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

Author: Mark Fletcher

Australia Post offers digital mailboxes

I was interested to see the Australia Post announcement of a new digital mailbox service a couple of days ago.  It’s a fascinating offer, putting into one digital storage place a range of items. So it’s more of a storage space than a mail box as such.

The Australia Post announcement comes a couple of weeks after the launch of a privately owned service: Digital Post Australia, a joint venture between Computershare, Salmat and Zumbox.

Given the digital services available I am not sure why a government owned and protected business is getting into this space. But then Australia Post has never been one for living with the rules or doing what one expects.

I will be interested to see if this push online and the announcement of the creation of superstores by Australia Post impacts on the goodwill value of LPO businesses.

From a purely commercial perspective, small businesses should be unified in lobbying all politicians for Australia Post to follow the same competition requirements of all businesses, including the removal of their government protected monopoly which gives then an unfair advantage over the private, and often small, businesses with which they compete.

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Uncategorized

One Direction magazine opportunity for newsagents

Pacific Magazines is publishing a One Direction one shot next week, on Wednesday, under the Girlfriend masthead.

One Direction is a UK boy band that has teen and tween girls in Australia going nuts. If you have these shoppers in your shop or can attract them or those who buy for them, here is a great chance for you to make some good money. Contract Gotch, check your supply numbers, make sure you are getting enough stock.

One Direction appeals to the same market as Justin Bieber. They have over 2 million Twitter followers and 3.7million fans on Facebook.

This is an excellent tile to promote in advance of the on-sale. Pre sell the title telling your shoppers to order and pay now so they don’t miss out. This locks them into buying from you … a very smart move for a one shot I expect will sell out.

Pacific Magazines will be promoting the One Direction one shot with a bunch of activity including support on the Girlfriend magazine website and Facebook page. This will drive traffic for newsagencies.

While the title will get to supermarkets, newsagents will have it first … seize this opportunity.

Having said all this, I bet there are newsagent who early return the title the day it goes on sale, missing the opportunity and damaging how newsagents are looked upon.

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magazines

Easter theme for National Geographic magazine

We are leveraging the Easter themed cover story on the cover of the latest issue of National Geographic magazine with good placement of the title showing off the full cover and through double pocket placement. We are planning to give the title time either at the coulter or with newspapers as part of the run up to Easter when we place through the shop a range of Easter related upsell opportunities.

 

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magazines

In location support for My Kitchen Rules cookbook

Here is how we are supporting the release of the My Kitchen Rules cookbook 2 in another of my newsagencies. Here, since space is tight we are running with an in-location display, as shown in the photo.

We also have  a display on a column facing shoppers as they enter the business.

As I see it we have a limited time opportunity to make the most from this title … hence our commitment with extra space. This is the only title like this in-store at present – a cookbook connected with a runaway success TV show. So it makes sense to me that we promote it as much as we can.

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magazines

Fairfax increases newsagent margin for The Sydney Morning Herald and The Sun-Herald

In a move NSW newsagents are certain to welcome, Fairfax has announced that it will increase fees paid to newsagents for The Sydney Morning Herald and The Sun-Herald an average 10 per cent as part of an overhaul of its payments to its home delivery distributors and specialist newsagents.

Fairfax claims that the increases represent the biggest single injection of funds – $3.5 million – into the newsagent network in many years.

I like that Fairfax briefed the newsagency software companies on the move in advance of the announcement to ensure that the software handled the fee changes.

This move reflects the learnings from changes made in Victoria a couple of years ago.

Click here for a copy of the media release from Fairfax about the move.

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newspaper home delivery

ACP bundle sells out on first day

We sold out of the Woman’s Day / NW / OK! bundle pack yesterday, the day it went on sale. we rarely sell out of the packs let along on the day of on-sale. While I am happy to sell out I don;t want to educate shoppers to seek out those bundles. I want the full cover price for magazines. That said, maybe there are some shoppers who buy the bundle who would only usually purchase just one or two of the titles.

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magazines

News on the Fairfax approach to unprofitable distribution

The media section in The Australian yesterday had a interesting article by Darren Davidson about the different approach being taken by newspaper publisher Fairfax to address uneconomic newspaper distribution compared to that of News Limited.  I think newsagents would find the article most interesting.

Beyond the usually News bias you read in any article they publish about Fairfax, there is the claim that the two publishers are taking quite a different approach to dealing with the migration of readers from print to digital. I am not so sure this is the case once you allow for the differences in circulation and the respective digital offerings. Their situations are fundamentally the same.

The cost of getting a bundle of newspapers to a regional or rural location is just about the same for both companies.

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newspaper home delivery

Do not early return Riptide magazine

The latest issue of surfing magazine Riptide goes on sale on April 4 and it is certain to sell out.

This issue of Riptide magazine also has a newsagent put away form, encouraging shoppers to request that you put each issue of the magazine away for them. This is a terrific initiative and support for newsagents from Morrison Media.

