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

Month: April 2016

AFL licenced products important in the newsagency

With so much AFL generated traffic for footy cards and newspapers, it is good business to have a broader range of AFL products. While we have the usual mix of gift items. There are a couple of products that stand out for a special mention, the socks and the keychains. We have both in good impulse purchase locations and both work a treat for us: good margin, easy impulse purchases, leveraging destination shopping.

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This is one example of how we can leverage lower margin destination traffic for greater margin dollars in a purchase: good buying, tactical placement and having the range in at the right time in the season.

Timing is everything though. The time to get in on these opportunities was months ago to buy right and to integrate the opportunity with your in-store plan for display.

Actions like these, around a sports season or the like, need to be undertaken deliberately, as part of your business growth plan to maximise the traffic opportunity.

No one will do this for us.  Moves like these we have to make for ourselves.

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Management tip

What is the point of the ANF marketing?

Cf0TthHWcAAGRWw.jpg-largeThe ANF is pitching this ad on social media. I guess they are doing this so they can say they promoting newsagents. While the message is not one that is ideal, in my opinion, for the channel, the bigger problem is the branding. The N means nothing. There is no discipline associated with it, there are multiple versions. I suspect the majority of the 3,500 newsagencies in the channel do not use it. The ad is is not promoting something delivered with consistency. It has not been thought through.

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marketing

The Saturday Paper supports newsagents, we should support it

p1_screen_shot_2016-04-08At a film festival on the weekend, I saw ads on the screen for The Saturday Paper. The only retail outlet for the newspaper notes was newsagents. This continuing support for our channel as the sole retail channel for The Saturday Paper deserves support from us for the most valuable action a supplier can take in support of us is the promotion of our channel as the destination for purchasing their products. While volume is low compared to cap. city dailies, customers purchasing The Saturday Paper are loyal.

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Newspapers

Having fun with Mother’s Day in the newsagency

IMG_8902Mother’s Day can be pretty boring when it comes to gifts in newsagencies and gift shops. There is the usual run of photo frames, plaques, mugs and inspirational books and while they serve a purpose, they are easy gifts, the sorts of gifts you can get from any store.

We have sought out more unique gifts, like this quirky book “How it works” – The Mum. It explains what the mum is and how it works, in a retro style. The book is a ton of fun.

We have the book as a centrepiece gift in our large Mother’s Day gift display as we like the statement it makes about us the gifts shoppers will find.

It is a thrill when someone picks up the book and has a laugh. That’s when you know you have a winner of a product.

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Gifts

Who is chris_selina on ebay and how can they offer 20 full sets of the 2016 Anzac To Afghanistan Coin Collection

Screen Shot 2016-04-11 at 7.07.07 amOn ebay just now, chris_selina has sold 15 of the 20 sets available of the 2016 Anzac To Afghanistan Coin Collection, a collection not yet released.

How can this be? The full set is not out yet.

Screen Shot 2016-04-11 at 7.12.56 amAlso on ebay this morning, smartdog_au has sold 7 of the 10 full sets they have available of the 2016 Anzac To Afghanistan Coin Collection.

The set of coins will be released over time and even then only with the purchase of a newspaper. Only someone with easy access to full sets would be able to make offers like these on ebay for the volume on offer.

If acquired without the associated newspaper purchase, the margin is excellent.

These offers being out now on ebay makes a mockery of the process we are engaged in with News Corp. The offers devalue the promotion. They also show there is leakage in the process.

The photos online for chris_selina suggest the seller is a newsagent.

UPDATE: 11/4/2016 @ 7:08PM. I did a Google search just now and here is what comes up – see the ads to the right – more sellers.

Screen Shot 2016-04-11 at 7.06.32 pm

Full collections are also available on Gumtree.

