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

Author: Mark Fletcher

Newspower marketing to newsagents

Newspower sent out an email to newsagents today marketing their services:

News from the National Manager

We are very pleased to report an outstanding response to the Newspower Easter Colouring Competition this year with over 25,000 entries across Newspower stores.  What a fantastic opportunity for newsagencies to engage with families and schools in their community. This Easter tradition, sponsored by Staedtler, is just one of many seasonal promotions we support at Newspower, with individual members able to work with their local primary schools and local media.

Newspower continues to measure the value of membership.  We have drilled down to identify the costs to a newsagency business that can be reduced and avoided.

As an example of reduced costs, a member of Newspower gains significant savings, especially when it comes to design, printing and distribution of our seasonal marketing campaigns. Have you ever thought about what it costs in time and dollars to have posters and flyers/brochures designed, approved, printed and distributed every time?  An example of this is our Mothers’ Day campaign that features glorious pink, crimson and yellow gerberas in eye-catching visual merchandising material. Posters feature the bright visual of the flowers with additional cut out flowers in different sizes, which can be utilised to build brilliant in store displays highlighting all the gifts & cards for Mother’s Day. Our proven approach helps you, our member sell more products to more customers more often!

Newspower’s real point of difference for you, our member is the increased brochures/flyer program. We keep up with industry research to make sure you get the best ‘bang for your buck’ with design and content – and brochures, delivered to homes, are consistently amongst the most cost effective forms of reaching your customers.  The Australasian Catalogue Association reports that more Australians read a brochure every week than watch television or listen to commercial radio!

There are tremendous results from our Inkpower Program so far with some stores have more than doubled sales! For stores that have not carried ink before they are now positioned as an ink retailer – a destination for customers.

In 6 weeks since the brochure was distributed my ink sales have gone up 278% by units and 415% by dollar turnover.  I am selling more genuine cartridges than ever, and still doing well with compatibles. This is the best return I have had on any Newspower promo – long may it continue!                               David Brindley – Angle Vale Newspower

Wishing you all a very successful month and you and your family a lovely Mothers’ Day this year.

Helen Dowling
National Manager
Newspower Australia

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marketing

Staff theft costing retailers 11 times more than shoplifting in the UK

Newsagents should read the excellent report, Staff theft costing retailers 11 times more than shoplifting at Better Retailing on staff theft. The opening par is a wake-up call on an issue most newsagents prefer to ignore:

Shock new figures reveal staff theft has soared by 129%, costing retailers on average 11 times more than shop theft.

I know from my own work through my POS software company working in several retail channels that theft costs between 3% and 5% of total turnover. However, the majority of independent retailers do not get serious about managing theft until they have been hit.

In every instance of employee theft I have seen over many years, retailers have had the tools necessary to track and stop the theft before it was ultimately detected, usually when less than 5% of the ultimate amount stolen had been taken.

Talk to your software company, ask about the theft mitigation tools available and engage. Do not wait to discover theft by some other means before you act.

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Newsagency challenges

Lotterywest leads Tatts on community engagement

Check out Lotterywest on Twitter and compare their engagement to Golden Casket and NSW Lotteries – two of the Tatts Group brands on Twitter – and you see different engagement. Whereas the Tatts brands promote their products, Lotterywest promotes products but with a strong community connection. The difference starts with the Lotterywest tagline: You play. You give. There are many Twitter posts that demonstrate the commitment to giving, and not all are from Lotterywest themselves, like this one fro the RSL:

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While I am no marketing expert, I think there is an extraordinary value in the community engagement of Lotterywest and this value is seen in in-store engagement in newsagencies.

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Lotteries

Magazines in prime position in 7-Eleven in Hong Kong

IMG_9337The space and prime location commitment of 7-Eleven and other c-stores in Hong Kong is not diminishing. They are always at the front of the shop, inside the door, with easy access.

While every display is crowded and full covers rarely are shown, that the space, location and range commitment is maintained speaks to revenue success I suspect. As I have noted here in the past – many magazines in Hong Kong are in sealed plastic bags, reducing browsing.

