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

Author: Mark Fletcher

The double standards of 7-ELEVEN

In the 1990s, 7-ELEVEN challenged the newspaper and magazine distribution system.  They succeeded in breaking the monopoly newsagents had on distribution.

Today, I am aware of 7-ELEVEN, (a franchisee or the company itself I am not sure) demonstrating double standards.  They are pressuring a state government authority into not allowing a newsagent two hundred metres away to sell transport tickets.

So much for their pitch years ago for competition.  Those trying to block a local newsagent selling transport tickets are showing themselves up as protectionists.

If 7-ELEVEN were true to their pitch to the ACCC and its predecessors on competition, they would stop the putting of an argument for protection as it appears is being put today.  They would not try and block the newsagent nearby getting transit tickets. After all, they got magazines and newspapers in their shops.

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Newsagency challenges

Twin magazines?

kitbath_duo.JPGLook at these two magazines.  There is not much different between them.  Just about the same title.  certainly chasing the same market.  We see this every day in newsagencies.  Locally published magazines chasing the same marketplace.  We carry the cost of this because we make accessing our real-estate each and cheap.  It’s frustrating – as it must be for the publishers who probably think they deserve to have space in our shops.

The problem is that the channel does not work that way.  Any title can get out is the publisher pays distribution fees.  This hurts us, puts some poor product out and confuses consumers and, in the long run, the magazine category suffers.

We need to find a way to control access to the newsagency channel.

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magazines

Chasing Halloween lottery sales

fhn_halloween_synd.JPGThe Halloween $20 million superdraw syndicate sales are ticking along well.  They are being helped by our strong Halloween merchandising displays.  We have not gone all out on promoting this because of the $15 million Powerball jackpot.  Now that has gone off, we will focus on the $20 million.  As the price posters show, our key syndicate focus is on lower value tickets.  This is what our customers prefer for the Saturday draws.  We sell tons.  As they sell out, we have new same value syndicates ready to load.

Our syndicate sales board approach works for us.  I have seen others with more professional collateral and higher value tickets.  We have traied that.  The approach shown in the photo works a treat for us.

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Lotteries

Pet porn?

pet_porn.JPGWhen I first saw this cat and dog magazine pack I wondered if it was some kind of porn.  That’s what the packaging reminds me of – plastic bagged, a black and white sign in front.  I was looking for the (R) Restricted logo.   Seriously, who is going to buy this product?  $9.95 is too much for a lucky dip purchase.  There is no indication of the quality of the publications or their age.  Whoever is responsible for putting this out ought to learn a thing or two about how to present product.

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magazines

Ink sales strong, driving good traffic

ink_sales_strong.jpgWe are experiencing double digit growth in ink sales this year – in a year on year in a mooving annual total comparison just undertaken.  We are seeing excellent sales from repeat business as well as new customers visiting as a result of our marketing.  We have been using large posters in the shopping centre as well as flyers distributed to homes in the area.  The double digit growth is excellent given that we have a new style Dick Smith with a great ink office a few metres from us, Australia Post oppposite, Big W pushing hard in this space as well as an Officeworks and Harvey Norman nearby.

Our manager and key architect of the competitive strategy, Jason Schwarten,  outlined how this has been achieved at the newsXpress conference in Melbourne today.  His positioning of the ink offer in the face of significant new competition has seen us do well in the face of tough new competition, proving that small businesses can grow in such circumstances by playing to their key points of difference.

Ink is now used to drive sales of other categories.

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newsagency marketing

Bloomberg: Print is not dead

“I’ve never believed that print is dead. I’ve always believed that there are two problems with print journalism today. One is lack of advertising, some parts of which will come back, and two, when nobody is buying your magazine or your newspaper, it’s because you’re not writing what people want to read.”

This is Michael Bloomberg speaking after the announcement overnight that his publishing company will purchase Business Week.

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magazines

Moving fixtures to freshen the newsagency

fhn_acp_builder_oct14.JPGWe moved our main ACP Basket Builder stand from next to the counter to the side of the newspaper stand facing our stationery department and our copier yesterday.  While not as busy as at the counter, it will be seen by a different mix of people.  I’d expect this to make the stand work for us given that it had been in the old location for more than a year.

The move also opens up the view from the counter across to the broader magazine department.  I’d expect flow-on benefits from this.  The only obvious downside is the loss of the back of the unit for visual merchandising use.

We will monitor the impact of the move over the next few weeks.  If the impact is negative we will take remedial action.

