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

Author: Mark Fletcher

newsXpress invites newsagents to Melbourne to learn about what it does to help newsagents reinvent their businesses.

Newsagency marketing grown newsXpress is growing right across Australia. To help it more efficiently manage interest from prospective members and to best show what it does and how the team helps to transform businesses, newsXpress in inviting invite newsagents to a free mini-conference in Melbourne on May 22.

  • Free flights & free accomodation.

Here is what is planned for Tuesday May 22. 8am kicks off a four hour intensive mini-conference. hear newsXpress speakers talk about new era buying, managing your shop floor for profit, how to attract new shoppers through the front door and how to sell products you never thought you could ever sell.

This mini-conference will offer actionable knowledge you can implement regardless of whether you join newsXpress. It is an excellent and practical way for you to learn about what newsXpress does and to asses whether it is right for your business.

After a networking lunch we will head off to two very different newsXpress businesses. One in a shopping centre, one in a high street situation. We will take you behind the scenes to understand their growth. Then, we end the day at the head office for drinks. That night, if you are still in Melbourne, lets have dinner.

We will fly you to Melbourne on May 21, fund your accomodation for up to two nights and provide food and refreshment on the day, May 22.

All we ask is that you are open to joining newsXpress. This means that you want to grow your business and are willing to have at least 75% of your card space for Hallmark cards. In fact, the 75% Hallmark requirement is the only mandatory part about newsXpress.

Click here to read abut what newsXpress offers and what it costs.

Places at the May 22 event are limited. Please register your interest by calling Peter Francis on 0423 298 020, emailing him at peter@newsxpress.com.au or emailing help@newsxpress.com.au.

Consider joining the 249 other businesses in our growing group. I promise that May 22 will not be a hard sell.

Note: if you are a nextra of lucky charm store already, the May 22 event may not be an option for you because of of their usual lock-in contract.

I am a director of newsXpress.

13 likes
Newsagency management

News Corp. gives space to Lottoland to make their case

Oh please, seriously? News Corp. gave space to Lottoland CEO Luke Brill to spin more in an effort to keep their business in Australia viable. This appeared in The Daily Telegraph on the back of support from News Corp. on Sky News. Why is the company supporting Lottoland?

Here is Brill’s opinion piece from The Daily Telegraph:

OPINION

Lottoland boss says Aussies will lose out with proposed government betting legislation

IF YOU believe the politicians and bureaucrats in Canberra, Australians should not be allowed to bet on what the federal government describes as “synthetic” lotteries, such as those offered by Lottoland, where you can bet on the outcome of overseas lotteries.

And yet, if you are 18 or over, you can go into your local TAB and bet big dollars on an animated racing game offered by Tabcorp.

The recent announcement by the government of plans to ban “synthetic” lotteries means that Australians won’t be able to wager on overseas lotteries like the US Powerball or EuroMillions through Lottoland — but having a punt on cartoon horses running imaginary races on fictionalised tracks is somehow perfectly fine.

Nothing “synthetic” about that!

As our American friends would say, what baloney.

Let’s face it.

Lottoland CEO Luke Brill says his betting agency doesn’t offer products sold by newsagencies.

The government’s proposal looks like a ham-fisted and totally unnecessary move designed to protect and entrench the monopoly currently enjoyed by Tabcorp-Tatts, which by their own admission spent some $5 million of shareholders’ money last year trying to run us out of town.

If the legislation is passed by Parliament, Tabcorp-Tatts will end up controlling the entire lottery market — online and offline.

This will mean reduced choice for hundreds of thousands of Australian customers who enjoy a flutter on the results of overseas lotteries via Lottoland.

And it means the little guys — the newsagents — will be at the mercy of this huge monopoly.

Ironically, the government claimed it was acting in the interests of newsagents when justifying the legislation, even though there is not a shred of evidence to suggest Lottoland harms newsagents.

Lottoland does not offer products sold by newsagents.

In fact, we want to partner with newsagents and pay them for promoting our products and referring customers to our services.

To that end, we are offering newsagents an 11 per cent revenue share on all bets that are referred to us.

This is significantly higher than what Tabcorp-Tatts offers newsagents for in-store purchases only, and is a whole lot more than what newsagents get from Tabcorp-Tatts’ burgeoning online revenue, which is, well, nothing.

We believe in giving our customers more rather than fewer choices. We believe in a level-playing field that encourages rather than restricts competition and innovation. This is an important fight for our customers, for competition, and for newsagents, that we have to win.

Lottoland ought be judged buy their actions. Think back to their TV campaign when they launched into Australia, attacking newsagents mercilessly, hurtfully and deliberately. Shame on them.

