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

Month: March 2016

Fairfax announces regional newspaper closures

Fairfax today announced the closure of two regional newspapers and changes for others.

Under the plan, print editions and websites of the Cooma-Monaro Express and the Summit Sun at Jindabyne will be discontinued, The Queanbeyan Age will be relaunched as a free weekly newspaper and the content and distribution of the Braidwood Times will be extended to serve the growing community of Bungendore.

Fairfax also announced the Canberra Times is to be redesigned into a compact format.

None of these moves should surprise newsagents who have been focussed on the future. There is no upside for print newspapers if they remain focused on news as the news is well and truly old by the time the presses start to role the night before we get the products in-store.

While I understand publishers need to promote and in most Australian cities justify production, this is now a rapidly changing space. Whereas publishers were asleep for decades, two or three years ago they started to act and moved on cover price and cut operating costs. It is too little too late in my view. Now, they need to act ahead of the massive wave that is building out in the ocean, so they are not drowned.

Today, we have newspapers that are too thin to justify the higher charge. Ask any newsagent and they will have stories of customers complaining about poor value for money some days.

I think we are close to seeing one or more capital city dailies moving away from seven day production schedules. I don;t want that but paid circulation and falling ad revenue make it inevitable.

We have to run our businesses expecting falling newspaper traffic and revenue otherwise we will be in shock when it stops and wonder what to do, and by then it will be too late.

Today’s announcements by Fairfax are announcements the company needed to make. Our challenge is to respond thoughtfully and appropriately for our own respective futures. Hopefully, many newsagents reading this started acting long ago.

While newspapers remain important to many newsagencies today, business growth can be achieved without them. This is where our attention ought be.

Newsagents need to be chasing new traffic, shoppers who do not come to the business today. This is hard work. It involves you being a retailer and not an agent. This is a fundamental mindset change, but one many have made with terrific success.

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Media disruption

Some newsagency suppliers need to understand the importance of barcodes on products

It frustrates me when I hear of a newsagency supplier using the same barcode on multiple products. Retailers cannot adequately track sales in such a situation. Suppliers who do this deny newsagents the opportunity to understand what is happening in their business.

How do you understand the performance of your card department with, say, 800 different designs, where a barcode is shared with fifty to one hundreds designs? You can’t! Only the card company can analyse performance in such a situation.

This is poor service of the retail newsagents by the supplier, the card company in my example above. It is disrespectful and not best practice.

While newsagents can produce their own barcodes for cards, they should not have to as doing so would be an extra cost and take extra labour.

We need to be more demanding of our suppliers on these matters.

The more suppliers help me more easily understand the performance of inventory in my business the better for me and for them, and the better for my customers.

We are not cottage industry retailers. We are a strong national channel competing with many national retailers. One way we can effectively compete is with data and business tools of a standard equal to our competitors.

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supplier arrogance

Batman vs. Superman products popular for the newsagency

IMG_7674We have the Hallmark Batman vs. Superman stand on the lease line to leverage interest in the franchise following the release of the movie and the extraordinary publicity surrounding it. The stand is working along with products from other suppliers. The best way to leverage licenced product is to go deep across several suppliers. Range matters in the licenced space.

If you have the stand, place it at the door, in the window or on the lease line.

This is another good news story for engaged newsagents: leveraging a popular current licence through a range of suppliers to drive new traffic for our businesses.

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Greeting Cards

Why are post offices selling so much crappy stuff these days?

IMG_7464How is this for a tweet to re-tweet? I love it, especially in relation to the government owned post offices – retail businesses they should not operate except from offering basic postal services.

Peter Ford has 10,000 Twitter followers. I responded to him as did others at the time of his tweet.

I would not be surprised to see Australia Post rethink its approach to retail as we have seen the ABC do in recent months. If they do, there will be more opportunities for newsagents.

Why are post offices selling so much crappy stuff these days? My answer is – because they have lost their way, they no longer know what they stand for. That is reflected in their broad an disconnected range of food.

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Australia Post

Do I think a newsagency is a good business to buy?

Further to my post yesterday, the question do you think a newsagency is a good business to buy? is one I am also asked regularly.

Any newsagency is a good business to buy to the right purchaser, the person most suited for that business.

The answer really does come back to the purchaser because they may have skills ideal for a specific business. Equally, they may lack skills essential to a particular business – making them not the right purchaser.

