Australian Newsagency Blog

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

Newsagents now in on the discount magazine

Mark Fletcher
August 25th, 2016 · No Comments

IMG_2994.JPGNewsagent franchise group Lucky Charm is running a three Bauer weekly magazine titles for $9.99 offer for people who have signed up to its points based loyalty program. My understanding is this is a national Lucky Charm promotion, mandatory on all businesses in the fifty location group.

The only ways this promotion is financially beneficial for the retailers are if it achieves incremental revenue that flows beyond the duration of the promotion and if participating newsagents are funded at 25% of full individual title retail price.

A risk is the Bauer magazine title promotion churns what would otherwise be purchases of other magazine titles. There is no benefit from such churn in my opinion other than to Bauer. The newsagent certainly does not benefit unless there is some payment from Bauer.

While a participating newsagent may use the promotion to attract traffic, I can’t see the benefit for Bauer if this does not achieve incremental business. Churning purchases from a nearby sub agent or newsagent is no real long-term gain.

The hurdle to get the deal is old-school in my opinion in that you have to sign up for a loyalty program that is points based. Such programs are considered old-school by loyalty experts now given the loyalty fatigue among shoppers.

But is this the new normal from Bauer. Bundle purchase offers not only at airports and in supermarkets but in newsagencies and even sub agents? Is this the Bauer plan – to never charge full price again? Or is it like Coke: this week the discount is in group A, next week group B and then group C.

Again, the only benefit is if there is incremental business. The latest circulation figures don’t indicate any benefit but who knows, deep in the data the folks at Bauer may have found something they like.

Now if you think this post in sour grapes toward Lucky Charm, not it’s not. I don;t want this bundle deal in newsagencies I own. I don’t this it is a smart offer is it does not respect the magazine department or the newsagency overall. Magazine publishers need people consciously purchasing a magazine for content and not because of price.

13 likes

Category: magazines

0 responses so far ↓

  • There are no comments yet...Kick things off by filling out the form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image