News Corp. needs to treat all retail newsagents the same
The bundle offer pitched by News Corp. is good in that is offers newsagents something fresh to pitch. Unfortunately, News is not pitching it consistently in the channel as it does not have direct relationships with all retail newsagents through which to track engagement and manage the accounting side.
As I expect to see more retail offers News needs to sort out its engagement with retail only newsagents who do not have a direct account. Fix this and more will engage I am sure.
How the tables turn – newsagents become the threat to niche retailers
I have been part of a discussion elsewhere over the last few days where a number of independent niche retailers are criticising newsagents for moving onto their turf.
Passions have run high in the discussion as the niche retailers and their fans have pilloried newsagents and claimed we don’t have the same care for their customers. There was anger as the niche retailers did not realise that some newsagents have been on their turn for over a year.
To an outsider, the newsagents now competing with the niche retailers are evil.
All through the several day discussion I felt on the wrong side as it is usually newsagents who are critical of others, like supermarkets, encroaching on their traditional turn. It felt odd.
Now, after the discussion has calmed down, it is interesting to look back with some perspective, to consider if there are learnings.
Reading the text of the discussion I am surprised at the lack of facts used to attack the newsagents encroaching on the niche retailers. Emotion is high in the comments, well ahead of facts. I think the niche retailers could have made a stronger case had they got their facts right as there are other factors at play besides newsagents taking on the products. For example, the active role of a key supplier.
I wonder if newsagents and the complaints we make about supermarkets could benefit from a focus on facts ahead of emotion. I certainly think it is true when we engage in the issue of shop local or the issue of lotteries in supermarkets.
The facts in any argument support the why. If we simply say shop local we are not making a case. The same as if we say we will close if supermarkets get lotteries we are not making the case. If we say shop local and here practical reasons that affect you, we cover the why and make a stronger case. Or if we say don’t give supermarkets lotteries and here is why we make a stronger case.
We support too many arguments with an emotion and not facts. Maybe if we stick to the facts and bring our case back to the why for our customers we could have a better chance in making our case. But if we look at magazine oversupply we all know that no amount of facts are fixing that for us.
The experience of engaging with the niche retailers who feel threatened by newsagents has me looking at making the case from the other side. It is interesting and fascinating all at once. I think we can make a better case on a range of competitor issues.
How many new magazine titles from Bauer this month?
One newsagent told me yesterday they had received 27 new titles from Bauer Media’s Network Services this month and two reintroduced titles. 27 new titles is nuts. Performance data from the business does not support this expansion.
The result is cash, time, space and paper wasted as well as competitive disadvantage for the newsagent and, I suspect, plenty more like them in the channel.
At some point there will be newsagents who shut down their Bauer account believing it could be the only way to stop gross oversupply by the company.
Fair Work Ombudsman acts on Kennys Cardiology
Inside retail reported on action by the Fair Work Ombudsman against the operators of Kennys Cardiology.
The Fair Work Ombudsman has taken the rare step of seeking an injunction restraining a retail operator from underpaying her employees.
The move, in the Federal Circuit Court, comes after the agency received further complaints from young, vulnerable workers.
This report is a timely reminder to all retail business owners to ensure you are paying what is required. This also applies to newsagents employing family members.
Yes, newsagents can sell gifts priced over $20
I can’t sell gifts over $20. This is a common comment I hear from newsagents when I talk about the need for us to explore new product category opportunities at price points of $100, $200 and more.
In Cairns a week ago a newsagent made the comment at the Newsagency of the Future session. I accept this is their experience and the experience for many newsagents.
I think any newsagent can sell gifts and other items priced at $20 and more, much more. It is not easy and it does not happen overnight, but it can be done if you follow a process.
It starts with having products people expect to pay more for. This means buying from suppliers you have not dealt with in the past. It also means displaying and promoting them differently. It means making your business look and feel more like the type of business where the more expensive items are sold.
If you place gifts priced at $20, $200 and more in a traditional newsagency alongside cheaper items they will not sell. If your visual merchandising of more expensive items is old school newsagency VM, the expensive items will not sell. If you do not promote the new lines outside your business to people who do not usually shop with you the more expensive items will not sell.
Success with more expensive items starts with you approaching the opportunity with a fresh mindset, unlike anything from your history in your business. It starts with you understanding your target shopper: what they like, how they buy, what matters to them and how far they will travel to buy.
While it would be easy to list here for you more expensive items you could carry in your business to get you thinking, my experience is greater success is achieved by those who sort out this for themselves based on their situation, available capital and preparedness to embrace change in their business.
The core reason newsagents need to address this is: there is no upside in low price point low margin retail unless you significantly increase volume and that is a whole other challenge. Selling more expensive better margin products can deliver a better bottom line result.
Can you sell items priced at more than $20? For sure, any newsagent can.
This question sits at the heart of how you see the future of your business and whether you have the capacity trade through the opportunity of change in the disruption impacting the newsagency channel today.
Bauer increases Homes+ supply for no reason
Here is evidence of more overloading by Bauer. Not one issue of Homes+ has come close to selling out since October 2014 yet they increase supply by 20%. This from the company that says it supports newsagents and wants to help us make more money from magazines.
Their actions do not match their words.
Using Lorde to attract new shoppers
Lorde on the cover of the latest issue of Vogue Australia is an excellent opportunity to promote this title and your newsagency on social media. A boosted post with a photo of the cover and mentioning Lorde in the text will get your business in front of more people. This cover is an excellent opportunity for you finding new traffic.
