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

Author: Mark Fletcher

Hot Boys of TV opportunity for newsagents

On Monday newsagents have an opportunity with the release of Hot Boys of TV, a one-shot from Pacific Magazines as a brand extension TV Hits.

Only available through newsagents and Big W, our channel ought to make the most of the opportunity.  Pacific is promoting the title through social media and this is bound to drive interest and traffic to our channel.

My plan is to promote this title at the front of the newsagency – in a high traffic location – as well as with teen magazines.

There is considerable social media buzz about the launch on Facebook and Twitter.  This is being driven by Pacific Magazines and encourages people to go to their newsagency to pick up a copy.

 

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magazines

Supporting Movember

Allan Wickham of newsXpress Eli Waters growing a moustache to raise and awareness for men’s health, specifically prostate cancer and depression in men as part of Movember.  Allan’s fundraising page can be found here.

ACP Magazines has got behind Allan and offered 50 cents from every ACP title sold at Allan’s newsagency in November to a maximum of $500.  Allan has announced that the business will match this.  The details are on the business newsXpress Eli Waters Facebook page.

I’d love to promote other newsagents engaged in Movember. Let me know what you;re doing and I’ll gladly share a link.  Every bit helps to promote the good work done with the funds raised in the name of Movember.

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Social responsibility

Excellent 2012 diary sales

Diary sales have been such that we will need to order more stock.  We had ordered for growth over last year but sales over the last six weeks have surpassed our growth expectation.

It’s not just us.  Many newsagents I have spoken with over the last couple of weeks have advised that their diary sales are up on previous years as well.

Could it be that diary sales are our indicator of consumer optimism? It’s hard to know.  What I do know is that 2012 diary sales look set to be the best in several years and that’s good news for newsagents with a strong diary offer.

We have our diaries at the front of the newsagency, facing into the shopping mall.  They have been there for a month, easily paying their way.

What’s interesting and unexpected for this time of the year is that even the magazine diaries are selling well.

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Diaries

Shoppers love Jingle the dog from Hallmark Cards

We are seeing terrific interaction between shoppers and Jingle the dog.  When you read the book, Jingle responds … he is no ordinary plush toy.

Jingle extends the reach Hallmark is making into the interactive product space.  They lead the market in interactive sound cards and last year successfully launched an interactive Christmas book.  This was followed by the launch of a range of books this year.  Now we have Jingle, a terrific pre-Christmas gift.  Grandparents especially like Jingle from what I can see.

Jingle also reinforces the Hallmark brand, this is especially useful in newsagencies with the Hallmark card range in-store.

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Gifts

Simpsons Treehouse of Horror comic late

This Simpsons Treehouse of Horror comic which went on sale on Monday is a few weeks late.  If it had come out mid October we could have promoted it with our halloween products.  I am certain it would have sold.  We might have even got the title to a point where it was profitable for us, or break even at least.  With the quantity we get from Gotch, Simpsons comics are usually loss making.  I suspect that is the case in many newsagencies.

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magazine distribution

Promoting Family Circle Christmas issue

We are promoting the Christmas issue of Family Circle magazine with placement at the counter as well as placement out the front of the newsagency facing into the mall.  This is NOT a title to stick in magazine shelves hoping that customers find it.  You need to chase them and let them know that the Christmas issue is out.  We did this last year and sold out, twice!  Get in early and grab sales from the supermarkets.

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magazines

Promoting The Cooker Cookbook

We are promoting the new ACP cookbook: The Cooker Cookbook with placement with our food titles as well as in an impulse location at the entrance to our women’s aisle, opposite our weeklies.  With these ACP cookbook titles we get our best results by going out immediately they come on sale, before other retailers get the title and grab sales.  We move new titles around, leaving it in a set place once we see it selling particularly well from a location.

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magazines

How not managing stock professionally costs newsagents money

Newsagents who do not track stock on hand with their newsagency software are more likely to experience employee theft in my experience.

The most common excuse is that newsagents don’t have the time to manage stock.  If managing stock reduced the cost of theft by, say, $10,000 a year, would you find the time.

My $10,000 figure is considerably lower than the cost of theft in an average size newsagency.  So, the benefits of managing stock properly and professional are considerable.

I can’t think of any reasonable excuse for newsagents not managing inventory using their software.  Bo not tracking stock on hand:

  1. Theft by employees is easier.
  2. Theft by customers is easier.
  3. Ordering is more time consuming.
  4. More ordering mistakes are made.
  5. Suppliers can more easily dupe you.
  6. The quality of business decisions is poorer.
  7. Your newsagency is harder to sell due to inaccurate business performance data.

