Sunday newsagency marketing tip: be who you are on social media
Being who you are on social media matters.
Your posts need to be what you believe in, they need to reflect who you are and what your business stands for.
For newsagents who claim the local business label, social media posts and comments need to be locally focussed where possible. Indeed, social media platforms like Facebook, Twitter and Instagram lend themselves for use by local businesses for making the local pitch.
If you use social media to say hey shop from us you will sound like any other business including big supermarkets and similar.
Social media is where your voice – your voice – should stand out, to reflect your business and what matters to you. For many newsagents this will be: we are local, just like you.
Sunday newsagency management tip: manage yesterday’s news
Yesterday’s news sells, especially if your customers know they can buy yesterday’s newspapers today from your newsagency.
My advice is don’t rush to top or return newspapers, hold off for a couple of days. While this is not practical at weekly returns cut off time, it is practical through the week up to then.
Promote that you have newspapers from yesterday, and earlier. Have them on display if you have the room.
Offering access to old newspapers can attract new shoppers, it certainly demonstrates you as offering a service your main competitors would not offer. This is why you should promote the service.
Home buyers, people looking for work, those who like the TV guide and others with special interests will be your target for promoting one and two day old newspapers. There is a market for these. No one is actively playing in this space. Here is your opportunity to be a specialist.
Yesterday in my newsagency, a customer told us they shop with us because we do have newspapers from a day or two earlier. Their buying cycle is such that they often cannot purchase the day a paper is published.
Another example of why the MPA trial is flawed
The MPA trial of new magazine supply rules would not give the ability to block junk like this from Network Services. I satisfy consumer demand for products like these with items off of which I make 50%+. I choose the products to tell a story and reflect a difference.
Network should distribute these products without my express permission – which would not have been forthcoming. But they did, because they have done for years. This has to stop as it is this type of scale out that disadvantages us. It dilutes our ability to compete with other retailers of magazines.
When I saw the products out this morning I took them off for immediate return. Sure some might sell – but I will make more from the space location with smarter product placement.
The reality, however, is that the supply of these products is outside the scope of the MPA trial. They don’t want to address this type of supply, not really … which is disappointing because this type of supply drives newsagent behaviour and newsagent behaviour is what they want changed. But they don’t get that.
Note: I would not deny Network the right to distribute the product – only their ability to scale out without newsagents opting in.
Discounting copy paper is a mugs game for newsagents
I see no upside in discounting copy paper. Sure, you may get a volume bump but I suspect this will come from people who only shop on price – such is the mentality of the volume copy paper shopper. I know because it’s what we do in my own office. When it comes to copy paper, we will go where we can get the brand and quality we want at the best price.
Newsagents discounting copy paper to drive traffic ought to look carefully at shopper behaviour in their own business performance data to learn whether their deep discounting in mid year and other sales generated the repeat business they need for the discounting to be worth it.
It is easy to get caught out by a competitor. One newsagency group has Victory at $4.95 a ream right now. Australia Post outlets have Reflex at $4.99 for a 550 sheet ream.
I think this type of discounting in a small independent business is a mugs game. I resist it.
I’d rather drive value with a volume offer or very targeted discount voucher rewards for return business. The data over two and a half years indicate this is more valuable in bringing shoppers back.
Did you receive the consignment stock from Consolidated Product Holdings?
We received a car air purifier and a touch screen bullet this week from Consolidated Product Holdings on consignment.
The letter from CPH claims they have introduced the products in partnership with magazine distributor IPS.
I didn’t order the products and have not entered into any agreement in relation to these products. Therefore, I don’t consider myself or my business responsible for these items supposedly on consignment as any consignment relationship would need my agreement for there to be an agreement. I have not agreed.
What a waste of time.
I have excellent tech products off of which I make significantly more margin. I do not need this low margin no-name brand product in my newsagency.
It galls be that CPH has sent this to newsagents as, unfortunately, some will do what CPH says and, I suspect, pay a price for it.
While I am no lawyer, I doubt I have an obligation to do anything with the unrequested products they sent.
If IPS is involved with this, why? This does not make sense to me.
I’d love to hear from other newsagents on this.
