Videos have come into their own on Facebook with more and more retailers using the medium to show off products in an entertaining way.
To be successful the need to be entertaining, fun and short. They should not come across as a sales pitch.
Don’t overthink them. Shoot them with your phone and get them live. Most social media content is disposable so they are not things you should spent too much time or money on.
The Melbourne Gift Fair kicks off today. It is the biggest gift fair in the country and as such can be daunting, especially for people attending for the first time.
If you are in a marketing group, check to see if they have a fair guide. I know newsXpress published to its members a week ago of newsXpress preferred suppliers and information on special deals available.
Here are some tips designed to help you navigate the fair:
This Gift Fair should set your business up for new inventory through to early 2018. It is important to attend thinking that far ahead.
As the federal government continues to let small business newsagents down with its proposed new sports lottery, ALNA has achieved good media coverage on the topic. Check out these stories from The Australian and the Herald Sun.
The government announced the sport lottery but appears to have not done much since. In the meantime, small business newsagents are left in the dark, again.
The ABC had a story this week showing that there is good life in some local newspapers. If you love newspapers or are in regional rural Australia I encourage you to read this story. It has plenty of good news.
Mumbrella reports that Bauer has axes all editorial staff. The magazine will now be produced by the company’s NZ team.
The ACCC will later this month announce its decision on the proposed acquisition of the Australian OfficeMax business by Platinum Equity, the company that bought the Australian operation of Staples earlier this year.
A complication has been another offer for the business.
Any deal that further concentrates the ownership of B2B stationery sales in Australia is problematic for a newsagency channel that already has challenges with stationery. Indeed I think the prospective merger of the Staples and OfficeMax businesses is something that should have prompted a submission from GNS or even newsagents with big stationery business.
The activity is a reinforcement of how much stationery is in play in Australia. This indicates more disruption ahead for this product category. Disruption can be good if you leverage it to your commercial advantage.
The disruption in this category is not confined to our shores with major activity in the US
Stationery News has more perspective on the Australian moves:
Recent media reports quote “industry sources” who estimate the merger of Staples and OfficeMax would give the group “90 per cent of the B2B market in Australia and New Zealand – 10 times more than nearest rivals COS and Lyreco.”
As Stationery News has stated before, the figure is off-target – a combined Staples/OfficeMax business would have estimated revenues of between $1 billion and $1.2 billion. This compares with an estimated figure of $2 billion for Officeworks (consumer and SME sales) and a combined figure of $500 million plus for dealer groups Office Brands, Office Choice and ASA Australia.
Is it just me or are there fewer free newspapers around now than a couple of years ago? I have noticed at airports in Australia that the stacks of newspapers that used to be out for most of the day have gone. Or am imagining it?
Tatts agents are justifiably confused by the changing messages from the organisation over the last year.
The company’s position on fit-out requirements, digital screen requirements, audit standards and more have been changing, with businesses in some locations pressured and penalised while others in other locations are let through for lesser breaches or refusal to act.
The actions of Tatts represent a failure of leadership. Worse, they represent a disregard for small business retail.
I know of plenty who were bullied into undertaking the new fit out and digital platform installation without any business plan put by Tatts. Now, they find out that others who have not done the work yet may have a lower cost for what is to be done.
If I was a retailer who had completed the refit and installed digital screens prior to now I would be contemplating a compensation request. Part of the pitch from Tatts reps, I am told, was there is no getting out of this, everyone will have to do it. It turns out that statement was not true, given the position of Tatts today.
People yet to do the refit and yet to install the digital screen(s) are at a commercial advantage to those who have gone before them.
Tatts need to communicate clearly from the top down and ensure that all within the organisation communicate a consistent message. Localised bullying has to stoop. Localised miscommunication has to stop. Communication needs to be only in writing, for training purposes, of course.
Newsagents meeting with Tatts reps may want to consider openly recording conversations.
Newsagents are at where they are at as a result of poor leadership within Tatts. Shame on the company for the bullying. Shame on the company for the mixed visual images around the country. Shame on the company for the lack of a business plan at the retail outlet level.
