Check out Parcel Nest on Kickstarter, a cool solution to the challenge of home delivery of parcels. It’s an Aussie design addressing the delivery change at the front gate. I mention it here so newsagents are aware a a different approach to parcels compared to the collection point approach our channel has been pitched in recent years.
A newsagent suicided two weeks ago leaving a young family without a parent and a business without leadership. Things had been tough for the business with landlord challenges and difficulties dealing with magazine supply. Colleague newsagents had suggested help was needed. Unfortunately, the first meeting to sort out help was two days too late.
I have known about this situation since it happened and wondered whether to write about it here. This is not the first newsagent suicide I have heard of. Each situation is different and it is unlikely anyone knows all of the factors involved.
I am writing about this today because we need to talk about mental health, the mental health of small business newsagents and how we can deal with challenges where we feel helpless. We need to work together to help any who may feel that suicide is the only option. When I say we, I mean all of us in this channel: newsagents, associations and suppliers including landlords.
Some landlord representatives are bullies. They push small business owners into a corner. I hear too many stories of intimidation of small business owners who are in vulnerable situations.
Some of our suppliers are bullies. They create financial stress and add to this by cutting off product supply when accounts over which the small business newsagents have little control are not paid on time. yes, I am talking about magazine distributors here as they control supply, they control the level of indebtedness and they, sometimes, place newsagents under extraordinary personal pressure to pay them ahead of other creditors.
These people dealing with small business newsagents need to take care in their communication, they need to be aware of the emotional and other consequences of their actions and words, or their refusal to act. They need to consider decisions of the company they represent that could have helped create the situation. They need to consider their culpability.
I am all for personal accountability and often say we need to own our own situation – we sign our leases, we sign magazine contracts. However, we do these things expecting fairness. Too often there are people of the other side of a commercial relationship who do not believe in the same fairness.
It is hard to know the mental health of anyone. That person smiling at you or joking with you could be in a dark place in their mind. This is why it is important we talk and ask colleagues how they are doing and why we all need to help when we think help could be what is needed.
We owe it to each other in small business to do this. I think it starts with talking openly with each other about challenges and how we feel about them and their impact on us personally. It can start within the business with more open communication among all involved. Sometimes, the initiative for this will have to come from the team communicating up to the owner, to open the discussion.
Our suppliers need to play a role. Take the accounts department at a magazine distributor. They are probably the first to see a newsagency in a stressed situation. They have details of calls and emails that can reflect on the mental health of the newsagent in contact with them who is struggling to pay the bills. What do they do about this? Do they have a process of care and support for the business or do they aggressively pursue payment of the debt? My experience is they do the latter with considerable intensity. They will say they can’t do much because of privacy obligations. I’d say that is nonsense. Lives are at stake.
Given the early warning signs in the accounts department of magazine distribution businesses they ought to have a process for rallying support for a newsagent in trouble.
Owning and running a small business can be tough – on families, relationships, finances and your mental health. The ABC published a terrific report about mental illness and small business. I urge you to read this and share it. At the bottom of the ABC article is an excellent list of resources:
Mental health crises don’t always happen during office hours. But if you find yourself having to help someone there are people who can help – at any time.
National crisis and counselling contacts available 24/7:
- Ambulance/police/fire – 000
- Lifeline – 13 1114
- Kids Help Line – 1800 55 1800 – Provides counselling and support for young people aged 5-25.
- Men’s Line Australia – 1300 78 99 78 – Provides counselling and support services for men – especially those involved in the breakdown of relationships.
- Suicide Call Back service – 1300 659 467 – Provides free nationwide professional telephone or online counseling.
Other national information and support services contacts available during business hours:
- beyondblue information line – 1300 22 4636
- SANE Helpline – 1800 18 SANE (1800 18 7263)
- Telstra directory assistance – 1223 Call this number for contact details to the nearest public hospital, which can provide information on local services.
