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

Sunday newsagency management tip: automate management of multi-buy deals

IMG_0236Any discounts you offer in your newsagency should be managed by your newsagency software. I see too many staff in newsagencies applying discounts manually. This leads to mistakes that cost either the customer or the business owner. Good software handles all sorts of discounts including catalogue sales, volume based pricing in a single purchase, volume based pricing over several shopping visits, VIP shopper discounts, local community group member discounts, end of line discounts and more.

The image I have included shows the automated handling of the Hallmark BUY 3 FOR $10 card offer. The cards are $4.99 each but if a shopper purchases three at once they are discounted to a total of $10. Handling this automatically through the software sales time and cuts mistakes at the counter.

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Management tip

In more newsagencies next week

I am often asked about perspectives I share here and how representative they are. Insights come from my extensive travel. Next week, for example, I will be in newsagencies in Gladstone, Rockhampton and Mackay. This week it was Perth.

Our channel is as diverse operationally as it is geographically. Seeing a diverse mix of businesses is helpful to what I do and informing of the opinions I form.

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Newsagency management

Do your local community groups support your newsagency business?

Local community groups expect local retailers to support them but, too often, their members to not support the local businesses.

One newsagent I spoke with recently told the story of the local community group president who was aggressive in seeking financial support for their group but when asked about stationery and other suppliers for the group they said they bought from Officeworks because it was cheaper.

A price comparison showed Officeworks is not cheaper.

The newsagent declined to support the group as the years of support of the group has resulted in ignorant disrespect of the newsagency.

This is not an uncommon story – local groups expecting newsagents to support them without any commercial support for the support of the group.

these community groups need to understand we are businesses. We are asked daily to support this or that group or event or fundraiser. We can only support is we are supported. This is what being part of a local economy is all about. It is frustrating when fundraisers and local groups do not get this, when they ignorantly expect your help with no surety that they will help you fund them.

My opinion we newsagents should not support local community groups unless the support is reciprocated.

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Ethics

Pacific Magazines launching newsagent exclusive promotion

image003 (1)Pacific Magazines launches a prize-rich newsagent-only promoting starting next Monday. This promotion is a valuable opportunity for newsagents competing with other magazine retailers such as supermarkets and c-stores.

Being run as part of the Pacific nexus program, more than 1,000 newsagency businesses will be supported through the campaign with in-store marketing collateral as well as extensive out of store marketing.

The best way for newsagents to leverage the opportunity is to also promote out of store such as on social media and other platforms. This is especially true for regional newsagents who may have access to more cost effective marketing opportunities.

The prizes include an opportunity for a customer and a participating newsagent to each have a chance at winning $150,000.

I think every nexus newsagent ought to support this promotion.

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magazines

Malware from Microsoft costs the small business newsagency channel $500,000+

If you run a Windows computer no doubt you have been confronted with the Windows 10 update. This is an update that will not go away.

Microsoft has diverted from usual practice and made it difficult for everyday computer users to avoid installing this update. This is what I say it is malware. The approach by Microsoft is malicious in my opinion. Indeed, I think the Microsoft approach has been unethical and socially irresponsible.

Windows 10, while a reasonable update in itself, sucks up disk space and has a track record of breaking things like printer connections and other peripheral connections. These breakages take time and expertise to be fixed.

Newsagents have been particularly vulnerable as the use of computers in newsagency businesses is mandatory if you want to connect with suppliers in a compliant way. Computer penetration in newsagency businesses is above average compared to other small business retail channels.

I say Windows 10 has cost the channel more than $100,000 based on the number of calls my own newsagency software company has taken and a reasonable projection for the channel as a whole and allowing the time spent by newsagents who have not called for support.

Once you add in additional computer hardware purchased as a result of the Windows 10 installation, because it pushes capacity of old, greater than five years old, hardware to the limit, you reach a figure in excess of $500,000.

The approach by Microsoft all but took away the ability of small business newsagents to decide when they want to incur the business costs or the software companies that have worn at least 75% of the total cost of Windows 10 in our channel. No, Microsoft selfishly forced this on us, forced us to spend our money without the courtesy of a question.

