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

Month: August 2015

The chatty newsagency employee

What is your position on a chatty newsagency employee?

On the one hand, we want employees to chat to customers, to make them feel welcome and to engage with their shopping experience. On the other hand, we don’t want chatting to get in the way of work or to be intrusive on the shopping experience.

Employees need to remember their pay is funded by the money the business makes. Making money ought to be their top priority.

Employers need to remember that a friendly shop can help people spend more.

It is a fine line we all walk.

The first step is to talk about any problem. Sometimes bringing it into the open changes behaviour.

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Newsagency management

Productivity Commission report into Workplace Relations

The draft Workplace Relations Framework report from the Productivity Commission is a good start for considering structural change to help boost economic activity in Australia.

What we need next is a respectful debate involving all stakeholders rather. Unfortunately, already, on social media and in mainstream media we are seeing unions and employer groups sticking to their corners and not respectfully exploring changes that could benefit the broader economy.

The draft report offers an endorsement of workplace reforms by Labor while at the same time putting the topic of weekend penalty rates on the table for discussion.

In terms of weekend penalty rates and Sunday rates in particular, the current rates make us uncompetitive and hold back employment opportunities in my view. I’d like Sunday rates to match Saturday. That said, I’d like to discuss this in a calm and respectful way.

Newsagents with an opinion on this ought to attend an upcoming public hearing or make a submission by September 18.

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Newsagency management

Businesses optimistic about sales

Dun & Brasdreet’s latest Business Expectations Survey reports sales expectations highest since 2003.

Sales expectations have rebounded sharply, reaching their highest level for more than a decade in a strong signal the business community has a more optimistic outlook for Q4 2015.

In marked contrast to the preceding period, Dun & Bradstreet’s latest Business Expectations Survey reveals the Sales Expectations Index for the fourth quarter surged to 40.8 points, up from 28.6 points last quarter and the highest level recorded since the fourth quarter of 2003. Some 48 per cent of companies surveyed expect to see an increase in sales in the fourth quarter of 2015.

While representing the views of the corporate sector, optimism there permeates into small businesses, boosting the optimism we have for the future. This survey is good news.

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Newsagency management

Simple displays work well

IMG_8868 (1)On stands and in common spaces there are plenty of good examples of low cost displays and merchandising at the Gift fair in Melbourne.

This use of pallets for creating a noticeboard and display table could work in many businesses.

Gone are the days of spending more than we should on refitting shops. Instead, it is fashionable to repurpose old furniture and other items for retail display.

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visual merchandising

Newsagents need to stop complaining about freight

Freight has been a hot topic on the floor of the Melbourne gift fair over the weekend with penalty of retailers including newsagents saying they should not have to pay freight.

The reality is: whether you are charged for freight or not you pay for it.

Your suppliers need to make money as do you. They choose to locate their businesses where they do as you choose the location of yours.

It is easy to demand freight free. It is equally easy to source products that do not have a clear or suggested retail price – thereby enabling you to set a retail price to cover freight.

The low Australian dollar, higher freight charges and higher importation charges are behind more suppliers reviewing freight arrangements. Many suppliers I know are not passing on the full impact of the low dollar compared to where it sat a year ago so to pressure them on freight places a further burden on them.

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Newsagency management

Melbourne gift fair participants show how blurred lines are between retail channels

The lines between retail channels continue to blur as retailers pursue traffic and revenue in a crowded and competitive marketplace.

Supermarkets are not alone in reaching into the product categories of other channels to make their businesses more successful. Pharmacies have been doing this for years as have proactive newsagents.

The gift fair on at the moment in this has demonstrated how much previously defined retail channels cross over into others. On gift and homewares stands I have seen owners of gift shops, jewellers, garden centres, newsagencies and general online businesses.

Gifts are the ultimate board offering, working well in a variety of retail channels. Newsagents need to consider this as they expand their gift offerings as they need to ensure they are in a highly competitive category with obvious and not so obvious competitors.

This presents a significant challenge to many newsagents who enter the gift space for a point of difference. It is why you need to be careful about suppliers you use, to ensure that your investment is not challenged by the same products being placed in a supply business nearby.

Several suppliers at the fair told me of independent retailers asking if they supplied this group or that group. In one particular instance the supplier mentioned that a no meant the retailer walked off the stand. Groups in several retail channels work hard to keep their supplier relationships secret for this reason.

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Gifts

Tatts ignoring retailers in Set for Life promotion

Screen Shot 2015-08-03 at 4.11.14 pmTatts has been active on social media promoting Set for Life and from what I can see on Twitter they are promoting buying direct from them, online. WA newsagents will be happy Lotterywest are not doing a Tatts.

If I was a Tatts retailer and under pressure from the company to promote the game I would be frustrated at the lack of support for the retail network.

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Lotteries

Finding the sweet spot for Justice League

IMG_8816I love the floor display unit for the Justice League figurines. It is strong, dramatic and perfectly branded. The products did not sell. Price point was an issue. I think this is because it is licenced product and from Schleich – a premium brand.

