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

Author: Mark Fletcher

Price comparing our newsagency prices for ink with the majors

save-on-inkFollowing comments from my post yesterday about the Officeworks price comparison and guarantee I thought I’d post one of the ways we promote on price at my newsagency.

This simple yet clear flyer is in a couple of high traffic locations in store. The same pitch has been emailed to close to 1,000 of our customers, a more thorough flyer goes with each customer purchase and we have delivered 15,000 to homes around the shop.

Ink sales are up 35% year on year off a good base. We’re in a centre with several major ink competitors including a new format Dick Smith which has opened right next door.

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marketing

Covering the magazine masthead

brand-coverupHelping out a newsagent this week I suggested they take more care when placing labels on magazine covers. They were placing big labels over magazine mastheads, potentially making it harder for customers to find the titles they want. I also suggested they consider a slimmer more discrete label.

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magazines

AWW large-format cookbook discounted at Coles?

colescookbooksAt a Coles supermarket yesterday I noticed two pockets of AWW Meals in Minutes at $19.95 each. This is a large-format title, the same size as the new superfoods title we have for $10 more. These price inconsistencies can’t be good for anyone, especially the retailer with the higher price.

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magazines

Now there goes a real celebrity

In this era of reality TV (it’s not real, in fact it is more fake than non-reality TV) and social media enabled instant celebrity, it’s worth pausing to reflect on the passing overnight of Shirley Temple Black, a real celebrity with real talent and who did real things outside her celebrity life. Reading about Shirley Temple Black would be, I suspect, more interesting to many than reading about a convicted drug smuggler just released in Bali or a Kardashian who is famous for nothing of substance.

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magazines

Why not beat Officeworks at their own game?

officeworks-pricecheckAt an Officeworks in Sydney’s CBD Monday I noticed this Check our prices noticeboard near the entrance. This is another strategy they use for pitching their prices and their price guarantee.  If I was a newsagent nearby with lower prices in, say, ink, and if my lease permitted I promote in my window a comparison of my prices and theirs. I’d take it to them. But I’d use a twist: my promotion would be for last week’s prices and I’d note that we’re doing this comparison to show that our customers were the winners.

Officeworks spends a considerable sum of money promoting that their prices are lower and their LOWEST PRICE GUARANTEE. I would not be surprised to discover that the amount they spend on this price pitch compared to other businesses is inverse to where they actually sit in a price comparison.

Newsagents are often cheaper than Officeworks yet we do not tell the world about this. In some cases our leases do not permit in-store comparative promotion. But for the rest, why not? Some newsagents do but not enough. I suspect it is too hard.  This is something a switched on industry association could do.

Several suppliers have conducted research over the years that indicates shoppers consider newsagencies to be expensive when price research indicates we are not. I was at a newsagency conference ten years ago where this was presented. Given the perception, why not a national campaign that helps newsagents promote their price position, a campaign showing the small business fighting back and competing with Officeworks and others. This would be good work for an industry association like the ANF to undertake – there’s no money in it for them but members would like it.

The Officeworks noticeboard reeks of ignorance but the average person entering their store would not know that. Newsagents nearby who do offer better prices need to engage. Yes, a fight with Officeworks could be challenging but, hey, what’s the alternative?

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Newsagency challenges

Mr Men challenges for newsagents in SA

mr-men-stuff-upSouth Australian newsagents are not being supplied enough volume of the Mr Men books to satisfy demand generated by promotion in The Advertiser  and through TV and other advertising.

The circulation manager at News in Adelaide wrote to newsagents saying that they, newsagents, should direct customers to News and the company will endeavour to assist. Note the line written by someone who has not spent enough time serving customers at a newsagency counter:

I must stress that you should make no commitment to the customer that they will definitely be supplied their order.

News is heavily promoting the Mr Men books in its newspapers and on national TV. It would / should have known the success the campaign could achieve and should have ensured sufficient supply in South Australia. Thankfully, I am not experiencing short supply in Victoria.

