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

Author: Mark Fletcher

Great Book Sale at Forest Hill

booksale.JPGOur Book Sale at Forest Hill is working very well.  Customers love the offers in the flyers – they always do.  Book sales are very easy to run when you partner with a good supplier and back by investing in external marketing.  This is another excellent way to draw new customers to the business.  Books, Ink, calendars – they all work the same: great sales, good margin and new customers getting to know the business.  The key linkage between them is external promotion.

Customers react to event sales lick this book sale this more over time, as they get to know your brand and that your business is different to other newsagencies.

Newsagents need to seize every opportunity to promote outside the business – like this book sale.  Bringing in new customers every week is crucial to the health of our businesses.  It started immediately after our last HOT Ink! brochure which also sought to bring new customers to the shop.

These new customers buy other items, they are shoppers and browse well.  This drives good business in other departments which are browser friendly such as magazines and cards.

The book sale we are running is a newsXpress strategy.

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Book retailing

Gift suggestion: Art Deco Wearables

wearables.JPGWe put the Wearables range of purses and related gift items from Russ into our Forest Hill and Frankston stores two weeks ago.  Sales at Frankston have been slow while at Forest Hill they have been excellent – to the point that we need to re-order.  We liked the offer from the outset since the range comes in a display box which sets the Art Deco theme and because the products have an attractive price point and good margin.

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Gifts

THE AGE newspaper renamed

age_april15.JPGTHE AGE newspaper was renamed THE GE on the front page this morning thanks to an ad for the home ideas show stuck over the masthead and part of the crest.  So much for respecting the brand.

For readers who are not reagular readers here, I have a ‘thing’ about the desecration of newspaper brands by Fairfax.  While I am sure they like the ad revenue, covering the masthead in this way speaks volumes about what they think of their brand.

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newspaper masthead desecration

Newsagent TV commercial playing in-store

I was in a newsagency earlier this week and they were playing the TV commercial I funded late last year for the channel on their in-store TV.

If money were no object I’d like this and related commercials to run regularly on TV and in-store to remind the community about our community connection. While shoppers can buy everything we sell elsewhere, they cannot buy our local community connection, our customer service or our genuine smile.

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newsagency marketing

Special Interest magazines suffer

Sales of special interest magazines fell in the first quarter of 2009 according to the newsagent sales benchmark study I completed last week. The average fall of unit sales of special interest titles was 7% among the 97 newsagents participating in the benchmark study.

This fall is a concern because special interest titles are a key point of difference for us in the magazine department. It is rare to record a fall in sales.  In most newsagencies for which I have data, the percentage fall in sales of special interest magazines was greater than the fall in store traffic.

If we were a cohesive channel we would find a way to promote the comfort to be found in our special interest range and thereby promote a point of difference for newsagencies.

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magazines

Ethical shopping guide popular

ethical_shopping.JPGFor some reason we were not allocated any copies of The Guide to Ethical Supermarket Shopping by distributor NDD.  This is a pity because we missed plenty of sales.  It featured in The Age a few days after release – this is the first we had heard of it, when customers asked us for it.  While we now have stock, it is frustrating that we had to chase The Guide to Ethical Supermarket Shopping yet have no challenge in receiving titles which do not sell.  I shake my head some days at the magazine allocations process.

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magazine distribution

Promoting Cardplai cards in Frankston

cardplai_counter.JPGOur team at Frankston created a display featuring Cardplai music download cards and the latest issue of jmag which features cardplai next to the counter.  This is a clever promotion.  Cardplai is struggling to gain traction – promoting with a music title is designed to attract the appropriate demographic to the offer.  The alternative is to leave Cardplai cards on display near our card department where they get lost.

We introduced Cardplai to the newsagency through Tower Systems for no compensation.  We specificaly sought this as we wanted to ensure that newsagents received maximum possible return.  Now, months on, others are on the Cardplai wagon.  I hope their support is pro bono.  If it is not, it may limit the extent to which newsagents benefit.

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Greeting Cards

Marriott hotel group makes newspapers optional

News in overnight that the Marriott hotel group is making newspapers optional for guests in the US.  Years ago this would have concerned newsagents in Australia but not now – many with major hotel delivery arrangements have seen them taken off them, without compensation, in recent years and handed to a company specialising in this service.

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Newspapers

News Ltd surveys newsagents on home delivery

News Ltd is surveying newsagents, in some states at least, on home delivery costs including distance covered in delivering newspapers, time spent delivering newspapers, time spent wrapping newspapers, number of vehicles used and a bunch of other data about home delivery. This data has been gathered many times over recent years by newspaper publishers and industry associations. Excuse me for being cynical but this seems like more busy work for the newsagent.

