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

Month: November 2015

Sunday newsagency management advice: compare revenue by supplier

If your newsagency software allows it, next time you are reporting on business performance select a supplier comparison view. This can highlight strengths and weaknesses a more traditional view of business performance make be hiding from you.

Take your gift department, the traditional analysis will be to look at sales by product category or occasion. Switching to a supplier view could bring to your attention a supplier level relationship that is not working for your business.

I did this recently for a newsagency as part of a business review. Two suppliers are not delivering results for the business and this was being missed as gifts overall are up more than 25% year on year whereas for these two suppliers, sales were only up 5%.

Sometimes, changing a data view can valuably alter your view of your business.

12 likes
Management tip

Occasion gifts work with cards in the newsagency

IMG_2047For years I have included a targeted occasion-focussed gift offer with cards in my newsagencies. The actual occasion gifts pitched vary over time with seasons. The range also can vary based on card location and placement changes.

The placement of gifts here in the card department, as you can see in this photo I took yesterday – works as it breaks the sea of colour in cards and also invites shoppers to contemplate a gift purchase with the card.

Cards generate excellent traffic for us and it is important we leverage this with occasion appropriate cards placed to leverage that traffic. One way to do this is to allow room in your card space allocation to achieve the impulse add-on purchase.

Of course, this is different to the front of store work using gifts as their own net new traffic driver – that is a separate strategy.

4 likes
Gifts

Independence Studios product in Target?

IMG_2004Newsagents who have been bi supporters of Independence Studios will do a double take at this range of product now available in target stores in Australia. While the packaging is different, the products look to be exactly the same as items we sell in the candy-lane.

2 likes
Competition

The view inside the newsagency

Further to recent photos I have shared showing the front of the newsagency pitching Christmas, here is a photo three metres in from the front of the shop.

At this point in the shop there are two main aisles, to the left and to the right of what you can see. The product placement is such that products are pitched to people entering and leaving. The product choice for placement here is deliberately not traditional for a newsagency as this location can be seen from the mall, outside the newsagency itself.

IMG_2018

6 likes
Newsagency management

Stunning Carrie Bickmore Women’s Weekly cover should drive sales

IMG_2026I love the cover of the latest Woman’s Weekly. The Carrie Bickmore photo will appeal to a younger reader and this should help drive sales. It looks terrific.

Unlike other newsagents I have spoken with, we were not overloaded with stock for this issue of Woman’s Weekly.

We have the magazine in two locations to drive impulse purchases including at the counter.

6 likes
magazines

Gluten free gingerbread in the newsagency

IMG_2013The latest issue of Australian Healthy Food is one to feature thanks to the gluten free gingerbread man bagged with the magazine. It is a perfect gift for the season and for the magazine. We are making the most of the tasty gluten free opportunity – promoting it in-store and online on our business Facebook page.

3 likes
magazines

Leveraging the timely Who cover

IMG_2024We have the full cover of Who on show to make the most of the extraordinary coverage of the Charlie Sheen HIV diagnosis story. While there are concerning alarmist aspects to the story, media coverage is driving interest and selling magazines is important to us.

1 likes
magazines

Breaking our own early returning of magazines rule

IMG_2014I early returned The Australian Women’s Weekly Relax With Colour yesterday as there is no spare room and we are full with adult colouring titles from which we make 50% and more. I am not about to take space from them for a title from which we make half the reasonable gross profit.

Had Bauer asked, we would have said no thanks. Instead, we early returned the lot and broke a rule we have to not early return the day of issue.

9 likes
Magazine oversupply

Setting the record straight on GNS rumours

Alex Stewart, CEO of GNS, reached out to me yesterday about rumours about GNS that have made their way back to him. With his permission I publish here the facts Alex shared with me.

But before I share what Alex sent me, I want to say something about rumours. There are some in our channel who love spreading rumours. These people rarely fact check – it is like they do not want the truth to get in the way of the rumour they want to spread.

My experience is that people spreading rumours have an agenda of their own and their rumours are their weapon. Shame on them.