My $500,000 estimate is real. My own software company has foregone more than $250,000 in revenue to provide advice, assistance and other services directly related to Windows 10, all work that is not part of supporting the newsagency software.

If this update is so good, Microsoft ought to have paid for the support required. But it did not. People could not get through so they turned to those who do answer their phones.

What Microsoft has done is another example of the danger of the arrogant forced software update. There is no place for this approach for small business retailers. beware software companies that do it.

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Ethics

The magazine specialist in Auckland: mag nation

IMG_0188I checked out the latest incarnation of mag nation, the specialty magazine shop today. This store is in Auckland, where the journey began for the business, but in a different location. The model now is pared back a bit but still focussed on magazines. They have less ancillary product and fewer magazines.  I am surprised they do not serve coffee as the area of this store is perfect for coffee.

For those wondering about the model and how they make it work, subscriptions are a key part, as is online. Indeed, the shop feels like a key driver of traffic for online.

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magazines

Book now for free Newsagency of the Future workshops

I am preparing material for the 2016 Newsagency of the Future series. This workshop will be completely fresh content, focused on the back half of 2016 and beyond. It will take into account trends in product channels in which we operate today, opportunities in new channels and structural changes newsagents can make to leverage the opportunities of change.

Whereas in the past I have used these sessions to get the attention of newsagents about changes coming, this session assumes everyone is aware of change because of what they are experiencing in their businesses. It looks to the future.

I see wonderful opportunities ahead as we disrupt our own businesses, breaking with tradition and not allowing our thinking to be constrained by a shingle of a bygone era.

I will share real data from newsagency businesses achieving double digit growth and explore with those attending how they are achieving this.

There will be opportunity for discussion around specifics as well as big-picture strategies.

Here are the dates organised so far. Click on any city to go to the online booking page for that event.

There is no cost. I am funding the venues and catering.

I appreciate some people outside capital cities might like me to do more regional sessions. This is challenging with my work and travel schedule for the Tower Systems and newsXpress businesses.

With the help of the video production team at Tower I will film a version of the session in the studio and make this available to all newsagents. I’ll do this after Hobart so I can address common questions asked through the sessions.

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Newsagency challenges

Magazine publisher speaks out for newsagents and independent media

Below in full is a copy of an email I received from Dave Brazier, publisher of Boar It Up Ya magazine. He speaks from the heart about challenges he faces in his business and his passion for our small business newsagency channel.

Gday Mark how are things?

I’ve just posted this onto my Facebook page, enough is enough.

Not only mine, but I know of at least three other mags on the verge of collapse due to the increase in popularity of internet based pages etc, resulting in massive losses in sales by the # 1 magazine sales outlets, Newsagents.

I have again stressed the importance to support local Newsagents and not the big boys (Coles, Woolies etc) before all is lost.

The following is what I’ve posted on Facebook, and would love for you to share on the Newsagency Blog.

“This email attached represents not only mine, but every other magazine publishers nightmare.

Newsagents are finding it tough, the daily grind to make an honest living for them is getting tougher by the day. Newsagents are the main source of supply for my magazines and have been since I started over 13 years ago.

If Newsagents cannot afford to keep their doors open, I cannot sell my magazines. Due to illness, this is now my main point of income. I cannot afford to lose anymore.

Online distribution does not work and is not a valid point of sale for the hours going into each issue I produce. 
The internet is quickly killing ALL print based media. Between publishers and Newsagents, it’s going to be close who’ll lose out first.

SUPPORT YOUR LOCAL NEWSAGENT – NOT Coles or Woolies.
Give the Supermarkets half a chance they’d be selling Lottery Tickets, and that’ll be the nail in the coffin for Newsagents.

Please share this with your friends, technology is becoming a massive burden and cost to so many people like me. 
Support your local Newsagency, we need them more than ever.

Note: Due to ridiculous increases in postage of magazines Via Australia Post, I haven’t offered subscriptions for nearly a year. Postage rates now are even worse.”

Dave Brazier
Mob: 0418 502 760
Publisher / Editor “Boar it up Ya” & “Shoot Ferals Australia” magazines

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magazines

Beware tap and go

Watch out for this.