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magazines

kikki.K in Hong Kong

kikki.K is making its mark in Hong Kong with store openings in good locations. Their approach is as consistent as in Australia. Emotionally pitched displays in their windows and in-store. Retail in Hong Kong is competitive and displays are high-end. The kikki.K offer is competitive and fits in the busy city. Here is the Mother’s Day themed window display I saw at the Times Square outlet.

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Competition

Selling cigarettes in Hong Kong and Japan

While in Hong Kong for the Gift Fair this week I have noticed how cigarettes are packaged and presented. While there are warnings, brands are noticeable.

Here is one shelf of a display in a c-store.

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Here is a close-up look at the Marlboro amber burst and purple burst products. While there are warnings on the packs, the brands are the focus with strong design elements to make them stand out and appeal.

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Here is a poster I saw in Japan a month ago. It remind=s me of the selling of cigarettes in Australian 20+ years ago, when the brands were pitched as aspirational.

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Newsagency management

Covering the digital newspaper

IMG_9485Since I go on (obsess maybe) about the post-it type ads stock over newspaper headlines and mastheads I thought I should comment on this ad that covered access to The Age on my phone yesterday. The thing is, I don’t mind this type of ‘stuck on’ ad as it is easily dismissed, does no damage to the product and barely impacts my experience. I was surprised, however, to see this movie linked to The Age as it’s more Herald Sun product.

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newspaper masthead desecration

Pitching Mother’s Day in the newsagency

I love the way Mother’s Day is being pitched in my newsagency by the team. I saw the new display it last weekend for the first time. It is personal, heart-felt and warm, an absolute delight. I love that it speaks to a diverse group.

Here is a photo of the front of the Mother’s Day gift display. Note there are separate displays on the back and side.

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It is not until you get closer that you notice the mix of products promoted and the broad age range being served.

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And then, to the left side you see the personal messages, heartfelt messages from team members about their mums. Customers tear-up reading this.

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And here is the view from the back looking out into the shopping mall.

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And out the front of the business, on the lease line, we have Mother’s Day cards.

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While there are things one could pick apart from this display, as with every VM display, the pitch the team has created here is different to what you will see in many newsagencies. I am thrilled with it and proud that the team came up with the idea and executed it as they have done.

This is the type of display we need to see more of in newsagencies. Something different, personal and unexpected.

After I saw the display on the weekend I went and had a look at the display in the other newsagency in the centre, also the Wild store and several other card and gift shops. Ours is the most different. All the others are traditional – and I get that as there is comfort in tradition. But there is opportunity in change and that is what I love about what the team has created in my business.

Mother’s Day is a vitally important season for our channel. When most customers shopping for a card for a season such as this, newsagencies are top of mind. We maximise that opportunity with good displays, well stated and backing this with strong social media engagement. Plus, we have to do this in a way that is relevant to people engaging in this season from several generations.

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Greeting Cards

What do you think of the Tatts incentive to try and drive engagement of the digital screens?

Tatts reps last week emailed retailers with this incentive to try and drive engagement of the mandatory digital signage screens. They are giving away 30 $1,000 incentive packages. This makes me wonder about the margin being made by the digital screen companies and by Tatts.

Tatts has blessed two suppliers of the screens. If I was a Tatts agent I would want Tatts to disclose any commercial terms with the two companies, or to declare in writing and under signature that no such commercial terms of benefit to Tatts exist. Further, I would want the screen specs so I can determine for myself if the price being offered is the best available for such a volume deal.

There is plenty about this that is concerning to newsagents based on the calls and emails I have received.

Here is what Tatts sent newsagents last week:

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I have posted this here as I have been asked to, to provide newsagents a discussion place that is open to all.

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Lotteries

Moving crossword magazines in the newsagency

IMG_9133We relocated crossword magazines in the newsagency last week from the end of our fill-face magazine area to this placement between two sections of male-oriented titles, a section seen by almost everyone entering our main magazine aisle. The move will have the crossword section seen by more people and this should further list sales from the good numbers we already have.

Crossword title sales account for 6.5% of all of our magazine sales.

Changes like this in the magazine department are crucial to maintaining a fresh offer. I don’t care about the odd customer complaint about moving sections.

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crosswords

A walk through the newsagency

Here is a 3 minute video I shot at one of my newsagencies on Saturday. Note this was the last day of our unicorn season as this week and next are all about Mother’s Day.

newsXpress Knox City 23/4/16 from mark fletcher on Vimeo.