State-based resources
NSW
- Salvo Crisis Line (suicide prevention) – 02 8736 3295
- Salvo Care Line (regional) – 1300 36 36 22
- Salvo Youth Line – 02 9360 3000
Victoria
- Suicide Line – 1300 651 251
- Victorian Government Mental Health Advice Line – 1300 280 737
South Australia
- South Australian Assessment and Crisis Intervention Service – 131 465
Western Australia
- Mental Health Emergency Response Line – 1300 555 788 for Peel residents 1800 676 822
- Rurallink Psychiatric Emergency Team – 1800 552 002 | TTY: 1800 720 101 (rural WA only)
- Samaritans Suicide Emergency Line – 1800 198 313
- Crisis Care Helpline – 1800 199 008 | TTY: 08 9325 1232
Tasmania
- Tasmanian Mental Health Services Helpline – 1800 332 388
Australian Capital Territory
- Mental Health Triage Service/Crisis Assessment and Treatment Team – 1800 629 354
Northern Territory
- Northern Territory Crisis Assessment Telephone Triage and Liaison – 1800 NTCATT (1800 682 288)
Queensland
- 13 HEALTH – 13 432 584
General information about depression
I have been thinking about the April 23 ACCC convened conference to discuss the proposed magazine supply rule change pilot and, in particular, the contradiction of submissions of newsagents by the CEO of the ANF.
Every newsagent speaking at the ACCC conference objected to the pilot as proposed and the magazine supply rule changes at the heart of the pilot. It was only after every newsagent had spoke that the ANF CEO tore them down. Here’s how the minutes record his contribution:
Alf Maccioni (CEO, ANF) said the ANF had informed its members about the Pilot, with articles in newsagency magazines and newsletters. He said the ANF currently had around 2300 members (of a total 3500 newsagents). Mr Maccioni said the ANF supported the trial because oversupply of magazines was an issue which needed to be discussed.
What the ANF CEO failed to detail is exactly what informing ANF members involved. I have been told it was a passing reference in an issue of National Newsagent magazine and a passing reference in an email to members. ANF members tell me there was no consultation. I am certainly not aware of any effort whatsoever to determine the views of newsagents.
What if the ACCC places more seated in the views put by the ANF CEO than the newsagents at the Conference? What if this one small contribution from the ANF CEO is considered to be representative of newsagents?
Talking with newsagents over the last couple of weeks, I know this is not what they want. The do not want the ACCC to consider for a moment that the ANF understands what newsagents think about this trial.
I am in the middle of the Newsagency of the Future workshops and there are many questions about the proposed pilot and the position of the ANF. Had the ANF CEO made himself accessible I am sure he would have had his position challenges by newsagents who disagree with him.
Footnote: going into the meeting I shook the hand of the ANF CEO. He didn’t seem to want to talk. While some newsagents held back and talked, the ANF CEO was gone. Two more opportunities missed for discussion with newsagents. So much for consultation.
Usually I would not care about what the ANF says. However, in this situation, they have some standing. It is unfortunate they use that standing to sprout ill-informed and ignorant views.
When you contract to sell your newsagency, or any business for that matter, you usually contract to sell the business as it has been trading and you contract to sell the assets of the business. Your business data is part of that trading, your business data is an asset of the business.
Removing data prior to the completion of a sale transaction could open you to a legal challenge. At the very least is would raise questions.
There have been court cases between purchaser and vendor over data on which the purchase valuation was based. These are complex cases from which neither side wins. In one situation the case went of for years, costing well into six figures in legal fees.
If I am ever asked, my advice to newsagents selling is to NOT delete or tamper with data on which your business valuation is based.
What products are lucky for you at the newsagency counter? I am talking here about items shoppers purchase for luck, like elephants, turtles, crystals, dolphins and buddhas. Choose the right item for your area and it can sell and sell.
Adding a $9.99 item to a basket on impulse and with a 60% GP can be an terrific add on and deliver valuable margin dollars.
One way to drive success is to consider how you display them. In some situations, a display with plenty of stock helps whereas in other situations an impression of scarcity works better. You need to work our what works best in your own situation.
