A direct benefit of meeting with brand owners
At the New York Toy Fair last week I met with the brand owner of a niche collectible brand available in Australia. They shared worldwide sales information that changed how I saw some items available in Australia. Data insights revealed not only top sellers but also helped demonstrate connections between items in the portfolio.
While local suppliers do their best, sometimes even they do not have insights that can be invaluable to driving greater success from licenced product. This where groups can play a role, by digging deeper and developing information-flow relationships with brand owners.
Thanks to the social media world of today, information is key in being able to pitch points of difference. While a product may be in multiple retailers, if you have information ahead of others yo can leverage it to pitch a point of difference.
Price is not the differentiator it was years ago. The most valuable shoppers to any retail business are those who care less about price and more about a licence, its collectibility and value-add insights you may have. It is our job as retailers to mine for these value-adds.
This is especially true of brands that are not usual for the business you run for anything you can do to leverage a brand that can attract new traffic has to be mission critical.
I appreciate I am not being explicit here. There is a reason for that. More core message is – mine for unique information that you can use to leverage fringe brands you carry and through this expect to discover en shoppers.
Sunday newsagency management tip: know what is different about your business
What is different about your newsagency compared to other newsagencies?
This is an important question as it defines your business compared to what people perceive to be the average newsagency out there.
Hopefully, you have a ready answer that is meaningful and reflected inside the business. Saying better customer service, for example, is not a good answer. Give people something more than that.
So, list what is different and ensure your business matches the claimed differences.
Once you have the list, use this to guide your out of business pitches for every time you promote your business through products others have you don;t pitch your point of difference, and what is the point of that?
Know your differences and promote them, urgently.
Politics gets in the way of policy on penalty rates
The instant analysis world we now have thanks in part to social media has seen the decision of the Fair Work Commission to cut Sunday penalty rates 12.5% turn into an ill-informed class battle for which the politicians are to blame.
The politicians created the independent umpire and left it to provide leadership on issues they consider too contentious for them to show leadership themselves.
Media reports and tweets reflect an ignorance about penalty rates.
For me, the question is: Is $39.82 an hour (plus super) for a 21 year old on a Sunday reasonable? Whether they are a retiree looking for extra money, a single mum or a uni student is not my concern. My concern as a retail business owner is – is $39.82 an hour fair pay?
I think $39.82 an hour is too much. I am happy with the 12.5% reduction. In fact, I think it could have been a bit more.
But this is where the politicians need to show leadership for you can’t have a conversation about cutting penalty rates in a climate where too many big companies are not paying a fair amount of tax, Centrelink is taking action against debts that often do not exist, politicians grant themselves above average pay rises every year, big business CEOs get millions for share price movement and large corporates are pitched a tax break.
Our politicians need to show leadership on the big picture here. If they did that, then genuine reform across multiple points of the economy might be possible.
As a business owner I am not responsible for the economic circumstances of my employees. I am responsible for paying the correct pay and meeting all other obligations. Circumstances outside the business are not my responsibility as that is what I pay payroll tax, company tax, GST, superannuation, PAYG, fuel excise and myriad other taxes for. The problem is, these many taxes are not used as well as they could be. Indeed, pigs on all sides of politics with their snouts in the taxpayer trough rort the system so much that is makes many of us look at issues like penalty rates as a what’s in it for me discussion.
Real leaders would step back and say: okay FWC, you have had your say. Now, lets look at the whole of the economy and make a series of moves in pursuit of fairness across classes on the basis that a healthy whole economy is more important that health for one class at the expense of another.
The debate that has been raging in Australia for the last two days since the FWC decision is a reflection of poor leadership on all sides in this country.
Please, can we pull this back from a debate? Can we have a conversation? And can we, for a moment, forget about pursuing headlines or a retweet?
Combatting illegal tobacco in New York
Plenty of tobacco retailers in New York that I visited last week had signs up in their retail shops making it clear about illegal tobacco and that their business only deals in legitimate tobacco. Displaying signs like this is a good way to demonstrate authority in this contentious area.
This sign is good as it shows consumers hot to spot illegal tobacco products – it shows the tax stamp. Helping shoppers spot illegal product is the first step in any good education campaign. It is unfortunate the sign looks so disheveled. I’d rather it be pristine and in a frame, showing with pride.
Illegal tobacco is a big issue around the world and retailers are on the front line of this battle. Using space in-store to educate shoppers is an important role for retailers to play.
Hilarious: My paper is broken
I don't want to complain but my paper is broken pic.twitter.com/zGjh2HhCgP
— Matt Smithson (@mattsmithson) February 23, 2017
ABC radio promoting newsagents
It was terrific hearing an ad for Gardening Australia on local ABC radio yesterday in that it mentioned newsagents as the only retail outlets for the title. Sure they pitched ABC shops online, but our channel is the only high street retailer with the title.
This is a good reason for newsagents to actively promote the title, to appreciate the active support from the ABC for our businesses.
Tatts online subscriptions service set to divert more in-store traffic to mobile and online
Everyone logging into their Tatts (The Lott) app or website is pitched their new subscription service through a series of screens.
Subscriptions makes it easy or a regular shopper to always have tickets in the games they want.
Think of your regulars, who always purchase a the same ticket in one or more games. Once they try this why would they come to your shop?
Now, think about the capital expenditure Tatts wants you to spend on their corporate fit out promoting their brand. I am shocked newsagents are not challenging this.