In my opinion, News Corp. owes newsagents an explanation for their apparent support of Lottoland. The airtime and space go beyond free speech and giving a fair go. Newsagents have not been given this by the company on this issue.

Click here to see why I think newsagents have nothing to gain from a relationship with Lottoland.

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Ethics

Placement is key to seasonal success in the newsagency

Where you pitch a major season like Mother’s Day is key to success you achieve from the season. To me, the best placement is that which can be seen by people walking past your business. That is, just inside the door, or out the front of the shop if permitted and possible.

If you can achieve the right location, the next key action is to change the display weekly, so that it is noticed by those who walk past daily.

Hiding a major season display in the store so that everyone walking past cannot see it is a lost opportunity, as is leaving the display unchanged for most of the season.

Going out four weeks out from a major season gives you a better opportunity to be remembered as the go to store when the shopper is ready to make the seasonal purchase. This is why I say be in the best front of store location and why you change the display weekly.

Even in this marketplace of extraordinary competition for seasonal card and gift sales, we can grow if we actively engage on the shop floor, through our buying and outside the business through innovative online marketing.

Sure, it is hard work with actions required every day. The reward is traffic and revenue growth for a season that the majority of shoppers will engage with at some point.

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marketing tip

How important is consistent branding to Tatts?

One argument Tatts makes in support of regular image refresh at the retailer level is the need for brand consistency. I am told their reps say the company wants customers in-store to see a corporate image consistent with their marketing collateral used on TV, online and elsewhere.

This argument would carry weight if Tatts was consistent in its application of this desire.

Check out how how the shop at the Qantas terminal in Melbourne airport looks as of last night.

This corporate image is quite old – at least two, maybe more corporate image generations ago. Yet here it is, in a high profile location seen by many visitors to Victoria.

I am surprised Tatts permits it. Oh, and I do see it as 100% on Tatts and not the retailer.

If I was a Tatts retailer and under pressure re my corporate image I would be using photos like this one to make the case that how current a business looks is not that important, as Tatts appears to be inconsistent in its roll out of a consistent image … or at least that is what the evidence in the marketplace suggests.

This particular store is interesting in that the image is not the most recent prior to the current. That, to me, makes it useful in terms of the case I make here.

In addition to the corporate image is the matter of the digital screens, the additional in-store marketing infrastructure spend that Tatts says is vital to sales growth.l While I doubt there is any evidence from stores supporting that argument by Tatts, a high profile stores such as this one at Melbourne airport should have the screens, almost as part of the Tatts campaign. Yet, it is the other way, a step 10 or 15 years back, maybe more, suggesting the Tatts claims have no foundation.

While there could be regulations such as airport requirements, I suspect not given that the folks at Melbourne airport are focussed on their retail offer. Surely they see this offer as out of date, old-school.

Tatts needs to explain why the image of this business is okay while others with more a more recent image need to upgrade. They need to make a business case that stands up.

In my personal opinion, I think Tatts continues to place too high a financial burden on its small business retail network to upgrade image and install digital marketing, a burden that is not rewarded with the sales revenue boost that Tatts says will flow.

19 likes
Ethics

1 + 1 + 1 = 5

Telling a in retail story is like 1 + 1 + = 5. This card, by itself, in the usual card display will do okay. The Olaf plush item in the usual plush display will do okay. The Olaf key chain, too, by itself will do oaky. Placed together, for impulse purchase impact, and they sell very well, and easily, as a pack.

We make our own success as retailers through the strategic and tactical decisions we make in our businesses every day.

7 likes
marketing

Phillipines’ leading magazine published exits print

Check out the story by Mediaweek yesterday about this stunning move from print to digital:

Dramatic move by Philippines’ leading magazine publisher in transition to digital

The Philippines’ leading magazine publisher, Summit Media – which launched its first magazine in June 1995 – will no longer publish print editions of its magazines, which include Cosmopolitan, FHM, Preview, Top Gear, Town & Country, and Yes!

The company said, “This month, Summit Media completes its full digital transformation. The 450-strong company can now be called digital first as it bids farewell to its magazine past, closing the six remaining print editions of brands already thriving online as Cosmo.ph, Preview.ph, Pep.ph, Topgear.com.ph, FHM.com.ph, and Townandcountry.ph.”

Summit Media president Lisa Gokongwei-Cheng commented: “As we embark on our new journey towards a wholly digital future, we look back at the values that made us successful, and one thing that stands out is our respect for our audiences. Our brands, each with its own strong voice and well-defined identity, have resonated with our audiences because they stand for something, which is why for 23 years Summit published the most successful and well-loved magazines in the country’s history.

