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

Author: Mark Fletcher

ANF becomes ALNA

The ANF has rebranded itself with what appears to be a lottery first focus with this announcement:

ANF Announcement

Building strong businesses for our members is at the forefront of our decision making processes at the ANF. The Board consistently reviews and adapts how we can best represent members effectively.

Our commitment to providing our members with the most relevant industry information continues into 2016; we are building on existing relationships with our partners; developing new partnerships and assessing how the channel can grow to continue to be sustainable in the evolving retail and distribution environment.

As part of this work, the ACCC at our request recently included lotteries in our ACCC National Collective Bargaining Authorisation, with the support of Tatts Lotteries. As a result, the ANF board at their most recent meeting, passed a motion to incorporate the word ‘Lottery’ into our trading name as well.

There will be no change to who we are, and what we do to support all members. The inclusion of the word ‘Lottery’ within our trading name is one that makes sense. It recognises that Lotteries have been entrenched within a majority of your retail businesses for many years, and also the important work we already do for members in this area. The change also further strengthens our representation for our members with State and Federal Governments.

The Australian Newsagents’ Federation is undergoing a rebrand and refresh of our company identity. From 1 August 2016 The ANF will trade under the name Australian Lottery and Newsagents’ Association (ALNA).

We will continue to trade under the same ABN and ACN. We will also continue to maintain ownership and hold authorisation of the N logo.

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Newsagent representation

News Corp. continues to favour Coles over small business newsagents

Inside Out magazine from News Corp. is available for $6.00 at Coles supermarkets. This is 15 cents less than the cost [price to newsagents. News Corp. facilitates Coles making our channel look expensive – like they did with their recent newspaper offer. Shame on Coles and News. This is evidence of how much they care for and respect our channel.

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Until News Corp. fixes this I have no interest in carrying Inside Out in my businesses.

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magazines

Disappointing New Idea subscription offer frustrates newsagents

Screen Shot 2016-08-04 at 1.24.17 PMThis New Idea magazine subscription offer from Pacific Magazines is frustrating because of the price and frustrating because it is pitched to people who purchase the magazine in newsagencies and other retail businesses.

I am told the offer was included in the magazine last week and again this week.

The deal is 12 issues for $12 and after that each issue is priced at $2.85 billed quarterly.

With the majority of newsagency purchasers of New Idea weekly regulars, this deal would appeal to them. However, the detail in the fine print that the magazine will arrive a few days after on-sale makes the offer less appealing. But people won;t see that unless they dig. What the do see is the magazine is accessible at $1 an issue for 12 issues.

I understand the role of subscriptions in the magazine model and have often written here that they are necessary to the publisher model. However, that was when subscription offers were at 25%, 30% and 40% off retail. This offer is considerably more.

A massive 77% discount off cover price plus the value of free postage does not make sense to me. This is a US type magazine subscription offer. It feels desperate.

The offer disrespects newsagents in my opinion as we are continually told by publishers there is no room to go beyond 25% gross profit from the New Idea cover price. It is hard to accept that when you look at this deal and the costs you know that would be associated with it.

I would have preferred Pacific Magazines to come to newsagents in advance of the offer being put to consumers with an explanation for the offer, so we have an opportunity to understand any context that may be relevant to us. It is disappointing this did not happen, yet not unusual in a channel that is seeing several our long-term traditional suppliers more and more seek revenue outside our channel.

The times certainly are changing in and around our channel. Newsagents need to be actively engaged to keep up. This 77% discount off cover price for New Idea is a wake-up call to those newsagents who are yet to embrace significant change in their businesses.

While the New Idea discount of itself is not the reason to urgently embrace change, this move on top of newspaper and magazine sales declines, the growing migration of lottery sales to online, tougher competition from deep discount and other retailers and challenges around stationery and cards focuses our attention on what we can do to grow our businesses, to attract new shoppers. Snd, yes, I think there is plenty we can do.

While the New Idea move will cost my business little if any measurable GP, it damages perception and that matters.

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magazine subscriptions

It is important newsagents and lottery retailers understand the Lottoland pitch

It is important for lottery retailers to understand the Lottoland operation, in case they are asked. You need to be able to tell comment if people raise it with you. The key response I think is with Lottoland you don’t buy a ticket in the lottery. No, you place a bet.

From the Lottoland website is this explanation of lotto betting.

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You have to dig further for more information.

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I searched the site for Payout Rules but could not find the section. It could be they mean the explanation for each game, but it is not obvious.

In my search for a better understanding of Lottoland, I found a forum with more information. Please don’t take my linking to the forum of any endorsement of their analysis and opinion.

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Competition

Lottoland ignores small business newsagents

Lottoland has ignored me and other newsagents who have complained about the recent ignorant and unreasonable depiction of newsagents in their currently-playing TV commercial. As I wrote here last week, the ad includes an unfair, disparaging even, depiction of a newsagent. They set this up by placing the ad inside what looks like an old-style newsagency, something Australians will recognise.