The question demands an answer thoughtfully considers and takes into account who is asking, their skills, their resources, their experience, their fitness, their desire and their hopes and plans for the future.

While the business they are asking about is important, I see the answer as relying more on the person themselves. This is why I say any newsagency can be a good business to buy and often is.

I have a lot of confidence in the channel even though what the channel stood for in the past is changing rapidly, faster than ever before, to the extent that the channel is not the channel. But all of that is good in my view for I love change and the opportunities in change.

So, for the right purchaser, yes, a newsagency is a good business to buy.

Where it is not is if you are not interested in retail, not prepared for change, not appropriately resourced and expecting an easy ride. Yes, if you are lazy, a newsagency is not a business for you.

I say all of this as someone keen for more new blood in our ‘channel’. But it has to be good blood from energetic and optimistic retailers … because it is you who will help give us a terrific future.

Now is a great time to buy a newsagency if you want to participate in a time of great change and great opportunity that comes with great change.

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buying a newsagency

Terrific News Corp. coin promotion coming in April

I like the ANZAC to Afghanistan Medallions – Commemorative Coins promotion announced to Victorian newsagents by News Corp. last week. All News Corp. metro dailies are engaged in the promotion from what I understand.

I expect the promotion will be a hit because of the demographic of newspaper readers, the theme, each coin being legal tender and the connection with the Mint and Legacy.

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Newspapers

A checklist when looking at buying a newsagency

One of the most common questions I get privately from people who find me through this blog is what should I ask for when looking at buying a newsagency?

The question itself, when asked, indicates how green a prospective purchaser is when it comes to purchasing a business.

Here is a list of data I suggest newsagency business purchasers access from the vendor or their representative:

  1. P&L from the accountant for the last two years. i.e. not a spreadsheet created for the purpose.
  2. A good explanation of any add-backs.
  3. Sales data reports, for the last two years, from the POS software in use – to verify the income claim.
  4. Sales data reports from the lottery terminal to verify the income claim.
  5. BAS forms to confirm data in the P&L.
  6. A list of all inventory to include purchase price and date last sold for each item.
  7. A copy of the shop lease.
  8. A copy of any leases the vendor expects you to take on board.
  9. A list of all employees: name, hourly rate, nature of employment, start date, accrued leave.

This is good basic information that will enable any purchaser to undertake reasonable assessment of a business.

A good business will shine through the numbers just as a business with upside achievable by new owners will shine through.

My advice to newsagents looking to sell who are concerned about this list is: think about it now and focus on your business so the data I have listed looks good.

Every day you make decisions in your business that impact many of the data points listed.

This is why I say every day is your pay day. Run a smart, lean and profit focused business and you will have a good pay day today and a good one when you come to sell.

The most appealing businesses are those that are easier to run and are making money.

The time to focus on that is now.

Sure a purchaser can turn a business around. They should get the rewards if they are expected to do that for your business.

The price you can sell your business for will be based on what it is making now.

Getting the data ready for the sale of the business could, of itself, help you improve how you run your business.

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buying a newsagency

The New York Times seems desperate

Screen Shot 2016-03-27 at 11.53.31 pmI have received six to eight over the last ten days emails from The New York Times promoting digital subscriptions. One email is okay but I now have so many they appear desperate. The US$2 a week offer for digital access does not feel like good value in that I can access few news from plenty of sites. Paying US$2 a week for their opinions is not appealing. This is the same reason I don;t pay News Corp. a fee to be told by their opinion writers what to think.

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Media disruption

What do kids see in your newsagency?

Maybe when the shop is closed one night or early morning and with the lights off so people cannot see you, get on your hands and knees and crawl through your business to see what kids see.

I am serious. Try it. What can kids see?

Kids are shoppers, important shoppers. Their pester power can help drive sales.

Supermarkets and other retailers obsess about what to put at a height level for kids to see, engage with and pester parents about.

I am encouraging you to crawl through your business because it is cheaper than bringing in a retail expert to provide you with advice.

When you are on your hands and knees, probably picking up rubbish and rearranging the shelves as you go, think about product placement for your youngest shoppers. This is especially important near the counter.

What new products could you bring in for kids? What products could you move from elsewhere for kids? What can you change to improve the value to you of kids shopping with parents in your business? This is business after all.

