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

Month: May 2014

Sunday newsagency marketing tip: write a letter

While I understand the focus on using social media, email and other technologies for marketing your newsagency business, let’s not forget the good old letter mailed through the postal service.

A well written letter pitching your business could get people thinking about you. better than that, it could get them through your front door.

If you have a customer database – and you should! – use it two or three times a year to write to them. here are some letter options:

  1. Saying thank you.  I short letter saying thank you to your customers is excellent use of a letter. Include a voucher for their use next time they shop.
  2. Launching a new range. if what you have is genuinely new, write to let your customers know and invite them to see the range first-hand.
  3. Supporting a community group. A letter asking your customers to support an event connected with a group your business supports is excellent use of a letter.
  4. Standing for something – like SHOP LOCAL! A letter gives you space to explain why shopping local is important to the community and those who live there – more so that a poster or a slogan on a bumper sticker.

A letter can be an effective marketing tool – more so that than a few years ago when it was used more often by business.

Start writing!

5 likes
marketing

Using the Hallmark AFL card range to highlight rivalries

aflcompetitionThe Hallmark licenced AFL card range is selling very well for us. We are pushing it with placement of a stand at the front of the store and placing cards for rival teams next to each other – like the Carlton and Collingwood cards.

What is interesting about these Hallmark AFL cards is that they are purchased not only by people giving them to someone based on the team followed by the recipient but some are also purchases because the recipient hates a team with a passion. This secondary market – based on a team a recipient hates – is strong. It is an opportunity we suggest with success to customers looking for a card.

We can grow card sales in our newsagencies with current product, placed tactically and pitched through shop floor engagement with customers.

5 likes
Greeting Cards

Promoting George on Who cover

georgeThe news of the George Clooney engagement was timed perfectly for the cover of Who magazine this week. We’re making the most of the opportunity with full cover placement at the front of our weekly magazines. This placement also makes our weekly titles offer look fresh.

2 likes
magazines

The genius behind Mad magazine dies

Al Feldstein took over a struggling Mad magazine in 1956 and made it arguable the best humour magazine ever. That’s certainly my view. Mad was the first magazine I can recall reading. When I worked at Pakenham Newsagency while still in high school it was the one magazine I’d read regularly. I loved it.  Spy vs. Spy, the back page fold ins and other features were things to read offer and over.

Feldstein died recently. The New York Times has an excellent obituary.

9 likes
magazines

Newsagency performance analysis highlights the value of pursuing change

Here’s a report I did for a newsagent recently assessing the performance of their rural business. This is an interesting newsagency business because of the transition path they are walking their business through and the wins they are achieving as a result.  here is what I wrote to them:

Overall, the figures are good despite their being a revenue decline as you are transitioning the business to a higher margin offering as evidenced by your excellent growth in gifts.  It’s important you see these results as the next step with more steps to go.
Your overall traffic is down 7% yet your revenue is down 5%. This reflects an 11% increase in items per sale. The key to growth in profitability for a newsagency today is growth across a range of measurement points: traffic, items in the basket. GP per sale, operating cost per $ earned and labour cost per $ earned.
Based on the data in your reports there are several ideas I’d work on if I were you:
  1. Weekly magazines. These account for 42.55% of all magazines you sell and they are down 9% year on year – not far off your overall traffic decline. I can see you started discount vouchers recently. I expect that this will help lift weekly magazine sales. The program usually takes three months to settle in. That said, you need to look for more that you can do to drive weekly magazine sales: make sure they are located in a couple of locations, engage in a front of store promotion, use your other marketing tools to pitch the category.
  2. Other magazines. Look at what you can do to drive these so that you are not as reliant on weeklies. For example, are your men’s titles well located and well promoted. Do men have their own area? they like that.
  3. Lotto. Your growth is excellent. Are you doing anything to leverage lotto traffic for other product categories to drive efficiency from the lotto shopper? What do they see on the way in and on the way out? What do they see at the counter?
  4. Gifts. You’ve gone from selling 92 last year to 412 this year. Stick to your patch, keep expanding based on what is working. But use small steps to stay within budget.
  5. Ink. Your entry into this category is an excellent start-up success. 106 cartridges in your first three months shows you can expect to have sales of $15,000 a year or more from this category. Take care with buying – to stay within the brands that are working for you.
  6. Drinks and confectionery. Your sales growth is excellent and this makes me wonder about a margin opportunity. Could you increase your prices of selected popular items slightly to make the convenience of your offering more valuable to you?
  7. Stationery. This appears to be a transitioning department for you with a significant sales fall. Or, are your eyes off the ball?  Take a look at the numbers and see what you can do to lift. Location? Range?
  8. Plush. Wow. A new product category and you;re doing over $100 a week. As a ratio of plush to cards – you’re in good shape. I suspect you have plenty more growth ahead.
  9. Cards. Your data suggests more work is needed to settle the recent changes in. Is the range ideal? Do you have good price points? Are your staff well trained in selling cards?  Have you considered promoting cards off-location – i.e. to your excellent lotto and magazines traffic?
You should be proud of how 2014 has started for you. I think you have an excellent rest of the year ahead for you.
7 likes
Newsagency benchmark