Recently, we bent big with elephants. Everything sold, easily. What works for you?
I just saw an ad on TV for the OzLotto $25 million jackpot just now, at 6:17PM. Given that most retailers would be closed by now, why is Tatts paying to be on TV. The cynic in me wonders if this ad buy, if specifically selected by the company, is about growing line and mobile purchases.
It is disappointing that newsagents are unable to offer Netflix cards while EB Games has them in their stores. Distributed in Australia through InComm, no reason has been given for denying our channel access to what should be a popular gift card line – I don’t know if InComm decided this on their own of because of a deal with EB.
I purchased some plastic ponchos from Officeworks for 69 cents. A couple of days later I noticed very similar ponchos at a Coles supermarket priced at $4.00 each. I can’t figure out the reason for such a price difference. Coles and Officeworks are owned by the same company.
This ad on the floor of a shop in Adelaide could confuse. I thought it was promoting In Style until I noticed none of the images was In Style – not even from the same publisher.
And here is a photo I took late last year of the downtown Adelaide office of News Corp. Not a promoting of print in sight. I don’t begrudge what News is doing here – digital delivery is vital to their future. My only concern is what they say to newsagents.
Also in the Adelaide Advertiser newspaper yesterday was this ad promoting a free Samsung tablet computer with a $295 subscription to digital access. This is a smart offer as it creates the efficient distribution channel vital to any publisher.
Here’s an ad in the Adelaide Advertiser yesterday promoting digital delivery first and home delivery as the plus in the offer. This is the approach by News not just in Adelaide but everywhere I see. It makes sense. If I ran news I’d pitch the lowest cost delivery channel.
This photo shows a News Corp. promotion in Chermside Shopping Centre (Queensland) pitching its rewards club offering online access to several sites plus home delivery on the newspaper on the weekend.
This photo is of an inner suburban shop occupied by a newsagency until a couple of weeks ago. As a newsagency it covered the basics: lottery products, magazines, newspapers, cards and stationery. The business stood for nothing special. It did nothing to stop people shopping at card, gift, Officeworks and lotto shops within walking distance.
The business closed because the owner did not create and run a business which demanded attention from those nearby.
As a result of the closure, people living in this inner city residential area will have to walk fifteen to twenty minutes more to buy a paper or a magazine – or they can walk five minutes to a petrol outlet and get most of what they need.
What could the owner of this business have done to stay open?
They could have been a retailer, offering a point of difference relevant to the local shoppers. In this particular community there are many pet owners but not a pet shop in easy walking distance. The newsagency could have become part pet shop and this alone would have significantly broadened the appeal of the business.
But they did nothing.
Within the traditional newsagency framework they could have offered a broader range of gifts serving the interest of local.
But they did nothing.
They could have offered a stationery delivery service to the many businesses nearby.
But they did nothing.
Any newsagent operating a business which is completely traditional in approach has no future.
Now more than ever you need to be energetically engaged in chasing your own newsagency of the future – otherwise you end up like this business.
Newsagents need to own their situation, as every business owner must. This means managing the business for success rather than guiding its failure through inaction.
While the newsagent who owned this business did close it in an orderly fashion, closure need not have been the outcome – if they applied the same methodical approach the took survival as they did to the closure.
If you think this post is talking down the newsagency channel it is not. This post is a call for newsagents to fight for their future, to make their own success and to note that this starts with you owning your own situation.
A colleague sent me this photo from an Asian newsagency, showing how they gently ask shoppers to pay prior to reading. Their situation is helped by their magazines all being sealed in plastic.
I was at the Gibson / Unity showroom Melbourne last week and noticed this kangaroo nativity set in one of their Christmas rooms. I equally didn’t think it would sell as I thought it would offend customers (not me). This set has been a top seller as has the koala nativity set!
Thinking about it later, this kangaroo nativity set helps you pitch Christmas themed products to a different shopper to the one looking for traditional Christmas gear. There is a large opportunity out there for non traditional Christmas lines.