Tatts has only itself to blame for this mess.
Interactive cards lend themselves to being used on social media to promote range. Where a good card has sound and terrific visuals we shoot a short video to use. The feedback online is good and sales in-store reflect the value of this type of use off social media for promoting cards.
Here is one such short video we have used recently with success.
Lottoland has emailed Aussie customers with a jackpot alarm for their betting product. Odd.
I am frustrated hearing about another case of theft by an employee in a newsagency. This theft could have been discovered much sooner had the newsagent used the tools at their disposal, tools that expose theft with irrefutable evidence.
Sadly, this time, like so many others, the newsagent did not think too use the easy to access tools at their disposal, until other evidence was uncovered that caused them to be suspicious.
Make sure you know how you can discover, track and manage theft in your business. To find out how, ask your software company. It should be easy and only accessible too you as the owner.
Since 2013, News Corp. has partnered with Coles to make us look expensive live when it comes to Inside Out. It is frustrating News Corp. actively participates in this knowing that it harms small business newsagents. It frustrates me when I see it at Coles.
I am grateful for the opportunity attend the lottery forum and luncheon hosted last Friday by ALNA at Crown in Perth.
This was an honest event. I call it that because at its core were presentations from newsagents about the bad experiences with Lotterywest over the last few years. Their heartfelt stories made the situation real.
There was tremendous kudos for ALNA and their considerably work supporting newsagents, lobbying politicians to bring about change and their support of newsagents if what has been a difficult time.
There was equally tremendous support for Mark McGowan, the new Premier of WA – for the swift action his government has taken to deliver on their election promises about driving change at Lotterywest. His speech demonstrated a good understanding of the challenges newsagents had been facing.
I was seated next to the new CEO of Lotterywest. We had a good chat about the challenging situation inherited and the complexities of bringing cultural change to the organisation. Lotterywest has been on a path for the last few years that is now set to change, thanks to the change of government.
I also had a good chat with the Premier about what his government has inherited in WA. His appreciation for small business is encouraging for all WA small business owners.
In his speech, the Premier also spoke specifically about Lottoland and the nature of the product. The newsagents in the room liked what they heard.
Both the Premier and the new CEO of Lotterywest have a commitment to small business and, in particular, family businesses, like newsagents. Newsagent access to them is at a level I have never seen for our channel in the past. And, as I noted above, this is due to the work of ALNA in WA.
The luncheon is a credit to everyone involved. Many newsagents I spoke with told of how relieved they felt now compared to earlier this year when they though all hope was gone. The optimism in the room was wonderful, and exciting.
What has happened in WA is a lesson for newsagents across Australia of what can be achieved by working together relentlessly, with focus, on a issue that decision makers can fix.
I was at the luncheon as my newsagency software company was a sponsor of the event and in support of the many newsXpress members who make up the WA newsagent community.
Too often I see the mistake of retailers not understanding the real costs of a product category because they to not allocate labour costs to a department, category or supplier.
Do this at a high level and you should be able too understand what you are really making from that product category or supplier.
This is the approach used by newsagents with deliveries years ago when they started selling off their territories. You can use the approach for lotteries or other agency like products and services you offer. However, I’d focus on the big ticket items.
Sure there is a management cost to get to this analysis. Th result is a better understanding of the real value of a product c category and / or supplier.
We hosted a shopper party of one of my suburban shops last weekend and achieved more than $2,000 in incremental, good margin, business compared to a usual good Saturday. The party was a terrific success. We are thrilled.
While plenty of customers were local, some travelled and far as two hours to participate in the party.
We spent little on the event and offered only modest discounts. The keys to success were the opportunity for the customers to network with those who share their passion and to see some unique products.
Our marketing was primarily on Facebook. Someone living in Perth called their sibling in Melbourne and told them to come to the party to purchase for them. They did, spending over $100. Based on our conversation, I am sure they will come back.
Simple parties are effective. They are an essential part of the mix to attracting shoppers to the business who otherwise not shop with you.