Yes, you will feel odd. Give it a go and see what deliberate changes you make. Track the results. Hopefully they are such that they get you on your hands and knees again.

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Management tip

Sunday newsagency marketing tip: tell a story!!!

IMG_7721Once of the best displays at the Toy Fair from a retail perspective was this display of Hawthorn AFL merchandise at Korimco. Putting all hawthorn product together like this tells a better story to hawthorn shoppers than leaving the products in each product stand with all other AFL teams covered in each product group. Small steps honing in with a narrow focus can create a better impression. This image reflects what telling a story can look like.

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marketing

Sunday newsagency management tip: 7 steps for reducing shopper theft

I have been working with a newsagent on addressing the cost of shopper theft in the business. Here are tips they found useful:

While there are other steps you could take, these seven are most valuable from years of working with retailers in a range of retail channels:

  1. Look at people as they enter. Make sure they see you see them. Ideally, say hello to them. The more they think you have seen them the better.
  2. Have a screen near the entrance / exit so people can see that you filming them with your security cameras.
  3. Work on the shop floor. This puts you or your employees among shoppers and heightens the chance of detection of theft.
  4. Walk the floor. Every so often, do a circuit. Be present. Talk to people.
  5. During peak shopping periods, station someone outside the business looking. Ensure they are trained on appropriate action should they see misbehavior.
  6. Bring in a security guard on a casual basis during your most busy periods.
  7. Have a no receipt no exchange or refund policy.

The more likely people are to be caught the less likely you are to experience shopper theft.

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Management tip

Glasgow newsagent killed in religiously prejudiced attack

The news of the fatal attack on newsagent Asad Shah following his posting of an Easter message on social media is shocking. UK news outlets are providing comprehensive coverage.

Take a moment to think of the Shah family and their grief.

Australian newsagents are as ethnically diverse as our UK colleagues. Inside and outside our channel, sadly, prejudices can be seen. We ought to resist this and call out those who ignorantly attack based on ethnicity, religion or sexuality.

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Social responsibility

Making the most of Easter in the newsagency

12776740_956239031150139_1035868510_oThere is no doubt about the value of going out early with a broad range of Easter product pays off, especially for higher-end items people plan to purchase or LayBy over time.

My experience is that grandparents especially like to shop early for something special beyond the eggs and usual Easter fare you see in so many other stores. This is taken into account in developing the displays and positioning product. I have found a good way to encourage grandparents and regulars is to move the Easter display through the season.

The more you interrupt traffic flow the better.

Easter is a season that should be growing in our channel regardless of the more commercial and chocolate focussed retailers out there.

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Newsagency management

Cat cards are cute – in the newsagency

I am often asked how to promote everyday greeting cards on Facebook. Here is one example of something I did recently as part of a series of themed posts about cards to like. The post was simple, engaging and speaking to a popular interest. Here is exactly how it looked. It took me less than a minute:

Screen Shot 2016-03-23 at 9.15.29 pm

This type of marketing of cards and the business on social media, not only Facebook, is easy. I urge all newsagents to try it.

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Greeting Cards

Enjoy the day off

Most newsagents will get tomorrow off. Have a good break even if you find your mind on the business even when you are away from it.

Happy Easter whatever the season means to and for you.

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Uncategorized

Issues with the Hubbed $250 rebate?

A newsagent advised me of delays in getting the $250 a month rebate from Hubbed. Despite contact many times the issue was unresolved, until yesterday. The time the newsagent had to spend chasing Hubbed was considerable. I agreed to raise the issue here to see if anyone else is challenged with Hubbed.

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Hubbed

Great networking event for small business newsagents

newsXpress held the first of two national conferences for 2016 on Tuesday in Melbourne, at the MCG. 135 newsXpress members attended as well as plenty of suppliers. The conference itself followed a full day at the Toy Fair being briefed by suppliers and leveraging group buying.

While I am a Director of newsXpress and sure to speak positively about the experience, I want to take a moment to speak about newsXpress members. Their optimism is wonderful. Their engagement is pursuing new traffic and above-average gross profit is exemplary.

Retailers from businesses large and small, in the city and country, on the high street and in shopping centres, they all mixed and engaged in a series of business sessions focused back on their businesses. I want to note again the optimism at the heart of every session, every discussion.