We have suppliers to our channel who can guide us based on their own repeat sales data – they can help us not buy based on our barriers.
When purchasing a new range of stock for your business, make sure you purchase enough of the range to enable you to tell a story.
Too often I see newsagents purchase less items from a range to save money. This can end up costing more as the small range is no story and the stock does not sell – until you cut the price and quit the stock sometimes for a loss.
Spending more and carrying a more complete range enables you to tell a story, make a bold statement and, often, through this, attract new traffic.
While I understand the need to be careful with spending, being careful does not necessarily mean you should spend less. There are plenty of situations where spending more enables you to achieve more.
A newsagent I know last year got into a new product category for their business. The supplier advice was an opening order of $800. They decided to spend $350. The new range did not sell. A couple of months ago on my advice they topped up the under performing stock with an extra $500 from the same range. They creat6ed a fresh display with more items from the range. In the last two months they have sold more than they did in the six months prior.
When introducing a new range to any retail business you need to do it in a way that gets noticed and through which you can make a statement whoch demonstrates your commitment to the range.
If you carry products that are added to with new launches consider offering pre-sell opportunities where by your customers can lock in orders well in advance of the release of new product. Take a deposit, track their pre-order and let them know the progress of delivery.
This locks your customers in before your competitors get the product on their shop floor.
I class this as a marketing tip as the pre-release pitch is part of marketing – it gives you a reason to reach outside your business and connect with shoppers based on their interests.
We promote pre-release orders with flyers, via social media and by connecting with customers we know the new range will appeal to. Each time we find new shoppers, many of who comment on the value of the service.
I will explore changes which will affect us in the next few years, new traffic opportunities and changes newsagents can make today. I will also discuss the magazine supply model and the proposed magazine supply rule changes. Each session is free and open to any newsagent.
You can also book by emailing bookings@towersystems.com.au. There will be more locations including Tas., WA, Cairns and Newcastle.
A government owned Australia Post outlet I see regularly has someone now next to their self-serve units to help take more customers through these than at the counter. Is this is a concerted education campaign to get more shoppers using the self-serve units?
In recent visits I have noticed the line for the human counter is shorter than the line for the self-serve counter.
Supermarkets do this and the result for them has fewer human counters and more self-serve locations.
Our pre-release promotion of the Build Your Own 3D Printer partwork is driving interest. We are promoting this with partworks as well as near a range of items appealing to male shoppers we suspect are the target market for this partwork launch.
We are also using social media to reach outside the business to promote tis title ahead of the launch. I see it as a terrific opportunity.
Even though the title will not be out for three weeks we are making the most of the opportunity today as it is a point of difference for us.
We are promoting four Australian magazines and newsagencies as the places to purchase these and other magazines on my newsagency Facebook page. I have also paid to boost the post – to reach more people.
This promotion is part of a shop local campaign in the newsagency. Shop local means different things to different people. To me, these magazines fit as they are local publications from local companies.
The four magazines I have selected are good and diverse titles with terrific content.
While I get that social media is ideal for promoting our businesses, we can also use it to promote our channel.
The Studio Ink range of cards from Hallmark is selling very well. Even better – I see it selling to a new card shopper, someone who would often not shop the traditional newsagency card department. Seeing this, we are planning on using Studio Ink as a call out away from the card department to attract new traffic. We will probably do this as a co-location with a range on the wood as well as elsewhere.
The latest newspaper circulation results reveal all dailies experiencing declines for print. The Fairfax numbers leave me wondering how long they can continue printing a product seven days a week.
Newspapers present a bigger challenge right now for newsagents than magazines. These latest declines are not unexpected given the trends we have seen over recent years.
Check out the magazine circulation numbers comparing the March quarter with last year. All nine titles with year on year data experienced declines. the declines fall within the data I presented in the recent newsagency sales benchmark report covering the same period. Even considering the declines, most of these titles remain important to us and deserving of our in-store support.