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

Author: Mark Fletcher

Nice looking VTAC GUIDE

I like the look of THE VTAC GUIDE 2013. Visually, it’s a nice departure from past guides.  The new look has given the team in one of my newsagencies an opportunity to take a more stylish approach to promoting the title.

Stylish is not word I’d use in considering past VTAC GUIDES. This year is different and it looks good. This is important in retail in that we like to sell products that look good. This one does.

So, we are going out early with the THE VTAC GUIDE 2013 out the front of the shop somewhere people can easily see it and visit the shop as a result. The display in the photo is facing into the mall where passers-by can see.

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visual merchandising

Promoting Melbourne Wedding & Bride

We are promoting the latest issue of Melbourne Wedding & Bride in several places in-store including this aisle end location.  It’s a chunky title presenting newsagents with space challenges. It does not fit in the older style magazine fixtures. we are lucky because we have deeper pockets for titles like this.

We have a plan which will see the title in a few locations over the next month – giving it opportunities to be discovered by shoppers in several locations.

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magazines

Disappointing response on Herald Sun price rise

It’s disappointing to see people complaining on social media about the increase in the cover price of the Herald Sun from $1.10 to $1.20. The cover price has gone up by 20% over something like 13 years. The minimum wage has gone up by way more than that in the same period.  One guy with his own business complained about the ten cent rise this week and said it was different when he put his hourly rate up by more.

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Ugh!

Loyalty software helps newsagents take a bigger picture view

Newsagents who understand the economic value of the different customers they serve are better able to attract more of the customers who are most valuable.

This is loyalty marketing 101.

Sadly, not many newsagents understand the value of their customers.

My newsagency software has had loyalty marketing facilities for more than fifteen years yet too few newsagents use its facilities.  It’s their loss.

Used properly, the loyalty marketing facilities can generate a bottom line increase in a matter of months. By knowing who are your most valuable customers and rewarding them appropriately there is no doubt of a sales increase.

Running a loyalty program is easy. It’s cheap too if you structure it right.

It can be run individually or collectively if you are in a group.

My recommendation to newsagents is to start individually. This provides excellent learnings which can inform future decisions should you decide to go down the group route.

I’ve worked with jewellers, bike retailers, gift shop owners and newsagents in establishing loyalty programs. While there are plenty of queries, I have found that starting is the best way to learn.  You can tweak the program on the run and morph it into what you need once you understand more about how your customer react.

Every business should have a strategy for tracking, managing and rewarding loyalty. Our competitors do. We can to for little or no cost.

It all depends on whether we are professional retailers.

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newsagency marketing

Is Newsweek moving to a digital-only platform?

There was confusion yesterday about whether Newsweek magazine was moving to a digital-only platform.  Digital Trends has a good report on this. It’s a move that makes sense for a news ‘magazine’ since by the time it gets to print the stories are more mature. The size of articles in Newsweek are such that even they lend themselves to digital over print thanks to tablet advances. Moves like this come down to the financial return for the print product and whether the publisher can achieve a better outcome with a digital-only model.

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Media disruption

Perfect reason for promoting GQ magazine

Keith Urban on the cover of GQ magazine this month provides a perfect reason for us to give this title some rare time in the spotlight – in a high traffic location in-store.

Keith Urban was a star on The Voice recently on TV, raising his profile significantly in Australia. This is why the GQ cover is perfect timing – for the magazine and for our sales.

We will support the magazine here and in another high-traffic location when we move it on.

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magazines

Feeling for newsagents in London during the Olympics

Check out the report of a London newsagent who has been told to remove Olympic themed bunting. The Olympics is not about sport. It’s a massive business taking care of rich corporate mates and rewarding athletes who can suck up to the right people to get the money they need to compete on the very expensive (and irrelevant) world stage.

Yeah, I am not a fan … for the reasons outlined in the story of the attack on the local London newsagent who wants to help his community get into the Olympic spirit.

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Ugh!

Is stand alone stationery a transition opportunity for newsagents?

With more newsagents now actively considering changes to their business model, I ask whether transitioning to a stationery centric business is an option.

I am thinking about a shop which is no more than 120 square metres, packed (literally) with everyday stationery for immediate purchase and able to supply larger items next day. Operating on a pricing principle where easily price compared and accessible items are competitively priced and other items have a better margin.

This stationery centric model could have, in addition to an excellent range of stationery, room for the top, say, 200 – 300 magazine titles, a couple of newspaper titles and maybe a small stand of up to 60 card pockets.

In some respects, this idea is about newsagents, or former newsagents, reclaiming stationery from big business.

One reason it could work is that plenty of stationery is purchased because of immediate need. satisfy that well and you can expect to win good business.

One of the challenges with the newsagency model as it has evolved is that we do a bit of everything and, for many businesses, not one thing well.

