own success.

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Gifts

Showing off the free gift with InStyle

magsinstyleWhile the latest issue of InStyle magazine is a challenge to display we have been driving good sales with a half waterfall and with a copy placed above the displays showing off the free beach bag that comes with this issue.

We will sell out of this issue without a doubt and having the bag on show will be key to achieving this. The gift is perfect for the Australian summer and the Melbourne weather is helping there.

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magazines

Extraordinary breach of confidentiality by PMP’s Gordon & Gotch

Gordon and Gotch, the magazine distribution business owned by public company PMP today breached the confidentiality of many newsagents by disclosing email addresses of all small business newsagencies that it claims are in arrears with their accounts.

I was sent a copy of the email by several newsagents and the email list appears to be different – making it hard to see the extent of the security breach by the company. The lists, in the wrong hands, could be detrimental.

I have reached out to senior management of Gotch, a lawyer who fights for justice and a shareholder activist.

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Ethics

Post Christmas sales are not for amateurs – we need rules of etiquette for shopping mall shopping

The pre and post Christmas rush, crush and tumble in shopping centres is enough to test the nerves of even the most hardened retailer and most experienced shopper. It’s the shopping amateurs who make it difficult, the people who shop less than ten times a year who slow us down and detract from our experience. yet it’s these people we crave as they spend big when bedazzled by the bright lights of Christmas retail.

What to do? How to deal with these retail amateurs?

Here are my rant and rules for amateur shoppers and the busy retail season generally. Feel free to add more – it’s therapeutic.

  1. You are not alone. The shopping mall is a shared place, not your private dream factory. Be awake and aware. You are not alone!
  2. Shop with a purpose, always have a destination. Dawdling through the centre blocks those of us on a mission.
  3. Keep to the left. This is Australia people! Follow the road rules.
  4. Faster walkers, keep to the right.
  5. Imagine there is a line in the middle of the mall. The people on the other side of the line (double yellow lines in fact) are walking in the other direction. Yes, just like on the road. Get it?
  6. If three, four or more are walking together, walk behind each other not across. The blockage created while you talk to each other ruins shopping for the crowd swelling behind you.
  7. I like that couples hold hands but be considerate when the centre is packed, let people separate you from your loved-one for a second while they pass. Your loved-one won;t run away!
  8. Shopping centres should have a foot traffic lane for people who work there – so they can avoid the slower shoppers.
  9. Walk in a straight line. If you want to cross the mall, indicate, look left and right – DO NOT JUST DART OUT IN FRONT OF SOMEONE CARRYING MORE THAN IS HUMANLY POSSIBLE AND CAUSING THEM TO FALL.
  10. Know how much your purchase will be if you are buying five items or less and have the money ready to go.
  11. No, don’t lick your fingers and then fondle your $5, $10, $20 and $50 notes with your saliva enriched fingers. You might as well spit on my hands.
  12. Towels and other cloth items in retail shops are not there for your use. People want to buy them and use them. I know that might seem strange but it is how the world works.
  13. When I advise that your credit /eftpos card has been declined it means it has been declined and you should try for another method of payment. I am not your bank, I did not decline your payment.
  14. If you want to use your loyalty card in a store, have it ready – don’t wait to be asked and than cause the people behind yo to wait while you go through your pathetic I know it’s here somewhere routine. It’s not funny.
  15. Shower before shopping. Please.
  16. Clean your teeth before shopping. I don’t need to know what you had for dinner last night.
  17. Do your hair. You’re shopping. This is meant to be relaxing and entertaining. Messy hair is scary and it can be a habitat for nasty things.
  18. Wear shoes. Okay, yes, it is Australia where shoes are, apparently, optional and, yes, it is summer, except in Melbourne where Crown Casino runs a book on the weather season of the day, but shoes are important. They stop you shedding your DNA everywhere. Plus they stop you getting hurt when I step on your toes.
  19. Don’t talk to me with food in your mouth.
  20. Cover your mouth when you cough.
  21. Turn away from me when you sneeze.
  22. Yes I know you like to wear a g-string and yes, I agree, it’s pretty. No need to flaunt it by bending over at every opportunity in-store and out in the mall.
  23. Over-buffed muscle-mary guys: I get it that you work out and have an amazing body as a result. yeah, it’s a shrine of beauty. But, hey, cover up. You can look in the mirror at the gym and at home all you like.
  24. No, guys, scratching yourself, inside your shorts is not okay – especially when going commando.
  25. No uncles, grandfathers and friends, it is not okay to show young boys the girls of Zoo as part of their education.
  26. No, it’s not okay to put your empty drink container on the shelf in my store and leave it there.
  27. The food court is for eating food. Get it? Food court. My shop is not part of the food court.
  28. My shop is not a public toilet. If your kid urinates, clean it up yourself.
  29. No, you cannot change your baby on the floor of my show and NO YOU CANNOT GIVE ME THE USED NAPPY FOR ME TO PUT IN THE BIN!
  30. If you ride into my shop on your ride on scooter I expect you to have the driving skills to get yourself out.
  31. Of course it is your fault if your overloaded shopping trolley knocks over a display. It was your choice to bring it into the shop. be responsible people!
  32. Yes, you do need to pay for the wine glass that just happened to fall out of your hand while you fed yourself chips from the tub in your other hand.
  33. No you can’t use my phone to call your wife to come and pick you up.
  34. This is not a babysitting service. Your kids are your responsibility. That’s what parenting is about.
  35. I really don’t know if she will like it. If you ask me in my shop I will always say yes. I want the sale.
  36. I don’t care what they charge, our price is our price based on what we buy it for. Yes, I know they sold out. How is that my problem?
  37. No, you don’t need a bag for the newspaper.
  38. Open your eyes. This is a newsagency, not centre management.
  39. That smile I have while you search your purse to give me exact change down to the five cent coin is fake. I hate that you do that. It’s not as if five cent coins are being phased out yet. You will get more. Giving me the one in your purse will bring you only fleeting relief.
  40. No you can’t photocopy a recipe in the food magazine.
  41. Bratty children are not cute. Be the parent.
  42. Newspaper customers, wait to pay if we’re busy. It’s rude to throw money at us and leave. You wouldn’t do it at a supermarket.
  43. I love that you’re talking to a friend on the phone but, hey, I need to talk to you to complete the sale – if you don’t mind.

