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

Month: February 2016

Newsagents dealing well with the Network Services shut down

Help desk call traffic more than trebled for my newsagency software company today as newsagents updated data managed by their software reflecting the transfer of many magazine titles from Network to Gotch. All in all it was an orderly process. With 1,750+ newsagents using the software it could have gone any one of a number of ways.

While I expect help desk calls to remain high all week and into next week, today was the day of proving the process and testing the value of all of the preparation communication including that from Network.

Small business newsagents can be proud that they are handling significant change with calm professionalism.

Newsagent suppliers ought to take note. What is happening this week is newsagents demonstrating they can deal with challenges of a technical complexity. How newsagents have gone about this is another reason to support our channel ahead of supermarkets and other mass retailers.

Newsagent associations ought to take note. This is all being done without you.

15 likes
magazine distribution

Lunch Lady issue #2 coming

Screen Shot 2016-02-29 at 7.49.44 amIssue #2 of Lunch Lady launches March 3. Issue #1 sold well thanks to terrific social media and word of mouth engagement. This is a niche title people love and they will get to their local newsagency for a copy. It is the type of niche title we can use to leverage our positioning as magazine specialists.

The image shows the cover of issue #2. Here is a note from Louise Bannister, publisher of Lunch Lady:

We are about to release Lunch Lady NUMBER TWO which is very exciting. Launch through newsagents is March 3rd.

We had great sales results from many newsagents who put issue one out on shelves.

We have worked really hard with our readers through social media to gauge where their local newsagents are and as a result have done a very tight allocations list for issue two.

Our social media accounts have increased significantly since the first issue from 5k to over 20k. We will be driving our readers
to newsagents through social media. Any support on getting the Lunch Lady message out there is much appreciated.

A good description of what Lunch Lady is ::

Lunch Lady is a quarterly for people who used to read frankie magazine but are now grown up, have kids and are searching for a funny,
unique, creative NEW parenting magazine (which is packed with kid friendly recipes).

SOME READER LETTERS::
“I stumbled upon the magazine in my local West End news agency. There it was. The colours catching my eye amongst the sea of tiered perfect binding.I guess I just really wanted to write to you to say, I feel like we are pals. Pals through pages, tasty ideas and grubby paws. I am enjoying the read so very much, you should be immensely proud of what you have created. I’m also now a walking marketing machine telling everyone and everything my affections for your publication.”

“ Ladies, I just wanted to say well done! Read some blurb on your new mag on Instagram, went out and found it this morning. The look, the feel = excitement!! So came home and read it from cover to cover – lalalalalaloved it! Definitely the most interesting read on the shelf right now!”s

“Hi Lara, Lou and Kate,
I hope you’re all really well.
Congratulations on the launch of Lunch Lady – I LOVE IT! For years I have been thinking, when is there going to be a cool parenting magazine?? And now there is one. So thank you, from this young mum, who struggles to find anything online/in print that’s actually relevant to my parenting world. THANK YOU!”

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magazines

Here is why I don’t have mainstream Easter chocolates in the newsagency

IMG_7195Coles is promoting Easter confectionery at 25% off in-store on in the media, trashing the margin opportunity for other retailers, especially small business retailers who can’t strong-arm suppliers to discount to allow 25% off retail to be profitable.

So rather than compete with Coles, Woolworths and other mass retailers and the price games they play, I pitch other products for seasons like Easter, products the majors tent to not pitch or, at least, not discount like this.

I wish we had politicians in this country with the requisite guts to dilute the market power of Coles and Woolworths. The pressure they put on suppliers and primary producers is not socially responsible.

21 likes
confectionary

Another example of the appeal of retro magazines

IMG_7193A cool pub venue in Melbourne has old magazine covers on wallpaper plastered all over the wall including the very cool image of an old New Idea cover.

I mention this today as it connects with my post a couple of days ago about Mojo ’60s. There are plenty of opportunities in the retro space in products we can sell including circulation product. At the gift fair in Sydney last week many suppliers were promoting retro product. I need this retro wallpaper as a backdrop.

7 likes
magazines

Sunday newsagency marketing tip: merchandise products to sell

Here is a before and after photo of a display unit of cool erasers we have in the newsagency. The photo on the left shows how the product arrived in-store and was initially displayed. The product on the right shows how the same display box looks with a simple change. You can now see what this product is. That simple change alone ought to boost sales.