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Newspaper marketing

Looking for a narrative that speaks to small business from the federal government

It’s five months since Australia elected a new government and more than ten percent into their term we are yet to be presented a business narrative, especially a narrative that speaks to small business owners, the group that employs more Australians than any other.

The narrative is vital to encouraging optimism and optimism feed into hiring, stocking and other business planning decisions.

Even in tough economic circumstances where a government is chasing a sizeable defect and finds itself in a global economic challenge a narrative that encourages and supports small business is possible.  It all comes down to leadership.

In this climate is an extraordinary manufacturing downturn, we in small business and the whole country need leadership in the from of a narrative we can believe, a narrative on which we can build a future.

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Newsagency management

Excellent Valentines Day card sales

valcardsWho says card sales are down because of texting and social media?

Our sales of Valentine’s Day cards are up 65% on the same period last year. This is data up to Friday last week and it’s off of good numbers for 2013.

With our card sales up 15% for the first five weeks of this year compared to 2013, the Valentine’s Day result is even better. We are promoting the season on the lease line with a good range facing out into the mall. It’s checked and refreshed every couple of hours.

It’s for major seasons like Valentine’s Day that shopping centre based newsagents have an excellent opportunity to attract infrequent or first-time shoppers. Tis is where placement of an excellent range on the lease line and laid out to facilitate easy browsing are the keys.

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Greeting Cards

Leveraging interest in INXS

mags-inxsOne shot magazine titles can be tremendously successful in driving traffic and leveraging basket-building. INXS Commemorative Edition is a title achieving both. We have people asking for it and purchasing on impulse.

The INXS telemovie was a hit Sunday night – 1.97 million viewers versus the 1.02 for the Schapelle Corby telemovie. These ratings indicate public interest that we should be able to leverage into unexpected magazine revenue.

To make the most of the one-shot we have it places with music titles, weeklies and on the counter. I figure we have a week, maybe two, to leverage the opportunity.

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magazines

Promoting Girlfriend Guide to Life

magsgfguidetolifeWe have been promoting Girlfriend Guide to Life next to Girlfriend magazine as well as with the weeklies where mum could pick up the title for a daughter. I took a look at Guide to Life and discovered a respectable publication I’d be happy to give my daughter. I mention this because magazine publishers are often accused of taking a sensationalist approach. This title is not sensationalist. It’s a good guidebook parents can use and it’s out at the right time of the year for this promotion.

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magazines

Maybe, hopefully, we’re over the Schapelle story

From Mediaweek this morning the rating numbers for TV last night:

Mediaweek ‏@MediaweekAUS  SunTV:Seven#1 33.1% #INXS 1.97m SNight 1.79m #MKR 1.64m 7News 1.29m #TheBlock 1.27m 9News 1.22m #Schapelle 1.02m #Sochi2014 996k 60Mins 866k

I was thrilled to discover that Australians appear to be less interested in the reports about convicted drug smuggler Schapelle Corby and more interested in the music of INXS and the genius of Michael Hutchence.

I’ve read Fairfax journalist Eamon Duff’s book, Sins of the Father and felt it made a compelling case. After I read the book I felt done, that I didn’t need any more news or spin from, by or about the Corbys and their associates. One thing the family has been good at is making drama to sell stories to media outlets. The ratings last night indicate that interest may be waning. I hope so.

The drug smuggler has got parole. So what? If I see a Schapelle story I’ll look the other way – she and the family have nothing to say that I am interested in or would be likely to believe.

In our newsagencies today we have a commemorative one-shot from Pacific Magazines on INXS. This is well worth focusing attention based on the ratings for the telemovie last night.

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magazines

Are magazine distributors cutting small newsagency accounts?

Several moves in recent weeks suggest that magazine distributors Gordon & Gotch and Network services are reviewing small accounts with a view to cutting accounts that to not meet minimum sales criteria. While they have had thresholds for new accounts and in the past have review performance, I anticipate the review this year will be felt more widely.

