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

Author: Mark Fletcher

Trying out the cashless butcher

chaslessLast week I tried the cashless butcher I wrote about in May. Now that they have made the transition I wanted to experience it first have.

I’d note: they are really cashless. I tried to pay with cash and they said no. In fact, I’d forgotten to bring a card and had to go back to the office to get one. In the ten minutes I was there over two visits I was the only one who asked. I think this is due to the local clientele and the excellent signage they have in-store.

The photo shows the Tyro payment station facing the customer. They have three of these – in front of each register.

It’s a busy shop. The move seems to be working well for them.

Given the average low denomination transaction value in newsagencies and the higher traffic count I suspect a cashless move like this is not ideal for our type of business. However, as our shopper mix changes, which it will, and our average sale value increases, which it will, this is a move that could work for us at some point.

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Newsagency management

Wizard of Oz Itty Bittys very popular

ittysuccessWe have had the next range of Itty Bittys from Hallmark in store for a couple of weeks and already we have ordered more stock. Our sales are being driven by placement off-location: with cards as well as at the counter.

Dorothy, the Lion and the Tin Man are the most popular. I’ve seen plenty of customers add them to the basket.

A bonus is customers purchasing the set. I’ve seen this happen a few times.

The success of the new Itty Bittys is a reminded of the importance of well-known brands in driving sales for us. These brands are far more valuable than cheap un-branded product. Cheap does not always mean banking good margin dollars.

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Newsagency management

Good timing for Christmas card themed magazine

cardsmagsWe have seized the opportunity of Creative Christmas cards being in-store early and have placed it with weekly titles for the next couple of weeks. It should sell well from here – justifying the prime position we have allocated.

Card making magazines are popular for us. This title is an opportunity to attract a new shopper.

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magazines

Ros Reines fails to backup sledge of newsagents

rostwitRos Reines from Sydney Confidential in The Daily Telegraph recently claimed to 17,500 Twitter followers that some newsagents don’t put out magazines each day. I responded and found out it was two newsagents in Bondi. Reins has not responded to other questions I’ve put.

A professional journalist would check the facts before publishing. I want to know if Reines checked the facts. What was the title being sought out? Were staff in the businesses asked? Was the title some place else and not in the usual location? Was the comment based on unopened bundles? If so, these could have been extra stock.

If the newsagents in question did not have titles out that should have been out, shame on them for their treatment of the products and for their damaging of our reputation.

Right now, however, we don’t have the facts and Ros Reines is not responding.

This is not a gossip piece like you find in Sydney Confidential. This is a sledge against a small business channel, a sledge that needs to be responded to.

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Ethics

Promoting cards with magazines

cardsmagsWe love opportunities to integrate products from one category with another. Who this week gave us an opportunity to promote a card from the Spirit humour range. The card placement pitches this card as well the rest of the range placed nearby.

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Greeting Cards

The impact of heightened security on retail

securityuogradeHere’s the note we received from our landlord on the announcement of the raising of the security threat level. My first thought was the note was an overreaction but on reflection it makes sense to me. I’m glad they sent it.

I’m posting this note here to show newsagents operating outside a shopping centre the sorts of things landlords remind their tenants about at times like this. I hope the reminders in the note are useful.

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Newsagency management

How is Homes+ selling?

homesplusWe have had the launch issue of Homes+ in prime position with home and living titles  as well as a stint with newspapers. We’ve not sold a single copy, making the space and labour investment worthless for us.

How is it selling for you?

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magazines

Sunday newsagency marketing tip: host a bake off

With the surge in gourmet home cooking on the back of a flood of reality TV shows covering baking to chaffing skills to complete dining experiences, newsagents are well placed to engage with the local foodie community.

Select a recipe from one of your popular food magazines run a competition for customers for judging on a day you set aside for an in-store event. They all have to bake the same dish you choose.

You could go further have choose a starter, a main and a dessert. But that could be challenging in heating so starting the idea with a cake, slice, biscuits or something similar which can be delivered and served cold could be more practical.

Find an independent judge with experience in food judging. Set aside some space where you also promote your food titles. Get the local paper in for a photo. Have fun. Remember to let the publisher of the magazine you choose know. Take lots of photos for your business Facebook page.

If you worry about space and too many entries maybe limit the size first time around. Or, plan to go big and hire a local hall or get council approval to do something on the footpath in front of your newsagency. I think it’s important for an event like this to be in or near your business. The commercial connection, however subtle, is important.

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marketing

Sunday newsagency management tip: use a focus group to guide you

Focus groups are used by many businesses to test new products, advertising campaigns, business names, product packaging, business ideas – just about anything a business might be considering. While usually a big business approach, focus groups can work in small businesses like in your newsagency.

For clarification on what a focus group is and how it works, take a look at the Wikipedia page: Focus Group.

My newsagency management tip today is to use a focus group to harvest feedback and thoughts about management decisions you face in and about your newsagency business. You could convene a group of people not currently connected (this is important) with your business for advice and feedback on:

  1. A store image change.
  2. Product category changes.
  3. Product selection where you might be considering multiple options.
  4. Consideration of a new service.
  5. Community group engagement choices.

Sometimes asking the opinions of others helps us see our options differently and this can lead to better business decisions. Convening a focus group does not commit you to their advice. The investment, however, gets you listening to more people think and talk about your business.