The shop itself is 135 square metres. It is in a centre with around 250 other retailers. Plenty of competition. we don;t have lotteries, confectionery or tobacco products by choice.

The pitch across the front of the business and into the first third changes every couple of weeks. This constant movement is vital for us for traffic and shopper visit efficiency.

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Newsagency management

Sunday newsagency management and marketing tip: being average is not a future

Last week while in Caboolture, Queensland, on business I stopped in at Revolution Espresso Lounge for a coffee. I was guided there by the excellent Beahunter app, an app where coffee lovers rate and write abut coffee shops. With a rating of 9.2 I knew the coffee would be good as Beanhunter members are serious about their coffee.

On entering the business I was immediately taken to another place. This was not your usual coffee shop. It was retro in style, completely and done well. This told me a lot about the business, what it stood for.

Inside the business there are many indicators of deliberate management and marketing decisions – the decor (floor, ceiling, wall art, seats, tables) , floor layout, music, lighting, notices on the board and the service style.

This business is anchored, true to its pitch, true to its unique selling proposition. The coffee itself was serious, full of flavour, with an excellent body, perfect. This, too, was true to the mission of the business.

This is my combined marketing and management tips today – being true to your mission, true to what you stand for, true to what makes your business unique. What they are doing at Revolution Espresso Lounge in Caboolture Queensland is different, worth the drive and worth talking about to friends – and isn’t that what we want from our businesses, to have created something customers talk about, in a good way, to their friends.

Let’s take a look inside the business. In the door and sitting down, in a comfy retro lounge chair, opposite the counter, this is what you see. See what I mean about anchoring the business in what they stand for? Look at the notices on the board, the cool retro trolley on the side of the counter.

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At the counter, in front of the espresso magazine, is a table setup with a Scrabble game. This is another cue as to what the business stands for, another way to remember the business and another way to engage with the business. These are all important factors in making this coffee shop different to the many other coffee shops around. And it has to be different as it stands alone, away from the main shops of Caboolture. You have to seek it out.

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Here is the Beanhunter page for the business that led me there. The reviews accessible from this page are excellent. Of course, as Beanhunter fan and looking out for my fellow caffeine friends I have added my review and a photo.

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There is no future in being average because average is missed and forgotten. Average is going nowhere. People don’t talk about average businesses with passion. Next time you are near Caboolture in Queensland, check out Revolution Espresso Lounge for yourself and I think you will see what I mean.

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Management tip

Why does Tatts ‘fine’ a small business newsagent for using counter space for other products while allowing On The Run to get away with it?

This post is about what appears, in my opinion, to be a double standard of Tatts in its dealing with small business newsagents compared to the giant On The Run convenience group in South Australia.

This post is also about business ethics, social responsibility, support for small business and, fairness.

Whereas On The Run stores can have non Tatts products next to, in front of and around the Tatts counter space, newsagents are not allowed.

Here is a photo of an On The Run counter. It is setup is such a way that it appears to be permanently operating this way.

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Now, look at a newsagency counter in South Australia. This location is at the front of the shop, to the side of the main lottery serving counter. If the newsagent puts any other product on the empty square top you can see in the photo they are fined. Well, actually, they are not fined. The site auditor marks them down and Tatts requires another visit to make sure they are compliant. This supplementary audit costs something like $230. I see the $230 charge as a fine.

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This, to me, looks like double standards from Tatts. The newsagent is being held back, their competitiveness is being hindered while On The Run is provided a competitive advantage.

I would like to see the double standards tested on behalf of small business newsagents in South Australia and, indeed, nationally. If this behaviour is allowed to continue unchecked what will happen when more of these corporate convenience and similar businesses come on stream? How will newsagents be able to compete with Tatts stopping newsagents achieving the best possible return from Tatts traffic?

I would have thought Tatts would want to be in successful retail outlets. One way to ensure success is to allow and encourage retailers to be retailers.

The only performance measures Tatts should have are year on year performance on a same store basis and store performance compared to other outlets in the region. These performance measures should apply equally to all retailers.

Not allowing a newsagent to use the space in the photo above is unfair and an abuse of power by what, in my opinion, is a large and overbearing supplier. In fact, it is the type of behavior new ACCC rules from the federal government could assist in resolving.

