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

Author: Mark Fletcher

It’s amazing what a difference a lottery jackpot makes

Talking with a bunch of newsagents in two different states this week … there are many happy newsagents thanks to the OzLotto jackpot.

I have not heard one negative comment. Often in the past I’d hear newsagents complain that a lottery sales boost impacts other sales. Not this time around. Maybe that it because people have more disposable income. We certainly know from banks and economists that people have considerably more savings than a year ago. Maybe the lottery spend is coming from that.

Some have commented how they are leveraging the traffic boost and seeing sales of other items increase. I love to hear these stories

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Lotteries

Changes to News Corp’s The Daily model

News Corp. has announced changes to the model for The daily, their iPad ‘newspaper’. The changes include an iPhone App and annual pricing of $19.99. PaidContent has more on this.

I am surprised we have not seen more App based news start ups here. There are smaller publishers like APN who could launch a digital only national news App.

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Media disruption

Making Jack White the feature

With Jack White featuring on two music titles, our team has taken care to place them together and thereby chase the purchase of both by fans. In addition to the feature display I wrote about yesterday for triple j magazine, we have this placement of Rolling Stone and triple j magazines fronting our music section. I’d urge newsagents to check how they are treating these titles. Given them time in the spotlight as Jack White is hot right now.

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magazines

Negotiating with your retail tenancy landlord

I am often asked by newsagents for assistance with landlord negotiations.  While I am not a lease negotiator, I have negotiated my own leases as well as revised leases to reflect changed market conditions.

I’m happy to share my thoughts with newsagents on why I have done and the goals I pursue so they can consider these in their own situation.

There are some awful leases signed by newsagents out there. Some are leases negotiated by so-called leasing experts. Some are poor leases newsagents paid others a fee to negotiate on their behalf.

The biggest challenge is educating landlords about the value a good newsagency brings to a centre that is often beyond the value of just rent being paid on time. This plus the traditional GP achieved by a newsagency need to be presented to the landlord in a way that they understand and can consider in terms of the total economic benefit to a centre.

A good newsagency is a service in the centre. A bit like a local council office or a government owned Australia Post outlet or the centre management office. Each of these is costed by the landlord on a different basis than traditional retail.

A good newsagency provides some low margin services that are vital to the overall appeal of a centre. On top of that we sell a range of products at margins that are not usual in retail.

A good newsagency also markets the business, and the centre, extensively outside the centre.

These are all factors that need to be presented to the landlord in a commercially appropriate way and with supporting material.  Some landlords listen and respond with an improved rent offer.

Sometimes, newsagents do not get the rent offer they want because they have not made their case fully, professionally or both. Usually, these newsagents don’t want to be told this.

Negotiating a lease or revised lease terms is something to take seriously. You need accurate business data and a sound business case presented professionally and without emotion.

Just because you want a better rent deal is not reason enough for a landlord to give it to you.

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Newsagency management

Hoping for another Slow Cooker hit

We are promoting Slow Cooker 2, the sequel to the runaway Slow Cooker ACP cookbook from a couple of years ago. We sold hundreds of copies of the first edition and are hoping for a repeat of this title with all new recipes.

We are promoting Slow Cooker 2 with this display on the column facing shoppers as they enter the newsagency.

We also have a couple of pockets with food title.

The placement we expect to work the best for us is the stack next to our daily newspapers for it is this location that worked best for the first edition of this title. We will leave Slow Cooker 2 next to newspapers for the next two weeks at least … as long as their sales.

ACP has let newsagents down by not providing marketing collateral with which to promote the title. While I understand it is coming in a couple of weeks, we needed this collateral on Wednesday, the day the title went on sale.

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magazines

Balancing space for One Direction magazine titles

With more publishers getting on the One Direction bandwagon identified early by Pacific Magazines, we have squeezed some space from what was to be our Mother’s Display for the three titles we currently have available.

The latest title, 1D Downunder – from ACP, as a feature in our front of store display. The opportunity to win 1D tickets should help this title move well. Thankfully we have been able to get as much stock as we want of this and the other titles.

 

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magazines

Disappointing MasterChef magazine

The latest issue of MasterChef magazine is out and, frankly, it is disappointing. Rather than this latest issue being something special to coincide with the start of the new TV series, it is more of the same – a food title which is struggling in a competitive marketplace. Check out the cover – it’s not what I’d expect for a magazine that represents the hit TV show. You only have to place it next to Feast, Good Food, Gourmet Traveller or Donna Hay to see that it misses the mark.

