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

Author: Mark Fletcher

The Australian Woodworker publisher turns back on newsagents

Check out what the publisher of The Australian Woodworker has published in the latest issue of the magazine.  They infer newsagents have cut their title from the mix of magazines they carry.  I wonder if this is what they have been told or whether they have other evidence of this.

They also claim that there are new newsagents who do not appreciate the interest in woodworking.

If I were them I’d want supply and return data by newsagency for the last three years.  I’d also want to know how many newsagencies have specifically cut the title versus how many are no longer supplied because of sales performance of the title and a cut therefor by the magazine distributor allocations system.

A better approach for the publisher would have been to engage with newsagents, to educate us about the title and to invest in driving traffic to the channel.

Their decision to go the other way, and promote only a direct subscription relationship will only encourage more newsagents to look at not stocking the title.

I’d urge the publisher to retract their statement and engage directly with newsagents:

  1. Provide collateral (real or downloadable) with which to promote the title.
  2. Provide einside information on who is the likely reader and how to sell to them.
  3. Be clear on where the title should be placed in a newsagency.
  4. Make a commercial offer to encourage newsagent support.
  5. List newsagent stockists on your website.
  6. Talk up newsagents in the magazine.
  7. Tell newsagents how you support them.

Newsagencies are businesses.  Every magazine pocket has to pay its way.  To achieve this, we need publishers to actively support our channel as the magazine specialist channel at ever opportunity.  We need collateral with which to promote titles.  We need publishers engaged with us commercially.

Publishers who do nothing to support the channel can expect nothing in return.

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magazine distribution

Responding to the Express Media Group offer

We are responding to the bonus margin opportunity and the no full copy return decision by Express Media Group by placing their titles in good positions in the appropriate categories. As the photo shows, the EMG title features on the left of the country section and Country Collections from Universal Magazines is on the right.

We’re happy to be promoting two Australian magazine titles as the beacon titles in the country section of our newsagency.

Maybe I have noticed it before or maybe it is new – I like the clarity of the value proposition printed on the bcd for the EMG pack.  Making it clear that you get the current issue and $23 value for $8.95 is an important pitch.

We are promoting all EMG titles we receive in this higher-profile way to see what we can achieve from a sales perspective.  Our hope is good news all round.

We have asked EMG to supply stock of all of their titles for the next three months so that we can see what works in our business. This allows us time for the sales to guide our business decisions.  We have found EMG to be most helpful in navigating this.  They control their own allocations so it is easy for them to set this up and monitor performance.

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magazines

Promoting National Geographic

Last week we took the opportunity to promote National Geographic magazine with this tactical placement next to weeklies.  I figured that the cover story on the Teenage Brain would be of interest to the shoppers I see buying the weekly titles.

National Geographic is one of those titles where the cover can have a big impact on sales, this is why we are sure to check every issue and act accordingly.

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magazines

A Sunday marketing / management tip for newsagents

Lock your back office for a week. Don’t let anyone in or out.  Shift all the work you used to do or have done there to in the newsagency shop itself.

If you or others strong oppose the move, analyse why.  Is it because you like to hide?

In an average newsagents with non lottery or other agency revenue of under a million dollars, the business cannot afford a full time manager or back room operator.  hence the suggestion of moving back room tasks to the shop floor.

I bet if you do this, as disruptive as it may be, you will find changes you can make to your processes to reduce some of the work you do in your back room.  At the very least you will be challenged to look at your business and the back room operation in a different way.  that’s a good thing.

We need to disrupt our businesses to discover opportunities for change.

I have been in many newsagency back rooms.  Some are caves offering protection to owners and managers.  Others are warehouses full of stock which will not deliver a financial return for the business.  Others are places where occupational health and safety are challenges.  Others are places for employees to take three or four times longer to do a task than if they did it at the front counter or elsewhere others could see how hard they are working.

Lock up your back room and lock everyone out.  Look for business improvement opportunities as a result.

I’ve done this by creating a newsagency with a back room so small that it can hold one person standing up and not moving.  The business is run from the counter.

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Newsagency management

Newsagency marketing group partners with Corporate Express

The lucky charm newsagent marketing group has announced a partnership with Corporate Express in the stationery space.  Corporate Express is owned by US stationery giant Staples.  While Staples is not currently a retail brand here, the Staples website is up and running and driving good traffic. If Staples does open here then any retailer selling stationery, including newsagents, will be their competitor.  Indeed, this already the save thanks to the Staples local website.

It does not make sense to to me to support a competitor when there is an industry owned alternative available.  Maybe their is something missing in the move.

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Stationery

Weekly magazines sell out last week

New Idea, TV Week and Famous all sold out for us last week.  Who is set to sell out.  These are great results for the weeklies.

Also, Better Homes & Gardens sold out, we got 10 more and they sold out and we’re chasing another 10.

While it’s terrific selling out, it would be great to see it coming sooner so we could get extra stock to reach our full potential.

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magazines

Keeping up with the Kardashians

With Kim leaving the country in a rush and more Aussies now knowing the name than ever, we are taking the opportunity to promote the release of series 1 of the Tv series on DVD.

You can see our tactical placement.

I am not expecting sales given the run the TV show has had on pay TV and the easy availability of episode via download.  But, hey, I didn’t think the Justin Bieber cards would sell and they sold our for us form times over.

I’d be thrilled if the DVD sold … we’re giving it our best shot.

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magazines

How does a brûlée set fit into the Postal Corporation Act 1989

The Christmas 2011 catalogue from Australia Post is packed with items which are far removed from what I would expect a post office to sell, like the Brûlée Set on page 7.  While this is not a newsagency line and therefore not directly harming my business, there are plenty of items being offered by the 850 or so government owned (and protected) post offices which in my view Australia Post should not sell.