News only has to look at the home delivery runs handed back by newsagents this year to determine the costs.  My understanding is that nationally, close to 200 newsagents have handed back their home delivery business.

Many newsagents want to continue to provide a home delivery service.  For this to be achieved, they need fair compensation for their efforts.

I wonder if the survey has anything to do with reported research into making News Ltd newspapers free?

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Newsagency challenges

Correlation between cards and gifts

I have been digging further into the January – March 2009 newsagent sales benchmark study data over the last few days and have evidence which demonstrates a correlation between gift sales and card sales in newsagencies.  Newsagents with a strong gift offering, $2,000 a month in sales or more, derive a benefit in greeting card sales. These newsagencies have out performed other newsagencies, where there is no significant gift offer, in the January – March 2009 versus 2008 comparison.

While gifts is a hard category to get right, those who have certainly benefit elsewhere in their business.  Newsagents successful in gifts I have spoken with tell me that it tookthree years or more to develop the knowledge necessary to be consistently successful with gifts.

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Gifts

Publishers offer to replace Alpha magazine

Several publishers are offering to replace the prime position occupied by Alpha magazine – next to newspapers in newsagencies.  This follows the move by News Ltd to cut newsagent margin on Alpha by 40%.  It will be interesting to see if newsagents have the guts to move Alpha and if they do, the impact on Alpha sales.

Publishers interested in proposing such a move should make contact through newsagency marketing groups as they have the best mechanisms of compliance.

My opinion is that Alpha should be moved away from its prime position immediately.  This prime space must be preserved for titles from which we receive premium margin and for which we have publisher commitment to respect our support in building success for a title.  Alpha is an opportunity for us to show how we feel about supplier decisions which harm our businesses.

Unfortunately, I suspect that newsagents will not move Alpha from its prime location – in part because of fear of retribution from News Ltd. and in part because of ignorance.

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magazines

Promoting Australian Homespun at the counter

fhn_homespun.JPGWe are promoting Australian Homespun at the counter this week as it comes with a free over mitt. This is the first time we have promoted this title in our prime counter location.  I am curious as to how it will perform.  The oven mitt, while nice, is a soft gift (common) gift.  That said, the crafts category is very strong for us so the title itself should pull results.  Our customers will let us know through the course of this week.

We had planned to leave our Weight Watcher’s magazine display up longer but with 75% of stock sold in four days we took the opportunity to leave some stock for our regulars.

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magazines

Correction tape as a fashion item

popnpop.JPGThe new Pop’npop correction tape from Pentel looks more like a ladies fashion or make-up item than correction tape.  This is why we have it at the counter rather than in our stationery department at our Frabkston store where we are trying the product.

If Apple can turn phones and computers into fashion purchases then why not correction tape?  The price point – $4.95 – makes impulse purchase friendly.

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retail

Class action on lottery space in newsagencies?

The Age published a good report from Michael Bachelard yesterday about how Tattersalls has blocked Intralot from accessing the best real estate for lottery product and the possibility of a class action.  Michael contacted me on Thursday, after he had been working on the story for some time – I was happy to answer his questions.

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Lotteries

Missed opportunity with Jobs Guide 2009

job_guide_09.JPGWe received Jobs Guide 2009 this morning.  It is published by the Department of Education, Employment and Workplace relations.  The Jobs Guide has a sell price of $26.95 and is not due for return until the end of January 2010.  These are not terms which are small business friendly.    Especially for a print product which is unnecessary – given that all content is available online.

And while on their website, it should list that the guide is available from newsagents.

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magazine distribution

AFL Chipz ignore newsagents

afl_chipz.JPGIt was disappointing to discover that the Topps AFL Chipz are being promoted as being available in major retailers but no mention of newsagencies.  Given AFL cards and albums we sell, tagging back to our channel in their advertising would have been apporpriate and useful for sales of their sales.

On the product itself, the Topps AFL Chipz look and feel very much like casino gambling chips. Odd for a product aimed at kids.

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Newsagency challenges

Missed opportunity for magazines

Publishers have missed an opportunity in newsagencies today.  While many of us are open and did receive magazines, we did not receive the usual marketing collateral material – especially for ACP Magaiznes titles.  Lack of collateral means the space is allocated to other titles for this week.  Based on the sales in the first half of today, it’s a missed opportunity.

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magazines

Kindle 3 for newspapers?