So, the real question is – what is it worth to turn these situations round?  More than the cost of implementing management processes to ensure appropriate controls on inventory on hand data.

We demonstrate our professionalism as retailers in part by the way we manage business data.

Maintaining accurate business data is easy once you have established your business processes.  I’d encourage all newsagents to do this.  Your business and the channel will benefit as a result.

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Newsagency challenges

The personal magazine recommendation

Further to my post on the weekend about suggesting titles those browsing a specific title may be interested in, here is an example of more personal magazine promotion by our team.  In this example, Tessa explains why she recommends the UK Hello magazine.

We are not directing the magazines to be promoted or choosing the words they are to use.  I think it’s important that team members giving a recommendation have the freedom to make this a genuine recommendation.

I like this idea because of the personal nature it.  I also like that it shows that we engage with magazines ourselves.  You’d never see this in a supermarket.

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magazines

Promoting Men’s Health Summer Training Guide 2012

We are promoting the Australian Men’s Health Summer Training Guide 2012 from Pacific Magazines with this high profile placement among men’s sports, exercise and fitness magazines.  This title sold well last year and I see no hinderance to us bettering those results this year.

We plan to give Australian Men’s Health Summer Training Guide 2012 a run at the counter in addition to the placement in the photo.  It should work a treat next to newspapers.  We also plan on adding it to our Christmas gift recommendations.  I’ve noticed more magazines being purchased as gifts this year, especially at Father’s Day so promoting this title as a christmas gift makes sense to me.

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magazines

Making the most of Melbourne Cup Day

We are running a Massive Storewide Sale this afternoon from 1pm.  1pm on Melbourne Cup day is usually when shopping centres clear out of people as they head home, to the pub or other places to celebrate the Melbourne Cup.

We have tried a range of measures over the years to engage shoppers.  This year, it’s a storewide sale between 1pm and close.  The pitch is simple:

Save 10% storewide if you spend $10 or more.

The only exclusions will be phone recharge, event tickets, gift cards and stamps.

While 10% does not sound like much, we think that it is given that much of what we sell is not usually discounted.  Our goal is to attract new shoppers who can experience our business and hopefully think of us for next time.

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newsagency marketing

Promoting Australian Family Tree Connections magazine

With the growing interest in family history, the success of Who Do You Think You Are TV show and the ancestry TV ads running on pay TV, we figured that it was time for us to put Australian Family Tree Connections magazine in the spotlight.  we have placed it with our UK weekly titles.  While this does not get as much traffic as our Australian weeklies section, it is still a very popular location in-store.

I’ll decide in a few days if we keep this placement or move it back.  The challenge is that this title and a few others really have no set place in newsagencies, making it difficult for shoppers who visit multiple newsagencies to find what they are looking for.

We need to do things like this in our newsagency businesses, giving special interest titles time in the spotlight.  It’s these time which will play an important role in our long-term success in the magazine space, regardless of what long-term means.

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magazines

Promoting Time Out Melbourne

We have been promoting Time Out Melbourne at the counter over the last few days, next to our Ticketek counter actually – probably the best place in the shop for the title.  In addition to the magazine itself, the team has placed a pitch for this issue.

While I am happy that we have done the work to promote Time Out Melbourne, I think that the publisher could do more to help drive over the counter sales of the title.  For example, at their website they could list stockists for the title.  This is something all magazine publishers should do – support the retailers who support you.

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magazines

Weather patterns and magazine sales

Tyler Brûlé, Editor-in-chief of Monocle magazine, has written an interesting piece for the Financial Times about how print media engagement  changes with weather patterns.

While the UK news trade still has to pull itself into this century, retailers in the Baltic countries recognise the relationship between weather, dimmer days and media consumption. The Swedes and Norwegians have become particularly good at understanding what constitutes a proper media diet and how it changes with a rise or fall in the mercury.

There is no doubt that print media consumption changes in Australia with the weather.  Reading this piece by Brûlé makes me wonder if we could be smarter in leveraging weather opportunities in our newsagencies.  I appreciate that some of us do this now as seasons change – garden magazines in Spring for example.

I think that Brûlé is writing more about leveraging the weather as we find it today.  For example, shopping centres fill when it is raining outside.  What if we were to create a display of great magazine reading to enjoy while in front of the fire and a glass of red or a soup?  I could see this working.

It’s not often that we created displays which respond to the conditions of a single day.  Maybe we should experiment.  It’s certainly a way to position the print experience and drive sales of print products in our newsagencies.

I am grateful to a regular here who shared the link to Brûlé’s article.