In store – place this title next to Frankie, Yen, Peppermint, Russh and others like these.
Promoting AWW in the newsagency
Here is one of three placements we have for the first week on on-sale of the new Australian Women’s Weekly issue. I mention this to publicly demonstrate our support for the title, to balance my criticism of Bauer for loading with more stock despite a history of average sell through.
Sunday newsagency marketing tip: invite customer reviews
Leverage the opinions of your customers to shine a light on products you sell. Ask for their reviews of items and place the reviews on your Customer Reviews noticeboard.
Your customers could review magazines, cards, gifts – almost anything you sell.
In addition to putting the reviews on a noticeboard, post them on Facebook and other social media platforms – reach outside your business and show how you listen to your customers and make them an integral part of your business.
Don’t rush into this idea. Take your time. Think about it in the context of your customers. Plan. Get your team on board. Come up with a way for people to participate easily. Make sure you have the right place to display the reviews.
I suggest you focus on one product category to start, to focus attention in a way that works commercially for the business. Once that has run for a while, take a break and then review something else.
Sunday newsagency management top: your end of financial year to do list
Here is a list of things you need to do this week with the new Financial Year kicking in on July 1:
- Take a backup at the close of business on June 30. While not all software systems will require this, it is better to be safe. Store the backup off-site. Ensure it is labelled.
- If you use stock control and manage stock well through the year, run a stock on hand report and save this as a PDF for your accountant. The ATO will not require a stock take.
- Review your stock performance report and set out a plan to quit dead stock (for me that is stock not sold in six months at the eldest).
- Ensure your payroll records are up to date.
- Issue group certificates.
- Make final superannuation payments.
- Submit your BAS.
This is also a good time of the year for a whole of business review leading to the refinement of your strategic plan for up to two years out.
Make the most of this Who cover
The James Packer / Mariah Carey romance story in the latest issue of Who magazine is an opportunity to sell the title to people who may not usually consider it for purchase. Check that you have the full cover on show in a location to encourage pulse purchase. We have it is an acrylic in front of the weeklies – so it stands out.
Bagged Woman’s Day fails to sell
Okay so we tried this bagged Woman’s Day with the out of date Australian Women’s Weekly as we’d sold out of Woman’s Day and no one bought it just as no one buys these bagged magazines yet the continue to come. So frustrating. A waste of time, space and money. What’s worse is Bauer will send this out again next time they do the discount bundle.
Would you purchase a corporate Australia Post outlet?
With the news yesterday of redundancies at Australia Post and the talk of corporate store closures, I’d be interested to know your thoughts on purchasing a government owned Australia Post retail outlet and merging this with your newsagency.
A few years back when I had one directly opposite me at Forest Hill in Victoria and experiencing their aggressing price competition on stationery, cards, ink and some services, I went on the record saying I;’d love to merge their business with mine.
Now, I am not so sure.
Newsagency of the Future on the Gold Coast next week
The next Newsagency of the Future workshop is Wednesday July 1 at 11 am at the Surfers Paradise Marriott. Click here to book. It’s free. As with each workshop, this one is an evolution from the last (in Cairns last Saturday).
The content evolves as more insights are gained and more data harvested. The changes reflect the changing nature of opportunities before us and the truth that there is no destination for the changes ahead.
I mention the lack of a destination because it would be wrong for newsagents to think that there is a magic pill to fix all that needs to be fixed or a destination to reach where all if good and no further change is necessary.
We are in participating in multiple disruptions playing into each other and this situation presents us with many opportunities for liberating decisions we can make.
This is part of what I will discuss next Wednesday.
75% off for The New York Times
I signed up for the free 12 week offer of digital access to The New York Times a few weeks ago. Last night, this offer arrived by email. 75% off home delivery for 12 weeks. They do not filter out people overseas – until you click on the link and it breaks.
The 75% off cover price is an amazing deal for the second step deal after 3 months free access as it includes home delivery. I can’t see how they make money from this with ad revenue down and distribution costs that cannot be cut further.
Pricing like this from any newspaper publisher, and there are plenty doing it, makes we think they are in a race to the bottom. Once they get there they will urgently need a completely different business model.
Time to promote Tour de France program
It’s terrific to see support for newsagents on social media from those behind the official Tour de France guide. This tweet was sent to to 37,300 followers and retweeted to others.
I love that they directly call our newsagents.
We ought to appreciate this support by actively promoting the title in our businesses.
The official Tour de France guide is a special interest title people will seek out. It’s an excellent opportunity for us.
The things people complain about
I heard a customer gasp in the magazine aisle yesterday. I asked if everything was okay. I don’t want to read about death!, she said. She pointed at the magazine in the photo. It’s a die – for making cards, I said. They shouldn’t use the word die, she said. I’m old, was her last comment.
The exchange left me smiling. What is a promotion to some is a depressing reminder to others I guess.
Every day in the newsagency we encounter situations like this, situations that show another way our businesses are different in terms of our shopper interaction.
Puzzler discounting crossword titles
I noticed small size Puzzler titles discounted to $3 in a Newslink outlet in Melbourne yesterday. The offer is simple: $3 with any other magazine purchase. I suspect the publisher is funding this. If they funded it for me, offering full cover price margin, I’d pitch the promotion too. Unfortunately, publishers tend to not fund these promotions for newsagents.