I have Tweeted Lottoland as have other newsagents. With no response. It seems to me the company does not care about how it depicts its competition.

in my view, the Lottoland ad represents a misrepresentation in advertising, which is likely to cause damage to the business or goodwill of the competitor -= newsagents. Here I am using a definition from the Misleading and Deceptive Advertising page of the Advertising Standards Australia website, a site on which we cal rely to consider the ethics and standards of advertising.

I’d love to see a mainstream media outlet pick up this story and the appalling, in my opinion, of newsagents by Lottoland. I’d also like them look at what Lottoland is actually selling.

Maybe Tatts could help fund newsagents to take action on this.

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Ethics

Newsagent engagement with Olympic Pin promotion

I have received photos from several newsagents of their support for the Pacific Magazines newsagent exclusive Olympic Pins promotion. Here are three photos from different businesses showing engagement. I am posting them here to show others how some newsagents are supporting the exclusive opportunity.

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magazines

Reminded of the 2008 newsagent TVC

In 2008 I funded a TV commercial promoting newsagents. It ran nationally for two weeks on Foxtel and a mix of regional channels. I also sent DVDs to newsagents to play on screens in-store. The commercial was supported at the time with full page ads in a couple of newspapers and magazines – publishers supporting the channel.

I heard from a newsagent overnight who asked for a copy as the DVD they used in-store was damaged. I was surprised people still used it so I dived into my trove and dug it out. As a reminder, here it is:

#proud.

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newsagency marketing

The WH Smith newsagent proposition in the UK

With WH Smith growing their presence in Australia in the last year through their acquisition of Supanews, Wild and Kennys Cardiology, I found it interesting to compare their current UK retail offering with what we see in Australia.

I visited several WH Smith High Street stores last week plus several transit locations. While store sizes and product range differs, there is a consistency in look and feel.

Common among the stores is the focus on what mass retailers call value – 2 for, 3 for 2 and similar.

While the WH Smith stores are neat, consistent in layout and not bad looking, they feel out of date to me but I’m not the shopper.

Here are photos from the Manchester Arnddale Centre store:

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Newsagency management

Newsagents can learn from publisher actions

Fairfax has cleaned up its balance sheet with a billion-dollar write-down announced today. This financial clean-up is something newsagents could take as a guide to cleaning up the newsagency in terms of space allocation to print, space allocation to dead stock generally and the management time commitment to slowing and dying product categories.

To me, that is the focus of today’s Fairfax story – what we should be doing in our businesses in a similarly future-focused mission.

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Media disruption

How newsagents can make the most of the Olympic Pin opportunity

MKMU_82347_Olympic-Pin_B2B-Right now, today, newsagents have the opportunity to show how much they appreciate exclusivity. Because, starting today, we have it. It is 100% up to us whether we get such an opportunity again.

The Official Olympic Pins supported by Pacific Magazines titles New Idea, Who and That’s Life are exclusive to our channel. If we do this well we can expect more exclusive opportunities. If we do this poorly, this will be the last such opportunity.

So, how will we do?

Unfortunately, as with any chain, we are only as good as our weakest link. We owe it to each other to haul into line any newsagent letting us down. There is no excuse.

Here are my tips for making the most of the opportunity.

  1. Understand the product: these are limited-edition pins, collectible, their purchase supports the development of Australian Sport through the efforts of the Australian Olympic Committee.
  2. Wear a pin in-store.
  3. Talk about each pin on Facebook in a series of separate posts over several days. Pace yourself.
  4. Email your customers to promote the pins.
  5. Offer the pins at the counter to shoppers buying the supporting magazines.
  6. Make sure the titles, New Idea, Who and That’s Life are in the best position in your magazine display.
  7. Co-locate New Idea, Who and That’s Life at the counter for the first two days of on-sale.

The goal has to be for this campaign to be an extraordinary success, so much so that Pacific does more newsagent exclusives in the future and so much so that other suppliers do as well.

How this goes is up to us. I have seen all the pins. They look terrific, well worth the $1 spend. The fund-raising cause is strong, people love the Olympics.

I hope all the newsagency marketing groups are 100% behind this newsagency channel exclusive. I know newsXpress is. Here is one Facebook sponsored post newsXpress pitched to 20,000+ people. This is one of several engagements leading up to today’s launch:

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magazines

Promoting the Australian Olympic Pins on receipts

Olympic Pin_Tower_480x384-OnsaleHere is an image provided by Pacific Magazines that newsagents can auto-serve on customer receipts to promote the newsagency channel exclusive Official Australian Olympic Pin Collection and the supporting titles: New Idea, Who and That’s Life.

The receipt a valuable marketing platform for communicating opportunities like this.

I encourage all newsagents with software offering the ad-serve facility to use it.