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magazines

Liking the Rod Sims led ACCC

While it is early days in his tenure, I like some of the comments from new ACCC Chairman Rod Sims.

Sims’ comments last week, for example, as reported in the Australian Financial Review on Tuesday (pg. 5) about unconscionable conduct were interesting.  Sims flagged brining more action on behalf of small and medium sized businesses against big businesses which have acted, in the view of the ACCC, unconscionably.

In the newsagency channel  given the size and dominance of some of our suppliers and given some behaviour, there may be a better opportunity for ACCC engagement is the ACCC under Sims is true to his words.

The area of concern on my mind at the moment is magazine distribution.  While network Services has improved its approach and I do see light at the end of that tunnel (and, no, it does not sound like a train) Gordon and Gotch is less engaged than I can recall in 30 years in this channel.  They consistently oversupply with more than half the titles they currently supply being cash flow negative (loss making) in some newsagencies I have seen data for.  Despite claims and promises, those in control of Gordon and Gotch appear unwilling or unable to deliver an equitable (for newsagents) supply model.

So, bring it on ACCC.  Take a look at the magazine distribution model.  Check out your files as there is plenty of data already in these at the ACCC.  Resource an inquiry.  Talk to publishers of all sizes, newsagents, consumers and the distributors.  Make the interviews and discussions public so we can comment.

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Newsagency challenges

Leveraging Justin Bieber interest again

Given how the Justin Bieber card / photo pack from Network Services sold for us (4 reorders), we have placed the latest issue of Girlpower Popqueen at the counter.  Bieber is still very popular with tweens. The launch of a new fragrance with his name on it in Australia today will have Beiber shoppers out so we might as well make the most of the opportunity.

This is a good example of taking action based on a title cover.  If we left this issue in its usual space we would have missed impulse purchases by Bieber fans and those who buy for them.

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magazines

Halloween is here!

We have had an excellent run up to Halloween today, terrific sales, plenty of new customers.  All departments have benefited from the promotion.  Even though the day itself is on a Monday there appears to have been no slowdown in interest.  Indeed, sales are up more than 15% on last year.  What other department in your newsagency delivers this sort of growth?  Plus at greater than 50% margin!

I’m thrilled that halloween is a well established season, giving us something after Father’s Day and before Christmas.

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Gifts

Smith Journal sells out, again

On Friday we sold the last copies of Smith Journal.  So, we sold out of the publisher allocation and the stock we ordered when we ran low.  I mention this as Smith Journal was one of the titles I have written abut recently which many newsagents early returned, in the first few days of it arriving in store and weeks ahead of the cut off for early returns to avoid having to pay for the stock.  My guess is that the newsagents who early returned have collectively cost their businesses around $6,000 in revenue.  Business can’t be that tough four them.

Smith Journal is a welcome new title.  I’m confident sales will continue to grow.  Newsagents would be nuts to ignore this title … it’s set to be another frankie.

We also engaged with Smith Journal as  title in our recommendation program – as shown in the photo.  Our team suggested that people who like Smith Journal may like Triple J or Slam.

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magazine distribution

Promoting Australian Women’s Weekly

We have been promoting the latest issue of The Australian Women’s Weekly with this display in one of my newsagencies.  Sales for this issue have been excellent in the first few days, stronger than recently experienced.

This display placement is good as it’s between our women’s magazine aisle and greeting cards – being seen by shoppers across two key product categories.  We can see from the sales data that our AWW activity is driving impulse purchases.

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magazines

Appalling customer service from an arrogant Qantas

The decision by Qantas yesterday to ground its entire felt as its next move in an industrial dispute with several unions is appalling.  In a week when shareholders delivered a 66% pay rise to their CEO, the CEO and Qantas board have decided to disrupt and financially harm tens of thousands of businesses and hundreds of thousands of passengers instead of showing leadership by working through the dispute.

I don’t care for the excuses of Alan Joyce.  There is no excuse for disrupting business in this way, none whatsoever.

Joyce announced the grounding late on Saturday.  How are businesses supposed to respond overt the weekend to make over arrangements for Monday?  My newsagency software company usually has between six and ten people on return flights every week, myself included.  Our small business has been significantly disrupted.  We have extra costs.  Thanks Qantas.  Alan Joyce has his 66% and the bully boys of the board think they are making their point.  Makes me feel like they don’t care.

In my view, the point Qantas is making is we don’t like the game so we are taking everything and going home.  This is the sort of behaviour parents hope their kids grow out of.

The Qantas boards should grow up.  They should have realised the damage of giving their CEO 66% while refusing a fraction of this to others would create difficulties.

