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

Author: Mark Fletcher

Getting out of Christina Re products

We have sold Christina Re products in one or more of my newsagencies for a few years.  I have decided to bring this association to an end for several reasons – they have become less flexible, they are now in Officeworks and there are better value products for the newsagency shopper.

Suppliers who want to grow sales in the newsagency channel need to understand the typical newsagency shopper and the needs of the newsagency business.  They also need to support us and drive traffic to our businesses.  Suppliers who do this thrive.  Those who don’t fail to reach their potential.

Placing products in the newsagency channel and expecting to leverage traffic generated by other products is not helpful or respectful to our businesses.

Our businesses generate considerable traffic based on four key factors:

  • Greeting card range.
  • Magazine range.
  • Lottery products.
  • Newspapers.

Smart suppliers understand the shoppers who enter our businesses for these four key product categories.  They provide products which appeal to these shoppers.  The provide newsagents with margins which compliment the margins of the four key product categories.

I am not suggesting that Christina Re failed on these fronts.  My sense is that they never really understood the needs and opportunities of the newsagency channel.  That said, I am sure that others will disagree as I know of newsagents who enjoy terrific success from their products.

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Newsagent suppliers

Ah, cats, dogs and cupcakes

We are promoting our selection of cat, dog, cupcake and retro desk calendars with this display display facing out into the mall.  It will work.  Anything with a cute cat or dog works a treat, as does anything featuring a tasty looking cupcake.  We are giving the retro desk calendar a shot in this location too because retro products have done so well in 2011.

Our calendar sales are up more than 100% on the same period last year.  This is despite some tough competition in our shopping centre.  Range and location in-store are the keys to our sales success with calendars.

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Calendars

Promoting Top Gear and the free calendar

We are promoting the latest Top Gear magazine and the free calendar which comes with it with this aisle end display.

It’s been a tough year for Top Gear and car magazines generally.  I expect sales of this issue to be good with plenty of shoppers purchasing it as a stocking stuffer for dad or a son or as a gift for a friend.  It’s what we saw for Father’s Day for this and other car magazines.

We are also supporting the title with excellent positioning in among our motoring magazine titles.

 

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magazines

Monocle features magazines, media and newsagents

The latest issue of Monocle magazine to hit Australian shelves features a bunch of stories on media which regulars here are sure to find interesting.

There is a timely story about a newsagent in Denmark who responded to falling magazine sales by increasing range.  I say timely because many Australian newsagents are heading in the other direction, cutting range – or at least trying to given the constraints of our magazine distribution model.

Newsagents need to be careful in reducing magazine range for it is our magazine range which gives many of us the only point of difference we have.  It could be that an ill-considered or too large a reduction in magazine range results in a slide in sales – driving a self-fulfilling prophecy.

One of the reasons I am seeing a 44% increase in magazine sales year on year in one of my newsagencies is the increase in range.  This has been done slowly and carefully – by interest.  It then fed into our overall magazine relay which boosted sales.

Newsagents who try and manage magazine range by early returning without carefully checking sales history also feed a self-fulfilling prophecy and push sales down.

If we are to leverage the point of difference we have in magazine range we need to be professional in how we nurture and manage the range.  This means making fact based decisions.  Yes, I understand that magazine distributors challenge this approach.  We just have to work with the levers available to us at this time.

If you have the October issue of Monocle magazine on your shelves, check it out.  It will interest the thinking newsagent.

As the photo shows, we have placed Monocle in a good locations with the full cover is on show.

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magazine distribution

Gossipy supplier reps should shut up

The newsagent supplier representatives who spread gossip as they go from newsagency to newsagency discredit their employers, those they gossip about and newsagents more broadly.

I heard of gossip last week that was not based in fact and was spread for the purpose of personal profit, with no regard to the reputations of those who were the topic of the gossip.

While I am sure that suppliers tell their field force to not gossip, it goes on and damage is done.

Those most often guilty of gossiping are those who visit newsagencies in a regular cycle and thereby develop a deeper relationship with newsagents and their staff.  Through their weekly cycle, gossip can spread like a virus.

For what it’s worth, the best response when a supplier representative says something about another supplier or a person is to ask them to prove it.  Of course, this is often not done because people do enjoy a bit of gossip … unfortunately.