I launched discount vouchers in my newsagency in February 2013. back then, it was the first time anything like this had been tried in the channel. I still use discount vouchers today as they are a profitable part of the retail mix in the business, encouraging shopper loyalty.
Recently, a newsagent talked publicly abut an experience with discount vouchers. I share it here in their words:
Yesterday a customer called and paid for 2 Perfect Petzzz over the phone. Came in today to see if she can pick them up.
I gave her the $18 discount voucher for the 2 Perfect Petzzz, she was delighted and bought 2 Ravensburger and 2 angel flames because of the discount voucher. Of course she got another discount voucher of $8.09 for that, and decided to use the voucher for Harry Potter beanies
😀. Upon receiving another discount voucher of $5.84, she smiled at me and said “I think I better get out of here
Not only do discount vouchers change shopper behaviour, they also alter business owner and staff behaviour. I see this time and again in comments from retailers to me about their voucher experiences. I love the stories of happiness about what is being achieved through such a simple customer loyalty offer.
People understand $$$ moire than they understand points.
With the business owner having complete control over the levers and other business management touch points, it is easy to ensure the vouchers are profitable, easy to have the right encouragements to guide shopper behaviour to serve the business and to reward the shopper at the same time.
I have seen newsagents implement discount vouchers and become more engaged with and happy about their business as a result.
This story above is one example of a retailer who was skeptical who is now loving the outcomes being achieved. It also shows how a an easy and cheap to implement marketing strategy can improve the business. The lead time from deciding to implement to being live is minutes with no capex.
Footnote: The discount voucher facility to which I refer here is from Tower Systems, a software company I own. No other software company in the newsagency channel has the discount voucher facility that Tower has. While anyone can use the term discount vouchers, I know from experience that no two software products are the same in this area. It is actually an interesting comparison point.
This is the question asked of me by newsagents more often so far this year than any other question.
Will GNS survive?
I am asked by newsagents who calls or email me with whom I have no relationship. I am asked by Tower Systems software users at user meetings and other placed where we meet. I am asked by newsXpress members at our regional member meetings. I am asked by suppliers too.
I never prompt for the question.
My answer is:
I don’t know. The business appears to havre not kept up with today’s business requirements. It may have left it too late too transition from a high labour cost wholesale model that is not relevant today. So, I don’t know the GNS future. I have no inside knowledge, no knowledge of their plans. All I know is what I see.
People who ask me the question often do so with complaints including some or all of these:
I’d hate to own and run a stationery wholesale business today. There is no upside with suppliers going direct (as they should) and with online accounting for far more stationery purchases than the old-school stationery wholesaler infrastructure anticipated.
Today, a pure online play fulfilling orders from a low-cost regional DC with minimal staff is the way to go. However, once the Amazon DCs are established expect a further challenge to stationery sales in newsagencies.
GNS exists in a rapidly changing space, as do newsagents. To me, the question act whether GNS will survive is also a question of whether stationery in newsagency businesses will survive. It is easy to look at the other person and question their future than look into your business and ask this of yourself or at least of part of your business.
The question is interesting to me more for the broader business questions it poses. We need to contemplate the product mix in our businesses. This has to be done on an individual basis and not at a shingle level as now more than ever our businesses are individual and not a channel or network.
What I will say is that the challenges GNS faces today were there ten, even fifteen, years ago. The board back then failed to act, they failed to see the changes on which they needed to focus GNS resources. The same can be said for newsagents when it comes to stationery.
In my previous overall business benchmark advice I provided this guidance on your target labour cost benchmark:
What this means is: if your revenue, where revenue is product revenue plus commission from agency lines, is $1 million, your total labour cost should be $110,000.
Labour cost needs to include fair market value for owner labour invested in the business.
Too often, I see newsagency business owners putting in anywhere between 60 and 80 hours a week with the majority of this time unproductive.
A small business cannot afford unproductive management time. Your big business competitors do not have this overhead, nor should you.
This is why I suggest you have no back office or, if absolutely necessary, a small back office that is not comfortable.