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Ethics

Prince

My first Prince concert was at the Sydney Opera House two months ago. The concert was extraordinary, I am grateful for the experience. Prince’s music has been the soundtrack for many decades and, I am sure, for many newsagents. As happens when someone so famous passes, customers talk. I bet there are many commenting today across newsagency counters about the passing of this influential, extraordinarily talented giant.

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Social responsibility

How Australia Post is changing

IMG_9116This sponsored tweet from Australia Post speaks to the extent of change in the retail side of the challenged business.

Now more than ever in the history of specialty retail we are living in borderless times.

Change is vital to the future of every retail business.

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Australia Post

Why I think newsagents should turn off early return facilities in their newsagency software

A newsagent I am working with is confronting an above average decline in magazine sales. Working through their data I can see they have been driving some of the sales decline by early returning magazines based on settings in their newsagency software, settings that were too severe and that did not take into account any marketing, free gifts or other activities that could see a spike in sales of some titles.

In more that ten cases recently they have early returned issues of different magazines only to try and reorder because of unexpected demand.

This newsagency they early returned copies of the 100th anniversary issue of Marie Claire, an issue that sold out. This is nuts!

While I understand concerns about the costs of magazine oversupply, going too hard the other way can hurt the business.

Following settings set in newsagency software, some newsagents will early return without considering anything about a specific issue – the free gifts, a new TV campaign, some other social media or a very hot cover that drives sales.

My advice is to not early return the day of on-sale except in genuinely exceptional circumstances and where you have thought about this carefully. Rather, put the product out, give it a crack and take a look at sales toward the end of the month.

This is what a magazine specialist would do.

I urge all newsagents to review your approach in your newsagency software to early returns. If you think your approach is right after the review – good. All I encourage is you think about it and ensure you are not magazine magazines to drive a decline in sales through ill-considered early return settings in your software.

The more newsagents early return and lose certain sales the more likely publishers will pus for their products to be placed in a more diverse, non newsagency, mix of retail businesses.

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magazine distribution

Supply of Stationery News today

Gotch as provided this notice for newsagents re supply of Stationery News today. Gotch responded quickly on my notifying them of the problem on behalf of my stores and newsxpress stores early this morning. What they have sent to newsagents is a good quick response from the company:

Dear Retailer,

This is to inform you that you will have received the annual April 2016 subscription issue of Stationary News today.

There has been an allocations error with your account where you have been supplied 2 copies instead of 1.

If you wish to take up the subscription please return 1 copy via the usual method for credit.

If you do not wish to take up the subscription offer please return both copies via the usual method for credit.

GGA Title Code: 25232
GGA Issue Number : 1760
Title Name: Stationary News
Issue Description: April 2016

We apologies for any inconvenience.

Thank you.

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magazine distribution

Why I supported the MPA campaign in the newsagency

IMG_8981I have been asked several times why supported the MPA magazine promoting in my newsagency when I make more money from other products.

While there is no doubt newsagency businesses are (or should be) in transition. However, magazines remain a vitally important traffic driver.

The MPA promotion was exclusive to our channel, the flow display unit small and easily moved and the range of titles promoted fitted with other categories we sell. Further, there was no downside for me, no crazy engagement required at the counter.

Plain and simple, this campaign was a good fit for the business. It made sense to me to support it.

The alternative is to refuse this and other channel exclusive magazine engagement opportunities. That leads to only one place – the elimination of magazines altogether. If that is your goal, talk to a gift shop owner or or the owner of any other single or limited category of products. They will tell you they would love our everyday traffic drivers including magazines as it provides a traffic base from which to build a more valuable business.

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magazines

The Ty Frizzy if a perfect gift with magazine purchase from Pacific Magazines

IMG_9048The Ty Frizzy free with the latest issue of Total Girl magazine is perfect for the target shopper but evermore perfect for us as we sell Frizzys along with plenty of other Ty products. Indeed, Ty is an extraordinarily successful brand for us, making this promotion one we welcome and support.

This is not an issue to stick in the usual place. Leverage the amazing value gift for maximum sales. That is what we are doing and it is working a treat.

Kudos to Pacific Magazines for such an engaged promotion.

8 likes
magazines
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