At GNS Market Fair in Sydney this weekend
I’ll be at the GNS Market Fair in Sydney today and tomorrow. I’d be happy to catch up with anyone wanting to talk newsagency channel issues or matters relating to their newsagency. M | 0418 321 338.
Finding a sweet spot for snakes in our newsagency
These plush snakes did not work for us. We tried them in several locations and we could not sell one. The moment we cit the price they started moving. In fact we sold half our stock in a little over a week. We’d not sold one for ,ore than two months.
The lessons for us snakes are probably not right for our customers and a slimmer margin should be tried sooner on slow moving stock. Yes we’re disappointed but we are grateful for the experience. Oh, and NO, I di not wish they were sale or return. Sale or return is a blight on our businesses.
XchangeIT does not block access to electronic invoices and returns
XchangeIT does not block access to your newsagency software if you decide to not pay software support fees. If your access is blocked then you should contact your newsagency software company. Not all newsagency software companies block access to XchangeIT electronic invoices and returns handling if you refuse to pay their software support fee.
Fun interactive impulse purchase items brighten up the newsagency
I watched on Thursday when a team member at one of my newsagencies demonstrated this Flash Sphere to a customer. Moments later the customer purchased two. The demonstration brightened the shop, taking it from a static display business to something fun an interactive. Several shoppers in-store watched the demonstration – most were smiling.
Yesterday we sold more. We think we could be out of stock in a week. Now that’s a nice stock turn.
This is an excellent example of what’s important in retail today – engaging shoppers with our products. However, before we can do this we need to source products that work with such shop floor engagement.
To newsagents reading this saying there is no time for such games on the shop floor I’d say we need to find time as it’s this activity that drives basket depth and helps us provide a more memorable shopping experience.
Promoting the ever-growing frankie magazine
Here’s the in-location display we are using to promote the latest issue of frankie magazine. This space allocation is worth it based on the sales achieved.
frankie shoppers are loyal and they often purchase other items in-store.
We will pare back to a single column next month.
Terrific business building conference from Lotterywest
Lotterywest is hosting a one-day business conference in Perth on September 2. I was at this event last year and found it to be excellent for newsagents. The agenda for this year’s event looks excellent. I’d encourage all WA newsagents selling lotteries to book to attend if they have not already.
Another good reason to promote Peppa Pig products
Newsagents are about to receive a new Peppa Pig partwork – for which stock is very limited by the way. The partwork is arriving when promotion of the Peppa Pig Treasure Hunt stage show is in full swing. As I have written here a few times recently, we’re ding well with Peppa Pig activity packs and plush – selling through three or four times in a few months. So far this year the brand is worth several thousand dollars in revenue to us.
The stage show and partwork will keep this brand working a treat through Christmas and beyond. Newsagents should check with suppliers for any Peppa Pig related product they have.
Making money from the Rudd v. Abbott contest
We have the David Marr Power Trip Rudd v. Abbott book next to our newspapers. This is perfect placement and perfect timing for the book – delivering nice extra margin dollars when purchased on impulse by a newspaper shopper. This is a good example of paying attention to what we sell and locating product for maximum advantage. The book appeals to people who support either politician.
In-location promotion example
Here’s how we have been promoting the latest copy of Zoo. The simple yet clever use the the collateral by our team lifts promotion from the shelf so that all those shopping this area of magazines can see it. It’s been the only featured title in this part of our magazine department. I’m posting the picture in response to emails I received following my magazine sales video. People wanted examples of in-location displays.
famous sales bump
The price reduction and the provision of a counter display unit have worked for famous if my newsagencies are anything to go off. Sales are by between 10% and 100%.
Building the art magazine range
We’re building our range of art related magazines as part of our focus on growing special interest titles. Vault is a new title for us. It’s an impressive looking magazine. We have it as our hero title in this segment at the moment.
New video: how newsagents can grow magazine sales
Further to my post yesterday about our growth in magazine sales here is a brief video I shot late yesterday where I explore the sales results, explain how we achieved this and call on all newsagents to embrace the category.
I am concerned that newsagents are giving up on magazines. This would be a mistake. With good management and hard work newsagents in almost any situation ought to e able to grow magazine sales – despite the best efforts of some distributors and publishers to make our channel less competitive.
Footnote: this is the first video I’ve shot with a new lapel mic. The sound quality is much better.
Why launch a magazine and block browsing?
While I was surprised we were sent copies of NFM New Farm Machinery as farm titles don’t work for us I was even more surprised the publisher bagged the magazine. Someone needs to tell them about the concept of browsing and how it helps sell magazines, especially new magazines. The folks at Bauer should know better.