Promoting the 3D printer partwork in the newsagency
We have shifted our promotion of the Build Your Own 3D Printer partwork to behind the counter. Here’s the terrific – you can;t miss it – display by our creative team. This behind the counter space can work well for us. That is what we are chasing here. We will know how it works by the end of the weekend.
More correspondence on the ANF handling of the MPA trial
Yesterday, I received an email from the ANF CEO despite the ANF Chairman saying ANF staff had been directed to not respond. Here is that email:
Mark
I am writing directly to you as I feel that I need to respond to your comments, in relation to what I have supposedly done.
Firstly I have not and do not talk behind people backs. Those who know me know that I am very direct and do not hide from confrontation; unlike you where you have apparently personally attacked me on your blog.
I responded to an email from a member. In this email I did not disparage you in any way. I have not gone around the country telling newsagents not to be part of Newsxpress once again unlike you.
I am happy to work and discuss issues with whoever but will not engage in a debate with someone who sole intent is to bring the ANF down.
In regards to the MPA trial, have you spoken with the whole MPA committee re your issues rather than just publish them on the blog? Have you requested to sit with them and express your views?
I am happy to see a trial taking place because at least we can use this to help newsagent’s get a better supply of magazines. Get the product they want and the quantities they need. Until now no publisher or distributor was willing even to discuss this, and now it is on the table, with not just one but all of them leading to the ACCCs involvement in the first place.
Mark I will not keep corresponding on this issue with you as you have made it clear that this is just an opportunity for you to attack the ANF, and to attack those newsagents who have put their hand up to help the channel. If you truly want to work on bettering the MPA trial then why not try to work with them rather than throw stones at everyone who does not agree with you views.
Alf
Here is my response:
Alf,
Thank you for your email.
You are wrong. This is not just an issue for me to attack the ANF. I would rather not have grounds to say you have not served newsagents well.
It is not my sole intent to bring the ANF down. I have told newsagents they should quit as it is a good way for you to understand that you don;t have their support. Stuart in his letter said you have grown in members as a result of the MPA issue. I am waiting for evidence of this.
If you go back and read the correspondence, I have documented to you and now to your Chairman concerns about reports of what Ann Nugent said about me recently in Queensland. Usually I would not worry about this but several newsagents coming to be with serious concerns encouraged me to bring it to Ann first and then you. I note that neither you nor Ann have responded on what she is reported to have said despite several emails on this. Either the newsagents have misrepresented Ann or Ann has attacked my character.
In your email to Yackandandah you were not as accurate in your responses as you could have been – but I understand you have to protect your turf.
In terms of correspondence with the ANF, I am concerned about the ANF handling of the MPA matter. It is flawed for the reasons I have explained: you have not consulted, you have not sought to have documented rule changes that you say will apply yet are not in the documentation submitted to the ACCC and you have not sought to thoroughly inform yourself about whether the trial is actually trialling real life situations as I understand it is not.
The MPA has been aware for almost two years concerns I have had about the trial. They were aware of this prior to their approach to the ACCC when I advised I would not be part of the trial given the rules it has been established to test.
Alf, this trial is not testing new supply rules that will make newsagents more competitive with magazines. Indeed, it is a trial of rules that continue to treat newsagents as we were treated prior to deregulation and that is, at its core, unfair and commercially disadvantaging. This is what the ANF ought to fight.
The final issue for the ANF is one of communication. Your email says it all. I don’t agree with you so you therefore refuse to discuss this with me. That does hot make sense.
I don’t know what you would be like in a public forum on this topic yet I have suggested we talk about it in front of newsagents. My view on any issue such as this – an issue at the very heart of newsagency management – is that each of us with an opinion ought to agree to have the opinion tested as much for us as for those we serve. That you will not do this ensures you remain less than open to the possibility that your approach on this issue of magazine supply is wrong.
I want to close with a comment abut newsXpress. newsXpress petitioning the ACCC led to the conference. This conference was an excellent first-time event for our channel. You do not even have the grace to say publicly that this is a good thing. That, to me, reflects a bias in your opinion and communication that I see elsewhere in your handling of this matter. The vie appears to be if you disagree with the ANF you are not relevant to the organisation.