We are supporting MasterChef with good in-location promotion but nothing else. It’s not special enough.

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magazines

Unity on commercial matters is not attainable by newsagents through associations

Some comments on my posts about the ParcelPoint opportunity for newsagents reflect a misconception by some of what can unify newsagents.

The most association-driven unification all newsagents can hope for is support for policy objectives pursued by the ANF on behalf of newsagents. This is the key objective of any good industry association. I know the ANF works hard on policy matters.

Associations don’t have structured, discipline-based, commercial relationships  with newsagents. They don’t have the levers necessary for driving discipline. Discipline is the key to unity of any grouping. This is a key reason associations cannot drive commercial unity.

The commercial unity train left the station with few newsagents on board many years ago. It will not return.

If you disagree, visit 100, 50 or even 10 newsagency businesses and compare them. Tote up common product, price and service offerings. You will not see businesses genuinely unified by range, service and price. I know because this is what I see.

It’s not a bad thing for newsagents as there are other forms of commercial unity that are helping newsagents leverage discipline for a collective advantage.

We have five newsagency marketing / management groups, each with the ability to rally unity behind their respective brands and what they stand for. Not all have discipline commitments but some do and they use it.

There is unity around brands with key newsagency channel brand supporters driving consistency around range, merchandising and price where possible among newsagents.  Hallmark and John Sands do this from a card perspective. There are plenty of gift suppliers doing this.

Tattersalls drives unity through its various operations ensuring a consistent merchandising, service and price offer. Lotterywest and SA Lotteries do this in their respective states.

The computer companies can drive unity around a consistency of management practices and services offered. This is, in part, what ParcelPoint is about – my Tower Systems company leveraging its footprint or around 1,800 locations. I think you will see even more of this from the IT companies.

Commercial unity is more valuable for newsagents because of the levers of discipline at the heart of commercial operations.

While I understand the frustration of some that unity is attainable under the newsagency shingle, this is a dead opportunity because newsagents made it so many years ago.

I’d urge newsagents to look at their businesses and the various commercial opportunities for unifying with others in their supplier related communities. These opportunities are real today. Unity around a shingle is not.

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Newsagency management

Magazine launch: Grand Designs Australia

Grand Designs Australia magazine launched  yesterday. This title lives up to the expectations of fans of the TV show and packages the projects and stories in a magazine format which, I predict, will see the title a hit.

We are supporting Grand Designs Australia with a display at the entrance to the magazine aisle. We are also featuring it at the counter indicating it as the launch issue – offering customers a reason to take a look at the title.

We have other plans for the title through the on-sale to make sure that we achieve the best sales result possible for the title. In addition to this, we have the title located with home and living titles.

This launch is a wonderful opportunity for newsagents. Get behind this title.

I hope that newsagents have not early returned the title.

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magazines

Promoting Triple J magazine

We are giving the latest issue of triple J magazine the star treatment with this placement in the free-standing floor unit in our men;s magazine section.

Jack White is a hot music property at the moment so the cover should attract good interest. That said, shoppers who may be interested may not browse the music aisle – hence this placement in with sports and car magazines.

We are four weeks in with this stand. We like it. Customers don’t complain. It is working at offering us a fresh approach for promoting magazine titles outside of their usual location.

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magazines

Nice looking Better Homes and Gardens

I like the rich colours on the cover of the latest issue of Better Homes and Gardens magazine. What I like about the cover is that it stands out among the sea of colour in the magian aisles.

In addition to the in-location placement (see photo) we are supporting the title with a free standing unit next to newspapers. This is moved each weekend to the front of the store where it works a treat at attracting shoppers.

We are also supporting Better Homes and Gardens as part of the Win a Barina Spark! competition being run by Pacific Magazines. This competition is working a treat at driving sales.

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magazines

Q&A on e-commerce parcel pickup service for newsagents

The ParcelPoint parcel pickup service which I announced here yesterday has generated tremendous interest from newsagents. This genuine first for the newsagency channel offers an excellent opportunity for newsagents to leverage their national retail footprint and offer anyone doing business online and shipping parcels a way to resolve the costly problem of home delivery.

Freight companies factor in a cost for missed deliveries to private addresses. This is where ParcelPoint steps in as it provides a local secure pick up place for small parcels. Newsagency opening hours makes them ideal for offering the service.

