A newsagent in Brisbane was asked to honour the price on this Woolworths coupon for News Corp. newspapers:
If News Corp. is behind this offer, shame on them for making Woolworths look cheap compared to the local small business newsagent who has the titles at full price.
It is galling that this $1 price is considerably lower than the cost price of the newspapers to newsagents.
It is easier for customers (or anyone) to complain in a way that hurts your business (and you) than ever before thanks to the megaphone of easily accessible social media.
Through local community groups on Facebook, category based groups and more it is easy for a negative story about your business to gain traction and spin out of control before you know about it.
It is a bit of a sport today to pile on. I have seen it happen plenty of times.
Often, people pile on without knowing the facts, because the original post does not accurately represent the facts and because they enjoy the sport of piling on without regard to the facts.
On social media today people often complain about situations that are not real. They often spin a story to suit their outrage. Simply challenging this is not enough. Indeed, it can make it worse.
Here is my advice of how to handle criticism of your business on social media:
Don’t rely only on this advice. Do more research to be prepared. Any business active on social media will experience the kind sof attack I describe here. Be prepared.
Do not ignore any negative post or comment about your business. Fight for your business and those who rely on it for income. But do so with care, respect and professionalism.
I hope all newsagents and all marketing groups get behind this newsagent exclusive promotion.
If your shop is pitching more than three key product categories at the sales counter you are probably using your counter space and not achieving the return you can achieve.
Ignore history. Push back on what you have always done. Go for a simpler and clearer message and expect better results.
Here is one focussed counter pitch we did with terrific success at pushing how shoppers saw our business.
Context can be everything if you expect an employee to embrace a change of direction, a new product mix or some other decision that is different to what the business has usually done.
My management tip today is to explain these decisions, provide a data context that encourages belief and support.
Get this right and you can anticipate greater support from within for the business decisions you make.
Why matters.
We are offering this one-shot Diana publication from Pacific Magazines as a pre-sell, prior to launch. This is something we have done many times before with one-shots, with terrific success. Given the broad appeal, still today, of Diana, a presell makes sense to me.
We are pitching the pre-sell ion this title online as well as in-store at the counter. Once we have the product next week we will pitch this at the counter too. Simple.
I encourage all newsagents to do this. It is an excellent opportunity to capture the sale and revenue prior to the goods arriving in-store.
Look at things like this as a race to get the cash. It is better people spend the money with you on this title. Jump on this and pitch a product that your competitors will only engage with once they have the product. Yes, it is a first mover advantage in your area if you jump on this idea.
Once you get the product in-store, be tactical rather than pretty. The cover will do the work for you in my view. The opportunities here are terrific.
I suspect this title will be a reminder of the value for our businesses of a smart and timely one-shot and how we newsagents can handle this better than other retailers. More please.
Through my software company I do work in a range of specialty retail niches. The newsagency channel is the only retail channel with an EDI platform owned by suppliers and for which retailers pay an access fee.
Having to pay to access XchangeIT disadvantages newsagents. It imposes a fee that newsagent competitors do not have to pay for similar type services from what I understand.
Suppliers benefit tremendously from EDI data flowing to and from newsagents. Newsagents should not be required to pay for this. It is time XchangeIT access was free for newsagents.
And while I am at it, it is time for XchangeIT services to be best practice rather than perpetuating out of date practices.
For the record, newsagents using software from Tower Systems are not forced too pay software support fees to retain access to XchangeIT. In my opinion it is wrong to force newsagents to have to pay a POS software co. to maintain such access.
Another newsagency business was hit overnight with a malware attack. They have been asked to pay money to regain access to their computers. They don’t have a current backup. The options for them are not good.
The no backup think is appalling business management.
The malware attack is also poor management as it could have been avoided.
Click here for a computer use policy that I recommend you ensure all employees read, understand and commit to. The steps needed for protection against a malware attack are simple.
I heard from a newsagent who was “told off” for moving newspapers away from near the entrance to the business to the rear of the business.
The newsagent made the move based on the return on floor space being achieved and based on the trajectory. I am aware of the numbers. The move was the right one in my opinion.
The newspaper publisher rep was having none of the logic. I am told there was a threat to pull newspapers from the business.
I am not aware of any decline in newspaper sales in a business that has moved newspapers from the front of the business to the rear. Without such evidence, any claim or demand from a newspaper publisher rep is without any evidentiary basis.
Here are five reasons why moving newspapers to the back of the shop can be a good move:
Newspaper publishers have no rights over where papers are in a business. I say this even if some have a contract with requirements. Good luck finding a court to uphold a requirement on a small business retailer that commercially harms the business.
Newspapers fit well at the back of the shop. Sales are not affected. Sure one or two complain – tell them the exercise would be good for them.