IMG_7127 IMG_7128

We need to obsess about these things otherwise we condemn ourselves to average sales. Retail is detail. Engage in the detail and you are chasing a better result.

When I talked about this with a newsagent a few weeks ago they told me they didn’t have time for this. They were dismissing as if concerning themselves with this level of detail was beneath them. Any newsagent who wants to maximise their return will care about the detail I am writing about here.

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marketing

Loving retro in the newsagency

IMG_7165Retro products are easy to sell right now so I love it when a magazine offers a retro cover like the last ever issue of Cleo and this copy of Mojo I noticed in the newsagency today. the cover gives us an opportunity to promote the magazine outside the usual magazine department placement with other product from this year in the gift department. There are many gift suppliers playing to the interest in retro, we are spoilt for choice. Being able to leverage this with magazines is a bonus for the gifts and for the magazines.

3 likes
magazines

Newsagency software user meetings

My newsagency software company announced capital city user meetings a couple of weeks ago. Included in the free sessions will be retail management advice. These are not sales events – rather the goal is to help small business retailers leverage their IT investment for even better outcomes. The start time is 8am so as to not interrupt too much of the day.

I will be at all sessions and would welcome an opportunity to catch up with anyone on any topic.

FYI here are the details:

Launceston User Meeting
Date: 07/03/2016 Time: 8:00am
Venue: Quality Hotel Colonial Launceston
Address: 31 Elizabeth St Launceston TAS 7250
Breakfast: Coffee, Tea and Egg & Bacon Muffins on arrival
Parking: Limited Free onsite parking

Hobart User Meeting
Date: 08/03/2016 Time: 8:00am
Venue: Hotel Grand Chancellor
Address: 1 Davey St Hobart Hobart TAS 7000
Breakfast: Tea, Coffee and Swiss cheese and ham croissants on arrival
Parking: Onsite Parking available charges may apply, let the parking assistant know you are attending a meeting. Marketplace Car Park is open 24 hours and there is metered parking within close proximity to the hotel.

Melbourne User Meeting
Date: 09/03/2016 Time: 8:00am – 11:00am
Venue: Hawthorn Art Centre, Mayor’s Room
Address: 360 Burwood Rd Hawthorn VIC 3122
Breakfast: Tea, Coffee and mini tomato and cheese croissants on arrival
Parking: Free onsite parking – enter via Kent Street

Brisbane User Meeting
Date: 10/03/2016 Time: 8:00am – 11:00am
Venue: Quality Inn Airport Heritage
Address: 620 Kingsford Smith Drive Hamilton QLD
Breakfast: Tea, Coffee, selection of biscuits, slices, cakes and muffins on arrival
Parking: Limited free onsite parking and free street parking

Adelaide User Meeting
Date: 11/03/2016 Time: 8:00am – 11:00am
Venue: Rydges South Park
Address: 1 South Terrace Adelaide SA 5000
Breakfast: Tea, Coffee, egg and bacon muffin as well as fresh fruit served on arrival
Parking: Limited Free onsite parking as well as 2 to 3 hour free street parking

Sydney User Meeting
Date: 15/03/2016 Time: 8:00am – 11:00am
Venue: Novotel Sydney Olympic Park
Address: Olympic boulevard Sydney Olympic Park NSW 212
Breakfast: Tea, Coffee and ham and cheese croissants on arrival
Parking: Hotel car park fees apply: All day rate $25.00, or $13.00 for 1 hour, every additional hour charged at $5.00. Additional parking is available in P3, accessible from Sarah Durack Ave or P8 accessible from Herb Elliot Ave at a rate of $5.00 per hour

Canberra User Meeting
Date: 16/03/2016 Time: 8:00am – 11:00am
Venue: Mercure Canberra
Address: Cnr Ainsille & Limestone Ave Braddon ACT 2612
Breakfast: Tea, Coffee and a chefs selection of breakfast items on arrival
Parking: Free onsite parking at the front and back of hotel

Perth User Meeting
Date: 17/03/2016 Time: 8:00am – 11:00am
Venue: Assured Ascot Quays Apartment Hotel, Marina Room
Address: 150 Great Eastern Highway Ascot WA 6104
Breakfast: Tea, Coffee, whole fruits and warm muffins served on arrival
Parking: Free onsite parking available