Check out the Tatts subscription pitch:
Newsagents need to factor into their business plan what their business could look like without Tatts traffic and revenue.
Clueless News Corp Retail Sales and Marketing team disrespect newsagents, again
The News Corp Retail Sales and Marketing in NSW has sent out a notice to newsagents about a complex promotion without first talking with the newsagency software companies about the practicalities of running the promotion.
This is another failure by the marketing ‘experts’ at News Corp’s Holt Street office – failing newsagents and the newsagency software companies.
Shame on them.
Click here to see the newsagent letter. It reveals a messy promotion in my opinion.
By not bringing stake holders in on this early, News Corp has generated a ton of calls to the software companies, passing on costs that News Corp itself should have to carry is this is their promotion. But they never see it that way. Like I said, shame on them.
How to prepare your retail newsagency business for sale
Selling a retail business, like a newsagency, is like selling a house, you need to prepare it so that it looks appealing to prospective purchasers.
The process of preparing a business for sale can take time, depending on the state of the business.
Here is an overview of what you need to do.
- Maximise profit. What anyone will pay will depend on the profitability of the business. While you should be on this every day, if it is a new project for you, start six months prior to putting the business on the market.
- Eliminate dead stock. It looks bad on the shelves and looks bad on the books. Purchasers should not pay full wholesale for inventory more than six months old as your poor buying or management is not their obligation.
- Streamline operations. Make the business look easy to run by ensuring it is easy to run for you. The easier it looks to run the more interesting to people who don’t understand the business.
- Make the business look appealing. Ensure displays are stunning, the shelves full and every pitch the very best you can make. You want them to want your business because they like it.
- Be happy. Owners who talk their business down will find it harder to sell the business. If you are complainer, keep it to yourself or in the family.
- Keep your social media presence up to date. Today, many people check out a business online prior to looking at it in-store. Maintain up to date Facebook and other
- Get your paperwork in order. Early on, get business documents together and check:
- Premises lease.
- Equipment lease documents.
- Franchise document.
- Supplier agreements.
- Details of any forward orders.
- Any other documents relating to the operation of the business including manuals for any equipment items.
- Choose your broker carefully.
Success at selling your business depends in part on the work you do to prepare it for sale. Extra focus now can help you get timely price satisfaction.
Newsagency of the Future workshops kick off next week
At this free workshop open to all newsagents I will outline a path forward for newsagents, a path that relies less on print media traffic, a path that could insulate the business against the inevitable migration of lottery purchases online. Please click on the link to book for the date that suits:
Each session will run for around two hours with time for Q&A. I am confident you will leave the session with practical things to do in your business in pursuit of a more successful 2017.
I started the Newsagency of the Future workshop series in 2004. This year’s session is the most important yet I think. At the session I will explain why.
The latest Tatts Group analysis from Credit Suisse
Click here to access the latest research on the performance of Tatts Grup by the respected Credit Suisse group. The core lotteries information is:
Lotteries: exceeded previous TTS guidance, issued mid-December with a slightly better run-of-jackpots as TTS closed the period. Overall, the business was managed well, against some very bad-luck and the lowest jackpot run in about five years. The outlook appears more favourable and challenging comps should diminish as 2H17 progresses. We expect 8% EBIT growth in FY18, restoring lottery earnings above the previous FY16 base.
2017 will be an interesting year for Tatts and its retailers in this space with tough than ever competition from competitors. This is especially true for the online / mobile competitors.
Newsagents are especially at risk from the latest moves as their lottery revenue depends on over the counter whereas tatts and OzLotteries are established online.
These are reasons newsagents need to think carefully before making any capital investment supporting lotteries sales.
Tatts a step closer to vending machine sales
The email sent Friday by tatts announcing a limited location trial whereby customers will be able to purchase tickets on a self-serve screen and pick up from a terminal is, in my opinion, the next step to complete self service in-store, in multiple locations not part of the network today.
Self service is the model for lotteries in many overseas countries so why not Australia? However, self serve overseas is real self serve and not this clunky approach by Tatts.
The main game for lottery sales in town is online. That will eventually dominate lottery purchases in my view. Technology demands it. Consumer convenience demands it. While there are fights about shoplifts and Tatts dedicates space, online is where the biggest battle is taking place and you can’t see it in-store.
Sunday newsagency management tip: call out fakes
There are retailers out there who care less about licenced products and selling the real thing versus a cheap knock-off. Fans of licences eventually discover the fakes. However, those buying for them amy not. This is why we need to call out those peddling fakes when we discover it.
I saw this recently when a retailer posted this on Facebook.
I have blurred identifying detail as they are not necessary for this post.
If you see someone selling fakes, get the evidence and post it in-store and on social media. call out the behaviour and help educate customers that when it comes to licenced product chip is usually not good news.
While some may say they don’t want to pick a fight. Sometimes you have too pick a fight to shine a light on illegal behaviour. I did this eyers ago when a competitor was acting against the law and in doing so they were gaining a financial advantage unfairly. They were eventually hauled and forced to compete on their merits rather than their illegal behaviour.
Celebrity card designers
I have seen some amazing card designs at overseas trade shows this year, extraordinary designs, on point, different, fun, unique. And then there are celebrity card designs for which I suspect the publishers ay too high, like these:
Even though I am not the customer, I suspect these cards next to two of the best designs from an unknown designer targeting the same shopper would se the Taylor Swift cards remain unsold.
The cards are not bad. They are just not current to what cool designers are producing today. Sure, they have her name. But is that enough?