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

Author: Mark Fletcher

A merged Saturday and Sunday SMH newspaper?

In Queensland on the weekend I saw an undated weekend edition of The Sydney Morning Herald newspaper and wondered if this is a move Fairfax would make in Sydney.

There are newspaper publishers in the US who have switched from daily editions seven days a week to publishing less days. That said, it would be odd for the SMH to merge their two top-selling days.

SMH Saturday sales are down 13.8% to 293,324 and the Sun-Herald sales are down 10.8% to 383,607.

With newspaper sales falling it’s only a matter of time before we see movement away from the traditional publishing schedule here in Australia. If they can cut costs without cutting as much revenue than it will be appealing.

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Media disruption

Last week of the WIN A CAR promotion

In this last week of the WIN A CAR promotion being run by Pacific Magazines the team at one of my newsagencies has gone all out with this terrific behind the counter promotion. It’s visually striking and singular in its message. It promotes some of the titles connected with the promotion without getting in the way of the promotion of the prize.

Click on the image for a bigger version.

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magazines

Promoting Famous magazine at the counter

Following my blog post on the weekend we are promoting the latest issue of Famous magazine at the sales counter with this simple display facing all shoppers. Our goal is to pick up incremental purchases and to reinforce to those not purchasing this week the title that we do carry it. We are planning a series of single title promotions at the counter.

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magazines

When a newsagent underpays employees

An employee of a newsagent called me last week to ask about the $15 cash in hand they receive from their newsagent boss for their Sunday shift. They knew they were being underpaid and wanted to strike out at the newsagent. I told them to go to the authorities.

Besides underpaying this employee, and reportedly others, the newsagent was skipping on workers compensation, superannuation, possibly payroll tax and not maintaining accurate accounting records for when the business is sold.

While I am not thrilled to be paying an adult employee in my newsagency around $40 an hour for Sunday, it’s the law.

Newsagents not paying the award deserve what they get.

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Ethics

Promoting royal-themed Mindfood

We are promoting the royal-themed issue of Mindfood magazine with good placement with our women’s and British magazines. I love the cover, the colours and the regal look. We’re hoping that this will help the title will sell well from what is for us not the usual location for the magazine.

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magazines

Promoting Men’s Health magazine

We are promoting the latest issue of Men’s Health magazine with this column-based display facing shoppers as they leave our men’s magazine aisle and our newspaper location.

While we have the title well represented with sports and fitness titles, we wanted to get it into the front half of the newsagency to grab impulse purchases fro the front action of the shop and leave.

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Uncategorized

Promoting Women’s Health magazine

We have been promoting the latest issue of Women’s Health magazine with this column-based display created by our talented team in front of our main sales counter facing shoppers as they leave our women’s magazine aisle.

This is the second location promoting Women’s Health. We set it up leading into the weekend – a good time for us for sales of the title. It always responds well to this type of additional promotion at the front of the newsagency.

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magazines

Sunday management tip for newsagents: I dare you to use your computer system

Seriously. I dare newsagents to use their computer system, to the full.

I bet there is information you are not accessing today in your computer system that can help you make more money.

Newsagents spend good money on their computer systems and often only use them as glorified cash registers. If this is you, what a waste!

Do you buy a car with air conditioning and not use it?  No.

Do you buy a house with lights and not turn them on? No.

Do you buy and iPhone and only use it as a phone? No.

Your newsagency computer system, regardless of the system you have, can most likely probably give you information you do not currently know about your business … information which could save time, guide business decisions or increase sales.

I see this happen often.

It is a tragedy when newsagents do not use their system.

So here is the challenge: either look yourself for information you do not know or ask your software provider.

At Tower Systems we provide a free Business Health Check service.  We grab data from a newsagency and run a series of reports and come back to the newsagency with what we have found out.  The response is usually a checklist of steps the newsagent can take to improve the business and usually make more money.

Here is some of the most valuable information newsagents can get from their newsagency software:

  1. A list of items not sold in the last, say, six months.
  2. A comparison of supplier performance in a common department.
  3. Details of what sells with what – and therefore what is not selling efficiently.
  4. Magazine performance to international reporting standards.
  5. Greeting card performance to international reporting standards.
  6. A list of stock stolen.
  7. A list of possible employee theft incidents.
  8. Sales by employee.
  9. Sales by hour.
  10. Sales basket depth compared between trading periods.
  11. Stock turn by department, category and item.
  12. Orders by supplier.

I could go on.

Computer systems can help newsagencies more than many newsagents permit. Imagine how strong this channel could be if every newsagent used the system they has to its fullest potential. Wow! Amazing!

I’ll happy look at reports from any newsagency. All I ask in return inconsideration of the advice.

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Newsagency management

Buffet investment in newspapers surprises some

News came out yesterday that Warren Buffett’s Berkshire Hathaway had purchased the business of 63 newspapers from Media General.  Plenty of analysts and commentators are perplexed by the move. Some say it proves newspapers have a future while some say the move makes no sense.