Gold Coast User Meeting
Date: 30/03/2016
Time: 8:00am – 11:00am
Venue: Mantra Twin Towns
Address: Wharf Street Tweed Heads NSW
Breakfast: Coffee, Tea, Mini ham and cheese croissants and mini Danish on arrival
Parking: Free Parking available across the road from the conference centre at Mantra Twin Towns, there is a walk away connecting the hotel to the conference centre as well as a lift

7 likes
Newsagency management

Tubs working for roll-wrap in the newsagency

12041812_945204358920273_1053677316_nWe are chasing growth in sales of roll-wrap by using tubs placed below the flat wrap in one of my stores. While the photo makes the product look untidy, the in-store impression is there is plenty from which to choose. This is what we have gone for with the change.

I think the more we own product layout and placement in our businesses the better for our businesses.

We also have roll wrap at the counter plenty of time and elsewhere as we seek to surprise shoppers with the opportunity. I think plenty of roll wrap purchases are on impulse. Key to this is placement.

We should not rely on suppliers for initiatives as they are not retailers, they are not in our shops seeing what we see and talking with our customers. No, the best people to know what is best for your business is you and your team in the business.

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Newsagency management

Suppliers ought to carry more responsibility for out of stocks

Suppliers ought not accept an order from a retailer unless they are able to fulfil the order. This is not too much to ask, especially in this era of being always on, always connected.

It is frustrating placing an order to only have part of it arrive months later and not be able to tell a full story in-store.

Some suppliers are worse than others. The best way to deal with them is to complain once, louder the second time and cut them off the third time.

Suppliers need to have the systems and processes in place to stop this from happening, to stop taking orders when at the head office they know from forward orders or warehouse management that the orders cannot be filled. Anything less is not good enough.

I see this problems with big and small suppliers. It happens too often. Indeed, it peaks following major trade shows where some suppliers manually gather orders and take a week to key them in and see what their actual commitment is.

Once supplier told me they could not fulfil as my order and the order from a few others pushed them to another container and they did not want to risk it. What a way to run a business!

In the case of an out of stock where the supplier accepts unsullied goods as a backorder and has a need to send out a catch-up order, the supplier ought to carry the freight cost of this and not push the retailer to get to a minimum spend.

8 likes
Newsagency management

Reclaiming magazine space in the newsagency

IMG_7104I was in a newsagency this week where a magazine relay resulted in this four square metres of retail space was reclaimed from magazines delivering 25% GP for gifts delivering 50%+ GP. No titles were cut. Rather, a more efficient allocation of space was achieved through smarter space management. This is smart newsagency management – respecting a core low margin category in a way that lowers the overhead cost of the category on the business.

Magazine publishers should look at this as newsagents have to make moves like this given the margin dollars being achieved from magazines continue to fall in a marketplace where rent and labour costs are increasing. Are you listening? 

15 likes
magazines

Here is why I prefer some suppliers over others

It has been interesting comparing suppliers at the Sydney Gift Fair, those who were their at least. Here is what I like in a supplier. If you are a supplier and don’t do this, I’ll mark you down in my view:

  1. Order confirmation – written or by email immediately on placing the order. This nonsense of excuses for not confirming means it’s not an order, not really – so don’t expect me to pay a fee if I don’t proceed.
  2. Electronic invoices. Not doing this puts you in the dark ages.
  3. Being in stock. Placing an order for a merchandising story and only having half in stock is not a solution.
  4. Ideal timing. Timing that suits my floorspace allocation is always a plus and helps me maintain shop floor space commitment to a supplier.
  5. Seasonal relevance. Suppliers that help me embrace major and minor seasons get more attention.
  6. Easy claims for damage. Goods can get broken during shipping. Making me wait until I have five or six to return or until a rep comes to get the credit demonstrates a lack of respect.
  7. Fast credits. Holding off giving me credits for unsold stock when you promise sale or return turns me off you.

I could add to this list. This is my top seven. It has been on my mind this week because of experiences I had at the Sydney Gift Fair. I got to enjoy some suppliers more than others.

What I am looking for in supplier relationships that provide benefits beyond good products. I want professionalism and operational efficiency.

We have too many suppliers with old-school ways that hold retailers back.

10 likes
Newsagency challenges

Update from Network Services re transition to Gotch

Click here for the latest update from Network Services on the transition from titles to Gordon and Gotch. network advises the list of Transition issues has been reduced from 150 to 92.  The updated list is hosted on both NetOnline and Gotch Connect.  Links to the portals are included in the communication.