I have been asked several questions which I answer here for all to see:

Why is ParcelPoint good for newsagents? It leverages our existing retail network to provide a service for e-commerce businesses and eBay customers. This connects newsagents with the fastest growing retail sector. It will drive customer traffic.

What’s special about Parcel Point? It is logistic company agnostic. That is, it is not a service restricted to one freight company.

What’s the risk for newsagents? None. It costs nothing to participate, training is done online, the signage and other requirements are straight forward.

Is the extent of the ParcelPoint service what we see today? No, what has announced so far is the first step. The stronger the newsagent network the broader the services it can offer.

Do I need to provide much space? No. ParcelPoint is for small parcels.

What due diligence did you do? I have been tailing with the folks behind ParcelPoint for some months. I was introduced by someone I trust. The company has a good mix of backers and has brought on a skilled team to drive the business.

Why is it exclusive to Tower Systems? ParcelPoint is integrated with the Tower software. This saves newsagents time and cuts mistakes. With the largest newsagent network in the country, the Tower network was a logical starting place.

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Newsagency management

Making the Hallmark Blooming Expressions offer more relevant

The team at one of my newsagencies decided to take the promotion of the Hallmark Blooming Expressions to a new level by writing a Mother’s Day message on one of the vases. This made the display, which is part of our Mother’s Day offer, more relevant to the season.

I like this move a lot. I like the initiative and that it significantly improves the relevance of Blooming Expressions as a Mother’s Day gift.

Too often we leave a gift or some other product in its packaging or out but in a basic display when some personalisation can lift it beyond the usual and make it more relevant to shoppers.

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Gifts

Sister magazine titles appeal to the same shopper

We moved our quilting and related titles next to our country related titles and took the opportunity to place  Australian Homespun and Australian Country Collections next to each other. While they are different titles they have a similar look and are of the same quality. In my view they sit nicely next to each other. I’d note that the move is only temporary as it was brought about by other changes which took away our quilting and crafts specific section at the entrance to our women’s magazine aisle.

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magazines

Supporting UFC magazine

We are giving the latest issue of UFC magazine a few days on an aisle end in our men’s magazine section. This is what guys see when they turn to leave the men’s magazine reading area.

We have found with guys that a simple display works better than something which is too, um, pretty.

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magazines

Damning phone hacking report in the UK

The House of Commons Culture, Media and Sport Committee report into News International and Phone-hacking is challenging for News Corporation. Click the link to download the report.

The committee finds that Rupert Murdoch “is not a fit person to exercise the stewardship of a major international company”.  However, the committee was split along party lines.

It will be interesting to see where this goes from here. While the terms of reference are quite different the report from the Leveson inquiry will probably carry more political weight than this committee report. That said, this report presents challenges for News around the world.

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Ethics

Nice lottery jackpot

There will be some very happy retailers for the next week with the OzLotto $50 million jackpot not going off tonight. A $80 million or more jackpot will generate a tremendous traffic spike. Smart newsagents will make the most of the opportunity.

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Lotteries

AUSTRALIAN NEWSAGENTS SET TO OFFER LAST-MILE PARCEL DELIVERY SERVICES

Set to help e-commerce sites and eBay sellers.

Newsagency software company Tower Systems is working with ParcelPoint to introduce the ParcelPoint system through the network of Newsagents using the Tower Point of Sale and other technology.

Certain to drive supplier and consumer interest, the introduction of ParcelPoint through the 1,800+ newsagent strong Tower network is certain to be welcomed by newsagents as it leverages their broad geographic spread.

What is ParcelPoint? ParcelPoint is establishing a network of Agents around Australia as an alternative location for customer parcels to be delivered. The key features of this new model are:

  • Allows each retail newsagency to become a parcel delivery location
  • More convenient for consumers than Australia Post, or other delivery options as  – longer opening hours, customers receive email/SMS notification
  • A new revenue opportunity for Newsagents … driving consumer traffic
  • Successful model in Europe and USA as a viable alternative to the Post Office structure

“ParcelPoint is an excellent opportunity for newsagents to tap into the last mile delivery opportunity” commented Mark Fletcher, Managing Director of Tower Systems.  “We are thrilled to support this new business initiative.”