Funky cover-mount with Vogue
The clear liquid mounted to the latest issue of Vogue makes it stand out on the shelves. It’s different to the usual cover-mounts of skin cream and lotion. Kudos to everyone behind this … it looks very cool. Hopefully sales kick as a result.
75% sell-through of plush at the newsagency counter
Ten days ago I wrote about a new display of plush, dogs, at the counter. We’ve sold more than 75% of the stock in ten days, achieving an excellent return on the space and inventory investments. We have more dogs coming in. Once they’re almost done we will change things p with a different offer – maybe plush, maybe not.
The other point about this is that $24.95 items work for us at the counter!
Herald Sun home delivery ad covers-up important front page story
Shame on those at the News Corp. owned Herald Sun for covering the face of one of the accused in the Oklahoma shooting of Melbourne baseballer Chris Lane with a stuck-on ad for home delivery of the newspaper.
The ad distracts from a tragic story with a local Melbourne connection. That they would do this shows disrespect for the news and the feelings of the victim’s family and the broader community. There is no excuse.
Is News Corp. the face of evil?
How I’m growing magazine sales 10% year on year
A check of year on year sales at one of my newsagencies shows that we’re achieving 10% year on year unit sales growth for magazines and even more at some category, segment and title levels.
Woman’s Day sales are up 6%, New Idea up 15%, Who 31%, Take 5 up 7%, TV Week up 7.8%, AWW up 4.5% and craft overall up 40% off a good base. While magazine sales are challenged for many, things are working well for us. Here is what we do to drive magazine sales:
- We obsess about the category because it’s a key traffic driver. We manage it as a point of difference and not as an obligation. By obsess I mean that more than 50% of my time in the shop is spent on magazines.
- We react to covers. I topical cover gets extra attention.
- We regularly relay magazine categories and titles to keep the layout fresh and relevant. For example, we moved craft from deep in the women’s section to be opposite our weeklies. Bam! Sales went nuts.
- We co-locate titles to chase impulse purchases. For example, That’s Life puzzle titles with That’s Life and the AWW crossword book with AWW. Anyone reading my recent posts will know this one move is driving double digit year on year growth.
- We often promote magazines on the lease line to passers-by – sometimes weeklies, other times categories.
- We use smaller format in-locations displays more so than the publisher preferred billboard displays.
- We reward genuinely loyal shoppers for above average behaviour. There is no doubt that the discount vouchers facility is driving good growth for us. Every day we see shoppers purchasing a magazine on impulse as a result of a cash discount opportunity we give them.
I don’t mean to sound big-headed but to me it’s these initiatives publishers should be promoting to newsagents. Our channel can grow magazine sales if we all engage in the kind of activity noted above.
The most important reward any newsagent can win is sales growth. We all must chase this for magazines as this product category continues to be very important to our businesses despite the sales declines reported in many newsagencies.
I’d be happy to help any newsagent address magazine sales challenges.
D-Day for Queensland newsagents on lottery cash
I heard from several Queensland newsagents yesterday saying they would close as a result of the change in the bank account sweep by Tatts which took effect yesterday. Pretty dramatic stuff for what at first glance appears to be a simple payment day change.
The timing of the change appears to be the issue: a drawdown by Tatts Friday and again today, a super and tax hit this month, magazine accounts due this week and other suppliers chasing money more aggressively.
Given the timing of cash hits in August, Tatts would have been better advised make the change next month and maybe in a more phased way.
The next few days will show if the concerns of some has followed through with business closures.
Promoting the P!NK one-shot
We’re pitching the P!NK one-shot with our weeklies and above our weeklies to tap into interest in the performer while her national tour is top of mind. We figured this placement with weeklies was better for us than with music titles where a title like this would usually be located.
Promoting Men’s Health magazine
We’re promoting the latest issue of Men’s Health magazine with this aisle end display in our men’s magazine area. We’ll promote it for a week here and then feature it in-location. Men’s Health is the top selling magazine in the men’s health / fitness / sports section so giving it premium space makes commercial sense.
Questions in relation to the Hubbed contract offered to newsagents
Several newsagents have sent me the Preferred Agent Terms and Conditions for Hubbed for comment. It appears to be their contract. In each case they asked me to look at the contract because of concerns about what happened years ago with the ANF endorsed and promoted Bill Express.
While I have business questions about the Hubbed offer are questions I have about the contract:
- Hubbed Competitor. The definition in the contract is broad and could change over time as Hubbed changes. Today, Touch Networks, N-Parcel, Parcel Point and even facilities in some newsagency software products could be considered competitors of Hubbed.