Newspapers play an important role in newsagencies. For this to continue we need to leverage ways that reduce operating costs – like publishers themselves have done in recent years in the running of their businesses. The best way for us to do this is to stop these low margin products from us making what we could make from front of store high value retail space.
I heard yesterday of a long standing newsagent supplier threatening a newsagent with legal action if they sought to break the relationship with the supplier.
The threat was made face to face, in the back of the shop, without witnesses, by the managing director of the supplier.
The newsagent was left shaking and fearful. They decided to continue in a relationship with the supplier because of the threat of legal action. They felt that was best for the business, to let the contract they have run its course, and have as little contact with the supplier as possible.
If what I have been told is true, the threat is something that could be reported to the police or at least challenged in court. However, I suspect the person making the threat knows the newsagent would not do this, I suspect they would know the newsagent does not have the resources to fight such a fight.
The newsagent knew the meeting was happening., They knew it would not be pleasant. My advice to them on hearing the story after the meeting was that they should have recorded the meeting for their own records and that they should have had someone else there as a witness.
If a supplier threatens you with legal action to force you to stay with them or to do things that you know will not help your business, consider calling their bluff. It could be that the last thing they want is their business put under the scrutiny of a court, where the would have to defend how they deal with you, what they provide you and explain the value of this for your business.
I understand the fear of court action. I suspect that is what this specific supplier preys on. I suspect they make the threats I am told they make because they know no newsagent will call their bluff and say okay, take us to court – get out of my office and take us to court.
I know of another supplier to newsagents who made a similar threat of legal action, but with less intimidation than the first story. In this second situation, the newsagent said, okay, if you think you have a case, take us to court. The supplier did not take them to court. I suspect the directors decided against this because of the possible can of worms such court action would have exposed about their business.
Bullying does not only happen in the school yard. Sadly, it happens in business, particularly in situations on inequity such as the two stories I have shared here.
Shame on any party threatening legal action against a newsagent to get the newsagent to stay in a relationship that is not commercially appropriate or valuable too their business.
If you have a story of such legal threat, consider calling phew bluff and consider sharing the story, discretely, with fellow newsagents. Tell the truth of what happened and what it caused you to do.
If nothing is done, these bullies continue to get away with it.
One of the challenges facing legacy product suppliers to the newsagency channel is the success many of us are having with new product suppliers.
It is only natural that newsagents, like other business people, prefer to invest in traffic, GP and, ultimately, bottom line P&L growth.
Therefore, newsagents are more likely to invest in products and infrastructure supporting products that fit the growth story. It is also why newsagents are less likely to invest in legacy products and the requirements of legacy product suppliers. It is why legacy suppliers struggle to get attention of newsagents.
The extent of transition in the newsagency channel is encouraging. Newsagents embracing new categories and through these new suppliers. It is leading to shop layout and fixture changes as well as technology changes as newsagents pitch new products and categories through their technology in ways that help attract new shoppers.
Our legacy suppliers who historically have relied on bully tactics and being required products are coming, slowly, to realise the new world, that their products are not as needed, that the expensive and anti-competitive processes are not appreciated by newsagents. Well, some at least. There are others who continue their ignorant bullying ways.
We are in a golden era of change in our channel. There are winners and losers. Market forces are at work, and this is a good thing.
When contemplating a request from any supplier, consider the new traffic, GP growth and bottom line benefits. If the request does not improve these then maybe ignore it. The suppliers of legacy products who handcuff you to anti-competitive processes may one day get the message.
The front page if today’s Daily Telegraph is nothing but political propaganda in my personal opinion. It pushes an agenda that has nothing to do with news of the day. The front page story is fantasy fiction, designed to rally readers to an opinion about the Labour party that News Corp. wants.
This is not journalism. It is not what newspaper publishers should put out. It is the pushing of an ignorant fear based agenda, something News worldwide has a track record for.
There are no facts in this piece.
This game by News Corp. is considered more important than key stories of the day, news stories.
It is typical for a selfish publisher that runs its agenda ahead of reporting the news, reporting the facts.
You only have to look at their coverage of the NBN over the years. The originally proposed NBN could have been the Snowy Mountains Scheme for our time. It would have delivered a productivity boost off of which plenty of companies could have thrives, It could have fostered start-ups that could have changed towns and cities.
Instead, this publisher ran a campaign that resulted in the junk NBN we have today, something that is holding our economy back.
Yes, these are my opinions. However, I have some experience with which to form the opinions and some knowledge of what has been done in some US states, New Zealand and Estonia. Experience running a software company that serves 3,500+ small business retail businesses that rely on fast and easy internet access.
Newspaper publishers should not run agendas.
Shame on politicians for pandering to them, to get to be part of the News Corp. agenda.
If I was a newsagent in NSW I suspect I would not offer the Daily Telegraph for sale today.
On The Age online:
On Facebook:
It would be easy for them to make their retail network part of they pitch, if they were so inclined. But, hey, the compete with you.
