How large companies deal with small business
The Sydney Morning Herald had a terrific report Wednesday on how large companies deal with small business in the payment for goods and services.
The report is on the back of research by Kate Carnell,the Small business ombudsman.
“It’s pretty close to extortion really,” Carnell said. “Large multinational businesses’ payment terms have blown out considerably. They are now moving to have standard contractual payment times of up to 120 days. It’s really bad for midsize businesses and a shocker for the SME space. It will kill SMEs.”
We have all been there, waiting for payment from big business clients. The cost makes the business not worth it.
It is good see the Small business ombudsman engaged on this issue. More please.
Is Luke Brill, CEO of Lottoland, misleading in his offer to work with newsagents?
If we can find a way to co-operate with newsagents, we would be more than happy to do that. We’re happy to respond to things, we’re not hiding from anything.
This is quote from Luke Brill, CEO of Lottoland, as quoted at news.com.au today.
Lottoland has ignored correspondence from newsagents about mocking, attacking even, newsagents in their TV commercials. I have contacted Lottoland in Australia and overseas myself and they have not responded. Others tell me they have contacted Lottoland too. So I wonder if the Brill quote is misleading. Brill has not responded to me.
Click here for a PDF of the article – in case News puts it behind a paywall.
I don’t see a big issue with a Lottoland ticket being a bet nor do I see a big issue with them being online only as that is where the bulk of lottery products will be purchased in the future.
My issue is that they have deliberately targeted newsagents in their ad, they have misrepresented newsagents, mocked them and all in an effort to shift lottery purchases online. Tatts has stood by and let this happen without response.
The response I want from Lottoland is that they advertise their product without mocking or attacking family owned newsagencies, and that they apologise for the ads they have run.
The response I want from Tatts is they they support their retail network rather than ignore them. The Tatts inaction is a breach in my view.
Online is the big challenge facing newsagents today. This is why I think newsagents should challenge the capital expenditure demanded by Tatts for their new fits as the cost does not match future income prospects given changes in how people will purchase.
Q1 benchmark study under way
I am a couple of days into analysing data for the Q1 newsagency sales benchmark study comparing the performance in newsagencies from January through March 2017 with data from the same period in 2016.
While I expect this study will reveal a continuation of trends, it will also reveal new information, new opportunities.
It is terrific that many newsagents are keen to participate, keen for their data to bee part of the large dataset used in the analysis and to provide insights into the direction of revenue sources and business performance in our channel.
Here is part of the call for participation that I sent out announcing this new study.
Why a spinner is perfect for some card ranges in the newsagency
I could have also called this post why some card companies should not pressure newsagents to get on the wood or on the wall or however else they refer to permanent card fixtures.
I heard from a newsagent last week about a card company that currently has a spinner in their business pressuring for space on the wall. The rep from the card company said the wall was premium space and if the newsagent respected the relationship they would allocate wall space to the card company.
The spinner is performing well. Indeed, in terms of return on floor space, the spinner is in the top five performing floor space allocations in the business.
It does not make sense that the card company would want to disrupt a situation that is working for them and the retailer.
This same supplier agitates for wall space by saying the number of spinners is limited. I suspect they do this without considering the performance of spinners, without carefully analysing the performance of spinners.
Here are four bother reasons, beyond sales performance, why a spinner may be a better solution for cards than being on the wall:
- The card department primarily serves destination shoppers.
- Shoppers do purchase cards on impulse. For this to happen you need to be where they are and often that is not the card department.
- Some card ranges can attract shoppers to a business. They can only do that if on the lease line.
- Some card ranges add to the entertainment / shopping experience. This is best achieved outside the card department.
So, to any card company wanting to move their cards off a successful spinner onto the wall I’d say prove to me that this makes sense, protect me if it fails.
If your rep tells you sales will improve, call them on it, ask for evidence to support the claim. Too many reps are allowed to get away with BS. They have a job to do and that is to serve their employer. Often that relationship does not drive the best outcomes for your business.
Another embarrassing House of Wellness promotion
The House of Wellness giveaway with News Corp newspapers yesterday was embarrassing. People weren’t chasing it and plenty didn’t want it when offered. It is a sales catalogue for Chemist Warehouse dressed up as editorial content. We should be paid well to distribute this ad catalogue. We are not paid well in my opinion.
Sunday newsagency marketing tip: marketing is not about you
Small business retailers tend to like marketing they can see. Like the ad in the local paper or the catalogue in letterboxes.
You seeing your own marketing is irrelevant. In fact, it is as irrelevant as many catalogues stuffed in letterboxes.
The best marketing today is about accurate engagement measurement, faster delivery and more immediate in-store engagement.
Take the old-school catalogue . Artwork, printing and delivery will take three to six weeks and cost you or your marketing group around $1,500, maybe more.
In many locations, that $1,500 could have funded 30 Facebook campaigns reaching 5,000+ people, carefully targeted with accurate data on engagement.
While catalogues play a role, that role today is far less than two years ago.
A newsagent told me they liked the catalogue because they could see it whereas they could not see a Facebook post. Their loss, as I told them.
200th issue of Owner Builder magazine
If you stock Owner Builder magazine, dig out the latest issue and shine a light on it in your shop. It’s the 200th issue. I like the magazine as it is Australian, niche and loved by its readers.
Take a look at the preview the publisher offers vis this Tweet on Twitter:
Latest issue of The Owner Builder on sale nationwide now! Sample here: http://t.co/locLL1xot1
— Lynda Wilson, Editor (@theownerbuilder) July 29, 2015
Inspiring Mother’s Day display
Here is a Mother’s Day display that I saw when overseas last week. I love it for the terrific range of products and the fun of the display and that it does not look like a usual retail display. This is why I say it is inspiring.
Mother’s Day is a season that can be boring if the product mix and in store pitch is the same old. The starting point for a fresh pitch is a display that looks different, like the inspiring display ion this photo.
Interesting take on the store of the future
This article from Digiday is an interesting look at Target in the US and their store of the suture project. Specifically, I appreciate the comments about evolution rather than a big launch of a future concept.
Brick and mortar retail has a bright future in my opinion … as long as it continues to evolve to engage shoppers how and where they want such engagement.
Small step changes, continuous changes, are the key, even in local newsagencies.
The days of set and forget retail are over. We have to see regular change otherwise we lose relevance and the revenue associated with this.