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

Month: February 2014

Minister for Small Business speaks up on business funding

The federal minister for Small Business Bruce Billson on Thursday spoke at a G20 meeting on the need for easier access to funding for small business. Click here for the SBS report. Here’s what the Franchise Council of Australia reports the minister as saying:

“This inability to obtain start-up finance is a strong disincentive to those looking to start a business,” he said.

Minister Billson went on to question the practice of lenders often requiring the family home as collateral for business loans.

“ The Government wants this to change. A lending environment where families do not have to put their home on the line to obtain finance would lead to more entrepreneurship in Australia,” Billson said.

Small business owners will be pleased to hear these comments from a government minister and will hope that they are quickly followed with action. For decades we have had successive small business ministers speak up about our constituency. Rarely have their words been followed with action.

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Small Business

Should Curly Wurly bars be mandatory?

curlywurlyEmily Hall, a UK journalist, told her 1,667 Twitter followers overnight that all newsagents should be forced to sell Curly Wurly chocolate bars. David Johns, an ITV broadcast journalist rewteeted Emily’s tweet to his 777 followers. I responded to Emily and this was copied to my 521 Twitter followers as well as Emily’s followers.  I mention this to illustrate how tweets spread, how we can engage with Twitter to talk more about newsagents and newsagency businesses, to ensure our relevance to those using social media.  I also mention it to show how we can humanise who we are and what we do. Plus responding was fun. I love the Curly Wurly chocolate bars.

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confectionary

Putaways continue to offer newsagents a valuable point of difference

magsputaways44Here we are handling part 44 of the The Agatha Christie Book Collection part series and we have customers continuing to collect. While sales or partworks fall off a cliff after the first one or two issues, there is enough residual business and traffic to warrant our continued embrace of the opportunity. For us the keys to success with partworks is a structured approach and tight management.

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magazines

AWW Royals magazine not selling here

magsroyalsHaving not sold a single copy of The Australian Women’s Weekly Royals one-shot title in just over a week I’ve early-returned half what we received. We can put the space and the cash to better use in the business. This is a title that should be been supplied on SBR – enough for a pocket to start and more if sales justify.

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magazines

Tatts online sales up

A Research Note  just published by Credit Suisse reports excellent growth in online lottery sales for Tatts:

Online sales, which attract no agent commission, grew to 9.2% of total lottery sales

The report also forecasts an increase to retail commissions to reach a uniform national standard and reinforces the importance of the retail network to Tatts.

I’ve included a link here to the report with permission of Credit Suisse.

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Lotteries

Promoting to putaway customers

magputawaypromoHere is an image of a customer’s mobile phone showing the text they received about an issue of putaway magazine that had arrived in-store. Note the promotion of our ink sale on the text too.

Any newsagent can do this. It can even be done using off the shelf text messaging software outside of any newsagency software if you wish.

We embrace every opportunity possible to promote products beyond what a customer in engaged with us about – to extract more value from the contact.

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magazines

Helping newsagents promote WIN A CAR

wincarrecpMy newsagency software company is helping newsagents promote the WIN A CAR campaign with coupons on receipts. The image shows two examples.

Click here for the coupon with the QR code.

Click here for the coupon without the QR code.

Click here for the advice sheet on how to load these coupons to receipts.

To make the most of WIN A CAR I urge newsagents to promote in-store, on receipts, on their Facebook page, by email, on your business car and over the counter.

I appreciate that this blog is not a Tower Systems blog. I am using it this morning to share this information to encourage wide engagement in a marketing campaign that I know will drive sales. Other software companies offering coupons on receipts are welcome to share their information here too.

Click on the image for a large version.

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magazines

Promoting the WIN A CAR opportunity

winacarkn2This is one of the displays we have in place promoting the pacific magazines WIN A CAR opportunity. The collateral is strong, the opportunity clear and the range of participating titles good.

If WIN A CAR 2014 goes off like the 2013 campaign it will drive incremental sales for participating titles.

I am using the competition as part of our out of store marketing – to drive shopper traffic.