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Ethics

Amazing International Herald Tribune deal

For under $5 a week, people in selected Asian countries can have the International Herald Tribune home delivered for under $5 a week and get full digital access to the the IHT as well as full digital access to sister masthead The New York Times.  In checking this out I went online and found an even better offer for travellers – full access to IHT and NYT for 99 cents for four weeks.  Talk about migrating print customers online.

When I think about it, it’s what I would do if I were a publisher and thought I could achieve a more economic model from digital subscribers.

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Media disruption

Tapping into media coverage for Gardening Australia

The Indira Naidoo cover story is the current issue of Gardening Australia has encouraged us to give the title more time in the spotlight.  Indira has been on the radio promoting her new book and this has been indirectly promoting the magazine.  Her passion for balcony gardening is the subject of the cover story – and the book.

I’d encourage newsagents to place Gardening Australia in a high-traffic position, to leverage the recent media coverage.

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magazines

Leveraging Twilight interest for TV Week

We are promoting TV Week this week with this display on our highest profile magazine aisle end.  The free Twilight calendar is out at the right time – timed with the release of the new movie.  This helps us attract a younger shopper – given the target audience for all things Twilight.

We are also supporting TV Week with excellent placement in its usual location and placement in an impulse display unit.

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magazines

Too many copies of The Puzzle Wizard World of Crosswords

Further to my post yesterday documenting a case of magazine oversupply, here is another example – for The Puzzle Wizard World of Crosswords.  As the data in the photo from my newsagency software shows, sales have been volatile.  However, not sufficiently volatile to justify an increase from fourteen copies to seventeen as has just happened.

Click on the image for a much larger version.

I can’t see any justification in our net sales for the supply of three additional copies.  Sure we sold out of 12 copies for the February issue but this was a once off.  The two issues immediately prior sold six and nine copies respectively.  The two issues after the sell out of twelve copies sold eight and nine copies respectively.

So, why the increase from fourteen copies to seventeen.

If the justification from Gordon and Gotch is that this is what their allocations system determined then they need a better system.  If it is because they had to allocated the stock supplied by the publisher somewhere then their system is broken.  If it is because an allocations staff member decided we could sell the stock then they need re-education.

It offends me that a company with no financial risk in my business can spend my money in this way.

Is what has happened here with The Puzzle Wizard World of Crosswords an example of oversupply of magazines?  I think so.  Take a close look at the data and see what you think.

The best way magazine distributors can respond to this type of blog post is to change their behaviour.

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magazine distribution

M2 magazine discounts by 71%

Speaking of Groupon (see previous post), the publishers of M2 magazine offered the title at 71% off cover price plus with a $100 grooming pack.  The deal, at Spreets, closed last night.

This is the level of discount we usually see from a US magazine publisher.  I hope we don’t see more publishers making moves like this in Australia even if they are only one off.

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magazines

US Newspapers play Groupon at their own game

AdWeek in the US has a report about some newspaper publishers playing catch-up with Groupon and announcing a shopper discount site.

Eight publishing and media companies are launching the common digital shopping platform, called Find n Save. The eight are Advance Digital, A.H. Belo, Cox Media Group, Gannett, Hearst Corp., MediaNews Group, McClatchy, and The Washington Post Co.

The consortium, set to be announced today, is expected to roll out Find n Save’s online ad products across its members’ 200-plus newspapers, including The Dallas Morning News, Arizona Republic, and The Miami Herald.

With Groupon taking more advertising revenue from traditional media outlets it was only a matter of time before we saw media companies in a copy-cat move.

My concern about Groupon and all these other models promoting steep discounts on products and services is that it will ultimately kill businesses as shoppers leave to never pay full price.

Newsagents are somewhat lucky in that much of what we sell is ‘fixed’ price.

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Newspapers

Promoting Christmas cooking magazines

We have put together a simple display promoting magazines which feature Christmas cooking recipes.  Located right in the middle of the food magazine section of our magazine department, this display will be regularly adjusted to give each of the Australian titles time at the front – with the full face display.

By displaying magazines with a Christmas cooking theme next to each other we are guiding customers to purchase two or more at a time – that’s our goal at least.