If you hear a rumour about anyone or any business in our channel, go to the victim, given them an opportunity to share the facts as they know them.

Here are the facts Alex Stewart shared with me about GNS:

I spoke to a Qld Newsagent this morning who has heard a rumour that we have sold Padstow – our NSW and HO Facility. I am planning to send a full communique about this to both customers and suppliers but for the record:

  • We are relocating from our current facility which means the sale of Padstow. I announced this to NSW and National staff last Thursday.
  • We have not yet determined the location, sizing and functional requirements of a new site
  • We are doing this to increase efficiencies, increase capacity, reduce maintenance costs for the facility, completely redesign our materials handling processes, and provide both customers and staff a better environment
  • We have not yet decided if we will purchase or lease a new property at this stage
  • We are keeping staff and key stakeholders completely aware of the process and how we are progressing
  • It is likely that we will occupy this facility for at least 12-18 months during the sale process and following to source new premises, plan and implement a move of significant magnitude without interrupting business

If anyone has any questions, concerns or otherwise I am free to discuss at any time. This is purely a matter of prudent asset management, as well as accommodating the business for growth and gaining efficiencies.

14 likes
Ethics

Be careful when posting photos of lottery tickets

IMG_1797Before you post a photo of a lottery ticket anywhere, blur or hide the unique identifying barcode. If you do not do this, the photo could be used to claim a prize.

Advise everyone working in your newsagency and your customers – in-store and through your newsletter of business Facebook page.

There is enough petty crime in the world without criminals being assisted by publishing photos of live lottery tickets.

6 likes
Ethics

A Christmas gift from Bauer Media to newsagents: oversupply

AWWI heard from a newsagent this morning that they have received 285 copies of the Christmas issue of the Australian Women’s Weekly to go on sale tomorrow. Last year they sold 145.

Based on trend data from 2015, a supply of 185 would have been reasonable. If there is something truly amazing and unexpected about this issue then maybe 200 copies would have been okay.

285 copies is ridiculous, a waste of paper, time, space and money.

Some magazine allocations genius has decided to send this newsagency a 36.6% increase in supply. There is no explanation, no reason for the newsagent to think it is warranted.

I know if I speak with the folks at Bauer they will have an explanation, they always do. However, this type of oversupply continues and newsagents carry the cost. It is not good enough.

Bauer is part of the MPA and the MPA is making a big deal about a marketing campaign they are running next year to promote newsagencies. I think that investment is a waste unless they fix the oversupply issue, unless they respect newsagents through their actions.

I am constantly asked why newsagents are cutting magazine space. Here in this blog post is an explanation of the key reason.

Independent publishers need to pressure all publishers to stop this oversupply nonsense.

Here is exactly what the newsagent wrote to me. I am sharing it here to show the frustration they are experiencing:

Just arrived tomorrows mags as we received them today, we received 285 AWW ! Now I know it is the xmas issue but last xmas we got 209 and returned 64 copies. This would have to be the most blatant oversupply I have possibly seen. Plus there would have been approx 6 different Adult colouring mags as well. I might make a call to AWW today and make a complaint, not only is it wasting their money ( we top all mags ) its wasting mine as well

Is this unconscionable conduct?

13 likes
Ethics

Relationships matter more than products to small business newsagents

Newsagents, like many small business retailers, often place more importance on the relationships with those who represent a supplier than the products they source from the supplier.

Put another way, a supplier with the best products and a poor representative can fail while a supplier with poor product and an excellent representative can succeed.

What makes a good supplier representative? The answer all depends on who you are. A supplier will say it is someone who gets results for their business while a retailer will say it is someone who gets good results for their business. This is what some call a win win. The reality is a win win is rare in business, especially between two businesses of vastly different sizes. That is not necessarily bad, the assessment of a win will be different to each side.

The newsagency channel has some excellent representatives in the supplier community and some appalling ones. It is the appalling ones we remember and talk about.

I am interested in what makes a bad rep a bad rep. Is it them, the rules of the company they work for, their manager? These are all factors to consider.

Just as a bad employee in your newsagency is your responsibility since you hire, train, motivate and fire them – it is on you to have good employees, you are in control.