Magazines were part of the discussion too thanks to a terrific Pacific Magazines presentation that included terrific marketing initiatives.

The mood of the room reminded me of the Barack Obama slogan from 2008 of Yes We Can. Hearing newsagents explain to newsagents about how to embrace change, the fun they will have, the success they can have, is always a thrill.

I talked with several people who have recently joined and their common comment was they had no idea what the group really did. They mentioned that it was completely different to what was expected. Having been with Newspower for years and a shareholder in Nextra prior to being involved with newsXpress, I wanted to be part of something that was different.

There is no one group for the newsagency channel nor should there be. Competition is important and healthy. To me, the most important factor is that newsagents in a group and those running a group work hard and 100% together on common goals for shared mutual benefit.

Here are some photos from the conference itself and the dinner at Bamboo House Tuesday night. The whole event was free to newsXpress members thanks to supplier funding. All interstate travellers received financial assistance for flights and hotels.

IMG_7792

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IMG_7793

IMG_7807

IMG_7795

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marketing

Another perfect local product

IMG_7707Further to my post below. While it does not work in regional and rural towns, the local editions of Monopoly are a treat for businesses in the cities covered – not only for local shoppers but also as gifts for visitors when they arrive or leave. Sometimes we have to show and tell customers what to buy and why as not all its,ms are purchased for one reason.

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Gifts

Personalised products a smart move for rural and regional newsagencies

IMG_7786One way to maximise visitors in town and in your shop is to have products that connect them with being there. Whereas for ages postcards were the best local item, there is now a broad range of products: bags, stubby holders, magnets, hoodies, singlets, thongs, rulers, pens, pads and, yes, delicious and locally branded chocolate.

The more unique the better, especially if the products feel locally made – whether they are or not is not the point.

Nothing says you are a local business better than if you have products with the name of the town. Even locals will love this when looking for products to send to friends of to give to guests who may be staying with them.

Sourcing products that bear the name of the town of the region is a terrific way to position your newsagency as not only being locally connected but also supporting the town or the area. It shows you as being a proud local.

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marketing

Newsagent humour on Twitter

IMG_4036This tweet on Twitter three days ago is hilarious. It’s from someone in the UK and referring to the experience there.

My question for convenience focussed newsagents – do you sell chia seeds? If you do, how well do they sell?

The tweet gave me a good laugh as I hope it does for you.

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Fun

Melbourne Toy Fair an excellent opportunity for newsagents

IMG_7768The Melbourne Toy Fair has been terrific again this year. Finishing today mid afternoon, the attendee mix has been varied: toy retailers, gift retailers, newsagent retailers and more. The supplier mix exhibiting has been equally diverse covering toy, hobby, collectible, art, gift, game and other products. This is a valuable trade show for retailers and for suppliers and especially valuable for newsagents looking for an educational event that can open them prospective new shoppers.

Many suppliers use the show to educate retailers about new shopper traffic opportunities. This is part of what makes the Toy Fair and important event, far better than any single channel specific event.

With the walls between specialty retail channels crumbling, it is more important than ever for newsagents and other specialty retailers to look beyond what is traditional for their channel. This also means looking at what appears to be traditional product through fresh eyes. For example, with one supplier you are confronted by model kits and may dismiss them as an out of date product whereas what you make appeals to a niche interest making them saleable not as model kits but as collector items in that niche. I hope this makes sense.

Sometimes it is only when you dig deep with a supplier and discover a back story opportunity that you can unlock a value from a range that otherwise may have been missing for you.

If you are dismissing the toy fair because of the word toy in the title you’d be missing an opportunity. This event was about far more than toys.

I was at the fair for my software company Tower Systems on the weekend and on Monday with a group of 100 newsXpress members who had group appointments with various suppliers – who blocked off their stands for the group. The group, moving as a group, through the fair caused plenty of discussion among exhibitors and attendees. It demonstrated the value of working as a group. It certainly focusses the minds of suppliers when they have 100 retailers on their stand all interested in the same mix of products.

This is the fourth toy fair newsXpress has done as a group with suppliers closing off stands to other retailers for set appointments. It is being repeated each year because of the commercial success for the retailers and the suppliers.

There is no doubt that toy and related product is a growth category.

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Newsagency management
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