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magazines

Magazine distributor Gordon & Gotch harasses newsagents on payment

Gordon & Gotch this morning emailed a newsagent claiming that their account is overdue when there is still half a day left to pay the bill.  This is appalling treatment of this newsagent by Gotch, a company that does not provide newsagents with reasonable control over their level of indebtedness. I suspect others have received the same email.

Here is today’s email from Gotch to one newsagent:

Dear Customer,

We take this opportunity to remind you that your January 2014 account was due on the 20th of February and is now overdue.

Regrettably supplies to your outlet will be suspended unless payment is received promptly.

Please see payment methods below:

· Direct Deposit (Bank details) ANZ Banking Group,
Cnr Queen & Creek Streets Brisbane, QLD.
BSB: 014 002 Account: 7758 12207
(Please use your Gotch Billing account number as reference)

· Credit Card using GotchConnect Please note that only Mastercard and VISA accepted

If you require a copy of your statement, please log on to www.gordongotch.com.au to view / download.
For any queries or clarification, please contact your credit officer on 1300 650 111.
We thank you for your cooperation.
Yours Faithfully,

National Credit Department

Some newsagents actively discussing closing their magazine accounts down.

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Ethics

ANF seeks ACCC authorisation to negotiate with 100+ newsagency suppliers

The ANF has applied to the ACCC for authorisation to engage in collective bargaining with many newsagency suppliers. I first heard about this when I received notification as a director of newsagency marketing group newsXpress and then a second notification as a director of newsagency software company Tower Systems.

I know that some suppliers are surprised they heard about this from the ACCC and not the ANF. I agree with them. Lack of communication from the ANF reflects extraordinary disrespect of suppliers – suppliers it calls on to sponsor events and fund other activities. This will feed distrust among suppliers about the motives of the ANF.

Take my own position, for more than thirty years my software company has faithfully served newsagents. The relationship it has with its 1,900+ newsagent customers is sound and stable. I can’t see the ANF as having anything relevant to represent newsagents on. I am suspicious as to their motives.

Given its own commercial activities, my view is the ANF is conflicted in seeking this authorisation. The last information released indicated it was a shareholder in one supplier offering a broad range of products and services. I also understand it received commission or other compensation for promoting other products.  These commercial relationships challenge the position it could take in any collective bargaining.

Here is the information on the public registers page at the ACCC website:

The Australian Newsagents Federation is seeking authorisation in its own right and on behalf of its Member State Branches, the Newsagents Association of NSW and the ACT, and the Victorian Newsagents Association to engage in collective bargaining. The Federation proposes that a national bargaining group be formed to represent member newsagents in negotiations with a range of suppliers, classified by the Federation as:

  • Insurance brokers
  • Business opportunities
  • Drinks- non alcoholic
  • Phone Cards
  • Greeting cards and wrap
  • Stationery
  • Banks
  • Newspaper publishers
  • Magazine distributors
  • Marketing Groups / Franchises
  • Tobacco
  • Confectionary
  • POS Providers
  • Broadcast and communication service providers
  • Electricity providers
  • Transport companies
  • ATM service providers
  • Service stations
  • Shopfitters
  • Commercial landlords

The Federation notes that the suppliers as identified by the application may change over time. The Federation also proposes that local bargaining groups be formed to negotiate with suppliers in particular circumstances.

The ACCC is currently seeking submissions from interested parties. Submissions should be lodged at adjudication@accc.gov.au by 4 March 2014.

Given that the ANF has not communicated its intentions with suppliers, it would not surprise me if they had not communicated with their partner associations – NANA and VANA.

I deal with associations in a range of retail channels and this is the first time I have seen an association seek such authorisation. Other associations approach suppliers in a relationship-building way.

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Newsagent representation

Oops – stinky chocolate

choccandlesSaw this is a shop last week: Lindt chocolate placed with scented candles. I learnt from my own placement mistake many years ago to not place chocolate with scented products. I did mention something to the staff member at the counter but got the impression they did not care.

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confectionary

Here’s one way newsagents are driving magazine sales

winacarThe WIN A CAR promotion from Pacific Magazines is lifting magazine sales in some newsagencies I have spoken with this week. Some say customers recognise the campaign from last year. Others say it’s working because of their promotion. The simple message gets people browsing the titles and this is the first step to a sale.