FIFA World Cup ad promoting newsagents

Check out the TV ad promoting newsagents as the go to retailers for the Panini FIFA World Cup Sticker Collection that goes on sale next week in Australian newsagencies.

They have also been promoting the stickers through social media – again pitching newsagents as the go to retailers.

The stickers are distributed through Network Services.

This is a great opportunity for us.

5 likes
Newsagency opportunities

Day five of a five-day back to basics newsagency management challenge: marketing

This week I am shining a light on five back to basics areas of our newsagency businesses over which we can make a difference for the good of our business and the benefit of our customers.

By back to basics I mean parts of our business that define us and can separate us from others.

Today, I want to challenge how you market your business.

Marketing to me is promoting your business outside your four walls in pursuit of attracting new traffic. Marketing is essential to the financial health of any retail business. Get it right and you make more money. Get it wrong and you have a cost with no upside. Do nothing and you could see your traffic decline and at some point wonder why.

Businesses we compete with, such as supermarkets, national stationery outlets as well as gift shops all have marketing benchmark budgets. Newsagents have not had this but it is time we did. In my view, a newsagency marketing spend benchmark should be that we spend at least 1% of our retail turnover (including agency product commission) – as a minimum marketing benchmark.

Many of our competitors would have a 2% of turnover marketing budget, some even more.

Marketing spending would include: marketing group fees, advertising, comity group sponsorship and payment for visual merchandising services.

So, how much do you spend marketing your newsagency? If it is less than 1% of turnover then it is not enough.

Depending on where you get your marketing advice you could also tap into free marketing opportunities such as social media like Facebook, Twitter, Google +, Instagram and Pinterest. Then there is your vehicles, your shop window, flyers put in local letterboxes … many activities where the $$$ spend can be low and balanced by a labour investment.

Marketing is a simple equation. Spend more and get more. Spend less and get less. Do nothing and you fall behind.

Whereas in the past newsagents could rely on some products to generate traffic, today’s landscape requires our active engagement in marketing.

So, how much do you spend marketing your newsagency? If it is less than 1% of turnover then it is not enough.

The goal of this series of back to basics newsagency management advice is to get you revisiting parts of your business that you may not be paying enough attention to. This should help imporrove basket size, drive traffic and get you better engaged with your newsagency business.

If your business declining this is more likely to be through your action/inaction than any external factor. Own it, crash through the issues and plans for and build a stronger business. It can be done.

7 likes
marketing

The most amazing Hong Kong Gift Fair

giftfairI got back to Australia yesterday after a busy few days this week at the Hong Kong Gift Fair. With more than 4,000 exhibitors and 100,000+ attendees, this was a busy fair. There were plenty of newsagent suppliers there as well as some newsagents.

The fair is an excellent opportunity to spot trends. For example, whereas three years ago when many of us were stocking our first interactive products, the Fair that year had little interactive product. This year, many companies had interactive products – showing to me that what was unique then is now everyday.

I saw plenty of innovative products and got to talk with suppliers of some products that a few years ago newsagents would not have stocked.

What is clear is that gifts as a category is broader now than ever before. This is both exciting and challenging. Exciting because we have plenty of places in which to play and challenging because we are really only just starting out in this product category.

While I appreciate that getting to the Hong Kong Gift Fair is difficult for many newsagents, it is worth it in terms of the inspiration, advice and opportunities you encounter.