Mark Fletcher
I have published this here as I think everyday newsagents are too often kept in the dark by people engaged on matters affecting them. There is nothing in the correspondence that is sensitive. I hope readers here find it helpful as they consider the issues discussed.
Minions finding new customers for the newsagency
The Minions movie is not even out and licenced product connected is flying off the shelves. We are using the range to attract new shoppers and its working – in-store and through social media. As some of the major retailers nearby are out of stock of key Minions lines, we have been able to attract people who otherwise might not have considered us.
Sometimes, crumbs sales can be valuable. Having supplier relationships to ensure product access is vital.
Small businesses can be more nimble in this space than, say, a Big W or Coles. Their buying goes through processes whereas we can call a supplier one day and have stock the next. Minions is that type of product- where having it on the shop floor at the right time is key to maximising what you can make.
What we are seeing with Minions in the newsagency is another example of how we can grow our businesses.
To traditional newsagency suppliers who think this is a step away what serves your purposes I’d note that Minions shoppers tend to shop the shop and this is where you benefit.
A newsagency saves $28,000+ a year
Working with a newsagency on their roster and allocation of day to day management tasks, the business is set to cut labour costs by $28,000 over a year. Weeks in, this annual figure looks set to be achieved. An additional, yet to be measured, benefit is renewed involvement by an owner leading to better business decisions.
Over the years, the owner had migrated to the back room and had little to do with the retail business including inventory management. The business had become bloated with plenty of stock not moving. The extent of the problem was evident in the P&L, sales reports, inventory movement reports and other data points.
By bringing someone external to the business in, the owner was able to reduce the involvement of a family friend, cut employee hours and refused their attention themselves on their newsagency business – the single most important financial asset in their lives.
I expect that better management, labour cost savings and other benefits will result on a profit boost of more than $50,000 for this business in a full year. The only down side is the owner is spending more time in the shop – not so much on counter selling but on work they were doing in the back room.
In a small business like a locally owned newsagency, my experience is that some better business decisions are made if they are made on the shop floor.
Great growth story from a regional newsagency
I have been fortunate to see sales data for a regional newsagency run by the same owners for more than fifteen years. In the twelve months to the end of May 2015, this business increased revenue by 13% over the previous twelve months. This is an excellent result.
Better still, the business increased gross profit by six percentage points – making the value of the revenue increase even greater.
This is an excellent news story, showing that a traditional newsagency can grow by making some simple changes that do not require any shoplift or other structural changes.
Here are more results from this uplifting story:
- Cards up 10%.
- Gifts up 200%.
- Magazines down only 1%.
- Stationery up 26%.
- Toys – a new department with excellent results.
- Plush – a new department now accounting for close to 2% of revenue.
Thanks to expanding the range of products sold and using free marketing initiatives, the store increased shopper transactions by 10%. Add to this growth in basket depth and average item value and you have compounding good news.
To provide context, the business has overall non agency revenue of half a million dollars a year.
I mention this success story here to show newsagents that there are opportunities for sustainable growth of revenue and, better still, overall gross profit percentage.
This is another example of why a newsagency is a good business to buy.
Check your policy on refunds for sale items
The ACCC took to twitter yesterday to remind consumers of their rights in relation to items purchased when on sale. Their tweet linked to the ACCC website where consumer rights are explained. Newsagents ought to read this. Included is this important information about consumer rights to a refund for items purchased during a sale.
It is against the law for businesses to tell you or show signs stating that they do not give refunds under any circumstances, including for gifts and during sales.
Your rights under the consumer guarantees do not have a specific expiry date and can apply even after any warranties you’ve got from a business have expired.
I have seen signs stating no refund for sale items in many retail businesses including major retailers. As the ACCC states, these signs are against the law.
Correspondence with the ANF on the proposed magazine supply rule changes
I emailed the CEO of the ANF on May 31 after being shown correspondence between him and a newsagent in which he referred to me. Click here to see the text of my email.