The same is true for our suppliers. They are in control, if they want to be. It is their obligation to have good representatives with whom newsagents want to do business.

But back to the question I want to contemplate today: What makes a good supplier representative? I think it comes down to them exhibiting the following attributes in all their contact with newsagents, their customers. A good supplier representative is someone who:

  1. Listens.
  2. Communicates clearly.
  3. Communicates more about business and less about themselves.
  4. Documents what is agreed.
  5. Knows how to work with others in the supplier business.
  6. Knows the value of data and relies on the right data from the newsagent to guide good decisions for the business.
  7. Does not wast time.
  8. Can talk business strategy and know what they are saying in the context of the customer’s business.
  9. Knows when a product in their portfolio is not right for a customer.
  10. Understands the business of each customer: where they are at and where they want to take the business.
  11. Does not bend the rules, knowing that it will come back and damage the relationship.
  12. Is not greedy.
  13. Does not harm your business by putting the same product elsewhere close to you.
  14. Helps their customers make more money.
  15. Knows that selling something to a newsagent does not, of itself, necessarily ensure the newsagent will make money.

I did not intend the list to become this long. But it did. In fact, I could add more.

For our part, we newsagents have an obligation to supplier representatives to match the above list with our side of each point. For example:

  1. Our requests need to be data based, based on fact and not emotion.
  2. We need to listen.
  3. We need to communicate clearly.
  4. We need to know the reading terms, trade within them and not request supplier representatives to trade outside the trading terms.
  5. We need to not be greedy.
  6. We need to not waste time – supplier contact is about business. Coffee, drinks, meals etc get in the way of doing business.
  7. we need to help our suppliers make money.

In fact, the last point here is at the heart of the newsagent / supplier relationship. Most frustration I hear relates to one or the other party, or both parties, not making the money they need to make in order for the relationship to be of optimal value.

There are two sides to every relationship. However, since suppliers rely on us to agree to take on their stock, the onus is on them to serve us better for without us, they have fewer retail outlets through which to promote and sell their products.

13 likes
Ethics

If you have this Hallmark Christmas card…

IMG_1883I expect this Hallmark Christmas card, a money wallet, will sell out quickly. It is a terrific card out at the right time of the year, in time for the release of the new Star Wars movie.

This is a card to place with Star Wars licenced product as well as with your Christmas cards. However, it is best displayed with the full card on show. If you can get more stock, I suggest you do – based on sales so far of Star Wars licenced items.

I like the card because people will buy it for family and friends at Christmas. It is an easy sell.

3 likes
Greeting Cards

If NewsLifeMedia wants to help newsagents…

IMG_1973NewsLifeMedia is part of the MPA and as such they are participating in an initiative next year to promote newsagencies because they want to help our channel grow. Well, here is one way they can help us grow:

Do not send stock we do not need.

Take their new adult colouring titles. They entered the market too late, months too late. The product is not appealing to those buying multiple copies. Also, smart newsagents are sourcing their own product from which they make 50% and more rather than the 25% we get from magazines.

So, if NewsLifeMedia wants to help newsagents, they ought to behave in a way that is more commercial respectful of us.

To any magazine publisher thinking they can enter this adult colouring space and ship product off to newsagents: don’t! We are saturated with magazine titles and our own product we have sourced from book publishers for better margin. Do not abuse the magazine distribution model and newsagents with stock we do not need.

20 likes
magazine distribution

News Corp. Christmas show bag in SA frustrates some newsagents

Screen Shot 2015-11-16 at 10.35.39 amSouth Australian newsagents are being asked to run another Christmas promotion by News Corp. in addition to the promotion I mentioned yesterday. Customers are required to purchase four newspapers, cut out tokens, hand these in with $8.00 in return for the bag.

Inside the Christmas bag is a Santa sack, actually this is the bag itself, colouring book, pencils, reindeer hat, snowflake, Christmas card kit and wrapping paper.

The items in the bag do not look like $8.00 worth to me. However, I am not the customer. Maybe some mms and dads here could comment on the perceived value of the promotion.