Buffett’s explanation quotes in Forbes was simple:

“In towns and cities where there is a strong sense of community, there is no more important institution than the local paper,” Buffett said in a statement yesterday. “The many locales served by the newspapers we are acquiring fall firmly in this mold and we are delighted they have found a permanent home with Berkshire Hathaway.”

Niche smaller market newspapers certainly have a healthy medium term, maybe longer, future. Look at foreign language newspapers in Australia. Sales continue to grow. I don’t have numbers for regional, rural and local papers. I suspect that independently owned titles with a genuine local community focus and connection are doing well.

What can we take from the Buffett move about the future of capital city dailies? Nothing I suspect. However, I do see it as a reminder that we should pursue niche newspaper titles since no other retailer competing with you is likely to do this.

This is the opportunity from the Buffett announcement. To ensure that Australian newsagencies are the go to locations for a diverse selection of newspapers.

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Media disruption

Newsagents should sell more copies of Famous magazine

I was talking to a couple of supermarket people recently and realised that newsagents could make some moves which should help drive sales of Famous magazine. They were saying that it performs very well for them as a impulse title.  This could be because of the $3.95 price point. It could also be because of the cover and content.

Newsagents should be able to sell more copies of Famous.  Here are my suggestions which we could try this week to see what we can achieve:

  • Promote Famous at the counter at your busiest traffic positions – even if this is a lottery counter. Clear space around the title so it is the hero product at the counter.
  • Place Famous next to or even between Woman’s Day and New Idea in your women’s weeklies section.
  • If you have a flat stack in your women’s weeklies section, make space for Famous there too so people who buy off the flat see the title.

Check sales after a week and see if you have achieved a lift. You could make one of these moves, if they are new, each week and check the results.  Based on sales in other channels newsagents ought to be able to achieve sales growth for the title. All it could take is some active engagement.

Why care? I care when I see a competitor retail channel doing better than newsagents with a magazine title. Whether we like it or not we are in a war with supermarkets, convenience stores and petrol outlets for magazine sales. We need to fight for market share of every title. Tactics will vary title by title. If we do nothing, our competitors will grab more sales from us.

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magazines

Poor quality stock from Network Services

The bagged copies of Jamie magazine we received on Friday were unmerchantable in our view. On full view from the front of the pack was an old copy of Jamie magazine with the old price label on it. This would confuse shoppers.  Some of the labels were of a poor quality and they detract from the professionalism of the product.  We made the decision to early return all stock. These products should not have got through QA at Network.

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magazines

One Direction still delivering traffic and sales

It is now almost seven weeks since the first One Direction one shot appeared on our shelves and sales relating to the boy band continue to be good enough to warrant prime position for One Direction products we have.

We have become known as the One Direction go to retailer in our region. This has been helped by our promotion that we will have the 2013 One Direction calendar in-store a month ahead of any other retailer nearby.

Right now while we have three one-shot titles in store it’s the Girlfriend One Direction Aussie Tour one-shot that is selling well. I put this down to excellent social media coverage by Pacific and by fans.

The new traffic being generated by One Direction interest is playing out across the business with parents who accompany their kids looking at other products we sell and the kids themselves occasionally purchasing other items.

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magazines

Tasty Delicious magazine

I look forward to the Lindt issue of Delicious magazine, when they bag the magazine with a block of Lindt chocolate. My only frustration is when it sells out a day or two after the on sale and we can’t get more stock. It’s happened with the latest issue.  We could have sold four times usual supply if there was stock. We’d promote it at the counter where it would work a treat.

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magazines

Jeff Kennett says newsagents are struggling. Huh?

Former Victorian Premier Jeff Kennett yesterday said on radio 3AW Neil Mitchell’s top rating program yesterday that newsagents are struggling in the face of media consumption moving from print to digital.

I didn’t hear the comment but it’s been confirmed that he said we are struggling. Hmm.  here are my questions for Jeff:

  1. What’s the factual basis for the comment?
  2. How many newsagencies have you been into in the last six months?
  3. Have you seen their financial records?
  4. How many newsagents have you spoken to?
  5. Why did you say this?
  6. When you have faced tough personal challenges how did you feel about people talking about you without the facts and without coming to you? How did it impact your mental health?

There is no doubt that we are seeing people shift their news andy information consumption from print to digital. This has been happening for years.

While some newsagents are standing still while the tsunami of change rolls in around and even over them, many newsagents are not.  Indeed, many newsagents saw the tsunami way off the coast and started changing their businesses for a new era.

We are in the middle of the most significant shifting what a Australian newsagency is. We don’t need Jeff Kennett tell us or make ill-considered and ignorant comments about this.

Jeff Kennett’s comments remind me of Bill Shorten’s equally puzzling and ignorant comment on Q&A in February which he has not has the guts to deal with since.

I’d like to meet Jeff Kennett and discuss his thoughts about newsagents and share with him some financial results which will challenge his perception.

The Australian newsagency is vital to country towns and city shopping strips. We provide a mix of products and services which are important to the community. We are price competitive and service competitive. We are not protected in any way. We are locally owned businesses serving local families, meeting local needs and helping local communities.