The communication through the process is consistent and thorough.

1 likes
magazine distribution

When a newsagent supplier says: I’ve got a perfect product for you

I’ve got the perfect product for you, it’s perfect for newsagencies.

Rarely is this statement following by a pitch for a product that is perfect for my newsagency.

I am so over suppliers assuming they know what we should sell. I am over suppliers pigeonholing newsagents and their businesses in a way that denies smart newsagents the opportunity to genuinely change their businesses.

Many suppliers do not know today’s engaged and growing newsagency. Many don;t want to know as they have built their businesses around serving businesses rooted in the 1970s and 1980s. It is 2016 folks. Average sale value is way up, GPO is way up. What we can sell has changed forever and this is because many of us are buying from suppliers who to not look at our businesses as selling what newsagent can sell.

I am not angry at suppliers, just frustrated that they have not seen the change in many newsagencies, that they themselves are rooted in the past.

I’d prefer suppliers to start a conversation by saying tell me about your business and what you sell.

I met a supplier yesterday in Sydney who was like this. Their average wholesale price point is $100.00. Their products are unique, not newsagency like. This was a big plus for me as I am keen to continue to push the definition of my business through the products I range. This is one of the reasons why I do not want suppliers to see me as a newsagent as that locks me in a box that does not work for me or for my customers.

So, if you are a supplier reading this, consider a new opening approach:

  • Tell me about your business today – who you sell to and what you are looking for.
  • Tell me about the changes you are planning.
  • Tell me more about your customers.

The answers to these questions should guide a more productive discussion and relationship for both businesses.

Stop putting newsagents in boxes as that box marked newsagent or newsagency is crumbling fast. It has no future – the old school newsagency that is. The future, for the record, is bright and exciting.

15 likes
Newsagency management

More newsagent suppliers engaging with EDI

I have spoken to several newsagent / gift shop suppliers at the Sydney Gift Fair about turning on electronic invoices. Through my software company we are helping the suppliers get it right so all retailers can access the files regardless of the software they use.  This is exciting as electronic invoices makes suppliers more appealing to small business retailers. Time is money as they say.

I have encouraged the suppliers close to turning this on to use electronic invoices as a marketing pitch in their campaigns through 2016.

This is a good benefit of a trade show like the Gift Fair – the ability to get to suppliers to connect with them on a business to business level and make the pitch – and to have suppliers speak to each other about the benefits of this type of engagement.

As the channel grows and the supplier base diversifies, it is important for all of us to encourage newer suppliers to transact with us in efficient ways we have become used to.

15 likes
Newsagency management

Reed Gift Fair attendee numbers

UPDATED 9;44PM 23/2/16.

Here are the official attendance numbers so far for the Sydney Reed Gift Fair:

  • Saturday: 4,010
  • Sunday: 3,786
  • Monday: 3,307
  • Tuesday: 2,167.

I have been there on all days and the mix of people has changed.  Yesterday, for example, was better attended by corporate gift retailers whereas on the weekend saw better representation by family businesses.

While there are plenty of visitors from interstate, the majority are from NSW/ACT.

4 likes
Newsagency management

Price is not the first point to consider when looking at new products for the newsagency

What is the RRP? is a common question retailers ask of suppliers when considering an item and I think this is the wrong question to start a conversation with.

I have been talking about this with suppliers at the gift fair in Sydney over the last couple of days. One bemoaned to me about this question for their terrific range of beautiful giftware. The range looks expensive. But it is not expensive, not in the overall scheme of things as the purchase is an emotional one and with emotional purchases price is less of an issue.

Questions I’d love retailers to consider when contemplating new products include:

  1. Who is the customer for this product?
  2. Will this product attract new shoppers to the business?
  3. Is it a product people will easily understand?
  4. Does it lend itself to impulse purchases?
  5. Is this something I can promote outside the business, like online?
  6. How does it fit with why my shop stands for today?
  7. Does this product fit a niche I need to be in?
  8. What margin can this carry? No, this is not a pure price question – it is more about you looking at the product and wondering how far you could push price.

Asking the RRP as the first question and often the only question denies you the opportunity to consider that, maybe, price is not the issue.

I know of newsagents who have sold items priced at $100, $200 and more that they initially, on first seeing the product, said they could not sell. Price is often not the factor we retailers think it is.