A customer makes a purchase totalling more than $100. They say they want to pay part cash and part credit card. They give you the card first for the majority of the purchase value, but under the tap and go limit. They then cleverly bamboozle the staff member and no cash changes hands. They leave. The credit card proves to be stolen and you didn’t get the cash.

This is a scam doing the rounds this week.

My policy position is – for any card purchase over $10.00 require a PIN. Yes there will be complaints. They are better than the cost of fraud.

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Newsagency management

Reducing friction in the newsagency

Friction is a common theme among speakers at business conferences I have attended this year. It came uo several times at the Shoptalk conference in Las Vegas last week.

Each use of the term has been in the context of business but before I look at that, here is the dictionary definition of friction:

surface resistance to relative motion, as of a body sliding or rolling.

Those I have heard using the term are referring to points in a business that jar, slow processes down or act as some form of barrier to business success.

Given the use of the term friction I have heard from business leaders this year I wonder if it is the new in word. Like alignment was last year and unpacking the year before that.

While I am not one for business jargon, I am interested in statements and labels that help us understand our businesses and that help us work on impediments to success. I like the term friction in the business context. I like it because it is real and because every business experiences it.

Some of the areas of friction in newsagency businesses today include:

  1. Things that slow down the processing of sales at the counter.
  2. Poor business management processes that result is slower than reasonable handling of day to day tasks such as end of shift, store opening and store closing.
  3. Delays and or complications in ordering from a supplier.
  4. Poor business practices that act as a labour tax on our businesses – such as manual processing of magazine and newspaper returns.
  5. Poor problem resolution processes.
  6. Poor handling of technical outages.
  7. Conflicting pricing messages.
  8. Visual merchandising that is not relevant to shoppers today.

Friction in our newsagencies is anything that slows our pursuit of the goals for our businesses. The resolution is to either ease the friction or remove it. Our channel being what it is, sometimes we can ease it or remove it while other times we cannot – in those instances we may need to confront changing tracks altogether. This is why of don’t have Tatts in my business. I am better off financially and emotionally without the friction. There are other examples too.

I hope O have explained this well enough. Personally, thinking about friction is helping me see opportunities for improvement in the business.

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Newsagency management

Getting your EFTPOS up and running during a Telstra outage

While Telstra appears to have been of little help to small business owners I have spoken with during the current outage, some banks have been equally unhelpful in restoring access to EFTPOS processing. One bank outright stated that their EFTPOS terminal would not work until Telstra was back on, the retailer was soon up and running thanks to connecting through a 4G dongle and a router that was fit for purpose.

Sometimes having access to good technical advice is more important than short-term better rates.

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Customer Service

How did the Set For Life promotion go for you?

A newsagent I spoke with yesterday told me they struggled to get customers purchasing a Set For Life ticket to take the free News Corp. newspaper. I’ll have to throw them away was their position. So, on their behalf, I am posting this here today and asking:

How has the Set For Life promotion gone for you? Did customers love the free newspaper?

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Lotteries

Telstra outage hurting small business retail including newsagents

Newsagents across Australia have been hit again by faults with the Telstra network. Retailers are affected where they run the business through a server located outside the business. They are also affected when EFTPOS terminals do not have phone line access.

I know of one business that had no EFTPOS for five days. They spent countless hours on the phone to Telstra only to receive different advice each time, none of it satisfactory.

The experience is a reminder of the importance of having appropriate contingencies in place so the business can continue to trade should the primary network be down.

Telstra ought to be on the front foot regarding compensation. Free data is not the answer here as many small business retailers I have spoken with have lost money through the register, money many will not get back unless Telstra pays compensation.

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Ethics

Nextra and newsXpress support Red Nose Day

IMG_0140The Nextra and newsXpress marketing groups are carrying the flag for Red Nose Day within the newsagency channel.

In my own business I am also promoting engagement with Red Nose Day online on social media. This is receiving support from red Nose day ambassadors, extending the reach of the link between the brand of my shop and the Red Nose Day brand.

Red Nose Day is an excellent cause.