I urge newsagents to not early return this title.

Click here to read from the publisher why it will sell out – here’s a brief summary:

We promote our interactive store locator (listing their closest newsagent) and have marketed the issue with previews and launches around Australia.

We’ve got a tight supply on this issue, ensuring that those who sell RIPTIDE receive additional stock (but not oversupply) and those who consistently early return stock do not.

Morrison Media has worked hard on ensuring that the supply to newsagents are justified by sales, but also maximising and growing sales and revenue in EVERY STORE!

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magazines

Promoting My Kitchen Rules

Check out the display created by Renee the manager at my Watergardens newsagency to promote the My Kitchen Rules 2 cookbook which came out yesterday.

I love this display. It’s bold and appealing and can’t be missed by people as they walk past the shop.

Renee is undertaking a professional visual merchandising course. She is creating some wonderful, and valuable, displays in-store

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magazines

Just Be magazine 50% margin opportunity

Magazine distributor IPS has acquired fashion and beauty magazine Just Be for distribution and are offering the first issue at 50% commission. The usual commission for the title is 27%.  The on-sale of this issue is today so contact IPS if you want stock.

Rachel McAdams, the cover feature, has been enjoying some good success and should help draw interest to the title as long as the full cover is on show.

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magazines

Newsagency of the Future workshops start today in Perth

My Newsagency of the Future workshop series starts today in Perth. Based on current bookings, over the course of seven cities I will get to meet with hundreds of newsagents, spillers and potential newsagents, sharing insights and ideas and discussing structural change and commercial opportunities.

Drawing on information cleaned from recent retail business conferences in Las Vegas, London and New York, the workshops provide an opportunity for to think about and consider the future in the context of changes occurring today.

Attendance is free and bookings can still be made. You can book by faxing in a booking form or registering through the online booking facility on the Tower Systems website.

Here is a list of venues for the workshops. All session start at 11am.

  • Perth. March 26. Country Comfort Inter City, 249-263 Great Eastern Highway, Perth
  • Sydney. March 27. Bonnie Doon Golf Club, Banks Ave, Pagewood
  • Canberra. March 28. Rydges Capital Hill Canberra, Cnr National Cct. & Canberra Ave, Canberra
  • Adelaide. March 29. Rydges South Park Adelaide, 1 South Terrace, Adelaide
  • Brisbane. March 30. Brisbane Riverview Hotel, Cnr Kingsford Smith Dve & Hunt St, Hamilton
  • Hobart. April 2. Mercure Hotel Hobart, 156 Bathurst St, Hobart
  • Melbourne. April 3. Amora Hotel Riverwalk, 659 Bridge Rd, Richmond
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Newsagency management

The Garden Guru promotes newsagents on Twitter

It was good to see the publisher of The Garden Guru magazine, out last week, using Twitter to promote traffic to newsagents. While they only have 365 followers, that’s 365 people told to buy the magazine from their local newsagency business. Publishers please take note, tap into your social media community to promote our channel – we promote your title and offer free browsing so how about returning the favour.

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newsagency marketing

Finding ways to feature magazines

With weekly magazines accounting for 25% of our magazine sales, we are always looking for ways to leverage the excellent traffic they attract by promoting other titles with them and nearby.  We have recently been using a simple acrylic stand next to and above the weeklies to promote titles which we cannot fit in the stand next to the weeklies. Over the weekend we were promoting Weight Watchers magazine. You can see it in the photo.

We choose the titles we place here, above the weeklies, carefully. We want titles which are a natural fit and which have a track record of being purchased in our newsagency on impulse – we know this from other campaigns.

We have another of these acrylic stands in use above our crossword section which is at the other end of this aisle.

We count the number of copies we put into each of the displays so that we can track the success or otherwise of the title being promoted in this location. This is vital so that we build a data set of what works and what does not work.

Newsagencies are the best magazine destinations in Australia. We all should leverage this and pursue the best possible sales efficiency from magazine shoppers. This means obsessing abut the category and changing how we display, promote and leverage magazines.

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magazines

Using competitions to promote magazine value

We love supplier competitions and embrace every opportunity possible to engage with these. We especially love it when suppliers provide collateral with which to promote a competition. Pacific Magazines have done this with the kitchen appliance package being given away in a competition promoting the latest issue of Home Beautiful magazine. In addition to collateral promoting the offer in-location,we have a small flyer for the counter with which to promote to shoppers who fit the target purchaser of the title. Each time we can pitch a valuable giveaway which is not on offer at most other magazine retailers is an opportunity to show off the bonus value of shopping with us.

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magazines

Sunday marketing tip: you don’t sell anything at the counter

Okay, that’s not quite true, I am sure that you do sell some products at the counter. By sell, I mean have a customer choose, at that moment, to purchase the item. In most situations, however, in a newsagency the customer comes to the counter with the items already selected.  If we are lucky they will ask us a question and we can leave our command post and venture onto the shop floor and help them and maybe sell them something.