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Ethics

The role of newsagents in promoting Chemist Warehouse

IMG_8934Chemist Warehouse has a sale catalogue out now called The House of Wellness – see the photo – the same title of the ‘magazine’ News Corp. requested newsagents to hand out three weeks ago as a ‘gift’ as I wrote about here. The title is also shared with a radio program now running on the Fairfax owned 3AW and sister stations elsewhere on the radio network.

Put all this together and we can see The House of Wellness for what it is, an integrated marketing campaign for Chemist Warehouse. It is even more clear that the magazine we were asked to hand out as a free gift was a key element this integrated comprehensive marketing campaign.

To me, it is is even more evidence of News Corp. undervaluing newsagents for the role it requested of us in what for them is an ad revenue activity.

News Corp. needs to call The House of Wellness what it is.

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Ethics

The People’s Friend and Reader’s Digest made fore each other

IMG_8892The latest issues of The People’s Friend and Reader’s Digest magazines sit well together so that is what we have done. Placing Reader’s Digest in front of The People’s Friend will not hurt sales of the latter. Hopefully, the simple move drives sales of both that we might otherwise not have achieved.

Take a moment and make this dual pocket location – if the full cover can be seen as you can see in the photo. You’ve got nothing to lose.

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magazines

Sunday newsagency challenge: reconfigure your pens

Pens can account for a third of your stationery sales where stationery does not include ink. Pens can give you the best return of space and best return on inventory investment. They respond well to a refresh of the display, professional branding, easy access and good customer service.

Lift your game on pens and expect to lift your revenue.

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Management tip

Sunday newsagency marketing tip: use your customer display to reinforce marketing messages

IMG_8720A customer display connected to each computer at your sales counters running newsagency software is valuable in reinforcing marketing messages. As well as showing each item scanned and the total sale value, the display can display whatever you choose. In the example I have included from my business, I use the display to reinforce the message about discount vouchers that are handed to customers at the counter position, next to the display. I have had customers ask for the voucher prior to ringing up their sale – showing that some read the display, thereby reinforcing its value as of of many marketing platforms for the business.

The most effective display messages are those that are easily understood and where the displays themselves are placed such that they are not competing with too much else for visual attention.

Note: any newsagency software can offer the displaying of marketing messages on a customer display.

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marketing

Sunday newsagency management tip: next time you go to say I never received it…

The next time you go to respond with I never received it when asked about an email, a letter, a fax or a phone call, check yourself and think about the processes you have in place for communication with your business.

Are your processes solid and consistently followed?

If the answer is yes, this post is not for you.

If the answer is no, it is possible you did get the email, fax, letter or call but that you lost it or it did not reach you.

Too often I hear from suppliers of newsagents saying they did not receive a communication, marketing collateral or even stock only to be told, later, that it was in the business all the time.

  1. Establish a goods inwards process where all mail and packages received by the business are processed through by one location and in a strictly consistent way.
  2. Manage emails so that every business email is checked and handled.
  3. Have one place where all faxes are placed, if you still receive faxes.
  4. Have a strict process for handling calls. If calls are a problem, hand out your mobile phone encouraging people to use that.
  5. Get everyone in your business and engaging with the business, including delivery drivers, following your processes.

Own the challenge of not losing information, marketing material and products. Suppliers will love you for it.

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Management tip

Most Australian politicians fail on leadership and this hurts small business retail

As another week comes to an end there is little to show on the leadership front from politicians, especially in terms of leadership on matters of interest to small business retailers.

2016 could be one of the most wasted years in Australian politics for we are back to regular announcements of shifting budget allocations from here to there but with little progress.

On top of inaction from people who are supposed to be leaders we have double standards on show. The government appears set to shut the current parliament early for political expediency. they are doing this on the back of the Trade Union Royal Commission. This at the same time as we read about more reports of corruption in major Australian banks yet the same government politicians are saying there is nothing to see here.

My personal view is Australian needs a federal independent corruption commission with a remit across politicians, public servants and business.