I visited a newsagency with Tatts last week that was forced to install two screens, even though financially the business could not justify the spend and Tatts could not provide any indication of the commercial value too the business of the spend.
Yesterday, I visited another newsagency that does, I estimate, at least four times the lottery turnover of the earlier business, yet they have been required by Tatts to install only one screen.
While the second business has less space, they do have room for two screens. Close to two thirds of GP for the business comes from Tatts.
There appears to be an inconsistency from Tatts in the screen requirement, one screen versus two screens.
If the trigger is revenue, the second business I mention should have two screens. If the trigger is commercial value to be gained from the screens, the second business I visited should have two screens. But they have one. And the business that could not afford two screens has them, and there is no evidence they offer value.
How Tatts has been able to get away with demanding small business retailers make capital investment in technology not involved in vending the product and without any documented business case is dreadful.
I continue to be glad I do not have Tatts in my businesses.
It is frustrating newsagents continue to be asked to hand out The House of Wellness ‘supplement’ with the Herald Sun when the publication is nothing but a glorified Chemist Warehouse ad platform. It feels nothing like a value-add supplement. Rather it wastes space and labour.
Click here for a copy of the new General Retail Award rates from Fairwork. It is important you take time to think about what you will do in your business about this. It is not as simple as applying the new rates, especially the lower penalty rates.
In March I wrote about why I will not apply the lower penalty rates in shops I own. In case you missed it, here is what I wrote then and stand by today:
Why I am not embracing the reduced Sunday penalty rates in my retail business
Here are my reasons for deciding to not embrace the Sunday penalty rates decision in my retail businesses:
- I value my employees. To pay them less as a result of the decision could suggest to them they are worth less. I have hated it when suppliers reduced margin or commission and argued then that they value me and my business less.
- I want to be competitive for good labour. Paying a competitive rate is key to this.
- The business reward. It is open to employees who are now told their pay will not be cut to return the favour to the business.
- Competition. A range of competitor business have made a similar announcement.
- While of economy fairness. While I agree with the decision, it should only be taken as a whole of economy review that fairly adjusts economic touch-points for all and not only salaried workers.
- Weighing everything up it is the right thing to do.
This is not a permanent decision. It is possible I will modify my position as the marketplace situation evolves. If I did and thereby embraced a saving in labour costs, I anticipate through would be invested in more hours.
All business owners need to reach their own conclusions on this matter. Unfortunately, as a country we are bereft of leadership on broader issues that should be confronted in any economic setting adjustment as has been done with Sunday penalty rates.
Think about what you feel is right for your business. This has to be a personal decision. The goal of this post is to encourage you to make your own decision, regardless of what the actual decision is.
I say make your own decision as there are implications for what you decide.
If, for example, you decide to not cut Sunday rates, there should be a benefit from employee engagement, as appreciation for your support. So, I would encourage discussion if this is your decision.
If, on the other hand, you decide to cut penalty rates, explain why this is important for the business and how that connects back to employees.
Unfortunately, this issue is highly politicised as a battle between classes. The reality in small business retail and small business generally is there is rarely a class. Indeed, employers often make much less than many in their workforce are paid.
Too many newsagents use software in their businesses as a glorified cash register. They track stock in, scale sales, scan returns and that is it. Rarely do they manage the business by the numbers.
Next time you scan an item being purchased at th counter, think why? Think about whether you actually use all the data being collected and cultivated.
My challenge today is that you actually use it.
I am prompted to write this because if data I see in a report from a retail business I know of. They have excellent data, that chronicles the steady decline of the business and shows no action to arrest the decline. This is a business that uses their software as a glorified cash register. What a waste.
Know your key traffic destinations and pitch at this destinations products those destination shoppers may not have otherwise considered. We do this in different ways at different times of the week. Here are two examples from yesterday in two different businesses:
Get the product pitch right for your specific situation and it works a treat.
I have heard from more retailers in the last two weeks about shopper than at any time in recent years. It leads me to ask the question:
Is shopper theft on then increase?
Please comment and provide information about what you are experiencing.
In my own situation, we spot stock take key parts of the business, those valued items near the front of the shop and items people are known to covet. Our magazine arrivals and electronic returns process shows if any theft of magazines has occurred, and has done for years.
The bigger challenge is with higher value specialty items for which we consider security to be good. A theft yesterday tells us security needs to be better. I is that experience and what others have told me over the last couple of weeks that got me asking the question.
One newsagent told me abut the customer who brought one card to the counter but “forgot: about the three cards in the baby pram. Another told me about the customer who put gift card in their broken arm sling and was disappointed to learn it would not work unless activated. Another told me about a customer who loaded four reams of paper under their supermarket shopping bags in a trolly.
While these stories are frustrating, it is the stories we do not hear about, the theft discovered long after it have been done, that frustrate the most. This is where how and when you check your stock matters.