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magazines

BBC making a documentary on tobacco and plain paper packaging

I have been contacted by a producer working with the BBC on a documentary about smoking and the tobacco industry, and one of the issues they are looking at is plain packaging. Here’s part of the email explaining the project and their need:

We are very interested to find out what the consequences have been for retailers.

We are filming in Melbourne in early March, and we would really like to film with a newsagent owner, to talk about how things have changed since plain packaging was introduced. For example: Are sales up or down or the same? What do the customers say about plain packaging and the graphic warnings. Is it worthwhile continuing to sell cigarettes?

Also we would like to film some visual footage of the shop layout – concealed tobacco products etc. Perhaps film re-stocking shelves, or shipment of cigarettes arriving the store.

The documentary is being made by BBC producer Michael Rudin and presenter Peter Taylor. It will be broadcast in the UK later this year. The UK is currently debating whether they should introduce plain packaging – which is why we hope to look at how it is going in Australia.

If this is something you contribute to please email me and I’ll pass your details on.

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Tobacco sales

Small Business stories aren’t sexy or emotional enough to make the front page

Even in their demise big business trumps small business when it comes to the news. I guess it gains more clicks and sells more newspapers to report on 1,000+ job losses at a big business than job losses of 1,000+ at 300 or so small businesses.

While the news in Australia is currently dominated with reports of the planned closure of various car plants and, now, the closure of the Alcoa plant, these are just part of the story of the economic restructuring occurring within Australia.

In several small business sectors we are seeing restructuring resulting in business closures and layoffs.

But let’s not dwell on the doom and gloom. In small business sectors we are seeing new business start and existing businesses expand. Even in the newsagency channel I am seeing new businesses open as well as existing newsagency businesses alter direction of their model in pursuit of new opportunities.

Yet media outlets are not chasing these turnaround stories, especially small business success stories. It is as of only bad news sells clicks and newspaper purchases. This is frustrating because there is plenty of good news in small business circles and in newsagency circles. Reporting these stories could show others opportunities they are missing today.

In the newsagency channel, one of the most compelling stories is newsagents who are transitioning their businesses from the average gross profit model of 28% to 32% to a model of 40%+. This is hard work. The results are exciting. It’s a story to report – the reinvention of the quintessential small business in Australia.

What makes the unreported small business success stories better is that most are achieved without the government handouts that successive federal governments have given to big businesses for decades.

The media and politician obsession with big business is frustrating.

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Small Business

Tatts equipment changes challenging SA newsagents

South Australian newsagents are in a world of pain at the sales counter as Tatts rolls out their new terminals. They are having to deal with the new terminals sitting on the counter next to the old terminals for weeks as the roll-out, commissioning and de-commissioning proceeds.

Newsagents in some other states will understand having endured the same process.

I wonder if Coles, 7-Eleven and other national retail chains would put up with such a disruptive roll-out process.

The impact on a newsagency business is considerable – reduced sales as a result of access to the counter being blocks, OH&S risks, elimination of a busy work area and the knock on effect of these including, in some case, having to hire extra staff to deal with required temporary operational changes – since work cannot be done at the counter.

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Lotteries

Free magazines in South Korea

skfreemagsA colleague travelling in South Korea sent this photo showing copies of Grazia magazine being given away. In the background you can see the bundles of magazines to be given away.

With an estimated 98% of South Koreans owning and using a mobile phone to access news,  TV and internet, it’s reasonable to speculate that giving away magazines is essential or whether it’s supplementary like the mX free newspaper strategy.

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magazines

Great visual merchandising tips at Gift Fair

tagtopmodelIn addition to offering excellent buying opportunities and connecting with new suppliers, the Sydney Gift fair also gave newsagents and other retailers a chance to see visual merchandising opportunities from a brand / supplier perspective.

Take the Top Model range from The Aird Group, I appreciated seeing the brand on show as you can see in the photo – how they grouped products, the branding and products we don;t carry today. This display helped Top Model stockists to better connect with the brand.

Top Model is an important brand for us as it it an opportunity for us connecting with one group of customers who might otherwise shop at a Smiggle or similar store.