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magazines

XchangeIT set to move on newsagents who fail to comply with standards

XchangeIT has written to newsagents who are not meeting compliance criteria in an effort to get them across the line and compliant.  Here is what they had to say:

Since the beginning of May 2011, we have been alerting you to the fact that your store has not been compliant in passing your ITCs for sales inventory data in your last six (6) performance cycles.  Good, accurate sales inventory data is critical to improvements in magazine supply.

Subsequent to this we have also sent out Headlines on the XchangeIT Newsagent Client program, again alerting you or your staff to the fact, and pointing out that if you are not compliant, then you are no longer eligible for the discounted fee that you have been given since joining XchangeIT.

On the 16th January 2012 we will be generating an Invoice for you for 3 months in arrears on your billing cycle which is $112.50 plus GST ($123.75), and from your next billing cycle you will be charged at the base rate being $425 plus GST ($467.40). If however in this time you do start passing your ITCs for sales inventory data, you will not receive this invoice and you will remain on the Discounted Fee of $200 plus GST ($220.00).

Additionally, newsagents who do not pass their Performance Cycle will no longer be eligible for EDI returns via the XchangeIT platform from the 16th January 2012.  This means you will have to enter your Returns Claims manually into each distributor’s web site which will take you longer, be prone to mistakes and lead to credits being delayed.

Our aim is to have all Newsagents on the discounted rate, and to see all agents pass their performance cycles,  if you have any questions please call us on 1.300.551.212 or email support@xchangeit.com.au .

Be part of the solution, not part of the problem – send accurate sales data.

While I support this move, I remain frustrated with the poor customer service by XchangeIT as I wrote about recently.

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newsagent software

Is this evidence of magazine oversupply by Gordon and Gotch?

Some people at Gordon and Gotch are unhappy at what I write here about oversupply.  If what I am told is true, they have been known spin what I write, responding behind my back to complains I make.  Like anyone reading this blog, they are welcome to respond here, to my face as it were – for all to see.

I share this information as background to this blog post which documents, in my view, evidence of another decision to oversupply by Gordon and Gotch.

Click on the image to see a screen shot from my newsagency software showing supply and return data for Jumbo Ring A Word, a imported crossword title distributed by Gordon and Gotch.

My reading of the sale and return data suggests that we should get five copies of this title.  It is the kind of title which should sell out by week three before there is any increase in supply.

Without sales data support, the Gotch allocations system moved me from five copies to seven and now to eight.  While I am sure that they will have their excuses, the data is all you need to make your assessment.  As I have noted, maintaining supply at five copies is what I would suggest is reasonable.

Maybe they increased by a copy because it is the holiday edition.  I’d accept if the base off of which they increased me was reasonable.  Seven is not a reasonable base, as the data shows.

So, is this evidence of oversupply by Gordon and Gotch?  I think so.  Should I be concerned?  Maybe not if it was just this one title in one of my newsagencies.  Newsagents reading this will know, however, that this does not happen for just one title and not just in their business.

Think about that for a moment.  One extra copy by 4,000 newsagents.  That’s a high cost to the channel.

Every single increase in supply of a magazine beyond what I could reasonably sell sucks cash, time and space from our businesses.  That it happens with consistency is, in my view, unconscionable.

The problem is that when newsagents complain about oversupply Gordon and Gotch they act as investigator, prosecutor, judge and jury.  They say that oversupply does not exist.

What do I want Gordon and Gotch to do?  Here’s a start…

  1. Let newsagents decide what trigger they want for an increase in supply.  I think supplying to avoid a sell out is nuts for many titles.  Some newsagents may like this.  I don’t.
  2. Make it easier for me to select the titles I range.
  3. Agree on compensation for titles which fall below an agreed performance threshold.  Say, 50%.  Newsagents should not have to fund warehousing this inventory.

I am not out to bully Gordon and Gotch as their CEO alleges.  No, I want a fair magazine distribution system, one which treats newsagents with economic respect.

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magazine distribution

Is faux marijuana about to be more available?

I was at a trade show in Melbourne on Friday where several versions of a product aimed at the marijuana buyer were on show.  While packaged more more discretely, the products reminded me of the Tripping Weed product I saw in New Zealand in October.  The vendors were looking for retail partners in a range of retail channels.

They say the product is legal.  It’s a grass which is sprayed with a chemical to help achieve the same results.  NZ regulations recently changed which has presented them with some challenges.  This is one reason they are looking at the Australian marketplace.