Adam McArthur, COO of ParcelPoint adds “ParcelPoint have already signed up many newsagents in NSW and we are now ready for a national roll-out. We have a built a strong team and have already established relationships with transport and retail businesses to drive parcel volume through our network. We look forward to expanding this significantly over the next few months”

Benefits for newsagents

This is a great opportunity for newsagents to:

  1. Drive new revenue
  2. Bring new customers to your store
  3. Take advantage of the growth, and impending explosion, of online shopping and delivery

What do I do next?

  1. Watch this introductory video that describes the service and what to expect.
  2. Express your interest here.
  3. ParcelPoint will contact you shortly

There is no cost for newsagents to become a ParcelPoint outlet.

Disclosure: I am the owner of Tower Systems.

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Newsagency management

Will there be One Direction overload?

We have the Girlfriend One Direction one shot at the start of April and that sold its socks off for us. Then we have the It Girl title which Gotch hid and one we got it it too sold its socks off. Wednesday we get the ACP one shot and next Monday we get another Girlfriend one shot. These latter two titles featuring content from their Australian tour. On top of this we have the posters and calendars.

Listening to the fans – in-store and on social media – I suspect we will not be overloaded. We are certainly embracing all the 1D opportunities and banking excellent results. Being a Ticketek outlet is helping with this.

You know a group is hot when they sell out tickets to the pre-concert sound check.

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magazines

Gotch tries hard to stop us selling magazines

Gordon and Gotch recently cut our supply of Real People magazine as I blogged here. We had the former supply reinstated. Now, the experts at Gotch have cut us back again – denying us certain sales of a popular title. Click on the image for details of what Gotch has done by way of manual intervention to our supply of this title.

Getting answers to why Gotch would do this is tougher given the retrenchments in recent weeks.

All I want is certain supply so that I can at the very least maintain the certain sales I am achieving for a title.

Magazine distribution should not the this hard yet it is. And publishers wonder why newsagents act as the do on some fronts.

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magazine distribution

Promoting Family Circle

We have found that Family Circle magazine works well when placed next to newspapers. It’s not a title shoppers look for given that it is not our every month. So, placement with newspapers reminds them and sure enough we get a nice sales kick. People who do find the title love it. We also have Family Circle in a prime full face position with our food titles – showing off the delicious cover.

 

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magazines

Supporting Top Gear and the free Stig Car Park

We are promoting the latest issue of Top Gear Australia with this aisle end display facing shoppers as they enter our magazine department. This is the best promotional position in the magazine department.

Besides promoting the latest issue, the feature display is helping us store some of the stock which is wider than a usual copy of the title once folded out.

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magazines

Coles shows what it thinks about the buy Australian campaign by importing Dawn French

For all their talk about supporting Australia and Aussie farmers Coles has shown their true colours by importing British comedienne Dawn French to front their FlyBys advertising campaign.

There are plenty of Australian personalities who could have fronted this campaign. Every time I see a TV or print ad I find myself thinking about the Coles decision against Australia rather than what is being advertised.

I am left wondering whether it is cultural cringe on the part of Coles or ignorance about the need for a whole of business approach to supporting Australia.

We already lose too much of the entertainment dollar spent here in Australia on overseas acts. The money paid to French would do more for our country if it was paid to a local.

Maybe I am being petty but this campaign is impacting my supermarket shopping decisions even if it takes me a bit out of the way.

How is this relevant to newsagents?  We are local businesses employing local people and investing in our local communities. We need to remind our local community of this through our words and actions at every opportunity.  We need to show that we can act far more responsibly to our country than Coles has done.

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Uncategorized

Maybe one good magazine wall is all it takes

Check out he magazine wall I saw at a Dymocks store in Hong Kong (in a shopping mall) a couple of days ago. Okay so they don’t have space for displays and promotions, but they do offer range.

By overlapping some covers they are able to fit more than 300 titles on this wall, far more magazines than we would fit in the same floor space.

When you’re paying upwards of $1,200 a square metre on rent return on space is an important factor, especially for lower margin products like magazines.

I don’t think we are in a position in Australia of moving to this approach yet but I do think it will be an active option for some newsagents as they having the changes, challenges and opportunities of magazines over the next few years.

I can see some newsagents creating a wall like this for range and maintaining premium space which is more friendly to merchandising the high volume titles.

Special interest shoppers will look for what they want, especially if those titles are in fewer location.

These are topics we need to discuss and debate. Collectively we need to work through the options.

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magazines