- Territory. The newsagent is restricted as to where they can offer the service. Hubbed has no restrictions on who they can sign to offer the service.
- Equipment. Newsagents must obtain the equipment Hubbed requires from Hubbed and this must be financed by a finance company approved by Hubbed.
- Financial Services. Newsagents taking on Hubbed are directed to use Moneytech Services to be able to use Hubbed. The finance agreement appears to be separate to the Hubbed agreement. I have not been given a copy of a finance agreement. If I remember correctly this was the case with Bill Express too.
- Sales target. Newsagents need to understand their target and the implications.
- Insurance. Newsagents neet to take out insurance for parcels and equipment.
- Responsibilities of the agent. Newsagents have to erect signs if required by Hubbed – there does not appear to be an opportunity to negotiate on this. The price you charge is set by Hubbed and you cannot vary it. You must get written approval from Hubbed to sell, promote or accept business from any competitor service. You have to notify the sale of your business 60 days in advance. You have to give 60 days notice if you plan to move your shop.
- Access. You have to notify your landlord that you’re taking on Hubbed.
- Fees. Hubbed may set off amounts payable.
- Access – termination. Newsagents agree that Hubbed can enter the premises without notice and remove equipment.
- Money. Hubbed and their agents get access to your bank account and you must authorise their direct withdrawal.
- Subcontracting. You authorise Hubbed subcontractors to have the same rights as Hubbed. You can’t subcontract your own writes without written permission from Hubbed.
- Termination. While Hubbed or the agent can terminate the agreement at 90 days notice this would need to be considered in association with the finance agreement. Termination fees apply and they are in schedule 5 – none of the agreement I have been given have a schedule 5.
- Financial guarantee. Part of the Hubbed agreement requires newsagents to provide a financial guarantee to the Hubbed Financial Partner.
- XchangeIT. In Schedule 4 newsagents are required to use something called the XchangeIT inventory management and payment system. Is this a new service or a mis-naming of XchangeIT?
While I am no expert, it seems to me that newsagents signing up for Hubbed will need to seek written permission to continue to offer Touch or ePay products as well as to offer Parcel Point or N Parcel. I would also be concerned about the future business opportunities that Hubbed may deny me from taking on given the tight no compete obligations in the contract.
More complete assessment of the Hubbed offer can only be undertaken in-conjunction with reading the finance agreement which I have not seen nor have newsagents I have spoken with.
It is not my intention to attack Hubbed. Rather, I have sought to document the concerns I would have with the Preferred Agent Terms and Conditions for Hubbed if they were presented to me for consideration. I’d like to think the ANF has read the contract with the same intent as me.
Hubbed may have answers that satisfy newsagents on these and other points. As with any contract newsagents are presented to sign, read it all carefully and ask questions about anything which concerns you or you do not understand. Get the answers in writing.
Making space to chase more impulse purchases
We have added a small riser to the That’s Life Puzzler on the Go display unit so we could add a second title. Puzzler on the Go is working well in this second location with That’s Life so it’s natural we’d want to try the same for a second of the That’s Life puzzle titles.
Our crossword sales are up 5% year on year – showing we can grow magazine sales by managing the category.
The last German newspaper
Respected Australian TV anchor Dr. Armin Wolf has written for Forbes about when the last German newspaper will cease printing. 2034 is the date Wolf focuses on as it’s the date journalism professor Klaus Meier predicted a while back.
The article is interesting because it’s not doom and gloom. No, it’s a look at news itself and how it finds platforms relevant to its purpose.
Newspapers were not invented to be printed on paper. For about 200 years, they were just a particularly efficient way to distribute written “up to date”-information. If there are new technical possibilities that do the same better, they will prevail. Stone tablets vanished because new media emerged that could store information more efficiently. The same will happen to printed daily news.
Famous cover price drop should arrest sales decline
Pacific Magazines has responded to the 14.4% decline in sales of Famous with a cut in the cover price from $4.20 to $3.95.
They are supporting the new price point with counter display units in newsagencies. I’m using this in each of my stores this week to promote the price drop and to chase impulse purchases.
Being above $4.00 was always going to be a challenge in a market where a weekly magazine is more of a discretionary purchase today than a few years ago. The newsagency sales data I see shows that weekly magazines are the items most often purchased with a discount voucher or a free magazine voucher.
Australia Post bill payment kiosk roll out
Australia Post is rolling out these bill payment (and other services) kiosks in a move that cements their position as the bill payment network. The kiosks handle payment by cash, credit card and debit card. They do this without needing to go to the counter.
This kiosk roll out further dilutes the already small bill payment opportunity in newsagencies.