With so much business now done online and accurate stock on hand data key to business success, theft can embarrass the business more than ever.
Have you found shopper theft to be on the increase?
I have emailed newsagent ts this morning with an invitation to participate in he Q2 newsagency sales benchmark study:
I am preparing a fresh benchmark study for the newsagency channel to look at the latest sales trends overall and in key product categories for the second quarter of 2017. This quarterly newsagency sales performance study will help newsagents see the future based on the data trends. Click here for my last report.
How to participate.
Suppliers to retailers of everyday lines – you know, the lines they are known for and that you purchase from them on a regular basis – have an obligation to ensure this items are always in stock.
Too often now I hear stories from newsagents of core suppliers not maintaining adequate stock levels of these everyday items.
The consequences of these out of stock situations can be serious for newsagents and the suppliers.
Newsagents with a gap on the shelves can look elsewhere – to another supplier or even to another product to fill the space. I know of one instance where a supplier out of stock caused the newsagent to look more carefully at return on inventory investment and return on space and found the product to be borderline successful based on the evidence. They quit the category and the supplier and introduced a new category … and that was the start o=f increased success for the business.
Newsagents are not shingle loyal today, nor should they be in today’s marketplace. This puts suppliers at greater risk of losing business if they are out of stock.
I am not naming suppliers as they know who they are. The time for their excuses are gone. They need to fix their inventory gaps or budget for more sales decline.
My message to suppliers who have more and more out of stock – get your situation sorted out or you will lose more business.
Tatts Group is in a powerful position when a newsagency business with a Tatts agency is for sale as they have to approve the purchaser.
From what I see and hear, the Tatts approval process is opaque. I hear of people approved who are dreadful retailers with few skills and no plan and I hear of people rejected with good retail skills and a good plan.
There does not seem to be a consistent approach by Tatts to people approving. Worse still is that there is no independent review process. Tatts is in the box seat. They can make or break the sale of you’re business. You better not upset them is what many tatts retailers think I suspect. tatts folk are a fragile group as we have seen.
The biggest challenge is for the vendor who is in the situation of completing the hard work to find a purchaser with the money and then being confronted by a rejection by Tatts, from what I hear a rejection often without clear advice as to the reasons for the rejection.
My advice for the best possible outcome is that the vendor and the purchaser work together on the application and the accompanying business plan, and that this is reviewed by a professional third party with experience – not an accountant and not a solicitor as in my experience they are clueless about these matters.
Put in the work on your submission prior to the first submission and you could save month, even a year, of delays.
The application quality demonstrates how much both parties want the transaction to proceed. A good application also provides the best basis for appeal should the inconsistent and fractured processes used by tatts result in a rejection.
A fake cover of Time magazine has been discovered on display at gold clubs owned by Trump’s business. Time has request the fake cover be removed. I find it hilarious that Trump of all people has a fake magazine cover featuring him displayed in his businesses. This is the person who bemoans fake news published by mainstream news outlets, like Time. This story is another example of the strange times in which we live. What a jerk.
A new malware attack on computers is sweeping the world. It has hit the UK government, big businesses (shutting down the Cadbury factory in Tasmania) and small businesses. Please protect your business. Here is our advice.
The easiest way to recover is if you use a professional cloud backup.
There are people who have left the newsagency channel yet remain interested and sometimes and criticise newsagents and their suppliers. Some of them come across with the attitude of I failed so you must fail too.
There are others i the channel who have adopted a path different to yours yet seek to talk down success you may report as it challenges their own narrative.
I think it is important to ignore these folks, for your own peace of mind and for the benefit of your business.
Those who have left the channel are done with the channel, they have walked away, closed their businesses, sold their businesses or quit their newsagency supplier jobs. We should wish them all the best and encourage them to turn their back for whatever is next for them.
The obsession of some about the channel they left is sad to see. It is dangerous too as there are some who do listen to them, and their businesses suffer as a consequence.
Those still in the channel but following a different path to yours should watch their path as that is more important to them than how you might be going along your path.
The newsagency channel and retail are changing at a rapid pace, faster than any time I can recall in my years of engagement with the channel and retail. That faster pace makes the opinions of those who have left and those not evolving sufficiently irrelevant. This is what I say ignore them.
Attention is best spent on what we each of us see in front of us, in the context of our businesses. There is plenty to see. Online and offline. And, I expect the pace of change to keep increasing, for the future.
Online is fascinating is that its horizon is far wider than the narrow path we see as the proprietor of a physical store.
What we sell and how we sell it has fundamentally changed, forever. In just the last six months there has been a seismic shift that engaged newsagents are seeing and embracing.
Be wary of those who talk you down and talk engaged newsagents down. Their negative talk will not serve you well. Rather it is likely aimed at you joining them in their pity party.