The Wall Street Journal reports that Amazon is developing Kindle 3, a larger (A4) screen version of the popular Kindle reader.  This would appeal to newspaper publishers looking for ways to move beyond paper as a platform.  The talk is that the Kindle 3 will be released before the end of the year.

Newspapers like the Wall Street Journal are available for the current Kindle readers.  The cost is $9.99 a month.  You start with a free 14 day subscription during which time you can cancel at any time.

The Kindle uses wireless technology to facilitate delivery of content anywhere in the US.  Wireless coverage is one reason put up for the Kindle not reaching Australia yet.

The low cost service provided by newsagents is one reason newspapers are not under the same pressure as their US counterparts to find alternative distribution channels.

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Media disruption

News Ltd establishes newspaper reader panel

News Ltd has established a reader panel through which they are inviting members to voice their opinions through surveys.  While inviting feedback on News Ltd newspapers is a good initiative, the approach is not as open or reader driven as it could be.  Participants go in the draw for a prize with each survey completed – readers keen to help create better newspapers would participate even if no prize was on offer.

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Newspapers

Understanding the Amazon Kindle challenge

kindle2_05-440x266.jpgSal Cangeloso has written an excellent review of the Amazon Kindle at Geek.com. It was accompanied by the photo which I have included here to show how the size of the Kindle compared to a book.  The Kindle is not currently available in Australia and Amazon appears to be in no hurry to release it here.  It’s lack of availability is another reason Australia is behind the United States when it comes to print book sales compared to digital book sales – or in front depending on your perspective.

The Kindle is used to read books, magazines and newspapers.  It collects content through a wireless network connection – anywhere in the United States.

When the Kindle and similar devices are released here, disruption to print media will gain pace.  The Kindle rests the distribution channel for publishers.  This is why newsagents need to be aware of it and other disruptive technologies.  From my first post about the Kindle in November 2007, I have considered this to represent a serious challenge to our model.  Australian newsagents were created, after all, solely for the purpose of distributing print media products.

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Media disruption

Sales Based Replenishment works

Despite criticisms in some ill-informed quarters, the Sales Based Replenishment program being driven by ACP Magazines and Network Services is working.  I have first-hand evidence.  Woman’s Day sold very well at Forest Hill on Monday last week, more than usual for a Monday.  SBR noticed this and provided more stock – thus avoiding a certain sell-out by the end of the week.  ACP wins.  We win.  We did not have to do anything to trigger extra stock.

Through the newsagent software company I own, Tower Systems, I have been involved in SBR since the first trials began in 2005.  This latest incarnation is by far the best.

The experience with Woman’s Day this week is evidence of how proper use of point of sale software can help a newsagency increase sales.

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magazine distribution

Making the column a display opportunity

dsc06906.JPGWe have embraced the column near the counter at our Frankston newsagency as a magazine display opportunity.  We keep evolving our use of this obstruction – this stops our team and our customers becoming store blind.  It served as an ideal location for promoting Zoo Weekly last week as it is at the end of the men’s magazine aisle.

Too often, newsagents see columns like this as a barrier, something with which to do battle.  This usually ends with the column being cluttered, covered with junk and becoming more of a battle.  By embracing it and telling a bold retail story, we use it as an opportunity – we force ourselves to see the column in a different light.

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magazines

ABC Radio National hosts forum on quality journalism

Geraldine Doogue hosted forum of the Future of Mass Quality Journalism last week.  Panelists included Eric Beecher, Publisher, Crikey and Business Spectator, Campbell Reid, Group Editorial Director, News Ltd., John Hewson, former Liberal Party leader, Professor Wendy Bacon, Head, Journalism, Information and Media Studies University of Technology and Alan Kohler, Publisher, Business Spectator and Eureka Report.  An edited version of the panel discussion was broadcast on Radio National this morning.

Newsagents and others who derive income from newspapers would find the discussion most interesting -it is available at the ABC Radio National website.

While our channel was created to distribute and support newspapers, we will play little role in the future of quality journalism.  While there is debate about the extent to which new technology and other disruptive factors will impact print media, we need to make business decisions based on the maximum impact, so we are prepared.

RELATED STORY:  Check out the report of Russell Crowe’s new fiml, State of Play at the Telegraph website.  The opoening paragraphrepresents the hope covered in the article:

Whither newspapers? With Russell Crowe as the champion of the downtrodden reporter, good endings seem possible for an industry often portrayed as morgue-bound. The new thriller, State of Play, in which Crowe stars, is so mesmeric that it may, in the optimist’s dream, do for the print media what Florence Nightingale did for nursing.

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Media disruption
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