I can think of plenty of regional high street newsagencies which could pull back to specialising, like the Office 1 business shown in the photo, standing for something in the region and drawing destination shoppers because of this.

We need to be thinking of ideas like this which are product category specific. Each of us need to be known for something. This was at the heart of my call last month for newsagents to develop their unique selling proposition.

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Stationery

Hallmark and John Sands sales data helps newsagents and suppliers

With some newsagency software programs having offered the ability to provide sales data to Hallmark and John Sands for years, it is good to see both parties making use of this to drive better value from the newsagent / supplier relationship.

Newsagents who ensure they have accurate business performance data and who share this automatically with their suppliers can be certain of receiving amore finely tuned and appropriate supply of products.

The automatic flow of sales data sits at the heart of just in time supply, enabling newsagents to better manage their inventory investment.

Now more than ever there is real value for newsagents in using technology to drive supplier relationships.

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newsagent software

Good interest in The Official Marvel Graphic Novel Collection

We have the latest issue part of The Official Marvel Graphic Novel Collection part series on display facing shoppers as the enter. The X-Men topic should generate interest because of the recent airing of X-Men on TV and that it’s a highly successful franchise.

This part series has been successful given the higher price. It’s brining in some appreciated traffic as well as working as an impulse purchase item. The key is having it where most shoppers can see.

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magazines

Will Katie Holmes sell AWW?

We are promoting the latest issue of The Australian Women’s Weekly with this display at the front of one of my newsagencies. We also have the magazine featured in its usual location and placement in a third high-traffic location through the first week.

The question we have is whether katie will generate sales. The talk across the counter is that people are not as interested in her and Tom cruise as we might have thought.

Who knows … our placement activity shows that we’re doing everything we can to make the most of what he hope will be shopper interest in Katie.

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magazines

Promoting Take 5 and the Olympic connection

We are promoting the latest issue of Take 5 and the offer of a free flag with which to cheer on the Australian Olympic team with this in-store display.

It’s a display shoppers easily see … perfectly times for the start of the Olympics in a few days. We will leave it up until the weekend – 70% of our Take 5 sales are achieved by Friday.

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magazines

More media coverage for newsagents on Darrell Lea

The interest by some newsagents in participating in a tilt at Darrell Lea received more media coverage yesterday. Several other fairfax outlets ran the story and I did a couple of radio interviews before heading overseas on business for a couple of days.

Interest has been formally registered with PPB.  Newsagents need to put their hand up if they are interested as I noted Monday:

Newsagents who would be prepared to invest in a consortium to bid for Darrell Lea need to register now.  To get a seat at the table to consider being part of an acquisition we need to know how serious newsagents are.

So, without obligating you to anything, please email me at mark@towersystems.com.au with your contact details and the amount you would invest if the opportunity met your requirements.

I appreciate it’s a long-shot query. However, given the independent structure of the channel I need to get something more solid than voted on a poll before engaging a lawyer to seek to get a seat at the table.

This is the moment for newsagents to put up or shut up on Darrell Lea.

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Newsagency opportunities

Why we need to fight Coles and Woolworths

If we think Coles and Woolworths have too much power then we’ve seen nothing yet. In the UK, the major supermarkets each have successful local store models which are challenging the existence of local family-run businesses in high streets.

Check out the story from Get Surrey about how a local newsagent is fighting to stop Tesco Express opening in Farncombe.

I have been in several Tesco Express outlets this year. They are impressive, unfortunately.

The Tesco Express businesses are a big success, delivering a professional convenience model to local communities and offering a national outlet for suppliers of food, grocery and publishing lines. The big companies love these outlets because of their consistency.

The Get Surrey store speaks to the small shop difference:

“Little shops are the backbone of the community and now Tesco want that for themselves,” said Manisha Thaker, a long-time friend of the couple and customer at the store.

The challenge for local communities is that these outlets kill off local traditions, stories and connections. They ship more dollars out of the local economy.

They are, in my view, soulless shops.

Once Coles and Woolworths get over their hardware fight and settle in ann expanded fuel network, look for them to go after main street Australia … if they are not there already.

This is why our businesses need to be relevant, strong and ever changing.

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Newsagency challenges

One Direction 2013 calendar drawing traffic

We are thrilled to be the only retailer in our centre with plenty of stock of the 2013 One Direction Calendar at the moment and that we’ll hold this position for the next few weeks. We are making the most of the opportunity with this simple yet clear placement on the lease line, facing into the shopping mall.

One Direction fans are like bees to a honey-pot, walking across to the business and browsing the calendar. And buying.

We are known in the region as the go to store for One Direction product. Word of mouth re the 2013 calendar is already good. This is in part thanks to our pre release pre-sale which we started months ago thanks to advance notice from our supplier.

Besides 1D fans, customers for the calendars are parents, grandparents, friends and relatives. The appeal is far broader than fans themselves.