The ANF chairman responded to me last week. Click here to see this letter
Here is my response sent yesterday to the ANF Chairman, Stuart Kilborn, on this matter of equitable magazine supply for newsagents.
Stuart,
Thank you for your June 4 letter responding to my email to ANF CEO Alf Maccioni of May 31. I emailed Alf has he has been engaged in correspondence in which he comments about me and the Australian Newsagency Blog. While I am happy to respond to your letter, I am surprised that Alf did not respond to me as he is happy to talk about me behind my back.
Also, you write to me at Tower Systems. My agitation on behalf of newsagents and my own newsagency businesses on this issue is via the newsagency blog. The blog is a non commercial activity I spend my own time on publishing my opinions on matters I think will interest newsagents.
In your letter you say:
Whilst we habitually choose to focus on positive impacts for our channel the negative effect you are potentially causing the channel through misleading information requires us to respond. If what newsagents have told me is true, in this matter of the MPA trial the ANF has not been focussing on positive impacts as it has reportedly engaged in character assassination with no regard as to the facts.
I’ll not respond at this time to much of the first two pages of your letter as what you have written does not relate to the MPA trial whatsoever.
For the record, I first became involved in discussions on magazine supply rule changes in late 2013. These discussions, including consideration on the rules at the core of the MPA trial today, predated the involvement of the ANF. My position has not changed.
I have called for newsagents to withdraw support for the ANF on the matter of the MPA trial because I think the ANF is profoundly wrong. It is unfortunate that you label my disagreement as a lack of courage. You imply that it is courageous to support the ANF and not courageous to disagree with the ANF. So much for robust debate. So much for free will. Your statement is ignorant nonsense.
I have read the MPA submission to the ACCC. In your letter you go beyond this and appear to put the position of the small number of publishers in the MPA and the two major magazine distributors – ahead of the interests of your members.
You ignore that the ACCC conference attended by the ANF, newsagents, publishers and distributors was called for by newsXpress. The ANF could have called for this conference but it did not. Given what was discussed at the conference it was worthwhile for newsagents to have had the opportunity if only to speak directly to the ACCC about the unfairness of magazine supply to our channel compared to those with which we compete.
Left to ANF representation only the conference would not have occurred and newsagents would not have had the opportunity to, for the first time, speak directly to the ACCC about the matters covered. Shame on you and the ANF for not pursuing this opportunity for subsequently denigrating some of those newsagents who did participate.
At the ACCC conference, the CEO of the ANF said the organisation has consulted with newsagents. All I can find to support this claim is a brief mention in a note from the CEO in National Newsagent magazine and a brief mention in an ANF news email. As I have written previously, on this most vital of matters, the ANF ought to have hosted capital city and regional centre forums to canvass newsagent opinions. It ought to have conducted an industry wide survey on each of the rules to be tested as documented to the ACCC by the MPA.
The ANF did not do these things.
The claim by your CEO to the ACCC conference that the ANF consulted is not supported by the evidence available. If there is other evidence of newsagent consultation please share it.
You say Consultation is a word that is loosely thrown around, and often regarded as ticking a box then proceeding down your own path. Maybe that is what consultation means within the ANF. I disagree with your definition. Consultation is a process of actively engaging with those you say you represent to fully explore and understand their views prior to you forming your own views as to how to represent their interests. The ANF has not done this on this issue.
THE NEWSAGENCY BLOG
I do not use the blog to manufacture negative factors and am offended that you claim I do.
The Newsagency Blog publishes directly through my posts and through comments by readers items that are encouraging of newsagents and those who service and engage newsagents commercially. Sure it shines a light on negative issues. This is done with facts and in an effort to change behaviour.
My take is that if I write a post that is critical of the ANF you label it as negative for the channel. I disagree with such a position. The ANF has made its own failure of representation of newsagents. The failure is exacerbated because of poor communication and a refusal for open and public discussion on matters of importance.