Performance demanded we quit the range. We dropped price to $9.99 and immediately the products started selling. Customers love the characters and everything else about the Justice League range including the new price point.

The space we freed was more important than holding out to possibly make margin on the stock.

Quitting underperforming stock has to be done without emotion and at a price point that meets the needs of the business.

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Newsagency management

Making the most of Set for Life in the newsagency

While I don’t have lotteries in my newsagencies, I have been helping a few newsagents engage with Set for Life to make the most of the launch opportunity. This is important regardless of Tatts also offering it online.

Here are my tips for launching this new game in your business:

  1. Know the target demographic. All I have read suggests this game will appeal more to a younger audience than traditional lottery games in Australia. Play to this demo in your marketing.
  2. Talk about the game online, on Facebook and other platforms where you represent your business.
  3. Tell stories about what the $20,000 a month could mean.
  4. Run a competition on how would you spend $20,000 a month.
  5. Consider launching with a competition or promotion where one customer wins a $8.40 Set for Life ticket – run this for four weeks.
  6. Look for stories from the US where major prize winners have been able to take prizes monthly for many years.

It is not too late to go big and loud in promoting Set for Life as it will take some time to build interest in the new product. It is essential you do more than sell the game across the counter.

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Lotteries

Sunday newsagency challenge: get cards out of the card department

IMG_8829 (1)This is easy. Take a spare stand, fill it with a range of cards that appeal to a shopper you struggle to get into the business, put it on the lease line so passers-by can see it and watch to see if the stand attracts people. If the stand does not work, change the cards and keep doing this until you see people who would not usually shop with you stop and take a look.

Look at the photo how one of the people in my newsagency set this up. The branding at the top and bottom are key to making a strong and professional statement.

Don’t assume that having a card department is all you need to do to get people to consider purchasing cards from you.

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Management tip

Sunday newsagency management tip: know your total stock holding

A retailer last week told me that they enter inventory into their shop computer system when they move it from the garage at home to the shop. They explained they purchase products at a discount by buying in bulk and don;t consider them part of the shop’s stock until it is at the shop.

Their approach means this business does not have accurate reporting on stock turn, return on investment and aged sock performance. I6 means they are ill-informed when it comes to making buying decisions.

Buying because of a special deal for bulk could be false economy. You will rarely know unless you carefully track your stock.

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Management tip

Sunday newsagency marketing tip: use TV advertising

IMG_8738Partwork launches provide us the best opportunity to drive traffic yet many newsagents ignore this, preferring to complain about the margin rather than considering the value of the bigger picture. Most partwork launches in Australian are supported with a high rotation TV ad, often on free to in prime time. Here is how we leverage these:

  1. Placement of the launch issue so people outside the shop can see it.
  2. Talking about the launch on our business Facebook page prior to launch.
  3. Talking about the launch issue immediately it is in stock and through the two week launch on-sale.
  4. Using other social media to leverage the launch TV for our business.
  5. Emailing all customers through the Pacific Magazines nexus program or directly to promote the launch.

A comprehensive co-ordinated approach is key to enjoying the most success possible from apart works launch.

With hundreds of thousands spent on a launch it makes sense to me that we ride the back of this to drive traffic with the goal of that new traffic seeing what else we sell.

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marketing

The number of candle suppliers is a warning

Walking through some of the gift fair in Melbourne today I am surprised at the number of candle suppliers. I do not recall seeing this many. Small independent makers showing off boutique candles and importers with international ranges.

The number of candle suppliers tells me to be careful about candles, to ask questions about other retailers they stock. If I was to offer candles I am more likely to stock a range that is not available elsewhere in my catchment area.

However, given the broad availability of candles I am not like to stock them.

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Newsagency challenges

Melbourne Gift Fairs important for newsagents

The Melbourne Gift Fairs (Reed and Home & Giving) start today and Life In Style started 2 days ago. Here is some of the advice provided by newsagency marketing group newsXpress to members in advance of the fairs:

  1. Know your data. Look at your reports and be certain of what is working and what is now. Have sales data for each supplier you plan to visit. Have your card category data as this guides gift categories you can sell.
  2. Know your finances. Know how much you can spend and when through the next six months.
  3. Know your timing. There are space, cash flow and other factors to consider when agreeing dates on when to deliver.
  4. Know your competitors. Know your competitors before you go. Look for changes in their ranges. Spot strengths and weaknesses.
  5. Buy strategically. Think about suppliers who place product anywhere compared to suppliers who make sure retailers with their ranges are not too close to each other.
  6. You are not your customer. Buy for your customers and not for yourself.
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Newsagency management

A Disney pitch behind the counter

IMG_8853We have refreshed our behind the counter offer with a range of Disney art pieces by Pop Artist Romero Britto. Disney collectors love them. Britto fans love them. They are an adorable gift. Better still, they are a perfect behind the counter offer for pitching what the business stands for compared to others.

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Gifts
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