The key with this move is change. We need to pursue this relentlessly in our businesses for ourselves as well as our customers.

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magazines

How advertising can block magazine sales

fhn_alpha_bag_oct09.JPGThe latest issue of Alpha magazine is a good example of how advertising can get in the way of selling a magazine.  Alpha comes with a product catalogue.  This is too big to be inserted so it is bagged.  Alpha is a magazine guys like to browse.  I’d expect sales to fall since it is bagged.  Either that or bags will be opened, the magazine browsed and the product catalogue left for us to clean up. Alpha is not the only magazine doing this.

I wish publishers would watch consumer interaction in-store.  I am certain that if they did this they would realise that some titles should never be bagged.

The other issue here is the use of my space for a catalogue.  Alpha is double the thickness this month.  This means double the retail space.  Yet I am paid no more.  This disrespects newsagents and others who retail this title.

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magazines

Glamour hides the book

fhn_glamour_oct.JPGThe latest issue of the imported Glamour magazine, our yesterday, comes with a free novel.  The only indicator on the cover of the gift is a yellow sticker on the plastic wrap.  I can’t imagine this doing much for sales.  We address this by display the front and the back of the magazine.  We were luck to have the space to fix the publisher caused problem.  I want the incremental sales from the book gift.  The publisher has not thought the presentation through.

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magazines

Notebook magazine hard to display

fhn_notebook_oct14.JPGThe latest issue of Notebook magazine, out yesterday, is a challenge to display because of the free illuminater gift bagged with each copy.  Instead of the usual three or four copies per pocket we can only fit one.  The odd shape of the box makes flat stack display a challenge too.  The challenge of packaging this size gift is obvious when you see the number of damaged boxes.  These devalue the magazine. This is frustrating because we want to present professional looking product.

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magazines

Deep into newsagency performance data

I have been buried deep in sales, basket and other data from a pool of more than 100 newsagecies for the last ten days as I prepare for a presentation I am giving tomorrow morning at the National Newsagency Conference hosted by newsXpress.

I will present up to date stock turn, average sale, margin and sales data on a same store year on year comparison basis to help newsagents better understand the challenges and opportunities of today’s marketplace.

I am also presenting a version of this latest study to a couple of newsagent suppliers keen for an update on this research.

By early next week I hope to have found the time to summarise the presentation and publish it here along with the slides summarising the research findings.

Good data is a key differentiator between successful newsagencies and not so successful newsagencies.

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Newsagency opportunities

Promoting Better Homes and Gardens Christmas feature

fhn_bhg_oct14.JPGThe Better Homes and Gardens Christmas edition (out today) looks stunning.  We are supporting this with a power end display and a waterfall display behind this, next to Australian Women’s Weekly – where we usually have crossword titles.

The collateral provided was excellent. The full display is not shown – it reaches the ceiling.

We also have Better Homes and Gardens in its usual location as well as with our main newspaper stand.

We know from previous years that co-location works a treat for the Christmas issue.

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magazines

Promoting Take 5 and the Biggest Loser shake

fhn_t5_oct14.JPGTake 5 magazine gets our prime counter position – between our two businest register points – this week thanks to the free Biggest Loser branded shake.

Often, gifts with magazines don’t connect with the title, not this time.  This shake should drive excellent sales of take 5 for us – off an excellent sales base.

We will leave this display in place until Friday, the weekend if we have enough stock.

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magazines

Leveraging newspaper traffic for magazine sales

fhn_newspaper_stand_oct14.JPGThis photo shows how we are using our main newspaper display today – just across from our main counter.  Access to newspapers is easy for shoppers.  We are using the space on either side to promote other titles professionally.  This is made easy with the stands available from publishers for the selected titles.

The display does not look as cluttered as the photo suggests.  There is space in front of the stand and plenty of space around.

We also have the Herald Sun, our top selling newspaper, located at our main lottery counter.

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magazines

Michael Jackson calendar pre-sell success

michael_jackson_calendar.jpgWith the 2010 Official Michael Jackson calendars now in stock, we can see the value of our pre-sale campaign.  We have close to eighty calendars sold and paid for, at full price, before we put any stock out on the shelves.

We are using the pre-sell approach selectively in several areas to help our customers ensure that they get what they are looking and to lock in revenue for us before any retailers have the stock on the shelves.

The key is to have rules around payment and refunds – you don-t want to take pre-orders and have them cancelled when people can buy the items cheaper elsewhere.