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magazines

Sunday newsagency challenge: be prepared to walk away

If your lease turns out to be too expensive for your business it is on you. You signed it, you accepted the terms. This is why, during a lease negotiation, you need to be prepared to walk away.

Too often, retailers don’t walk away because they have invested considerably in their business and have not achieved the return they want, thinking that will come when the business is sold.

The reality is you make your most money while running this business. Choose this as your mindset, be prepared to walk away and any lease you ultimately sign will be better for you and the business.

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Newsagency challenges

Sunday newsagency management tip: pitch your business when looking for new hires

IMG_1539The notice in the window of the Scribbler card shop made working there sound appealing. They set the agenda for candidates by saying We need great managers. While you could dismiss the line by saying every retail business needs this, the question is – how often does a retailer pitch for new managers in this way? Not often if my recollection.

The sign also serves as a marketing message. It is visually appealing and confident. I love it.

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Management tip

Sunday newsagency marketing tip: pitch to customers as they leave

IMG_1545This sign seen by shoppers as they leave a Warhammer store is as much about promoting the business as it is appreciating the visit. It fits the business and promotes one of the characters available from the business.

Too often we see signs as signs and as not part of the narrative of the business. Warhammer shows how it is done.

Check your signs for their connection with your narrative.

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marketing

Ryman Stationery sets the benchmark

It is back to school season in the UK and Ryman stores have a consistent pitch. These photos speak to a terrific range, excellent value propositions and professional marketing. The photos ought to inspire newsagents focussed on stationery and newsagent suppliers:

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Stationery

Lottoland unfairly depicts small business newsagents

Watch the latest TVC from Lottoland playing on Australian TV now:

The ad includes an unfair, disparaging even, depiction of a newsagent. They set this up by placing the ad inside what looks like an old-style newsagency, something Australians will recognise.

You can let them know what you think at: support@lottoland.com.au. Here is the email I sent them:

As a small business newsagent and as CEO of newsXpress, the newsagency marketing group representing 220 small business newsagents, shame on you for your portrayal of newsagents in your latest TVC.

You show an out of date business that does not reflect the newsagency of today and the future. You have a newsagent portrayed in the ad in a way to mock us.

Your ad denigrates our channel, those who own the businesses and the thousands of families that rely on our businesses for food on the table and clothing on their backs.

Your ad is unfair as it mocks us, misrepresents us and disrespects the intelligence of Australians.

You owe newsagents an apology.

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Ethics

Learning from a pen specialist

IMG_1627The Penfrined shop in Burlington Arcade in London was a delight to visit. It is a pen lovers haven with products and customs service to match. What fascinated me we hearing how many people purchase pens to add to their collection – rarely to use, mainly to sit in a display cabinet with other pens they have collected.

The Panfriend visit today reminded me people purchase items foe reasons beyond what we retailers expect. The more we know about why people buy what they buy the better we can target out marketing.

Take this pen shop. It can promote itself as a pen shop to people who love and use pens. It can also promote itself as a business selling collectibles and thereby attract those who understand and appreciate collecting including those who collect solely for investment.

Special retail is about diversifying to leverage the maximum shopper traffic for the product category in which you specialise.It is about attracting people to the product category for as many reasons possible.

The other surprise fro Penfriend today was the discover that they offer nib grinding. I had never heard of it. Reading up on it now, the service makes sense for this specialty business.

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Management tip

How to fit more magazines into less space

IMG_1604As newsagents reduce magazine overheads by cutting space, the fanning of titles along the shelves is necessary if you want to offer range.

The photo shows the common approach of newsagents in London. What is interesting is that the number of titles in the businesses does nit appear to be falling as much as is happening in Australia.  I suspect this has to do with our starting position of 1,000 to 1,400 titles a few years ago.

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magazines

Strong interest in secondhand magazines

IMG_1617I talked to a retailer in London today who sells vintage magazines. They are grouped by decade. The magazines form part of a large commitment to vintage products going back to the 1940s. The magazines are all bagged with a backing card for the decade to which they belong. It was encouraging to see the magazines getting a second chance at life.

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magazines

QLD newsagents ought to consider Lottery Agents Queensland instead of the ANF

I urge QLD newsagents to please complete and return the membership application to Lottery Agents Queensland.  LAQ is currently negotiating with Queensland Government officials, including Attorney General Yvette D’Ath, Golden Casket representatives, the shadow attorney general, the Katter party and other stakeholders to ensure a fairer deal for Queensland lottery agents.

Without membership support, LAQ will not have the weight to demand change. LAQ is the ONLY Queensland-based industry representative for lottery agents and holds ACCC authorisation. Without healthy membership, agents will have no voice on Queensland-specific issues.

Without LAQ intervention and representation, agents have no chance of better conditions.

It costs less than $1 a day to support the work of the LAQ. I think this is a good investment compared to investing money in the ANF.

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Lotteries
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