THE ANF CHAIRMAN
In my email to your CEO I make the point that you, Stuart, called a newsagent with the sole purpose of speaking about me. This is a newsagent to whom you had never spoken before. To suggest otherwise as you do on page four of your letter is unfortunate spin that seeks to divert attention from your actions. I don’t care whether you are paid for your time. Your letter goes on to canvass issues not pertinent to this discussion. You did call at least one newsagent to agitate against me and that’s okay. My point on this in my email to your CEO is that you should have the guts to speak to me. That you went behind my back as a whiney school kid is like communication reportedly by other ANF staffers about me and this issue of magazine supply.
If you have an issue with me, confront me. I have written to the ANF about comments made by Ann Nugent in Queensland about me which upset several Queensland newsagents. I wrote to Ann and she did not respond. I wrote to Alf and he did not respond. If Ann did not make the comments she should say so and I can go back to the newsagents and ask whey they would make the allegation up. If Ann did make the comments then she need to answer for her behaviour. Remaining silent damaged the ANF.
Your letter then turns to the ACCC conference., noting that I say every newsagent who spoke at the conference disagreed with your CEO. To support your claim you include a note from the ACCC minutes. The quote you have included offers no support of the ANF’s position. Indeed, the minutes note the terms on which Ms Dixon agreed to participate in the trial, terms not reflected in the documentation submitted by the MPA to the ACCC.
PUBLIC DEBATE
The concerns in discussion between us relate to the poor performance of the ANF on this issue of magazine supply to newsagents and, most recently, the poor representation of newsagents on the issue of the MPA pilot of proposed new magazine supply rules.
The ANF says the trial is a good thing. I disagree. This is what I propose the ANF debates publicly with me. The worst outcome from such a public debate would be those attending agreeing that the ANF has not acted in the interests of members. The best outcome from an ANF perspective would be that those attending do agree with the position taken by the ANF. Either way newsagents benefit from a transparent exploration of how their interests have been represented and, more broadly, what is best for their representation on the issue of magazine oversupply.
I suggested a debate because it seems to me that the ANF has not debated the proposed rules for had it done this it would not have endorsed them. Remember, the documented rules are different to what the ANF claims the rules to be. For example, in the documented rules there is no provision for newsagents to control range and volume, no provision for early returns … yet the ANF says these benefits are part of the trial. As I noted at the conference, If this is the case why not document that.
A public debate would demonstrate to newsagents that the ANF is transparent and that it is consulting on this matter.
In your letter you say you have welcomed on many new members during this recent phase. Please advise your membership numbers prior to this phase and now. This is an invitation for you to be transparent.
CONCLUSION
If the ANF had professionally and thoroughly represented newsagents on this matter it would have:
- Ensured early returns were allowed in the proposed magazine supply rule changes.
- Ensured newsagents had control over range and volume in the proposed supply rule changes.
- Held public forums to harvest opinions from all newsagents.
- Engaged actively with all magazine publishers and not just the three members of the MPA on this issue.
- Stopped criticising personally anyone who criticised the performance of the ANF on this matter.
- Ensured that the trial is a real world trial testing processes and rules that can be applied channel wide rather the current trial involving a level of non real world support for some participants.
- Been more thorough in advising newsagents about the trial in its various channels of communication.
- Been more robust in demanding magazine distributors use the sales data provided by newsagents to set supply levels.
- Used the proposal of the trial as an opportunity to agitate on the proposed continuation of anti-competitive against newsagents by magazine distributors compared to their treatment of our competitors.
The ANF says the trial is necessary to provide an understanding of magazine performance and newsagent engagement with the category. I say that such an understanding can be gained today by a thorough analysis of the data.
I believe in the newsagency channel and work hard in many ways outside your gaze and knowledge in support of newsagents, for the future of the channel. The MPA trial is trialing the wrong parameters in a wrong way. For newsagents to have a bright future they need fair and equitable supply of magazines – on terms that enable them to be commercially competitive with other retailers of magazines. Anything short of this is not a solution. The issue at hand here is not the trial so much as it is the proposed new supply rules being tested by the trial, rules the ANF has not challenged.
Remember, the ANF played a central role in the deregulation of magazine supply. Its representatives at that time failed newsagents miserably on this matter. They failed to seek and achieve for newsagents a change to the terms of supply to reflect a deregulated environment. Their failure in 1999 means that today our channel has magazine supply rules from the era of protection and regulation while our competitive benefit from supply rules designed for a competitive post-regulation marketplace. This is what must be fixed. I see no evidence in your correspondence and the ANF submission to the ACCC that the ANF gets this.