2 likes
Gifts

Selling guns is retail

gunshopI know of a couple of newsagents who sell guns but not automatic and semi-automatic weapons like I saw in the window of a gun shop I visited earlier this week. They, they had what looked like everything you’d need for a private army. Some pretty crazy stuff.

Once I got over the shock of the weapons on show in their window I found myself critically appraising their lack of good visual merchandising. retail is retail after all.

2 likes
Ugh!

Gamers are loyal magazine shoppers

minecraftComputer nerds, geeks and gamers love their magazines so I was pleased to see we had the How To Do Everything In Minecraft magbook. It gives our IT section greater credibility in my view. We have it on show front and centre in this section since our biggest magazine competitors do not have the title.

0 likes
magazines

Promoting Country Style

countstyleWe are giving there latest issue of Australian Country Style magazine extra attention over the weekend because of the Crabtree & Evelyn moisturising hand cream gift with purchase. It’s a well-targeted gift that should drive sales. I noticed it being given extra attention in a couple of supermarkets yesterday.

2 likes
magazines

What’s in the National Commission of Audit report for newsagents?

The National Commission of Audit report was released in Canberra today and like any special interest group I expect newsagents to be asking what’s in this for us, how will we be affected.

It’s the call for flu privatisation of Australia Post that plays closest to our backyard. While I am all for a privatised Australia Post, especially their retail network, the impact would depend on how it’s done. On the retail network, for example, I’d give first right to local newsagents to acquire. But I doubt that will happen.

The Audit Report itself is what you’d expect from economic conservatives. The commission was put together in a highly charged political climate and backed by shrill about a budget crisis that is more fiction than fact in my view.

5 likes
Australia Post

Day four of a five-day back to basics newsagency management challenge: customer service

This week I am shining a light on five back to basics areas of our newsagency businesses over which we can make a difference for the good of our business and the benefit of our customers.

By back to basics I mean parts of our business that define us and can separate us from others.

Today, I want to challenge how you on customer service.

When I speak at conferences and workshops I often ask newsagents what their most important points of difference are. The two most common points of difference voted by newsagents are community connection and customer service. These responses reflect the perception of newsagents. Today I want to challenge whether, when it comes to customer service, what we really offer is a point of difference.

  1. Do you greet shoppers? More and more of our competitors are doping this. While traffic, labour cost and average spend may challenge the financial model of a greeter, the service is a customer service benchmark.
  2. Do you reward loyalty? If not, you’re not meeting today’s minimum customer service standard.
  3. Do you offer a gift wrapping service?
  4. When a customer asks if you have something do you tell or do you show?
  5. Do you bring back-office challenges to the shop floor?
  6. Do you provide product service and care info? If you sell gifts this is becoming essential to good customer service.
  7. What’s better about what you do compared to those who compete with you?

This last question is the most important when comparing our customer service offering with retailers offering greeting cards, magazines, newspapers, lottery products, stationery and gifts.

There really is nothing truly unique that we sell as a channel so customer service is crucial in attracting customers back. hence the question: What’s better about what you do compared to those who compete with you? Answer this through positive actions in your shop and you will be known for excellent customer service and return visits will reflect your commitment.

Newsagencies losing customers could be doing so because of poor customer service. It’s something to think about.

We have to challenge ourselves more than our competitors if we are to grow our businesses.

The goal of this series of back to basics newsagency management advice is to get you revisiting parts of your business that you may not be paying enough attention to. This should help improve basket size, drive traffic and get you better engaged with your newsagency business.

5 likes
Customer loyalty

Clever leveraging of magazine brands

magpurseI love these quality handbags that look as if they are made from recycled magazines. Very clever. Very eye catching. Priced at around A$10.00. The photo shows just two of a large range I have seen this week.

While I am sure there are intellectual property issues, I could see a range of the right titles selling well in newsagencies in Australia. But I suspect we won’t see it because of the IP challenges.

4 likes
Gifts

A great reason to promote Popular Science

pipsciThe Nick Offerman cover on the latest issue of Popular Science magazine is an excellent reason to give this title time in the spotlight. He’s a man of the moment in comedy and entertainment circles for a demographic connected with newsagencies.

It is this type of cover that can get people browsing and buying Popular Science who would usually not give it a second glance. I’d even put this issue with weekly magazines.

1 likes
magazines
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011