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

Author: Mark Fletcher

Muddling through Valentine’s Day

Valentine’s Day brings out a range of strong customer reactions from the sweet and romantic to the smokin angry – and everything in between. While people at both extremes are interesting, the angry ones are especially so as I’d love to know drives them to react that way to what I see as a reasonably harmless retail season.

I love the customer who shares anticipation about the card or gift they have bought and about what they may receive. I also love the customers outside the usual who buy a card or gift – especially those 70, 80 and older. It’s sweet.  I also love the kids buying cards. In fact that’s a real treat – seeing a teenage boy or girl agonising over a card for young love.

Yes, Valentine’s Day is a commercial season, one we gladly support for all its commercial glory but it is also a season drenched in tradition and expectation and we newsagents play a role in reinforcing the tradition and in helping people find fulfilment from expectation. In our small businesses we get to see people engage more so than in other places where a Valentine’s Day card or gift is just another SKU. Across the newsagency counter, as with much of our interaction, it is more personal.

This is what is special about seasons like Valentine’s Day for small business newsagents, the opportunity for us to watch people as they engage with their feelings, and the opportunity to engage with them. It’s a pleasure not many retailers have, one to cherish.

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Fun

The Age disrespects closing the gap message

theage-coverupFairfax yesterday stuck an ad over the top of the lead image in the front page of the newspaper yesterday, a story about the Closing the Gap report delivered by the Prime Minister in federal parliament on Tuesday. Fairfax took money to advertise the Mexican Fiesta show on SBS TV. I am shocked that people in production didn’t realise the insensitivity of the placement of the ad and I am more shocked that this has not been more widely covered.

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Ethics

Elle magazine being discounted

ellediscountBauer is trying to drive sales of the new Elle magazine by bundling it with Cosmopolitan and offering the two for $5 off. While discounting can be seen as rewarding people for buying more than they expected, I think it gives the wrong message. The discount voucher approach I use works better as it is a whole of my business  push.

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magazines

Promoting the INXS one-shot

magsinxsimpulseWe are promoting the INXS one-shot title in three locations for impulse purchase by shoppers: with newspapers, with weeklies and here as shown in the photo at the entrance to the main magazine aisle.

Each location is getting shopper engagement – reflecting the broad appeal of the TV show on the Seven network.

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magazines

How some newsagents act harms others who trade under the newsagency shingle

being-cheapIn a newsagency a few days ago I noticed them selling Hallmark 2014 date books at the counter for $2.00. This is an item they got for a few cents to be used as a customer gift to help drive sales. The same newsagency had other items at the counter, also priced at $2.00, such as freebies with magazines – including a craft kit from the cover of Mollie Makes.

While the independence of our businesses is a strength, it is also a weakness. The image of every newsagency can be tarnished by the actions of one newsagency.

Newsagents selling items that should be free disrespect their fellow newsagents, their customers and the suppliers of the products involved. The same is true for newsagents who keep for themselves any item provided by a supplier as a customer prize.

The newsagent selling the date book could have been offering it to customers to drive care sales. Instead, they disconnected from the opportunity in pursuit of a small amount of revenue.

I know of a supplier some years ago that retreated from proactive engagement with the channel to barely active engagement on the back of evidence of some newsagents behaving poorly.

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Ethics

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
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