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marketing

Checking out Dollar Tree in the US

In Las Vegas last week I got to a Dollar Tree store. Dollar Tree is a chain of more than 13,000 stores across the US where everything is $1. It is like the Reject Shop in Australia but more focussed on a price point and much bigger.

I have seen Dollar Tree evolve over the years. I visited again last week to see their current greeting card offer.

The images below show a broad range, satisfying any card giving occasion. While some cards are $1.00 each others are two for $1.00.

IMG_0090

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The cards are from American Greetings.

Will we see anything like this here in Australia? I expect so. You only have to look at the success of Aldi to understand the support for a value offer in Australia.

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Greeting Cards

Sunday newsagency management tip: say no to reps who just turn up

Reps who turn up in your newsagency without an appointment can take up valuable time. My advice is – no appointment, no meeting. They soon get the message.

While some people like the interruption of a rep visit or the free coffee that could come from listening to them in a nearby cafe, the reality is many rep visits are a waste of time.

Any visit ought to run to a set time, have a specific goal and be at a time you approve. Otherwise it could cost you more than it should.

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Management tip

Sunday newsagency marketing tip: connect with platforms that promote you

Some smart and engaged local newspapers and magazines actively support their display advertisers with a promise to share Facebook posts and re-tweet tweets.

What this means is you run an ad and beyond the ad itself, what you post on social media can reach a wider audience as they promote you.

In one situation recently a newsagent reached 500 people on their business Facebook page and the share by an engaged local publisher helped them reach another 6,000. That single share brought in excellent new traffic business.

Sometimes, the value of an ad spend comes not from the ad itself.

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marketing

Fact checking Mathias Cormann’s claims about Bill Shorten and newsagents

On May 13, Mathias Cormann, Liberal senator for Western Australia and current Finance Minister tweeted: Bill Shorten confirms that he opposes tax cuts for newsagents, bakers, chemists and many other small businesses around Australia. here is a screen cap from Twitter

Screen Shot 2016-05-21 at 7.19.26 AM

The tweet was retweeted 19 times including by the official Twitter accounts of the Liberal party and the National party, follow politicians and others.

This tweet mentioning newsagents reached over 200,000 people.

I was curious about the tweet as I had not heard of opposition to tax cuts for newsagents from Bill Shorten, so I asked Mathias Cormann as question in report to his tweet, on Twitter: Can you please provide evidence of this claim?  I figured since he put the claim out there on Twitter this was the best place to engage with simon it as Twitter is a platform enabling conversations after all.

Screen Shot 2016-05-21 at 7.30.50 AM

I genuinely expected a response quickly. Cormann did not respond. In fact, I waited a week and then tweeted Cormann again:  I know you’re busy chasing re-election but we pay your wage. Please provide evidence of your claim. .

Screen Shot 2016-05-21 at 7.28.05 AM

As of this morning, Saturday, May 21, Cormann has not responded nor have any of his political allies engaged further on this thread.

All I want is the evidence on which Mr Cormann has based his claim. If you read the thread you will see people attacking Cormann on the issue, themselves making political statements. My two tweets do not make nor are they intended to make any political statement. I have only one question – please provide evidence supporting your claim.

Any politician engaging on social media ought to be prepared to respond to queries on social media. I consider a tweet to be like someone standing on a street corner, on a box, making a speech to anyone within earshot.

On Twitter, I am within earshot of Mr Cormann. I am in the crowd listening to him. He has made a statement and I asked him a question as anyone could do in a crowd listening to him on a street corner.

It is disappointing Mr Cormann has ignored my one simple question.

So, I hit the internet to try and find evidence supporting Cormann’s claim. The only evidence I could find related to Bill Shorten’s budget reply speech where he says Labor supports tax cuts for small businesses. he goes on to say: Labor will support a tax cut for small business – but unlike the Prime Minister – we will not use this as camouflage for a massive tax cut to big multinationals.

In this he is referring to the re-definition of small businesses to be those earning up $10M and the proposed ramping up of tax cuts through to bigger businesses as laid out in the Coalition government budget.