Stuart, you have to ask yourself, are you the right person to lead the ANF, are you the best the channel has available? Asking this question does not make me a bad person nor does it mean I am not courageous.
I am happy to meet to discuss this issue at any time face to face.
—————————————————————————-
Footnote: The MPA ought to have thoroughly analysed all data available on magazine supply, sales and returns prior to even considering this trial. They should have also discussed possible solutions with all stakeholders including other publishers outside their small group, all distributors, all newsagents and others involved directly in the magazine management within newsagencies.
This trial is ill-conceived because it was not properly researched prior to designing the proposed supply rules to be trialled.
As soon as it as invited to be involved last year, the ANF should have written extensively on the trial in its various communication platforms and actively sought newsagent feedback from far and wide. That it did not do this has left the ANF ill-informed and supporting a trial that does not address the fundamental challenges faced by newsagents, the uncompetitive terms of supply of magazines to our channel.
Newsagents sell close to 50% of all magazines in Australia. There are ways we can grow this. There are ways magazines can be profitable for us. A trial of the ways and processes that could be employed to achieve these outcomes is appropriate.
It seems to me that few involved in the MPA trial are actually interested in putting the interests of newsagents ahead of their own interests.
Terrific gifts drive Girlfriend sales
The free concert clutch bag and free Dermalogica blotting paper gifts with the latest issue of Girlfriend magazine are driving good results for us – offering an excellent reason to pitch the title on social media and outside the usual location for the magazine in the newsagency.
As not all retailers have both gifts we are able to pitch the point of difference.
Here’s an example of why newsagents need the early returns right
This issue of Men’s Style magazine has been on the shelves a little over three weeks and we have not sold a single copy. This issue is loss making for us. Today, we early returned all stock to mitigate our situation. Without the right to early return I would not have been able to reduce the extent of the financial loss from this issue of Men’s Style.
If newsagents cannot control the titles we receive and the volume of each issue we must be able to early return.
Why newsagents should not resist providing News Corp. sales data through XchangeIT
I am aware of some newsagents refusing to provide News Corp. with sales data through XchangeIT. The provision of this data is one reason for News now using XchangeIT to send supply files to newsagents.
Unlike some magazine publishers, News wants to reduce the paper wastage of returns – saving them money as well as newsagents money. The best shot they have to make more accurate allocations is through timely access to accurate data. Hence the move recently to partner with XchangeIT.
I have met with senior people from News in Sydney on this and related topics several times and am certain there is no sinister plan afoot here. No, there is no conspiracy.
The data being provided is for the stated intended use only. Indeed, the data being provided would to help the company move against newsagents as it is narrow in its scope.
Even a fractional decline in newspaper returns can be valuable for News and valuable for newsagents.
I encourage all newsagents to get on board with this project and to ensure that accurate sales data flows back to News through XchangeIT.
Now before anyone comments – the folks at News and XchangeIT are not aware I am writing this nor have they asked me to write this. I have written this because I think this project is good for our channel. The more we and our suppliers use timely accurate data the better (are you reading this magazine distributors and publishers?)
There are other factors that will reduce newspaper sales in and through newsagencies that newsagents need to be aware of. Worrying about the supply of this data to News is a waste of time in my view.
Yes, News will put their needs ahead of newsagents, as they should. We, too, should put our needs ahead of News – such as where we place newspapers, how we market the product and the time we invest in managing the category. All our efforts should be focused on our profits from the category as it is with News.
Why we should promote the latest issue of Australian Men’s Health
Dwayne The Rock Johnson is on the cover of the latest issue of Australian Men’s Health and we should promote the heck out of this issue because his latest movie, San Andreas is very popular at the box office and it was shot here in Australia. When I say promote, I mean in a way to connect with his fan base and the fans of the movie. For me, this means out of store promotion on social media and front of store promotion to attract passer-by traffic. It is the social media marketing I am most keen for as this is sure to get my business noticed by more people who are not aware of us.