As newsagents have taken on more counter based services over the decades, we have moved the selling, what little of it is done, in our businesses from the shop floor to the counter.  I first worked in a newsagency when I was in High school too many years ago.  My recollection is that we had people on the shop floor serving customers helping them. This was what the more experienced people did. The school kids were left to take payment once we were trained. Now, the counter is the area where the most senior skills appear to be in many newsagencies.

If you agree that selling is what we do when we help, guide and encourage a shopper to make a purchase from us then this is where you need to focus more attention in your business … on the shop floor. This is where your best people at dealing with customers should be.

This is the tip – to look at where you sell in your newsagency and to adjust resource allocation in pursuit of more sales.

  1. Track your employees and learn who delivers the best return by hour worked.
  2. Consider a financial reward for the employees you charge with selling, genuinely selling.
  3. Be careful in allocating your resources, focus on the busiest times of the day.
  4. Make sure that your people have excellent product knowledge with which to add value.
  5. Drive this personal shop floor experience as a point of difference for your business. Shoppers will pay more if the shopping experience is more satisfying.

It all begins with understanding where you sell … it’s not at the sales counter.

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marketing tip

Tapping into One Direction interest

Newsagents chasing the teen and tween girl market should check out the latest issue of Girlfriend magazine from Pacific Magazines. It has a free poster of UK boy band One Direction. I found this out by checking out the Facebook page for Girlfriend magazine. This is a nice bonus on top of the excellent One Direction promoting in this week’s TV Week from ACP Magazines.

Also at the Girlfriend Facebook page is news of a One Direction one shot coming out on April 4 from Pacific Magazines. Go to the Facebook page if you are not sure about the passion of One Direction fans for content about the group.

All excellent opportunities for attracting young girl shoppers and those who buy for them.

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magazines

What is it with governments and big business?

I was disappointed to read that the government has this week extended the rebate to TV networks, reportedly adding $275 million to the aid they will receive over three years. Seriously!

The power of the TV networks is amazing in being able to tap into such river of gold. What does a small business have to do to get in on this government funded gravy train?

The TV networks get a bag of cash yet small businesses like newsagents,dealing with consolidation and structural change, receive nothing.

I’m not suggesting small business newsagents and other independent retailers need a hand out. No, I would prefer to see good public policy supporting nurturing small business success, policy delivered without politicians thinking about what might be in such a move for them. I suspect this is a bit much to ask given the politicians, on all sides, we have.

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Social responsibility

Tapping into the Facebook marketplace

We have created a new display behind the counter to promote a range of Facebook related products: Like and Dislike rubber stamps, coffee and tea mugs and fridge magnets.  Combined, the products tell a story.

I love the collateral created by the team to promote the display – it actually looks better in person than my average photo here. It’s quite stunning form the other side of the counter.  The display is in the line of sight of shoppers when they take to one of our counter staff.

I love that we are displaying something completely different yet reasonable connected with what people could expect to purchase in a newsagency.  There are plenty of what I’d call, transition products like this available to us.

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Gifts

It’s Comedy Festival season in Melbourne

The Melbourne International Comedy Festival will be big news in Melbourne from now until the end of April so the feature of the latest issue of Time Out is, well, timely. We have placed it with newspapers as we know it sells well from this high-traffic location. Plus Time Out is challenging to place elsewhere as there are not similar titles in-store. I expect the Comedy Festival related cover to drive early sales with this.

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magazines

Leveraging swimming interest

While I would have liked to receive The Complete Guide to Swimming last week to tap into the interest around the olympic trials, we are giving it a good run at the front of sports titles.

We have a gym nearby so there is a fitness aware market shopping with us.  We plan to give it a crack at the counter for a few days to see if that generates interest.

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magazines

Harness Racing Weekly data issue

It appears that IPS has not rolled over the addendas of Harness Racing Weekly to reflect the new year. The current issues addenda as printed on the paper is 21 however the electronic invoice the store received (info from the file below) has the addenda of 73 (52 issues from last year+21 that is printed on this issue). Other titles on the same invoice appear to be correct. Through Tower Systems, my newsagency software company, I have escalated the matter with IPS.

UPDATE (10:18) IPS has advised that this has now been resolved.

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magazine distribution

Cuts to newspaper supply

Both Fairfax and News are engaged in trimming supply of newspapers to newsagents in Victoria from what I am told. The cuts are about reducing wastage. The challenge in some situations can be the knock-on effect for retail only newsagents who rely on a nearby competitor newsagent for supply. In this situation, the retail only newsagent can be cut by more than the cut in supply established by the publisher.

It is frustrating to me that publishers will guarantee supply numbers to major supermarkets but not too retail only newsagents who could, in some cases, sell the same volume as the supermarkets.

While I appreciate the need to trim supply to reduce wastage, there are some points in the distribution model where selfish decisions are made which can hurt newspaper sales.

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Newspapers