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Management tip

Another Herald Sun cover-up

hsucoverThe Herald Sun yesterday took money from Mazda to obscure the photo of page one of the newspaper lauding the North Melbourne victory. !@*&ers is one North Melbourne fan said ripping the sticker off before buying it. I get that News wants the advertising bucks but getting between an AFL fan and their victory is dangerous, especially in Victoria.

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newspaper masthead desecration

Weekend survey: newsagent association relevance

I have created a three-question survey on newsagency association relevance. Please click on the link to take the survey. I created the survey as a result of a discussion with a newsagent at the Melbourne gift fair who said they got more value from their gift association membership than from their newsagent association membership. As newsagencies evolve away from the core old newsagent association concerns matter less.

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Newsagency management

Why I cancelled future Bauer merchandiser visits

I observed a Bauer merchandiser visit in one of my newsagencies on Thursday. The entire time was spent recording what we were doing: where magazines were placed and other data. I think photos were taken but I cannot be sure. It felt like we were being marked and judged.

In the ten to fifteen minutes or so in store the Bauer merchandiser did not add any value to the business whatsoever.

If what I saw yesterday is what is done by these merchandisers in other newsagencies what a waste for newsagents and how utterly disrespectful.

Given what I observed and that another Bauer merchandiser was recently filmed moving a Pacific Magazines titles into a poor position in favour of a Bauer title I emailed Bauer to cancel all future merchandiser visits. To their credit they acted quickly and took us off the merchandiser visit roster.

This is my business. I want people in the business who want to help me grow the business. The days of treating newsagents as kids to be marked as if school are long over.

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magazines

Visual merchandising tip: use a backing colour

bb-inspireIt’s amazing the different inserting a colour sheet in a fixture can make to bring focus to products. Without the backing sheet the products blend with colours from other shelves showing through. With the sheets you see the product on the shelf and not what is behind it.

This is a simple and effective VM tip.

The photo is from a Hallmark Gold Crown store I visited in the US earlier this year.

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visual merchandising

If you need inspiration to engage with Halloween…

While Halloween in the US is huge compared to here in Australia, my experience is that it is growing every year. An average suburban newsagency fully engaged with the season could make between $1,000 and $2,000 in sales with between 50% and 60% GP – regardless of what nearby supermarkets and deep discount stores might do.

This terrific report from CNN in the US provides an insight into the $6B season for US retailers.

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Newsagency opportunities

A WH Smith acquisition announcement imminent?

I’ve heard from several people in recent weeks that WH Smith is close to making another retail acquisition in Australia and that their focus is on the newsagency channel. The reports have intensified this week with a specific acquisition target being named. If true, it will change the newsagency landscape in Australia and reveal more about the plans WH Smith has for their engagement in Australia.

While I am not joining the rumours and naming the reported target here, I will note I think that WH Smith is investing in Australia for the long term. I am certain they have a plan that requires a retail critical mass that they do not have with their current retail footprint.

As their plan evolves, newsagents will realise the potential impact at the local business level. Smart newsagents will step up to the challenge.

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Newsagency challenges

Dog and cat display update

dogcatcounterFurther to my post from September 5 about refreshing the dog and cat display at the counter, I can share that the jumbled and more orderly display work almost the same in terms of sales – the orderly display is slightly ahead. The big news is that in two weeks we have sold hundreds of dollars of dogs and cats from the counter. So much so that we’re short of stock until our order comes in so we have dogs and cats in together.

Here’s my message: plush sells at the counter if you display it in a way that is noticeable and that makes sense. We have people purchasing $19.99 items on impulse – with cards, newspapers and or magazines. yes, there have been newspaper customers who have added a $19.99 item to their paper purchase.

Our counter story is not only these dogs and cats – they are of a bigger picture story that is all about overall gross profit and margin dollars per sale.

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Newsagency management

Making the most of Hillary Clinton

gshilaryThe Hillary Clinton cover on the latest Woman & Home gives us an opportunity to get the title out in front. This is a title not often in the spotlight. The Hillary cover is a perfect opportunity for us to refresh interest. This is what cover choices by magazine publishers are all about. It’s also how we can sell more magazines.

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magazines

The only way to display this issue of Vogue

masgvogueWe have allocated double pockets to display the current issue of Vogue which comes with a tote bag. At first look you’d think the bag is designed by Jean Paul Gaultier. I’m not sure that it is. The information on the packaging is less than clear. Anyway, we have allocated extra space for the next few days to try and move the stock as showing the bag off this way is essential for shoppers to see what they get. Too often newsagents fold the gift behind the magazine – hiding the bonus value.

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magazines

A good example of poor title allocations

changebasetelegWe often sold out of the 3 copies of the telegraph we received from network Services so they increased us to 7. I;d have thought 5 was okay but not 7. A review of our history shows volatility. It does not make sense for them to more than double supply. It makes me wonder if they are dumping excess stock they have to allocate. Better in our shop than their warehouse.

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magazine distribution

If you have an email from Network saying your returns failed

As I mentioned yesterday, some newsagents who lodged returns during Network Services Netonline planned system outage – from 1pm Friday to 6pm Saturday – are receiving emails from Network saying that their returns have failed. Some in Network and XchangeIT tell newsagents to call their software company. This is Network’s problem to resolve as the company has now confirmed.

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magazine distribution

Good Peppa Pig products from Network

googpeppaI like the Peppa Pig products from Network Services. They are a terrific addition to our Peppa Pig range. Yes, I don’t like the low margin … I wish I was making the 50% and more off these that I make off other Peppa products. But it’s icing so I’ll put up with the inadequate margin for now. We have these items at the counter as they don’t fit on our existing Peppa stands.

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