Going out early with the product is helping us get early Christmas gift sales.

10 likes
newsagency marketing

Newsagents and Darrell Lea in the AFR today

Page 9 of The Australian Financial Review today has a story about possible interest among newsagents for a tilt at Darrell Lea. Now is the time to register your interest as I noted yesterday:

Newsagents who would be prepared to invest in a consortium to bid for Darrell Lea need to register now.  To get a seat at the table to consider being part of an acquisition we need to know how serious newsagents are.

So, without obligating you to anything, please email me atmark@towersystems.com.au with your contact details and the amount you would invest if the opportunity met your requirements.

I appreciate it’s a long-shot query. However, given the independent structure of the channel I need to get something more solid than voted on a poll before engaging a lawyer to seek to get a seat at the table.

This is the moment for newsagents to put up or shut up on Darrell Lea.

Footnote: they took around 50 photos and had to go with the one of me gorging on chocolate.

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Newsagency opportunities

What magazines do you recommend newsagents carry for men?

My post here about the excellent ManSpace magazine and several posts about the equally excellent smith journal magazine have piqued interest in magazines for men.  I’d be interested in newsagents posting their recommendations of magazines for men, thinking men.  I am particularly interested in titles which are not your everyday, titles the majoring of newsagents would not have.  Share your knowledge…

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magazines

NewsPOS newsagency software lives on

Earlier this year I purchased the NewsPOS newsagency software business. While some newsagents have switched from NewsPOS to Tower Systems, around 70% continue to use NewsPOS and the team in my software company supports these NewsPOS users.

I mention this because someone is putting it out there that NewsPOS closed. It didn’t. It was acquired and for NewsPOS users it’s business as usual.

The rumours in this channel are frustrating.

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newsagent software

Leveraging People’s Friend interest

We are making the most of the three issues of People’s Friend magazine currently on the shelf with placement next to each other and with the full cover showing. People’s Friend customers are loyal to the title and to the retailer, easily rewarding the commitment of this valued space to promoting the titles.

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magazines

Cleo at the counter

We’re having success with featuring single titles at the counter – when we effectively give the counter over to the promotion – as you can see with this promotion for Cleo magazine.

I love this display. It’s bold, attention-grabbing. I had nothing to do with it and am grateful to the team member who conceived and executed the idea.

8 likes
magazines

The next stop for newsagents on Darrell Lea

Newsagents who would be prepared to invest in a consortium to bid for Darrell Lea need to register now.  To get a seat at the table to consider being part of an acquisition we need to know how serious newsagents are.

So, without obligating you to anything, please email me at mark@towersystems.com.au with your contact details and the amount you would invest if the opportunity met your requirements.

I appreciate it’s a long-shot query. However, given the independent structure of the channel I need to get something more solid than voted on a poll before engaging a lawyer to seek to get a seat at the table.

This is the moment for newsagents to put up or shut up on Darrell Lea.

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Newsagency opportunities

What I think about the future of newspaper home delivery for newsagents

I was talking to a newsagent the other day who said oh that’s right, you think newspaper home delivery is dead.  I don’t think it’s dead, actually.

While I don’t see much upside in newspaper home delivery as a stand-alone operation or a smaller scale operation as it has been in the past, I work with newsagents who are building larger and successful home delivery businesses.

Indeed, I have signed off on considerable investment by my newsagency software company in a new suite of enhancements in the newspaper distribution facilities in our software.  I would not be spending into six figures enhancing newspaper distribution software if I did not consider there was upside for my newsagent colleagues and my software company.

So, my actions answer for me.

Yes, there will be mass consolidation of newspaper distribution businesses over the next two years. The reality is this has been going on, quietly, for the last few years. I know newsagents running warehouse operations that have grown through acquisition. These are good businesses.

The wash up is that newsagents running loss making distribution businesses as well as retail businesses can concentrate on what they do well.  I am hopeful that a result from this will be better retail newsagents.

While there is no obvious upside in the future of print newspapers, there could be considerable upside in a professional locally based distribution business.  It’s this opportunity that gets me investing my own money in better newsagency software.

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Newsagency management

Fairfax to migrate to compact size sooner?

AdNews is reporting that Fairfax hopes to migrate The Sydney Morning Herald and The Age to compact format ahead of the target date of March 2013. I’d like to see this. The fanfare of switching to the new format would provide an excellent opportunity to shin a light on the titles and hopefully drive some over the counter engagement.

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Newspapers

Promoting AWW Puzzle Book 15

We are promoting AWW Puzzle Book 15 next to AWW as well as in our crossword section. But it’s this placement with AWW from where we will sell most copies.  This is because of our space commitment. It’s worth it to get good early sales … I’d say that most purchases are on impulse.

Newsagents should check where they have the puzzle book. Next to AWW is best in my view.

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crosswords
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