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

Author: Mark Fletcher

Driving sales of bags and wrap

bags_sep21.JPGThe photo shows the bag wall at one of my newsagencies.  The range has recently been refreshed and there has been a good sales kick as a result.  We know from industry sales data that newsagents underperform in terms of bag and wrap sales.  This is usually because newsagents hide the product behind cards.

Newsagencies where bags are close to the front of the store and highly visible are achieving better results.  That was the goal of the recent refresh in our newsagency.

In addition to refreshing the range, we take opportunities to create feature displays to show how bags can be dressed to great effect.  We do this, not our merchandiser – the benefits are ours after all.

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giftwrap

Missing out on the newsagency experience

What is it about Australian capital cities and newsagencies. Well, Melbourne, Sydney at least. They used to boast several good ‘full service’ newsagencies. Now they are nowhere to be seen. Instead we have convenience stores on every street corner.

I am in Sydney today and needed something only a newsagency would carry. While Sydney has a good number of News Stands, as they are called, the main CBD streets lack a newsagency or two.

I suspect that rent has a lot to do with this. Our slim margin businesses don’t work when you are paying close to $2,000 a square metre for retail space.

It’s a pity. Tourists wandering Sydney streets mixing sightseeing with shopping are missing on a quintessentially Australian retail experience.

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Newsagency challenges

Girlpower and shag bands

With ‘shag’ bands in the news over the weekend, the latest issue of Girlpower magazine is a challenge for newsagents since it has bands bundled with the magazine.  Some newsagents are asking whether they should promote this issue.  For other definitions of shag branbds, check out urban dictionary.

Maybe I am disconnected but the ‘shag’ bands story sounds like a beat up.  I’m happy for the magazine to be on the shelf.  If it was removed for this then the magazine shelves would look quite bare.

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magazines

Model Orbiter partwork

model_orbiter.JPGThe Model Orbiter partwork launched today. Actually, launched is not the right word.  We received stock but no collateral.  You can’t promote new partworks without collateral.  I am sure there will be an excuse.  It is not good enough.  Collateral should arrive with the stock as this is when we allocate space and have resources for creating displays.

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magazines

Why is the ANF sponsoring a soccer TV show?

anf_sponsor.jpgI wonder how many newsagents are aware that the ANF sponsors the Goal of the week on the football stars of tomorrow  TV show and website.  The sponsorship is poorly executed in that there is no explanation on the website about the ANF or newsagents, there is nowhere to click to get to the ANF to get this information and it is based around a logo which the majority of newsagents do not use.

Maybe I am missing something but I cannot see the value to newsagents in this sponsorship.

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Ugh!

Promoting Geelong premiers magazine

fhn_geelong.JPGWe are promoting the Geelong AFL Premiers 2009 one-shot title at the counter this week.  At $15.00 a copy we’re happy to use this premium space to try and drive impulse purchases of this title.  Since we have limited supply we may have to replace the display after a day or so.  As we saw last week with the AFL record, using this space for non major publisher product can have its rewards.

Unfortunately, some publishers don’t see it this way as they want premium space for their titles.  I’d agree if they paid the rent.

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magazines

Older women beat older men any day

I love older women customers. In my experience they are more cheerful and enjoyable than older men customers.

By older, I mean 75 and over.

Older women tend to know what they want, they enjoy a laugh and they are prone to flirting, yep, flirting – I like this on a slow day at the counter.

Older men tend to grunt rather than speak words, they rarely laugh and often don’t know what they want.

The older women lottery customers are the best.   They share secrets, have a laugh and, if you are lucky, tough you for luck.  I don’t mind being touched for luck.  I enjoy them enjoying shopping in the newsagency.  Even if they have a ticket which has not won they are usually cheerful and ready for a new dream from a new ticket.

Older men lottery customers are more likely to wonder why they are so unlucky.  Occasionally, I find myself thinking that they have probably brought it upon themselves.  not even a good smile can crack a response.

Thankfully, newsagencies attract more women customers than men.  This means more good times in my experience.

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Newsagency opportunities

Magazines at the show

bhg_show.JPGI was at the Royal Melbourne Show yesterday and saw stands pitching showbags based on magazine titles from ACP and Pacific.  It was good to see their brands represented. In another pavilion there was a stand devoted to Better Homes and Gardens.

These stands made me wonder what facilities, like stands, we could access to promote their brands and our newsagencies.  In shopping centres, existing tenants can take casual leasing.   Maybe we could split this with a publisher, they provide the stand, collateral, a deal on subscription sales and product deals and we staff the stand and include something to drive traffic to our newsagency.