I would usually have ignored this product.  However, I remembered that Tripping Weed, not the product I saw on Friday but similar, was being sold at the counter of several mainstream convenience stores in downtown Auckland.

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Ethics

Tapping into tennis and Australian Open interest

With the Australian Open just around the corner we are promoting Australian Tennis magazine with this display at the counter.  The counter position is next to where we sell tickets so we’re expecting to leverage that traffic for some good impulse purchases.

Australian Tennis is one of those titles which gets little time in the spotlight.  It’s a good title for newsagents as it reflects well on the range of titles available in our retail network.

I think it’s good that we make these decisions on which titles to feature at the counter ourselves, playing to local interests and events.

 

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magazines

Promoting Burke’s Backyard and garden magazines

We made Burke’s Backyard the feature of our garden magazine section with this simple display last week.  While sales of garden magazines are up in our newsagency, they are not up as much as the department overall so we are focussing attention to lift their performance.  We are doing this by expanding the range slightly (this is not an invitation for distributors to send us more titles) and running a regular feature of titles in the location for Garden related magazines.

 

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magazines

Christmas cash promotion working a treat

We are participating in a Cash for Christmas promotion for four weeks designed to drive sales of New Idea, That’s Life, Famous and Who.  This is a simple promotion which has hit at the right time of the year.  We are supporting it with the in-store display in the photo, promotions on shopper receipts, text messages and promotion at the regular location of the titles.  Because of this an other in-store promotions we are not running a Christmas shopper hamper competition.  This would have been too much … there are plenty of deals in-store already for Christmas.

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magazines

News Magazines changes name and intensifies digital focus

TheSpyReport reports on the change of name for News Magazines to NewsLifeMedia.  Here’s the reason for the change…

News Magazines chief executive, Sandra Hook, said: “This name change recognises the work we have done over the last few years to strategically reimagine our business. We are elevating our digital focus, creating new products and services, developing our presence in women, lifestyle and life stage, while building on the strength of our phenomenal print brands.”

“NewsLifeMedia’s print and digital assets reach an unduplicated audience of around 8.5 million Australians, and we are number one in the majority of lifestyle verticals we participate in. We are number one in food, fashion, health, parenting and weekends, and continue to grow our home vertical. With our magazines and websites working together, NewsLifeMedia will invest to accelerate the growth and commercialisation of our specialist verticals.

“In repositioning as NewsLifeMedia, we are harnessing the authority of our print brands and the power of our digital platforms, with an unwavering focus on audience and advertiser engagement.

News Magazines has certainly made some, hmm, interesting moves.  Killing Notebook magazine when the title could have recovered from the sales slump by going back to its roots and then this year mucking around with MasterChef magazine, driving a dramatic fall in sales.

Hopefully, the name change results in more success with print titles.  Not so sure that is the goal though.

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magazines

Move increases sales of craft magazines

In the week since we created the new, higher profile, home for our craft magazines at one of my newsagencies we have increased sales by 19 copies compared to our average sales.  While some of the increase will be purchases which would have been made elsewhere, some will be incremental business for the titles.

Newsagents can increase magazine sales by managing magazines in a deliberate way.

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magazines

The Moshie Monster opportunity for newsagents

Newsagents who want to tap into the lucrative teen market, and those who buy for tweens, listen up.  Thanks to the announcement on Friday from inComm about the launch of Moshi Monsters cards available through Touch Networks, we can now better tap into this marketplace.

Moshie Monsters is an online world where children adopt a pet monster and interact with the rest of the community in a virtual world full of kid-friendly things like Sabre-Toothed Splatterpillars and Marshmallow Mountains.

The cards we can now sell are like iTunes cards except they are for the Moshie Monsters site.

I think these cards will sell well, especially at the counter where parents and kids shop.  The key will be training our staff on identifying sales opportunities.

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Newsagency opportunities

Promoting The Australian Women’s Weekly

We are promoting the Christmas edition of The Australian Women’s Weekly in one of my newsagencies with this terrific display on a column adjacent to the main counter.

The value of this placement is enhanced as it is next to a major Christmas gift display.  We also have AWW in its usual location as well as in an impulse unit in  high traffic location.

Sales in the first five days of on-sale have been terrific.  We will continue to support AWW with feature location displays at least thoruhg the second week of on-sale.

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magazines
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