We choose pre-sell items based on what else sells well in our newsagencies: Michael Jackson product is a good example as is anything to do with Twilight.

I first wrote about our plans for the Jackson calendar on August 1.  I have been contacted by some newsagents who copied the idea and achieved excellent results as we have.  This is great feedback.  The more we share ideas like this the better.

Our competitors are less likely to have the infrastructure necessary to make pre-selling work.  For smart newsagents, it taps into our magazine putaway offer.  As we saw with the Packson calendar, we are playing to our strengths and leveraging an excellent point of difference.  I my own case, the GP alone is close to $1,500 – GP achieved before we received the stock.  How good is that?!!

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Calendars

When a newsagent software salesman lies

Sometimes the software side of the newsagency channel can get pretty dirty.  I saw this happen last week when a salesman claimed that his system had certain features that others did not have.  He lied.  At least two other systems have all the features he claimed only his system had.  The newsagent went with his system solely because of the claim.  They will learn the consequences for not checking if they were being told the truth.

One reason software companies lose market share is that lies like ones told last week come back and bite them.

Newsagents considering installing software should shop around.  The software marketplace is going through a shake up.  Check sales claims.  Trust only what is proven.

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newsagent software

Publisher launches dating site

Trulymadlydating.com is a dating website launched by magazine publisher Condé Nast to connect boys reading GQ magazine and girls reading Glamour magazine.  Vogue has the report. Condé Nast shut a bunch of magazines last week.

Magazine publishers across the world are busy launching websites, under brands other than their titles, to better connect with their target demographic.

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magazines

NDD quick range review popular

Following my post last week about the NDD Quick Range Review service, a good number of newsagents have taken up the offer to have NDD review the supply range and make adjustments accordingly.

NDD assess title performance and recommends changes. Newsagents can have the recommendations implemented or adjust these further. The recommendations are provided with a sell-through graph showing performance trends for the store.

If you would like an NDD Quick range Review, please email quickrangereview@ndd.com.au with your newsagency details. They will do the analysis and email the report and recommendations to you.

The result is a better balanced portfolio of titles from NDD. The report helps drive better business decisions in that it alerts you to titles which are selling well – these are the titles you could push even further.

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magazine distribution

Blocking the window

newsagency_window.JPGThis is the window of a newsagency doing what is asked of them by some publishers.  I took the photo a couple of weeks ago.  I say some publishers because not all ask for window space to be covered with posters.  Papering the street front of a newsagency with magazine posters blocks the full story of the business being revealed.

Blocking the window in this way is not best practice and does not serve the newsagency, or the magazines promoted, well.

Our businesses are retail businesses, not glorified billboards.  It would be interesting to run for a couple of months without any magazine posters on windows and measure the impact on sales.  I suspect that there would be none on magazines and an increase in other departments – if the unblocked window reveals a appealing shop.

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magazines

Selling Halloween candy

fhn_hall_chocolates.JPGIn addition to selling Halloween costumes and party items, we put out our range of Halloween candy last weekend.  The chocolate is popular as singles and also when sold in small pumpkin buckets holding ten chocolates.

I like the approach taken by our team at Forest Hill because it connects with the Halloween tradition of trick or treat when kids visit neighbours looking for candy.  Having the chocolates provides more of a context in the overall Halloween pitch.

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newsagency marketing

Pitching Zoo discretely

fhn_zoo_oct12.JPGWe are promoting Zoo magazine in our men’s aisle with the collateral placed at the aisle end and acting as a beacon for those looking down the aisle.  Zoo is a title which can cause customer complaints if we promote this in the higher traffic area of the shop.  We have found this aisle end works for us.  We can respond to any complaints appropriately.  It’s good use of poster display real-estate close to the title being promoted.

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magazines

Remember the tax break opportunity

Newsagents need to remember that capital purchases between now and December 31, 2009 qualify for the 50% tax bonus if the newsagency turns over $2 million a year or less.  Lottery commission counts toward the $2 million commission but not overall ticket prices – the same as for other agency business like bus tickets, western union phonecards and prepaid visa.

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Newsagency opportunities

New Idea and Woman’s Day go head to head

fhn_wdni_oct12.JPGThe Woman’s Day and New Idea brands will be tested this week with both titles promoting what appears to be the same Greg Norman related cover story.  It is not often that you get both weeklies with the same cover story.  It will be an interesting test of brand power.

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magazines
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