Operating a magazine title based display like this would give us something different to pitch in such a casual leasing situation compared to the usual books, back to school and Christmas offers from newsagents.

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magazines

Underage tobacco campaign in the UK

Steve Denham is running a good campaign on behalf of newsagents and independent retailers on the issue of sale of tobacco to underage customers.  He is lobbying politicians and regulators in pursuit of fairness for all retailers of tobacco products and not just a focus on bricks and mortar businesses, particularly the easy target independents.

Newsagents in Australian states with tougher regulations would do well to read about Steve’s engagement on this issue.

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Newsagency challenges

Missing the magazine discount

fhn_yours_price.JPGThe issue of UK magazine Yours which came off sale yesterday sold for a 28% discount in the UK.  Not so here.  Our price was $4.95 as usual for this title.  I am surprised that the UK discount was not run here.  I would have thought that using a cover price discount to drive sales would work here – especially in this cost conscious time.

Yours is one of more than 30 UK titles in this segment in our newsagency.

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magazines

Sales of AFL Grand Final record double

Our sales of the AFL Grand Final record are more than double last year’s.  This is part due to our more proactive promotion and part due to the two teams playing.  Even though it’s a once a year title, it is cash-flow positive and generates around $1,500 in sales.  Most sales are in addition to the desitnation purchase.

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magazines

US newspapers may need cash

There has been considerable discussion in the US this week about the financial health of newspaper publishers. Suffering fron significant advertising and circulation declines, the Newspaper Association of America told Congress yesterday that publishers may need government assistance.  President Obama has bought into the discussion.   Newspapers are covering this story widely, as you’d expect.

While I don’t live in the US, my view is that the government ought not bail out newspapers or other businesses in hard times unless they are prepared to do this across all business sectors.  The cherry picking by governments for bail out funds over the years has led to inefficient industries.  Look at the auto sector around the world.  Look at banks even here in Australia and the support they received over the last year yet the massive profits they continue to report.

Small businesses, like newsagencies, are never on the bail out radar.  We are too small and insignificant to be of interest yet we punch above our weight in terms of economic contribution.

So, my view is that governments should stop bailing out businesses, even newspapers if it comes to that.  We are in the free market economy which big business wants after all.

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Newsagency challenges

The weekend magazine pitch

fhn_weekend_magazines.JPGThe photo shows the magazines we have on display to passers-by at the front of our newsagency this weekend.

We carefully selected the title mix for the display based on what we think will appeal to our weekend shoppers: home and garden, health, travel, crosswords and guilty pleasures.

The display, while small, speaks to the range we carry in our newsagency compared to what you would see in a supermarket or convenience store.

Weekends are an excellent opportunity to find new customers, especially in shopping centres.  We try and leverage thin through displays like this at the front of the newsagency and in other changes in-store.

This display will remain in place until Monday.

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magazines

Merchandising Australian Traveller magazine

fhn_aust_traveller_sep09.JPGThe merchandiser for Australian Traveller created a display next to our travel section for the latest issue of the magazine.  The proximity of the collateral to the product should help sell the title.  This is an important point- too often collateral is displayed away from the title being promoted.

I am happy to promote Australian Traveller  because of the bonus commission being paid to newsagents for this issue of 50%. The subsequent issues are worth 30% to newsagents – more than the usual 25%.  These better than usual commission arrangements are exclusive to newsagents.

The cover price of Australian Traveller increased $1.00 with the latest issue, meaning the bonus commission is worth even more to us.

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magazines

AFL Grand Final day in Melbourne

It is AFL Grand Final day in Melbourne.  This means a very busy morning to noon and a deaf rest of the day.  It also means plenty of footy banter in the morning and anti footy banter in the afternoon.  It’s an interesting day given the difference between morning and afternoon trade.  Kind of fun to experience.

One year we brought in a TV and played the game live in the shop.  Then we realised that those not at the game or at home or a pub watching the game had no interest.

Now, we engage as people want.  Our team this afternoon will be ready with non-footy even anti-footy banter for those who care less about the Grand Final.

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Newsagency management

Who owns the newsagency?

australian_business_solutions_merch.JPGWithout reference to our magazine maner, store manager or myself as the business owner, a merchandiser visited and moved Australian Business Solutions, placing it in the premium location usually reserved for BRW magazine.

It is this type of move which annoys me and many other newsagents.  Not only have they increased supply, they have made decisions which only I and my team should make.

Having someone walk into your business and make a change like this without permission is a violation of what should be a respectful relationship.  Publishers treat each other dreadfully.

I am sure the merchandiser will have an excuse, probably that they spoke to someone.  They did not speak to the three people in the business with authority.