Establishing such a commission would be an act of leadership. Such leadership would boost confidence in the community and we would all benefit from a boost of confidence.

I am tired of federal government MPs telling us we have to live within our means. Such talk challenges confidence, it slows spending and spending is at the core of the economy, especially in the small business niche of the economy we inhabit.

It is politicians who have to live within their means. They are the people achieving stellar pay rises each year with access to extraordinary expense accounts and making decisions that favour mates and those who support their political views.

I include all sides of politics in this spray.

Look at how Labor governments in the states ripped from the newsagency channel hundreds of missions of dollars of revenue from transport tickets over the last ten years.

Look at the decisions by state governments of various colours selling lottery licences to Tatts and then watching by as Tatts damaged newsagents with higher fees and draconian business practices that sig=nificantly increase the cost of doing business.

Look at the treatment of small business by the ATO compared to big business. I know of small business owners who are pursued for monies not owned and when the ATO realise their mistake there is no apology, no compensation for the cost of proving that the ATO was wrong.

Look at the free trade agreements that are focussed on a small niche of businesses in Australia.

Look at the NBN. We are spending billions on a mediocre network that will not provide the productivity lift the country needs.

Look at the failure of successive governments to adequately deal with low or no tax on online purchases coming into Australia by the plane load, competing with local shops.

It is cheaper for me to subscribe to some US magazines and have them sent to me from overseas than to purchase them locally.

Look at the red tape. Successive federal governments said they would reduce red tape. Clearly the Australian Bureau of Statistics, The Australian Taxation Office, the various State Payroll tax Offices and other federal and state agencies are yet to get the memo as I am confronted by more red tape that two years ago.

Look at the times this year and previous years around calling elections. These games are 100% about them looking after themselves. These are the people who legislate the regulations that hold plenty of Australian businesses back. While they control so much of what we do and charge us for the pleasure they seek the maximum freedom for their own selfishness.

This is nuts.

We in small business was to be able to run our businesses efficiently for the benefit of those we serve, those who work for us and for our own families. To do this we and our communities need to feel optimistic and we need a commercially nimble environment. Thanks to a lack of leadership in Australia all we have are words and political games.

I don’t care which side wins the election on July 2, or whenever the federal election is, as long as they deliver leadership. I don’t have to agree with them on everything – as long as they are strong on leadership and consistent in delivering what they say.

I saw former conservative Prime Minister John Howard on the SBS Insight program during the week, talking abut gun control following the Port Arthur massacre.  I was happy to see the Howard government voted out and felt he overstayed his welcome as Prime Minister by four ormolu years. That said, watching the SBS program, I realised that even though I did not like plenty of what he did, I missed his leadership. I knew where I stood.

I think this is what we are missing today. We don’t know where we stand as a country. An announcement is not leadership, it is not standing for something.

This matters to small business as it goes to how Australians feel. We in small business rely on this for sales growth.

Poor leadership from our politicians = poor sales … almost regardless of which party is in power.

Our channel is undergoing extraordinary transition during a time of extraordinary economic transition for the country. How our businesses come out of the transition depends on your leadership. I hope newsagents are better at leadership of their businesses than our current batch of politicians are at their jobs.

19 likes
Ethics

No print newspapers in the hotel

IMG_8669More and more hotels I check into no longer offer print newspapers delivered to the room door in the morning. The card in the image is what I was handed when I checked in to a hotel last week. The instructions on the card provide free and easy access to newspapers on my phone, tablet and laptop. The service makes sense to me as a travelling consumer while I understand the challenge it presents for those in print distribution businesses.

I share the story here today to keep people informed about how this digital disruption to print is spreading.

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Media disruption

Nick Chan joining Bauer Media as CEO

The news today from Mediaweek that Nick Chan is taking the helm at Bauer Media is significant as he brings good Aussie publishing experience to the company that has not had this for a few years. Here is the announcement:

Bauer Media appoints Nick Chan as ANZ CEO
Bauer Media is pleased to announce the appointment of highly experienced media executive Nick Chan as its new chief executive officer for Australia and New Zealand.