I searched the Internet using a range of search strings and the only reference I could find to Mr Shorten and newsagents was one unrelated story in the AFR.

The only justification Mr Cormann might rely on is the budget response speech. However that does not stack up for the vast majority of newsagents fall within the $2M turnover threshold supported by Labor on the matter of tax cuts.

It frustrates me when any politician from any party makes a claim about an opponent for which there is no evidence to support the claim. My frustration turns to despair for our country when a simple question to a politician asking for evidence of such a claim is ignored.

All I can conclude is that Mr Cormann does not have the evidence to support his claim that Labour opposes tax cuts for newsagents, bakers, chemists and many other small businesses.

Mr Cormann was happy to take the claim yet has not had the respect of democracy to show the claim is true.

All this matters to me because small business is a key topic in this election. This agenda was set in the Government’s budget. They put small business on the table in the policy debate. Labor joined them in talking about small business.

Any politician talking about their opponents and their small business policy ought to be prepared to back claims about opponents with facts. Regardless of who one votes for, the truth matters.

Footnote: turnover will only include agency commission. So, for lottery products, transport tickets, phonecard sales, mobile phone top up etc. you only include commission in your turnover figure.

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Ethics

Walmart customer service focus

Walmart helps banana shoppers choose bananas that are safe to eat based on the colour of the bananas. My first reaction was who needs this and then I realised that regardless of whether I need it or not, it is a customer service that costs Walmart little yet puts them in a good light.

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This made we think of opportunities in newsagencies for demystifying things we sell. Officeworks is doing some of this in the stationery space already.

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Customer Service

Steven Lowey of Westfield on the new landlord model and the Westfield Cloud

IMG_0063Steven Lowey of Westfield spoke at Shoptalk 2016 Tuesday in Las Vegas, introducing us to the Westfield Cloud, what he calls a connective tissue between shops and shoppers. he went on to call it a cultural shift in sharing data.

Westfield has a centre in London where they are trialling the technology live, connecting retailers and shoppers in a way never done by landlords until now.

Westfield has made an extraordinary investment in developing technology and partnering with tech companies to address knowing who is shopping in a centre, where they are, the retailers they like and retailers they may visit.

The example video shown looked futuristic – however, this is what is being trialled by Westfield in London now.

They have solved issues common in shopping centres of tracking shoppers by their phones by retrofitting technology to track and engage shoppers. While this opens considerable privacy issues for the company it does present retailers a completely fresh type of engagement with people in a centre.

Those of us in Westfield centres could have an opportunity soon enough to spend more money with the company to leverage shoppers in or near our centres in a fresh way, a smart way based on information Westfield knows about shoppers, information are unlikely to know. This is one small part of the Westfield innovation that could change shopping mall retailing in the next phase of retail innovation.

While there are privacy issues, retailers, big retailers especially, see tapping into shopper proximity and other data as key to personalising shopping experiences in ays big retailers are challenged with.

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newsagency of the future

SHOPTALK 2016

I have been in Las Vegas this week at Shoptalk, a retail / tech conference that dig deep into online and offline retail, considering different models, trends and the shopper experience.

Shoptalk was different to many conferences I have attended – there was very little PowerPoint, sessions were short and on topic, there was considerable honesty about trends and speedhunps and there was an honesty about the place of the various type of retail including high street and online.

Most conferences run from 9 to 4 or 5 in the afternoon. Shoptalk ran from 8 to 6. This is interesting as the long day speaks to the focus of the organisers, participating speakers and attendees to the speed and scope of change relaxing to retail right now. It was a high energy conference with many announcements, plenty of start-ups represented and some extraordinary technology on show.

The other difference is in attendee engagement. Most the the 3,000 attendees engaged from start to end. This is rare for tech conferences.

While I am not planning on sharing insights here at this time I will note that at the end of one session, I said to a colleague – I feel like my head is exploding.  Over the course of 100 minutes, four presenters from international companies reset boundaries of what could be possible for high street retailers engaging online.

The big challenge for independent small business retailers is how to remain relevant in such a rapidly changing world, especially a world that is generations removed from what you may be transacting in today.

More soon on this.

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Newsagency management