I don’t care so much about the privately owned post offices as these are small business owners.  It is the government competition to which I object.

Having the government compete with you, leveraging their protected brand and foot traffic to take sales from independent small businesses is appalling.

The Howard government refused to do anything to help newsagents and other retailers when they complained they the government owned outlets were taking sales from.  The Labor government is not much better.

Both sides of politics continue to let small business down by equal measure.

These products, like the Brûlée Set, a Bird Bath, Beach Bat Sets, Sewing Machine, and Children’s Books being available at the Post Office mocks the Postal Corporation Act 1989.

Section 14 of the Act requires Australia Post to provide a postal service first and foremost:

The principal function of Australia Post is to supply postal services within Australia and between Australia and places outside Australia.

Section 15 talks about permitted subsidiary functions:

A subsidiary function of Australia Post is to carry on, outside Australia, any business or activity relating to postal services.

Section 16 talks about other permitted functions:

Functions incidental businesses and activities

(1) The functions of Australia Post include the carrying on, within or outside Australia, of any business or activity that is incidental to: (a) the supplying of postal services under section 14; or (b) the carrying on of any business or activity under section 15.
(2) Without limiting subsection (1), the functions of Australia Post include the carrying on, within or outside Australia, of any business or activity that is capable of being conveniently carried on: (a) by the use of resources that are not immediately required in carrying out Australia Post’s principal or subsidiary function; or (b) in the course of: (i) supplying postal services under section 14; or (ii) carrying on any business or activity under section 15.

The last federal government and the current one have permitted Australia Post to take millions of dollars in revenue from small business. The situation is getting worse.

The federal government deregulated newspaper and magazine distribution saying that newsagents needed to get into the competitive world.  It is a pity that they have not applied the same competition rules to the business they own.

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Australia Post

Driving impulse purchase of gardening titles

We have tweaked the placement of our top three gardening titles to try and increase sales beyond the growth we are already seeing.  Each title is getting time at the front, so that the full face can be seen.  Putting this next to english weekly titles and before me move into home and living gets garden titles seen by more shoppers than if we left it in the usual location.

We have Gardening Australia, Burke’s Backyard and Your Garden in these prime three pockets as they are our best performers at this time of the year.

This is the time of the year to promote garden titles, to make the most of the springtime seasonal opportunity.  Sales are excellent.

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magazines

Promoting new kids cookbook

We are promoting the new kids’ cakes cookbook title from ACP at the sales counter.  The cover is terrific and is bound to draw good attention.  We are also giving the title a run in the ACP stand at the front of the newsagency – chasing sales before people focus on Christmas shopping.

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magazines

Long live the magazine!

Check out the editor’s letter from the latest AdNews …

Magazines are dead. Really? It’s all too easy to bemoan the overall circulation decline across the consumer magazine industry as a portent of an industry in perennial decline. The truth is more complex. The reality of the situation also happens to be more positive than some of the doom-sayers would have you believe.

Be sure to read the whole thing.  It’s a positive pitch for print citing Famous and frankie.

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magazines

iPad App for Vogue Australia launched

News magazines has announced the release of an iPad App for Vogue Australia.  The result is content distinct to the print product:

“Far from being a replica of the printed magazine, the Vogue Australia iPad app will engage our audience with exclusive multimedia content and behind-the-scenes glimpses of a world of fashion and beauty that only Vogue can access,” said Kirstie Clements, editor-in-chief of Vogue Australia.

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magazines

Unjustified magazine supply increase by Gordon and Gotch

I know, I should not be shocked by the decision by Gordon and Gotch to increase supply of a title with a sell through of 30% to 45%.  But I am.  I am shocked that in this tough marketplace with flat or declining magazine sales Gordon and Gotch would send me more of something which struggles to sell in my newsagency.

Gotch’s own data would reflect that I usually sell 4 copies of this title.  They have increased me from 10 to 14 copies.

In my view, this is unconscionable conduct.  Given the renewed interest at the ACCC in unconscionable conduct under new Chairman Rod Sims maybe they could take a look at this.  I am sure I have not been singled out by Gotch for being knowingly grossly oversupplied.  Indeed, I know from other newsagents that Gotch is performing particularly poorly at the moment on oversupply.  Newsagents carry the cost.

Magazine publishers who wonder why newsagents early return titles without thought have the reason right here.  Newsagents use early returns to hit back at poor behaviour.

I’ve not gone to Gotch about this particular issue as I should not have to do this.  They say they are the magazine distribution experts.  I guess they are if you look at it from their perspective.  These extra four copies are sent in an effort to get my cash and thereby become the banker, again, to the Gotch model.

For a company committed to building real partnerships with our customers, Gotch is failing based on consistent behaviour like this.

I consider their continued oversupply to be a breach of contract let alone appalling customer service.

Every magazine publisher with a title distributed through Gotch should be concerned by this behaviour which hurst the newsagency channel.

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magazine distribution

Connecting magazines with the news of the day

The team at one of my newsagencies cleverly placed marie claire and OK! Australia between our newspapers earlier this week.  marie claire because of the Sarah Jessica Parker cover – she is in Melbourne for Melbourne Cup week – and OK! because of of Kim Kardashian’s (shock!!!) divorce announcement and her arrival in Sydney.

One of the ways we can drive impulse purchases of magazines is to demonstrate their relevance.  Showing off covers which connect with the news of the day is one way of doing this.

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magazines

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
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