Chan has worked at some of Australia’s biggest media companies for more than three decades. Most recently he was chief operating officer at Seven West Media and prior to that ran Pacific Magazines for ten years. He started his publishing career at ACP Magazines, which Bauer Media acquired in 2012, where he worked for 18 years rising to become chief operating officer. He also chaired the magazine industry’s peak body, Magazine Publishers of Australia.

Bauer Media interim CEO Andreas Schoo said: “We are delighted Nick is joining Bauer Media to head our Australia and New Zealand operations. His understanding of the media market and leadership experience is extensive and he brings that knowledge to Bauer at an exciting time in the company’s development.

“Having run media businesses for many years Nick is aware of the challenges facing the industry and publishers in particular and he has shown great strategic insight into how to best manage this evolution. For a multiplatform media business spanning magazines, digital and live experience I believe he is best placed to ensure the future prosperity of Bauer Media.”

In addition to Bauer Media, Chan will oversee digital division Bauer Xcel Media, content business BauerWorks, Bauer Trader Media and Bauer Books.

Speaking on his appointment, Chan said: “Bauer’s portfolio of magazine brands, digital properties and events is second to none in Australian media. I’m excited by the opportunity to work with these special brands and the talented teams that drive these assets.”

Chan is expected to start in the role midyear after completing his current commitments.

I would not be surprised to see other moves follow this appointment.

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magazines

Newsagents need to look at the growth of On The Run in South Australia when contemplating dual standards of Tatts Group

On The Run, owned by Peregrine Corporation, is a chain of convenience stores operating 24/7 across South Australia. The On The Run (OTR is how they refer to themselves) network is growing.

In an OTR store you will find all the usual convenience lines plus plenty more. The stores are modern, clean, well-laid out – best-practice convenience in my view.

Newspapers are accessible as is a good range of magazines. Where there is an OTR store, a high street newsagency is probably not needed for local destination newspaper and magazine purchases.  Given the South Australian newsagency model it does not surprise me OTR has flourished there.

Now, we see OTR challenging established retail newsagents. New outlets opening close to newsagencies and challenging the newsagency businesses for everyday lines like newspapers, magazines and lotteries.

The lotteries offer is what concerns me as OTR appears to be operating under different rules to newsagents, more commercially beneficial rules.

SA Lotteries is now owned by Tatts. What happens is South Australia is interesting as it is a common testing ground for many businesses. News Corp. for example, has tested new approaches and offers in South Australia for many years. Partworks are often test released in SA.

I wonder if the Tatts / OTR relationship is a test or trial of what we will see elsewhere Tatts operates.

I was in several OTR stores in South Australia yesterday to see first-hand whether they operated under different rules. What I saw suggests to me that OTR is treated differently to newsagents when it comes to:

  1. Counter space required.
  2. Shopper requirement.
  3. Non Tatts products in Tatts space.
  4. Posters required.
  5. Multiple use of the writing desk requirement.

I went to several outlets to ensure I was not in one ‘rogue’ operation. There was consistency in terms of space allocation, Non tatts products placed in locations that Tatts would breach newsagents for and considerably less visual nice than newsagents are required to spend money on promoting Tatts brands and products.

It is clear Tatts is happy with OTR and why would;t they be? OTR offers consistency that can come from a central managed business operation. Consistency appears to be important to Tatts than personal, local, service.

Here is what I saw when entering one OTR outlet:

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Here is a photo from approaching the counter inside the business:

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Comparing the space allocation to what Tatts has recently required of newsagents, the OTR space requirement appears to be around two thirds less. This significantly alters the cost basis of offering Tatts products. The closer proximity of other supplier product to the Tatts terminal helps OTR drive a deeper basket from tatts purchases, again enhancing the financial value of Tatts sales.