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magazines

Magazines, newspapers and red dust

The dust storms of two days ago are causing challenges for some newsagents this morning with magazines and newspapers being delivered covered in red dust.  It seems that some delivery trucks were not cleaned out properly.

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Ugh!

Halloween sales already!

halloween_2009.JPGCobwebs, severed arms, spiders, black cats, chains, witches hats, broomsticks, masks, fake blood and make up are selling already from the Halloween display at one of our newsagencies.  Halloween is a fun season and we have found the best way to make it work is to wholeheartedly embrace it with fun products.  The display in the photo is the more practical retail display.  Elsewhere in the store we have a scary, theatrical, display.  This is key to driving early sales.

We have been embracing Halloween for several years with good commercial success.  This is something newsagents can do for themselves, without being told what to do by traditional suppliers.  I have seen Halloween work in newsagencies of all sizes as well as in shopping centre and high street situations.

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newsagency marketing

2010 Calendars and magazines together

fhn_calendars_magazines.JPGWe are promoting calendars and magazines together as shown in the photo.  Our team is locating calendars near magazines relevant to the calendar title.  The photo shows some of our train calendar titles above our train magazines.  This co-promotion runs the length of our magazine department.

While this may seem like an obvious move, many newsagencies I visit do not make the link between special interest synergies across product categories.  Many, too, do not even source calendars other than those they receive from magazine distributors.

What we are doing is a good example of us chasing business for ourselves and using magazine traffic to leverage sales in another, yet related, product category.  This will work in newsagencies of all sizes.  People travel to get the calendars they want.

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magazines

Promoting Men’s Health magazine

fhn_mens_health.JPGWe are promoting Men’s Health from Pacific Magazines on on the display end between our men’s and women’s magazine aisles.  This is a good location since this magazine is bought by men and women.  It is also close to the display for Women’s Health and the two titles go well together – they are sometimes purchased together.  We will leave the display up until at least next Monday – by then it will have been a week.

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magazines

Free IT training for newsagents

Tower Systems is running free online training for newsagents next week to help build industry skill levels and to encourage newsagents to gain more from their computer systems.  The four free workshops are:

  • XChangeIT Compliance Sept. 29 11:00.  This session is an online version off the face to face session which we ran in more than 30 locations earlier this year.
  • Magazine Management Workshop Sept 29, 14:00.  This session willprovide practical advice on managing magazines from arriving stock through to returns and all in between.
  • Mastering Sub Agents Oct. 1, 11:00.  Whether you have 1 subagent or 165, this session wil provide practical help in managing sub agents.
  • Business reporting Oct 1, 14:00. Good software helps newsagents better understand their businesses.  This online workshop will cover businesss reporting from all angles to help newsagents under the decision opportunities available.

Any newsagent is welcome to participate in these sessions.  Book online here.  To participate you will need a computer with broadband access and a phone line for a toll free call for audio participation.

Disclosure:  I am a Director of Tower Systems.  More than 1,500 newsagents partner with Tower Systems.  These sessions are genuinely free.  They are not sales events.

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Newsagency management

Finding new staff

Our ad looking for someo to join our newsXpress Forest Hill stores has been live at Seek for fifteen hours and we already have twenty applicants.  This is more than we usually see and, I guess, a sign of the times. The applicants range from school leavers through to someone with an MBA.   Yep, an MBA!

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Newsagency management

NDD sale expected by end of October

The Australian today confirms the report I published here over a month ago about the owner of magazine distribution business NDD exploring sale options.

My take is that NDD has been in trouble for some time.   My experience is that rather than engage in resolving issues of over supply, NDD threatened legal action against me for comments here. I took this as an indication that they wanted the reports of over supply and other problems with their model to go away rather than be addressed.

Over the last four years they have gone from the most engaged and innovating magazine distributor to the least.

The risk for newsagents is that NDD is sold to a party which looks outside the newsagency channel for retail presence.  Imagine how our retail channel would be impacted if Australia Post purchased NDD and started carrying their titles in their government owned outlets.

Maybe the NANA consortium looking at a tilt at NSW Lotteries could look at a tilt at NDD.

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magazine distribution

Promoting Australian Traveller magazine

fhn_australian_traveller.JPGWe have given Australian Traveller prime space in our small travel magazine section this month.  We want to drive sales because of the bonus commission opportunity offered to all newsagents as a result of conversations through this blog.  We will supplement this with time for the magazine at the counter as well as time above newspapers on our newspaper stand.  It is not often that a publisher listens to newsagents and offers 50% commission on sales.  The least we can do is push Australian Traveller in our newsagencies.

Those who contributed to the discussion here with the publisher ought to feel good that their contribution led to this opportunity.

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magazines
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