Call it a conspiracy theory but I wonder if any such review and plan to reduce the number of smaller accounts related to the withdrawal of support and requirement for the previously mandated five day training course for new newsagents.

While there is active discussion among newsagents and their suppliers about the closure of newsagency businesses and what this means for the future of the channel, there has been little discussion about the support for the channel by core suppliers such as magazine distributors.

Magazine distributors continue to treat newsagents unfairly. They supply us using rules and processes established in the days of regulation yet our competitors are treated differently, in a de-regulated way. This creates an unfair playing field that newsagents have failed to have addressed.

While the ANF invests in a struggling bill payment platform, its member newsagents are facing more challenges from an old magazine distribution model that leaves their businesses uncompetitive in this slim-margin product category. And while on the ANF – any distribution account review should see newsagents treated the same as another direct drop account.

I’d encourage newsagents to share here if their account is being reviewed or has been cut.

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Hubbed

Pressure on remainder / discount books continues in 2014

bookscheapThere was a time not so long ago when we could rely on remainder book sales three or four times a year to deliver excellent good-margin revenue. Those days are gone with landlords signing up deep discounters for outposts. Whereas newsagents would tend to run catalogues with prices delivering healthy margins, today’s book discounters pitch a price that only works with a sales volume far greater than newsagents could achieve with an in-store promotion.

I took the photo yesterday in a regional mall in Queensland. Everything was $6. Looking at the stock on offer, it only works if they achieve volume. The space would be costing around $3,000 for seven days. Labour would be at least $1,700 a week and this needs to be factored in even for an owner-operator.  Round it up to $6,000 in operating costs for a week once you allow for freight, storage, insurance and other items and you’d need to sell at least $12,000 in books in seven days to justify the outpost.

There is no point in pining for opportunities of years past. If we want to be in books in 2014 we need to work with suppliers keen to do it differently and suppliers prepared to commit and not succumb to the discounters who do deals with landlords that harm the businesses of their long-term tenants – these outposts from non-tenants are a blight in shopping centres, they hurt many businesses.

These outpost operators who pitch on price can do so because they are here today and gone tomorrow. Retailers with long term leases can’t pitch on price unless we are prepared to forever pitch on price and that is a losing game. People who purchase on price are the most fickle shoppers. The only way to retain them is to forever pitch on price.

As for books, if we want to be in the space we have to do it in a way that represents a value proposition, one that works for us in terms of the investment needed and one that pop-up retailers will struggle to match. One newsagent I know in country Victoria has done this well by focussing on kids books and creating a section of the store beautifully decked out for this.

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Book retailing

Getting guys engaged in Valentine’s Day

val-guysWe have placed a line of Valentine’s Day themed plush in with our car magazines to pitch the season to guys who are blind to the season to the last minute. By the time guys get to our car magazines they will have passed three displays of these cute things. We’re chasing a sales record of a single plush item and we’re hoping our car magazine shoppers will help us achieve that. Retail can be fun.

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Gifts

Mr Men competition to drive Herald Sun sales

newspmrmenThe Herald Sun Mr Men promotion kicked off yesterday and if what I’ve seen played out across the state they are in for a good sales boost. All week Melbourne TV has been running ads so demand was strong from the outset. People came in asking for the free book and that’s a good start – the rest is up to us.

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Newspapers

Sunday newsagency marketing tip: setup a customer service desk … seriously!

serviceNewsagents often cite superior customer service as a point of difference they offer over other retailers selling magazines, stationery and greeting cards. This newsagency marketing idea challenges newsagents to take the customer service experience to a new level and to have fun at the same time.

Setup a small desk near the entrance to your newsagency on the busiest day of the week. Fit out the desk with a visitor chair, a phone (it does not have to work), blotter (if you can get it), pens, a couple of trays – make it look like something from the 1960s. Try and find a bell for people to ring too. Make a name plate: CUSTOMER SERVICE.