An important difference between small business newsagents and big retailers is that we don’t have their marketing budget, we rely on word of mouth. Thanks Jeff Kennett.

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Newsagency challenges

Funky gifts to tap into a younger audience

We have come out of Mother’s Day with this display of funky gifts at the front of the newsagency, facing into the shopping mall.

The table is full of cool items targeting shoppers from their teens through to their early thirties.

This is part of our plan to stretch our gift shopper demographic down the age scale. Newsagencies easily attract older shoppers and we, through this display, and a range of other initiatives, are targeting younger shoppers for gift purchases.

It is challenging trying to appeal to a demographic which is not your typical gift buyer, especially with gifts which you would more likely see in a gift shop in Newtown in Sydney or Acland Street St Kilda in Melbourne. I think we have to try this though and show that we’re not a typical newsagency.

We had some of these items prior to Mother’s Day and they worked a treat. I had one customer in his early 30s purchase a Rubik’s Cube mug for his Mum because when he was a kid his Mum would complain when he would play with the Cube at the dinner table.

We have chosen funky gifts which are easily understood, fun and could be given for current appeal or nostalgia value. More than half the gifts reflect respected international brands. This connects with our solid brand commitment.

The moves outlined here are part of our Mother’s Day through Father’s Day strategy. We are working on turning what is usually a flat retail period into a time of fun and sales growth.

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Gifts

Magazines I don’t see

I was in Darwin earlier this week and saw these three magazines we don’t get in any of my newsagencies in a newsagency in decent quantities. It was a reminder of the diversity of magazines available for sale. It reminded me of the challenge we have when we want to expand range, the challenge of selecting new titles.

 

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magazines

The Hood partwork welcome in newsagencies

I was pleased to see a new artwork launch this week. While The Hood will not be another Baked & delicious, the launch will hopefully bring in some new traffic from fans for this type of build your own partwork.

As newsagents are the go to retail outlets for artworks, I hope that this launch will be promoted on TV or in some other forum which taps into the interests of the likely customers for the title.

I’d remind newsagents that artwork shoppers have historically been more efficient for us, delivering a deeper basket than non artwork shoppers.

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partworks

Madison umbrella gift timed perfectly

We are promoting Madison magazine and the free umbrella which comes with the title with this high-profile aisle end display.

The umbrella is clearly the eye-catching feature thanks to the bright colour and that the team has opened it above the display … leading to the usual superstitions.

The umbrella is a good gift at an ideal time – certainly here in Melbourne. It’s already driving good sales for the title.

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magazines

Mother’s Day gift sales up 200% – the whole newsagency benefits

We have taken some time to look carefully at the performance of our Mother’s Day gifts and the category this year compared to last to be sure of the results. We achieved year on year sales growth of more than 200% off an already good base. This year we offered more than the traditional, sourcing some very cool left-field Mother’s Day gift items. It worked. The sales results are stunning.

What is important to note here is that we grew gift sales without impacting traditional newsagency product sales.  Through the Mother’s day season, stationery, magazines and other more traditional product categories fared well, delivering excellent growth.

While newsagents need to broaden the range of products sold and do so beyond the traditional newsagency margin and beyond targeting the traditional newsagency shopper, we also need to respect the welded-on traffic we have for traditional items and ensure that we do not turn this traffic away.

While growing gift sales 200%, we also grew magazines through the Mother’s Day season by well over 10% thanks to a concerted effort to pitch magazines as Mother’s Day gifts.

Growth from each season results in return business as shoppers attracted for the first time come back beyond the season now they have a feel for what we sell.

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Gifts

Cats and dogs sell

Cats and Dogs, the special edition of National Geographic just out should get star treatment from newsagents since we know that customers will buy just about anything featuring them. Calendars, cards, gifts, books, address books – you name it customers love it if there is a cut cat or dog on the front of the products. This is the kind of magazine cover where the full cover needs to be on show.

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magazines

Refreshing BRW cover

The makeover of BRW magazine from Fairfax has resulted in terrific sales growth as the recent audit results showed. The latest cover is terrific for a business magazine. It makes the magazine look more appealing than the usual business fare. It’s bright and appealing. This is what will get people who don’t usually reach for a business magazine to pick up the title and browse.

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magazines

Impulse magazines at the front of the newsagency

We are promoting four magazine titles from Pacific Magazines at the front of the newsagency facing shoppers as they enter the business – in a sturdy yet easy to move floor display unit from Pacific.

This promotion is part of the WIN A CAR promotion currently running with Pacific. It’s been a tremendously successful promotion … you can see the results in the sales data comparing similar titles. If shoppers are to purchase one title and perceive little difference between them, the one with the compelling competition opportunity gets the sale.

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magazines

The market thinks PMP will not be sold

With the PMP share price back down at 39 cents from a recent high of 60 cents the market appears to doubt that the qualified offer for the company is unlikely to proceed. Time will tell.  In the meantime the operations of Gotch appear to have settled following recent departures.  It would be good to see them competitive from a newsagency supply perspective again.

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magazine distribution
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