We need to not be the barrier to shoppers spending money with us. We need to do this by being more open to products, more considerate of factors other than price as being more important.

Having products that are not easily compared or that can be packaged in a way to look unique to us is the another way to make price less of an issue.

Buying products for the shop based on price keens the business operating a price based model and while that works for Aldi and the like, it does not work for newsagency businesses where growing margin is important.

12 likes
Newsagency challenges

Build the Millennium Falcon video

Gotch has been promoting the new Built the Millennium Falcon partwork on Twitter:

Here is a video promoting the Millennium Falcon part series:

This video can be used on Facebook and in-store to bring the opportunity to life.

4 likes
magazines

Paranoia, selfishness and ignorance deny newsagents achieving a better return on newspaper publisher promotions

IMG_6106The Dr Seuss promotion run nationally by News Corp. over the last two weeks has been a terrific success, driving traffic and purchases in response to TV advertising and house ads in the papers.

Aside from the issue in some states of senseless cutting of newspapers supply by News and the appalling margin in most states for the Dr Seuss books at at the heart of the promotion, News has missed an opportunity tholepin newsagents make many times more from this promotion. This is why I say:

Paranoia, selfishness and ignorance deny newsagents achieving a better return on newspaper publisher promotions 

Paranoia because News will not share details in a high-profile campaign like this early enough for newsagents to source other product in the same licence.

Selfishness because News only looks at a promotion like this from the perspective of their company when a less selfish approach could make the promotion more profitable for newsagents and therefore drive greater support from them.

Ignorance in that News people have not made themselves adequately aware of the opportunities for newsagents with allied product.

Take the Dr Seuss promotion, given enough time newsagents and / or their marketing groups could have sourced licenced Dr Seuss product to sell alongside the News titles during the promotion. This would have made the promotion more valuable to newsagents. It could have also driven even  more newspaper sales than the promotion itself drove.

But these things take time to organise. In the case of Dr Seuss licenced product, given how decisions are made around it. it could have taken at least six months to undertake necessary negotiations. Once newsagents knew that it was a Dr Seuss promotion it was too late. The opportunity was lost.

News and other publishers need to consider more that their products are a piece of a large jigsaw for newsagents. They are no longer a stand alone jigsaw. For them to be genuinely valuable to newsagents we need earlier, more transparent and more thoughtful engagement. Stop worrying about a competitor finding out. When it comes to newspapers in Australia, we don’t have genuine competition – far from it even in two newspaper cities.

While News has in the past briefed some or all the groups on promotions, it is too late for sourcing licenced product that needs to be imported. I’d love to see this change.

This is not a blog post that should anger folks at News. No, they should see this post it as an opportunity to work smarter so newsagents make more money and more deeply engage with their next major licence promotion.

29 likes
Newsagency opportunities

Sunday retail marketing tip: 8 free ways to celebrate the birthday of your business

Business birthdays are important – for you and for your customers. Embrace the opportunity for a celebration. But be sure to not make it all about making more money. Take some time to embrace the achievement and love it.

Here are my tips for celebrating the birthday of any small retail business:

  1. Setup a photoboard and invite customer engagement. Let’s say your business is six years old: ask customers to bring a photo showing then at six years of age.
  2. Setup a noticeboard. Let’s say your business is twenty years. Headline the board with: We want a list of twenty things you love about this town.
  3. Recognise local heroes. Host an after drinks night in your shop and take a moment to acknowledge and thank local heroes. The number you acknowledge should be the number of years you have been in business.
  4. Hand out a flyer listing X hidden gems of your region (where X is the number of hears you have been in business). The flyer is your birthday gift to your customers.
  5. Have cake. Everyone loves cake. If for no other reason than to get to eat cake have a birthday cake.
  6. Party favor bags. Give every customer shopping on your birthday a bag of treats and favors you have chosen to celebrate your big day.
  7. The Happy Birthday discount. Offer a big discount to any customer who comes in on the day (or through the week if you wish) and sings, at full voice, Happy Birthday. Sure there is a sales element here – but it is sure to be a lot of fun.
  8. Say thank you. In your front window, create a stunning and personal display saying thank you to the town. Do it visually, creatively and with a full heart.

A key aspect of these ideas is to subtly remind people that your business stable and can be trusted.

10 likes
marketing
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