Car parking, well that’s a whole separate topic.

Before you think I am a bitter and hate-filled retailer in need of retirement … while there are some truths in what I’ve written, it’s mainly in fun … oh, and therapeutic.

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Fun

What a day! Boxing day success in the newsagency

Boxing Day customers are the best! They are full of Christmas cheer and they are thrilled to bag bargains. Average basket value today was excellent with most people buying five or more items. Boxed cards lead in popularity followed by Christmas decorations.

Our decision to offer everyday plush at 25% off worked a treat with excellent results for that category. We offered this discount for one day only as a bonus for those out shopping on Boxing Day and in the knowledge that introducing shoppers to our plush range will bring them back.

These are deliberate moves we made – to achieve short-term and medium-term business outcomes. We approached today not only to move stock but to introduce our business to people who may not have shopped with us previously.

A bonus was the add-on purchases of magazines and greeting cards – we’re ahead of a usual Thursday.

Success in a newsagency business in 2014 will rely more on decisions taken by the management of the business than ever before.

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newsagency marketing

Christmas is over, let the sales begin!

For some retail newsagents today, Christmas is over. They will either be at their shops by now or heading in to be ready for the Boxing Day Sale.

For those of us in a shopping centre with major tenants embracing the Boxing Day Sale opportunity, today and the next few days could be huge. Indeed, for some I expect it will be bigger than Christmas.

We have bought stock especially for the sale starting today. We are able to offer this at a substantial (30% to 50% off retail) and still make over 50% gross profit. This is the key to making these sales work.

We’re not advertising externally except through a customer email campaign which went out yesterday. Being in a  centre, we can rely on their marketing and the marketing of the majors to bring in the shoppers. Our job is to get them into our shop and buying.