Is the OTR model a model Tatts would like to see nationally? While you can ask the question, I doubt anyone at Tatts would say. Their answer would be about the importance of newsagents to the company and that the requirements they have for newsagents are for the good of newsagents.

Any newsagent concerned about the direction of Tatts outside the newsagency channel should look a OTR and consider what could happen to their business is similar occurred in their area.

FYI, here is the pitch OTR make from their website:

Now you can play your favourite SA Lotteries games at a number of OTR stores, including Saturday X Lotto, Monday and Wednesday X Lotto, Oz Lotto, Powerball, Keno, Instant Scratchies, Super 66 and The Pools. Playing the lottery is easy while you’re On The Run!

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Lotteries

Caltex to increase focus on convenience retail

IMG_8780The Australian Financial Review Tuesday reported expansion plans by Caltex in the convenience space. Newsagents focussed on the convenience model may find this interesting.as the reported Caltex plans reflect a move into product categories we can see as successful already in c-store in the UK and US, especially fuel connected retailers.

Convenience retail continues to be a rapidly moving retail segment. The challenge for independent retailers is the strength and capacity of national and international competitors. The cost of keeping up for indie retailers is high and as we have seen in recent dealings by Tatts, some suppliers give national and international operators favourable treatment.

My suggestion to newsagents in the convenience space is to keep ahead of trends.

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Convenience retail

How unicorn season is attracting new shoppers to the newsagency

Six months newsXpress conceived the idea of a unicorn season, to commence right after Easter this year. A terrific mix of suppliers got on board to ensure a good mix of unicorn product catering to a broad age range. This was important as the research in Australia and overseas indicated a broad demographic being interested in all things unicorns.

The unicorn season was considered to be a good fit for newsXpress businesses as it touches on gifts, emotion, creativity and fun … all important elements in newsXpress businesses.

In addition to supplier offers, newsXpress provided all stores with a stock of A1 double sided posters plus digital material to use online.

Here is how unicorn season launched at my Knox store.

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And here is how the amazingly creative team at newsxpress Bairnsdale have launched it.

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newsXpress has launched an in-store colouring competition.

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And it has launched a national unicorn horn making competition.

UnicornCompPoster

So, what does all this mean? While the promotion is only ten days old I know it is attracting ne shoppers into businesses, driving impulse purchases of unicorn product, generating terrific social media engagement and improving the bottom line of engaged businesses.

But most important of all, unicorn season is giving the engaged businesses something different to promote, something you are not seeing in any competition, something to remember the business by, something through which the business can identify away from the traditional.

This is fun too. I know much more about unicorns than I did six months ago, including where to buy unicorn snot.

If you think this post is an ad for newsXpress you would be mistaken. It is a post encouraging you to think outside the walls of your newsagency, to chase change, to have fun and to not be bound by what is usual for your business.

You can do anything. And you should because now more than ever tradition is not a good thing in a newsagency business.

It starts with this question: what am I doing in my business to day to attract new shoppers, people I do not usually see in my business, into my business? That is the most important mission of every retailer today.

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Newsagency management

Fixture supporting new Candy Crush title

IMG_8782I was interested to see the end of aisle fixture promoting the new Candy Crush title from Puzzler in the Newslink store in the Qantas terminal at Melbourne airport on Tuesday.

I like the unit and would have used it to place the title next to weekly magazines, just as they have done in the business shown in the photo.

I’d love to know if newsagents were offered this.

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magazines

Why I refuse to join Toyworld in discounting

A Toyworld has opened near the newsagency, three shops away, and has started discounting lines we stock. One major licence range is being discounted 28.5% off suggested retail. Theses a range that easily sells at suggested retail. We never have to discount. Nor to the three other retailers with the same products in the shopping centre.

I am not matching the discount being offered by Toyworld as I know it is a mug’s game. Any customer they will win because of the discount will not stick with them, unless they continue to discount, which they cannot do as they are in a major shopping centre with shopping centre rents.