“Today, we embrace the way our highly connected audiences now prefer to consume content. As we follow them from print to digital, we will continue our relentless pursuit and delivery of quality, up-to-the-minute content and a dynamic and engaging editorial experience, this time aided by data, which now pervades and informs many of our editorial decisions.

“In the past three years, Summit Media has become the leading creator of digital native advertising content in the country, generating more volume than all our competitors combined. On top of this transformation, the company’s other pillars – out-of-home (OOH) media, book publishing, and content marketing – remain robust.”

2 likes
magazines

How to pitch special interest titles on social media and drive traffic for the newsagency

Here is an approach that I have found works well when promoting special interest magazines on social media.

Special interest magazine shoppers are valuable as they are more likely to make other purchases and they are more loyal. This is what basket data show.

So, which the 25% gross profit not what we need, at least with special interest titles you can drive a greater whole of customer value.

Using photos of parts of a cover like this is, in my experience, more useful than a full magazine cover.

People will travel a distance to purchase a title covering an interest they have.

This type of post works for me. I think it could work in any size or location business with the right facebook post reach parameters.

9 likes
magazines

Shopping centre businesses need to go big or go home

Newsagency businesses in shopping centres need to be big, bold and constantly evolving. They cannot be the traditional newsagency business or anything even close to it, not now, not in the future.

Events are one way to differentiate and to compete with big businesses. They are important to attract shoppers from outside and from within the centre, especially in the big centres with 250+ stores.

I have two businesses in this major shopping centre situation, where everyday we fight to bring people in from the traffic in the mall.

Last Saturday, as part of the first ever National Beanie Boo Party, which was organised and run by newsXpress, as an optional marketing event for members, we hosted a party at the Knox store. This short video provides context for what we did in that business on the day to be setup – to achieve a revenue boost of in excess of $1,500 in three hours.

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Now, anticipating questions, read this:

  1. While I say this is a newsagency, it is a newsXpress business, focussed on plush, cards, gifts, collectibles first.
  2. This plush wall commitment is driving in excess of $100,000 in direct product revenue and not far of that in complimentary basket purchases.
  3. The party is an infrequent activity and deal based event designed to attract existing collectors from other retailers and to introduce non-collectors into collecting.
    net new traffic comes from not only the centre but from our significant out of store marketing on social media.
  4. Given the way this party was run at this location, there was no additional labour on the day.
  5. The video was deliberately shot at a time and in a way to not show those engaging.
  6. I’ve had this business for more than five years in this location.
  7. This feature wall works well. However, nothing is permanent in retail today, nor should it be.

I’d be happy to answer any other questions here. I can also be best reached on 0418 321 338.

Footnote: I am a shareholder in and director or newsXpress. In my newsagency life at different stages I have been a nextra retailer and shareholder and a newspower member. I have been with newsXpress since 2005.

14 likes
Management tip

What’s going on with magazine deliveries?

I have heard from ten newsagents, in several states, in the last week that magazines are either arriving very late or not at all.

In one case yesterday, a newsagent was without weekly magazines for half a day. In their particular business, based on sales history, the revenue loss will be significant.

In a case last week, the freight company has been changed and magazines are arriving twelve hours later than they used to. No announcement. No ability to easily adjust staff rosters.

This post is placed here for newsagents affected by magazine delivery challenges to comment. Publishers read this blog – let them know if you are being impacted and what it means to your business and their business.

10 likes
magazine distribution

Pitching cards at the exit

For years I have suggested newsagents promote cards off location, including at the exit from the business. Coles has been doing this across their network for most of the last year. This photo shows the current pitch, which I have seen in several locations.

To test this in our businesses we can do this without sourcing additional stock and without having a purpose made fixture. I encourage all newsagents to try it.

0 likes
Greeting Cards

Magazines as a traffic magnet for the newsagency

This placement of magazines on the back wall of the shop works well for us in one of my stores. It is easily seen from the mall, outside the shop, and attracts magazine shoppers into the store for a browse.

Being full face works for individual titles too as shoppers get o see the cover as the creative team intended.

10 likes
magazines

Pitching Unwind magazine

We are pitching That’s Life Unwind magazine in a unit placed in between our women’s and crossword titles to leverage the sweet spot for the shopper for the title. It is easily understood, hence the decision to place it where impulse purchases will work for us.

5 likes
magazines

Here’s a reason to get behind the royal wedding

Australians are searching Harry and Meghan in good numbers. Here is the number of times each is currently being searched each month through Google in Australia:

  1. Prince Harry: 74,000.
  2. Meghan Markle: 135,000.

This is rom verified search data.

You can position your newsagency business to leverage this with tactical inshore placement of magazines featuring them, running related in-store marketing and engaging on social media around the impending wedding.

