Insights from magazine partworks meeting
I was fortunate to meet with Gabriel Ladikos yesterday from Gordon and Gotch. Gabriel manages partworks within Gotch. He has been with the company for seventeen years and working with partworks for thirteen.
While I will not cover some of what was discussed in confidence here, I would observe that, as with all things in life, there is more to partworks than we see in our newsagencies. For example, orders are placed with publishers eight weeks in advance. These orders are based on sales achieved in the UK for the partwork already as well as trialled in Australia – usually South Australia or Western Australia.
The eight week in advance orders can be problematic when a national release performs differently to the UK and trials. Then, publishers need to either weather the storm of backorders waiting for returns or air freight stock to Australia – if such stock is available.
It is in this area of forecasting for more certain supply that our discussion was most interesting.
While I knew that partworks are sold through supermarkets in New Zealand, I did not know that they were sold through Tesco stores in the UK. Newsagents in Australia have exclusivity on partworks. This is one reason I love them – especially those supported with TV campaigns tagged to newsagencies. When I see those I know it is essential to promote boldly in store to connect with the TV coverage.
Gabriel outlined some improvements coming up with partworks. These will apply to Parts 11 onwards for all partworks. No change will occur for Parts 1 – 10 to allow the partwork to settle in and allow newsagents to establish their customer base for each partwork.
Weekly partworks’ onsale will reduce to 7 days and Fortnightlies to 14 days. The second recall will remain and will appear on returns forms 2 weeks after initial recall. This will provide a weekly with a maximum on sale period of 3 weeks, and fortnightly 4 weeks.
This change will provide both newsagents and Gotch with a faster turnaround to ensure better allocations and speedier backorder fulfilment.
The hour and a half with Gabriel was insightful – on both sides I suspect. One outcome will be better dialogue on how to create more valuable win win win situations from partworks. Publishers want to sell more product. Gotch wants to sell more product. Newsagents want to sell more product. If we understand each other better we can achieve that.
Partwork customers are more likely to purchase another product in your newsagency than any other customer – this is based on 2005/06 basket research. Their efficiency and value demand support from newsagents.
I didn’t stay for the ACP Connections conference dinner last week and missed seeing Warrick and Jo Hoskings and the team at newsXpress Gympie received long overdue praise from ACP and their peers by taking out the top award.
We re-launched into books last week based on a four page A6 flyer – sent to 15,000 homes around our centre. Our supplier overprinted the brochure with our details – always helpful in driving traffic back to your particular store. While we have played in the book space previously, this is the first time we have supported the category with a concerted campaign outside our shop.
The bar-code label (circled in yellow) on the cover of this issue of Inspector Morse partwork is central to our management of putaways. When the customer collects the title we scan the barcode and record that this specific copy has been collected by the customer. If it’s billed to their account we track that. If they are to pay we track that.
We are trying something new with the magazine display at the front of our shop by including a column of health magazines between Australian Women’s Weekly and New Idea.
Here is an example of where online beats print hands down. Cycle Sport which arrived in-store three days ago boasts on its cover an up to the minute form guide for the Tour de France. Hmm, the Tour ended a few weeks ago. The cover is out of date. While regular purchasers will not be worried about the out of date cover, first timers and intermittent purchasers are less likely to give the title a second look.