We will beat Toyworld by having a better range, displayed more appealingly, backed by a loved loyalty offer and supported with excellent shop floor customer service. The whole experience will be different.

Comparing the two shops as dispassionately as I could on Sunday, our offer is visually more appealing from outside the shop. We have the same products promoted with context that will appeal to the target shopper. At Toyworld, price comes first and a long distance, in terms of visual focus, than the product itself.

It is a tough call to not match the Toyworld discount as matching them or beating them is the easy move to make. However, as I say, it would be a mug’s move that does not serve the long term plans and needs of the business.

We have invested considerably in providing a premium retail experience and this commitment is paying off. Reacting to an ignorant small business competitor who thinks price is a good strategy is not for us. We confronted a similar situation with a discount ink outlet that opened three metres from our front door. We saw them off.

Specialty retail is a long game. Discounting is not a long game. We need to create stores that are interesting, entertaining and remembered for more than price. We want customers happy when they think about us and our stores.

Shoppers who remember a shop sole because of price are not shoppers delivering the level of margin dollars one needs in an expensive shopping centre situation in my view.

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Newsagency challenges

Leveraging the 3M Command TV campaign in the newsagency

IMG_87113M has a TV commercial on the air at the moment that newsagents ought to leverage. Shining a light on Command products, the TVC is an excellent opportunity to promote these products off-location to connect with people who recall the TVC.

A goal of advertising is to raise brand awareness. Our job as retailers is to make the most we can from this, to benefit from heightened awareness.

If you sell Command products, please set yourself up to make money from the TV investment by 3M for you.

I suggest placement of several Command products at the counter or some other high traffic eyeball location in-store. It does not have to be a big display – this suggestion is more about being tactical.

If you have a screen in-store, do a search online and load one of the many Command TVCs available to bring the range further to life in the business. However, ensure you have the products in the video.

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newsagency marketing

The closure of Famous continues the tough year for print

The announcement yesterday from Pacific Magazines that the current issue of Famous magazine is the last print edition from the publisher is not unexpected. The falling circulation numbers coupled with the toughest ad market in years meant tough decisions were ahead.

While it is easy for some to say what should or should not have been done about famous or any other of the print publication closures this year, the reality is we are in unchartered territory as we confront better disruption from mobile and online in terms of how we access content, how advertisers can promote their wares and whether people will pay any more for what they used to pay for.

Looking specifically at Famous, anyone interested in celeb gossip from the US will be easily satisfied with TMZ or myriad other similar websites and apps.

This competition is not confided to celebrity news. Every magazine is being confronted with online competition. The only ay to compete with that is to not compete, to change, dramatically, what you print. Achieving that requires a complete reconfiguration of a publisher’s business.

The newsagent reality is that we are confronting the same challenges. Well, old school newsagents are at least – those with businesses relying on magazine, newspaper, lottery and stationery generated traffic. If they are your core, most important, categories, your model needs to change for your business to avoid closure.

My hope is that announcements such as that from Fairfax last week and that from Pacific yesterday encourage newsagents to act. While actions should have started years ago, it is not too late to act if you are fast.

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magazines

Being relevant with magazines in the newsagency

IMG_8739The latest issue of Muscle & Fitness is a magazine newsagents can promote not as a magazine but as something appealing to lovers of the Batman v. Superman franchise. This is what we have been doing, promoting this magazine with our extensive range of Batman v. Superman merchandise.

While it takes time to look at magazine covers as act on opportunities you see, the result is usually worth it with incremental sales achieved.

4 likes
magazines

The front of the newsagency this week

FYI here is the front of the newsagency as it is set for this week. Being in a busy shopping centre, our entrance is the most important marketing activity for us. We set the front of the store to attract traditional shoppers and people who have never shopped with us. Fun and optimism key messages we are pitching here.

IMG_8722

9 likes
marketing