I have many clients and friends in the tourism industry.  They are gutted by this move.  Travellers due to arrive this week will not arrive.  These business are still recovering from the impact of cyclones and a tough economy.

Why Qantas would wreak a man-made tsunami on business, especially small business and the tourism sector, is beyond me.  Sure, they will say they are doing this for the good of the airline, to protect shareholder value.  I don’t believe that line.

I have no doubt that the unions lodged ambit claims.  They usually do.  Negotiations need to be approached with this knowledge.  That said, as a frequent flyer I want the people flying the plane to be happy and well paid as my safety depends on it.

My travel plans this week are disrupted and while I have been able to make arrangements with Virgin for two flights, I have two more flights which are proving to be a challenge to resolve.  The time spent already has a cost which I am sure Qantas will not are about.

Besides the disruption and cost to passengers and business, there is the damage to brand Australia.  My sense is that it will be considerable.

The Qantas action certainly leaves me wondering where this move fits in their longer term plans for the airline.  I also wonder if there is a political motive.

As a Qantas Platinum level frequent flyer I am appalled at the decision by Qantas.  I do not support it at all.

I notice that Alan Joyce has been in the media today with all manner of excuses including that they chose to ground the fleet yesterday, and not another day, for safety reasons.  Nonsense.

I’ll close with a quote from Ita Buttrose.  This is what she tweeted on twitter yesterday:

Leaders lead by example; Alan Joyce should have said no to a pay rise this week. Very disappointed in the Qantas board and its chairman.

Please excuse me for being off topic with this post.

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Ethics

Recommending other magazines

We have been playing with an approach of recommending other titles a browser of a title may be interested in at one of my newsagencies.  In the example in the photo, someone looking at Australian Tattoo is suggested to take a look at Heavy Duty. Our goal here is not to block the purchase of Australian Tattoo but hopefully grab this purchase along with a purchase of Heavy Duty.

One of the reasons I own newsagencies is to experiment.  This idea came from one of our team members at this newsagency.  I think it’s brilliant.  They created the artwork in-store.  It further personalises our magazine offer while at the same time inviting browsers to look beyond what they think may interest them.

I’ve left the team in the newsagency to play with this innovation themselves, I’m keen to see where they take it.

I like the idea because it shows off a terrific point of difference around our magazine offer compared to other nearby retailers offering magazines.  I think this is what we need to do, to be creative in our approach to magazines rather than retreating as some newsagents appear to be doing.

In this newsagency, magazine sales are growing at an excellent rate, thanks in part to innovations like this.

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magazines

Halloween rush drives sales

We have experienced a terrific rush on Halloween product over the last two days.  yesterday in the shopping centre was excellent.  We have now sold 95 of the Halloween voice changers.  We priced these as a loss leader, to attract Halloween shoppers and drive sales of other full margin halloween products  It worked.  We used the voice changers as we where the only shop in the shopping centre with them.

It is terrific seeing kids drag parents across the mall to look at the Halloween products and then see the parents enter into the business to purchase other items – with one or two Halloween items.  I saw that several times yesterday.

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Gifts

Promoting the Melbourne Cup connection

Putting their Melbourne Cup themed That’s Life next to newspapers this past week has worked.  Just look at the two covers from yesterday, they complement each other beautifully.  Even yesterday, four days into the on-sale, this placement resulted in impulse purchases.  We are always checking magazine covers for tactical placement opportunities.

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magazines

Has there been an increase in magazine promotion in supermarkets?

It feels to me like there has been increased marketing activity in supermarkets with magazines.  This week, for example, Woolworths has a box of cereal for $2 if purchased with Woman’s Day.  There is a floor stand at the end of the cereal aisle.  It’s a terrific promotion.

This promotion would be entirely supplier funded.  The stock, the floorspace and the merchandising would have been paid by the promoted suppliers.  It’s how supermarkets work.

It feels to me like we don’t see as many of these promotions in newsagencies.  I am guessing this is because we do not have the consistent format or supermarkets or the one stop buying power for a such a large network of stores.

Magazine publishers need to think about these promotions before they give supermarkets a better value proposition than newsagents.  Do you really want to migrate a magazine shopper from the newsagency channel, because that is a consequence which could flow from these better value promotions?

Newsagents offer the lowest cost sales and promotions opportunity for publishers.  Supermarkets have a higher cost base which will only increase with their market share of magazines.

While some newsagency marketing groups access some excellent deals, the broader channel is missing out and this poses a risk for magazine publishers and for newsagents.

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magazine distribution