The shop floor is being reconfigured this morning to sale mode: gone are the Christmas displays. This is all about moving product so value is the key. We are using several discount points to attract shoppers – Christmas cards and wrap – 50% off; Christmas specific gifts – 50% off; other gifts – 25% off; plush (today only) – 25% off; calendars – 30% off and several super-special lines we want to move vast volumes of – 50% off.

We would not usually discount calendars yet but with sales barely the same as last year we want to quit the category as we need the floor space for faster moving lines.

Every customer will have a reason to come back thanks to the discount vouchers they will get on their receipts. We’re out to retail some of the new shoppers we will see and get more $$$ from the out of town shoppers visiting our area.

We will ensure that people walking past don’t see us as a traditional newsagency. We will be a fully engaged part of the Boxing Day sale phenomenon. While the first day is vitally important, the event will run ten days to two weeks. We have stock that will enable us to engage for the duration.

If this year is like previous years we will see benefits for non-discounted categories like magazines and everyday greeting cards.

Our sales target is to match our December 1 – December 24 year on year overall growth of 10%.

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Newsagency management

A very busy lead up to Christmas

With the last sale completed and the shop all packed up for at least one day off, many newsagents will be reflecting tonight on a strong pre-Christmas season.

Early indications are of good year on year growth for city, country, high street and shopping centre newsagencies – especially in the last two weeks.  Christmas cards have been very strong as have been gifts. Magazines have benefited too with sales up year on year in more than half the stores I have seen data from.

Several newsagents I have spoken with have declared that sales are back to the good old days. While I don’t think that will every happen – as we have moved on from what a newsagency used to be – I am more certain than ever that we make our own success as much as we make our own failure.

It’s been a thrill this Christmas to see experimental product moves succeed and an opportunity to learn from those that have not succeeded.

6 likes
Newsagency management

Customers love the Hallmark countdown

countdownI saw a kid getting their photo taken next to the Hallmark Christmas countdown we have out the front of the newsagency today. Especially in the last week the countdown works a treat at signposting cards and providing interactivity with younger shoppers.

Hallmark does this well and have done for many years.

3 likes
Greeting Cards

It’s like we’re in a foreign land sometimes

We’re seeing many out of state shoppers with people on the move for their Christmas holidays. It’s fun watching and listening to them. Often I pick up tips, especially the things they like. These non-regular customers are a delight.

On the weekend a mum and her 10+ daughter were shopping with us and asked to buy an instant scratch ticket. I said we don’t have them. What newsagency doesn’t have lottery tickets? the mum asked. I explained there was a kiosk nearby. What’s a kiosk? the mum asked. The young girl pulled away from a surprised mum and ran to a group waiting outside yelling they don’t have lottery tickets they don’t have lottery tickets. I stood there looking for the hidden camera.

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Newsagency challenges

This perfect impulse line brings out disgusting behaviour at the counter

ringplasticThese small plastic rings that light up sell easily at the counter. Kids eyes light up when they see them. They are a perfect counter line.

Two days ago a male customer in his late seventies was belittling his female companion, aged in her late thirties. I heard him snap get over here – that’s when I noticed them. At the counter while the he bought a card, she noticed the rings.

It’s what happened next that shocked me. After completing the card transaction he asked how much the plastic rings were, I told him and he bought one. The lady put a ring on her finger and beamed a wide smile. The guy turned to me over his shoulder as he walked behind his partner and said: that’ll keep her quiet as he rolled his eyes and raised his eyebrows.

You see some awful things in retail some days.

6 likes
Gifts

Shock as Network Services is guilty of magazine oversupply again!

magsnetwv8V8X Supercar magazine failed the last time we had it in 2011. Network Services responded to the failure supplying the title to us recently as a volume three times the failed 2011 supply.

This scale out by Network doesn’t many any sense.

The Bauer controlled Network expects newsagents to pay their accounts on time yet they do not provide newsagents with reasonable levers with which to control their level of indebtedness. Network misbehaves on a daily basis, lumbering our businesses with unreasonable debt and insufficient tools with which to mitigate the situation. 

7 likes
magazine distribution
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