There is an added benefit of no or a small uncomfortable back office – you migrate pricing and other work to the shop floor. Do this and revenue will increase.
While many go into business to be the boss and not at the front line serving customers, the front line is where the business makes money. It is where you ought have your best people.
Allocate your boss time to fit with the size of the business. In a typical small retail business turning over $2M a year or less, I suggest boss time should be no more than five hours a week. This, of course, depends on what you do with the time. If you do bookkeeping, saving the cost of an external resource, it could be more.
A more practical way to look at this is issue of labour cost: cutting three hours paid adult time a day, Monday to Friday, will add more than $20,000 a year directly to the bottom line profitability of the business.
If you think this is not possible, look at where you do your boss work. Some of this could be done at the counter or on the shop floor. You could multi-task and thereby cut paid hours. It all depends on whether you want the business to be more profitable.
One newsagent following my advice on this cut labour costs in the business by $50,000. In the same period, revenue was up 6%.
Getting your labour cost under control and within the benchmark starts with your roster.
Several newsagents with Tatts have asked me to pose this question again, to see if there is any commercial gain from the new corporate image – as they are facing having to do it. So:
Has the new corporate image required by Tatts improved your business performance?
Anyone?
Pacific Magazines publishes terrific information that helps newsagents understand the Better Homes and Gardens shopper. These insights help us offer additional products to the shopper visiting the newsagency to purchase this title. Here are recent insights shared with newsagents by Pacific about the BHG shopper:
At the end of an email to retailers, Tatts made this announcement:
Retail Image News!
Keeping pace with an ever changing, competitive landscape, we are pleased to announce an update to our Retail Image program.The majority of outlets will now have the choice to install one or more digital screens in their new Generation One DigiPOS retail image.
Larger outlets will still be required to install a minimum of two internal screens.
Any retailers with shopfits currently in the pipeline or those with a retail image due will receive communication shortly.
The company has made no announcement about the retailers forced to put in two screens where one would have been sufficient and where the second screen has lumbered the business with a capex outside what would be reasonable for the business.
Oh, and still no evidence from Tatts supporting a business case for their cap[ex demands on their franchisees.
Syndicate sales are down as a result of the new Tatts mandated digital signage according to several tatts retailers I have spoken with over the last few weeks.
Some have been specific in their comments, looking at Sydney irate sales on a like for like basis in terms of jackpot value and at super draw times for Saturday sales.
Some have commented that customers struggle to know what is available given how tatts has required they place signage in their businesses.
Whereas in the past, signs were placed to interrupt shoppers, the Tatts digital and future image requirements take away what was successful space for promoting syndicates.
In one case, I am told the Tatts rep told the newsagent to stick signs in such a way that the auditors tatts sends out would breach the business.
My question is genuine: Is the Tatts new digital signage responsible for a decline in syndicate sales?
Please comment here. By all means use a fake name so the tatts people who read this blog cannot identify tiny you an therefore pay you a visit.
Two newsagents have told me of them having to purchase more unsold syndicate tickets following the installation of the new image and digital screen. In each case they don’t have the capacity to fund such underselling. The situation is forcing them to rethink their syndicate strategy.
I am posting this today because I have been asked to. Newsagents what to know if they are alone in their declining syndicate sales experience. Are you?
This video from Sideliners, an ABC TV comedy show.
Warney's Women – the hot new collectable card game coming to newsagents near you! Collect them all, including the Tinder subset #Sideliners pic.twitter.com/4iPFwbQvpz
— Sideliners (@Sideliners) July 23, 2017
A week ago in Atlanta I saw these vending machines in more places than I saw lottery outlets. Here are photos of one machine, showing what it offers and how it handles things like age checking (not).
In New York I saw this small lottery only store with a similar vending machine.
At another location in New York I spotted this news outlet with their required lottery counter – yes, this is all the space their lotteries supplier requires.
I am yet to see lottery outlets as controlled as we see in Australia and lottery fitouts as dominating as we see in Australia.