If you are in a marketing group you should already know this and have been receiving information for months. That is what we have been doing with newsXpress.

The Pacific Magazines Nexus program is promoting in-store engagement with some excellent opportunities, which I encourage Nexus members to engage with.

If the royal wedding is not part of your marketing plan I urge you to make it so. The commercial value is set to be c considerable.

7 likes
marketing

Here is why I think newsagents have nothing to gain from a relationship with Lottoland

In my opinion, there is no value for small business newsagents in supporting or working with Lottoland. here is why:

  1. Lottoland launched in Australia mocking newsagents. Their attack on newsagency businesses and those who run them was relentless and hurtful. It cost newsagents respect and revenue.
  2. Lottoland now wants to partner with newsagents because federal parliament appears set to ban betting on lotteries. Boo hoo to them.
  3. Lottoland is an online-first business. Everywhere it operates it is about online sales. Any partnership with high street retail would be contrary to their core operation. I suspect if they did partner with retailers, online would always be their core focus.
  4. Lottoland is coming at this the wrong way around. If a high street pitch was important to them they should have put it in place when they launched into Australia.
  5. Lottoland says it wants to pay taxes and be a contributor to the Australian economy. If this was the case they would have established this from the outset and not pitched it now, moments away from their core offer being outlawed.
  6. Lottoland has been dishonest in its representations. Last year, they claimed to be talking to newsagents. No genuine approach had been made. From where I sit it looked like smoke and mirrors.
  7. Lottery products are highly regulated around the world. There are many reasons for this, most are good reasons. While I do not like the monopoly approach in Australia, the regulation is important and necessary.

The issue here is not about newsagents and their businesses. Nor is it about regulation or protection. Newsagency businesses need to live or die as a result of the actions of the owners in running a compelling and appreciated local businesses for the communities in which they serve. This and local community desire will determine if newsagency businesses survive.

The issue here is about Lottoland, their operation and their ethics.

They launched into Australia running a campaign over which they had 100% control. That told us about the company and what it stands for.

Their TV commercials were, in my opinion, dishonest and disrespectful. They are reaping what they sowed.

Footnote: the newsagency today cannot be the newsagency Australians remember from the past. Today’s newsagency is a shop leaning into change, offering different products thoughtfully selected and carefully curated for local community needs. Whereas in the past people walked in the door of a newsagency for papers, magazines and lotteries first. Today, many newsagencies have people walking in for more high-end sought after lines with papers, magazines and lotteries becoming the impulse add-on.

17 likes
Competition

The future is digital

A check of the current Fairfax subscription pitch page for The Age shows the extent to which Fairfax is focussed on digital and weekend delivery ahead of seven day print. Print sales plus production and distribution costs of print versus digital explain this focus.

I share this here not to alarm but to inform. Newsagent who are not actively pursuing new traffic opportunities for their businesses are behind.

1 likes
Newspaper distribution

The Collective magazine to close print edition

The print edition of The Collective is to close.

Since its launch, this magazine has been consistently oversupplied in businesses for which I have seen data. Small business newsagents have been a bank, providing funding to prop-up the title.

The publisher asked to meet with me prior to launch, to discuss ideas for engaging respectfully with newsagents. While they listened with courtesy, they did none of what I suggested. In my opinion, we were used from the start.

5 likes
Magazine oversupply

Vale Stephen Kaye

Stephen Kaye, former circulation executive at News in Victoria, passed away on the weekend.

I first met Stephen many years ago, when he was Circulation Manager at The Mercury in Hobart. back then, dealing with circulation managers in News around the country, Stephen was one of the bright lights in my view. He was tough but fair, always open to discussion and respectful of the role newsagents played.

When he moved to Victoria, Stephen continued to serve News professionally while being fair to the newsagents on which his company relied.

It is a tough gig working for a large and domineering company like News with employees often having to enforce rules and requirements they as individuals found challenging. You can do this by being uncaring or reflecting some personal empathy. In my dealings with Stephen I found he did the latter.

I appreciated the note he sent on his retirement from News last year:

Hi Mark,

Well all good things come to an end.  Back in October last year I was diagnosed with stage four lung cancer, a big surprise considering I’ve never been a heavy or regular smoker.  Since then I’ve battled along with my chemo treatment and have been coping reasonably well, but not well enough to return to work.  News Corp have been very supportive and done the right thing by me by offering redundancy which will help with our financial planning.  My last day with News Corp will be June 30.

I just wanted to take this opportunity to contact a select number of newsagents and suppliers to say goodbye.  They are people I have had a lengthy association with over many years and despite having different views over that time, I have both liked and respected.

I wish you well for the future and hope our paths cross at some stage.

Kind regards, Stephen

14 likes
Newspapers
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