Next, dress the part of an old-style office manager.  Sit behind the desk, smiling at people as they come and go.

Hopefully, something happens. Hopefully, customers enjoy the fun of the set and hopefully you get questions and engage in discussions that lead to business opportunities.

You could put a money box on the desk and ask for a gold coin donation for a local charity for every bit of advice you give – and you could take questions not directly related to the business.  This could be one way to broaden the focus of what you are trying to do.

The core goal of the idea is to show current and prospective customers that you care about customer service. Along the way you can show them you can have fun. The gold could be opportunities you uncover as a result.

If you really immerse yourself in this idea talk to the local paper and use your business Facebook page to promote it.

This is your opportunity to change how people see your business in terms of customer service.

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marketing

Sunday newsagency management tip: spend a day competing with yourself

It’s easy in small business to lose touch with the world outside your business, to lose touch with the world your customers live in. It could be that the world as you know it has changed in ways you are not familiar with.

Take a day, yes I know that is harder than it sounds, but take a day and hunt down where people living in the area served by your newsagency could purchase any of the top twenty products or services you sell.

Search online for the items – from your home computer and using your mobile phone when out on the street near your shop. Where are people looking on-line and on-mobile being sent when searching for these top selling items on which you rely? Go have a look at those businesses. Look at them in the context of what you offer, look for points of difference.

There will be some businesses competing with you, through the search engines, that are not located near you. Consider these carefully as part of this exercise. Too often newsagents discount them – you’d only do that at your peril.

The goals here are for you to discover competitor businesses that may not have been on your radar and to learn more about how they specifically compete with your business. The insights gained could inform your business plans. They could lead to immediate changes in your business.

Consumer habits have changed significantly in recent years and smart retailers are embracing these changes. My experience is that independent small retailers are not keeping up with the changes because they are ignorant of how some people, people who may have shopped with them in the past, now shop.

So, take a day and try and compete with your business.

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Management tip

Parents like the healthy option at the newsagency counter

bouncingballsOne mum commented last week that she liked our healthy options at the counter – more products like the fun high bounce balls and other fun things for kids and less of sugar charged candy. In addition to these being healthy options for kids and parents they are healthier for us too – generating good high-margin purchases … adding to the basket.

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Impulse lines

When was the last time a supplier said they would report you?

A successful newsagent with a growing business told me yesterday that a magazine publisher representative visiting their business was unhappy with the shop and said they would have to report them. The representative said the newsagency looked too much like a gift shop.

This is in a business achieving double-digit year on year growth, a business worth more today than a year ago as a result of lifting gross profit. A business worth more to this publisher than it was worth a year ago. Yet the publisher representative treats the good retailer like a naughty school kid.

No magazine publisher or distributor has the right to complain about how a successful newsagency looks, they gave up thst right when they supported deregulation fifteen years ago.

Have you been told you will reported? If so, please share your story here and out overbearing behaviour.

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Ethics

Thanks for supporting newsagents Slam Skateboarding

magsslamskateboardingSlam Skateboarding magazine is using Twitter (1,671 followers) and Facebook (49,531 page likes) to tell people the latest issue of the magazine is out at your local newsagents. They specifically tell people to shop with us. Here is a very cool niche magazine supporting our niche businesses.

This is a reason for us to do something special with and for this title – to leverage and support it the way it is leveraging and supporting us.

How are you supporting Slam Skateboarding?

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magazines

Tapping into infatuation with sugar

magssugarontrialSugar is a hot topic in the news and on current affairs programs and we’re tapping into that by ensuring the full cover of the latest issue of New Scientist magazine is on show. Placement in usual magazine fixturing could miss an impulse purchase opportunity. A bit of extra attention can grow magazine sales.

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magazines

Selling AFL love

magsaflrecordWe’re promoting the AFL season launch issue of the AFL Record with this placement shown in the photo on a floor display unit placed at the entrance to our main magazine aisle. It’s also located with sports titles and featuring in our men’s magazine section.

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magazines
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