If I am right and considerably more that $8 in value is not obvious, this promotion will not work.

Newsagents in regional locations will be hit hard if the promotion failed as they will be required by News to freight unsold bags back to Adelaide, most likely wiping out any margin on the bags sold.

This promotion feels wrong: poor selection of products, poor value, wrong time of the year, high compliance cost – all to support low margin product when smart newsagents are primarily focused on other product categories from which they easily make 50% and more.

10 likes
Newsagent suppliers

A suspected scam targeting newsagents

A newsagent in Queensland was sent an email yesterday that reads like a scam. I am posting the contents here in case others received it. Any light you can shed on this would be appreciated.

Someone has nominated you as Newsagent Retailer of the Year! This means you will be invited to the annual awards night dinner in Noosa, and will be in competition with other retailers in Queensland to represent your state at the national awards night. Just for being nominated, you have gone into the draw to win two nights accommodation at the beautiful Sheraton Hotel in Noosa, and also dinner for two at award winning restaurant Wasabi! You have a one in twenty chance of winning! To ensure your entry remains valid, please send back the following details to hairykerry@gmx.com to accept your nomination. Full Name Date of Birth Business Name Business Address Phone Number ABN We look forward to seeing you at the awards night! Kerry Harrison State Newsagency Media Manager 0730302222

My advice if you did receive the email is – do not respond.

10 likes
Newsagency management

Newsagents overloaded with recycled Simply Too Good To be True cookbooks

too goodPlenty of newsagents have complained about recent supply of the Simply Too Good cookbook series while they either have current stock that is not selling or have returned old stock that did not sell. The frustration of inefficient supply is made worse in that poor quality stock has been sent in some circumstances, stock that is not of merchantable quality.

The photo shows two items received in one newsagency last week. The price stockers are from different newsagencies. This is poor form by all involved. Supermarkets would not accept stock in this condition.

10 likes
magazines

News Corp. luck dip bag in SA

Screen Shot 2015-11-16 at 6.14.25 amNews Corp. in South Australia is encouraging newsagents to promote a luck dip bag of previous promotional products the company must have in a warehouse. The packs look cheap. They resemble similar packs I have seen some newsagents create using gifts taken off the cover of magazines.

Besides poor execution, this promotion is being pitched at the wrong time of the year. Newsagents are focussed on gifts, even stocking-stuffers, from which they can earn more substantial gross profit and longer term business benefit.

Here is the pricing pitched by News:

Charging 
Cover price: $2.00 per copy 
Advertiser $1.40 per copy 
Lucky Dip Bag $0.60 per copy 
Agents’ rate: $1.50 per copy 
Advertiser $1.05 per copy 
Lucky Dip Bag $0.45 per copy 
Sub-agents’ rate: $1.75 per copy 
Advertiser $1.225 per copy 
Lucky Dip Bag $0.52.5 per copy 

9 likes
Newspapers

Aussie Christmas decorations popular

IMG_1889The Australian themed Christmas decorations we sourced from Gibson are popular among the early Christmas shoppers. We have had people purchasing these to send to family and friends overseas. To make the most of the opportunity we have them placed together in an Aussie Christmas section. They will sell out for sure.

4 likes
marketing

Good issue of Yours to promote

IMG_1884The current issue of Yours magazine is worth promoting outside the usual location for the title because of the Magda Szubanski cover. This cover stock should get people browsing and purchasing the magazine who might otherwise not even consider purchasing it. Placement next to newspapers is my suggestion – in addition to the usual location.

1 likes
magazines

Sunday newsagency challenge: map out who you target by products

List the top five categories of products you sell in your business. If yours is a typical newsagency they will account for 85% of your revenue.

Next to each of the top five categories, note down the details of the typical customer: male / female; age and other criteria.

Now take some time to think about the customers attracted to and buying products in these top categories.

  • Is the range of people targeted wide enough?
  • Are there gaps you could fill?
  • Are you actually targeting those you thought you were targeting?

You have control over the people you get into your business based on what you stock and how you promote what you stock outside your business.

9 likes
Newsagency challenges