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Gifts

Being a convenience newsagency involves more than putting in a drinks fridge

cstoresydThe traditional Aussie newsagency has all but disappeared from Sydney’s CBD. In their place, and in far greater number, we have convenience stores. It seems that every block of Sydney’s CBD has two or three convenience stores.

These convenience stores all look the same – they have (overall) the same range, the same prices and offer the same service.

While it would easy to criticise the convenience stores in Sydney as lacking an Australian-ness and not covering anything like the range in a newsagency, they own their space and serve a need. They must be successful given their number.

Thinking about these convenience stores and newsagencies that have taken on convenience retail yet retained a newsagency focus, I find myself wondering about the competitive positioning. Being a convenience store is its own thing: you are chasing shoppers with little time who are in your store primarily because of your location. While destination purchases are up, the mix of what you sell is very different that of a more traditional newsagency.

Newsagents competing with or considering competing with the growing number of convenience stores and their strong banner groups need to think carefully about their own business, they need to decide whether they fully embrace the convenience model opportunity. They need to decide if they are prepared to become a convenience store and stop being a newsagency.

While I am no expert in the convenience space, I don’t think it is something you can half do. You’re either a convenience focused business or not.

If you are a convenience focused business then it informs all your business decisions: ranging, pricing, displays, customer service. This is where the business plan would diverge from the traditional newsagency business plan, it is why newsagents who see themselves as operating a convenience business – in the true sense of that type of business – need to fully embrace it.

Now for clarity I want to note that I am not talking about newsagencies that are convenient because of parking. No, to me, a convenience business is one located for high volume foot traffic, open long hours – into the night – and covering a brand range of consumer products plsu with little or no emphasis on circulation product.

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Convenience retail

Nice Moshi Monsters promotion

magsmoshimonstersCheck out where you have the latest Moshi Monsters magazine placed in your newsagency. The free toast stamp with this issue makes it easier for driving impulse purchases. We have it with kids magazines and at kid height at the counter. This gift makes it easy.

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magazines

Are supermarkets carrying more plush?

colesplushIs it just me or are the major supermarkets ranging more plush in-store. I appreciate they carry more plush at seasonal times like Easter but it does feel like they have more everyday. Their prices are high for poor-quality product – nothing new there though. If only consumers would realise.

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Plush

Simple name change makes newsagency shopper loyalty offer more relevant

bonusbucksA simple change can make a good idea better.  Check this out – a newsagent started using the Discount Vouchers facility I have written about here before but theirs BONUS BUCKS.

This is a clever move, one that speaks in more clearly to the customer. The customer can see that they are being given a bonus and that the bonus is bucks … $$$. I reckon that is more meaningful than DISCOUNT VOUCHER.

I’ll try a couple of different names for myself – it’s easy to change on the voucher – and find out what works best with my customers, what they understand more quickly and therefore can engage with more easily.

Seeing the voucher labelled BONUS BUCKS was a reminder of the importance of speaking to our customers in a way they understand, a way that is more likely to guide their engagement. The more we can do this without having to explain what we want them to do the better.

If you think about it, the big retailers we compete with spend considerably explaining their loyalty offer or other promotions. We don;t have the luxury of the big business level of advertising spend. We have to achieve cut through via our actions and processes. hence the importance of what we can something like our discount vouchers.

If you are using discount vouchers or something like it, think about calling it something else. Your software should handle the change easily.

On the use of discount vouchers themselves, we are now a year in and I am prepared to say that in 18 years of owning newsagencies, this is the most financially successful loyalty marketing I have ever seen. Any newsagent can run it.

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marketing

The late Valentine’s Day shopper

valentineslateI love the late Valentine’s Day shopper for their purchases as much as their story. But you can’t ask the story so you have to hope they tell you. One guy yesterday said he didn’t expect a card as he’d only been going out with the girl for a few weeks. He bought the biggest card he could, because size of card compensates, and was working on his story. Every day we get to be part of different stories. It’s fun.

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Greeting Cards

Since drones are in the news

magshowitworksdroneWe are promoting How It Works to leverage recent news reports about drone use overseas and possible use in Australia. Growing magazine sales of these special interest / fringe titles is achieved by being obsessively opportunistic. It works – drives incremental purchases – more often than it doesn’t

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magazines