This is a timely cover we newsagents can leverage better than any other retailer.
WH Smith UK sales results reveal gap in locations
One the 13 weeks to May 30, sales in WH Smith businesses grew 1%. As Marketwatch reports, the story is different for two important channels for the group:
Same store sales for the company’s travel division grew 4%, while the high street division recorded a 4% fall in like-for-like sales during the 13 week period.
The WH Smith high street model is closed to the Australian high street newsagency model. The Guardian has in-depth analysis from BESI Research which includes a note about improving margins. This is key in retail today – your overall gross profit for if you can grow this you are better prepared to weather and traffic or revenue decline.
Good news: a newsagent discovers $4,500 cash
A regional newsagent discovered $4,500 in their business and in next to no time had this space cash available for reinvestment in the business.
A couple of weeks ago, for the first time, they took a critical look at their magazine supply and early returned. The result is early returns resulting in magazine bills $,4500 what is usual for the business for the month.
Wit what they now know, they will be able to maintain the lower magazine bill and probably not lose sales as a result.
The process has freed up around $4,500 in working capital for the business. This can be invested in more productive inventory. A win for smart newsagency management.
A waste of paper: one week’s magazine returns
This photo shows one week of magazine returns from one newsagency. None of the magazines has been topped – so the boxes contain full magazines which have failed to sell in time and others being returned early because considerably more stock was supplied than had ever been sold in this newsagency.
What a waste of paper, fuel, time and space.
The time spent on managing and processing this excess stock is a financial and time management burden on newsagents, it holds this business and thousands of newsagents back.
No trial is needed to understand this problem. Magazine distributors and magazine publishers have all the data they need to provide newsagents with fair and equitable supply. That they do not use this data is an environmental and financial scandal.
US magazine newsstand sales drop 14.2%
Over the counter magazine sales in the US and Canada were down 14.2% for the first quarter of 2015 compared to the same quarter a year earlier. While better than the 15.6 decline for the fourth quarter of 2014, the Q1 2015 decline is concerning.
I have taken results from a news release from Magnet an organisation formed by magazine wholesalers representing 99% of magazines sold.
If you read the release there is a claim that the sales decline is being driven by short supply. The release also documents challenges being faced by stakeholders including the reduction in retail space:
While there were some titles as well as entire publishing lines that had sales increases in the first quarter, overall the sales trend continues to decline. MagNet, like other interested industry participants, has continually recommended that the industry find a way to work together, with major publishers, distributors and wholesalers developing a strategic plan to engage retailers to again focus on our category. But currently, we see no signs that indicate this is happening. Instead, we see some retailers removing checkout pockets and reducing the size of mainline fixtures. Without a concerted effort by the major industry leaders to sell the overall value of our products to retailers, the loss of retailer real estate dedicated to magazines will continue as sales decline. Magazines at retail are an impulsive purchase. If consumers can’t find our product, they can’t purchase it.
This is happening in Australia too. Publishers and distributors need to understand the economics of retail and to fully understand the cost of each magazine pocket where the cost includes the space, services, labour and opportunity cost.
If the MPA was smart they would have undertaken this research before commencing testing new supply rules as I don’t think they understand why newsagents do what they do with magazines. There is bo point in testing a solution until this is understood. Key to achieving understanding is to be certain as to the costs points and what the costs actually are.
In the typical Australian newsagency today, magazines are primarily a destination purchase in my view. To maintain that space we need to range destination titles. If we had control over supply, smart newsagents would increase their range in pursuit of increased sales. Unfortunately, the paternalistic approach to magazine supply in our country is the key factor in driving magazine sales down.
But back to the North American results. While their situation is different, it is interesting to see suppliers being targeted for their role in the sales outcome.
Queen’s Birthday fun in the newsagency
We are leveraging the ridiculousness of celebrating the Queen’s Birthday on a date that is not her birthday with this proclaimed special offer on birthday cards. It’s different, fun and on point for today.
Regardless of sales, we expect the promotion to provide some fun in the shop today as it shows us having a laugh.
With most high street newsagencies closed, those in centres that are open should see plenty of new traffic.
