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

An insight from the publisher of Lunch Lady and why we should not early return this title

I have been talking with the publisher of Lunch Lady magazine and through this gained an insight into the impact of early returns. Please do not early return this title as it is highly sought after and because it will sell right through the on-sale.  This is a title through which you can promote your point of difference as a magazine specialist.

It started with the sharing of this post by a Lunch Lady fan on Pinterest:

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Here is the original post launching issue #2. You can see the support for our channel here.

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Here are comments from the original Instagram post. I urge you to read them:

hellolunchladyHAPPY LUNCH LADY NEWSAGENT DAY ! 🍾🍾🍾 Here’s a short story about launching a magazine that I didn’t once know. When you send your magazine to a newsagent they don’t always put it on on the shelves, there are times they put it back in their store room and send it right on back to you. True story. BUT the more ladies/men/kids/dogs who mention Lunch Lady to their local newsagent, the more chance she has of finding her place on a shelf. Lunch Lady is launching in newsagents TODAY, so swing by your local and pick her up and if you can’t find her, ask for her. If your local newsagent doesn’t have one email us office@hellolunchlady.com.au and we will see what we can do about it or check our stockists page – link in profile. Post pictures if you find her and tag so we can see where she has landed! #indiepublishing #askyourfriendlynewsagent

#lunchladymagazine (thanks Daylesford Newsagent for your amazing support!)
view all 60 comments

verylittlewing@misstoryb yay! So excited to check it out! Xxx

bowievalentineI just went into the newsy at Sorrento they didn’t have it so she’s going to order some 💪🏽

mrscutlassWent to my local yesterday, Morayfield, had them look it up and realised I was a day early. They popped one aside for me overnight! Something for me to look forward to once both littles are napping 😊

pingdiniHooray! Will have a look in Castlemaine.

janegrover_Wonderful x

kaitlynhoughAwesome, got one at Castlemaine newsagent @pingdini

sweetpeadarlingheartOh, I’m so jealous! I will have to resist – I’m still waiting for my copy on the post @hellolunchlady xx

poppyandmustardI was lucky enough to manage to pick one up yesterday! My newsagent must’ve had theirs out early. I’m totally not complaining though 🙂 My 18 month old has loved both issues now and carries them around the house with her everywhere. I must take a pic 😀

scrapkinsellaPleeeease also ask at your local health food store !! It’s a fantastic magazine that needs to be out there.

shannonhowAny stockists in Hobart @hellolunchlady ?

ash.foodieThat is true, I work in a newsagent.. Must be frustrating for you

middleaisleRight between the new idea and women’s weekly!! 😂 Lunch lady winning! 👏🏼👏🏼

fawn_tastic@hellolunchlady I kept bugging my local agent until they got it. I mean I was in there twice a week telling them about it. Now they stock it!

hellosugarlace@milkthieves have you got the 2nd edition in? Xx

daitchesonI bought mine yesterday at Mount Ommaney in Brisbane. It was still in the shopping trolley right at the bottom. The lady was lovely and dug it out for me. I told the lady behind the counter about it and she was going to buy it as well. Your book is fantastic and I love it. Well done.

pingdiniThanks, @kaitlynhough!

alex_willcocksIs there a gippsland newsagents that has it stocked?? That you know of???

dianaberruecosIs this available in the US? I was just about to buy it online and then saw the cost of shipping 😳. It is more than the cost of the magazine.

possumagik@ange_nicholson @denisehaslem

justfordaisyI’ll be checking @hellolunchlady is there someone sticking in the Illawarra or Southern Highlands, NSW?

As I noted, please do not early return as doing so can damage the whole channel to the people who are supportive of this title.

10 likes
magazines

Tower Systems offers newsagents a new newsagency software acquisition option

My newsagency software company Tower Systems has launched a new option[1] acquiring newsagency software, a pay as you go model. Here are the details of the announcement as published by Tower:

The time is right given changes in the channel with newsagents sourcing new products, pursuing new traffic and leveraging higher GP. Thanks to our work with gift, homewares and other specialty retail channels, Tower Systems can help you transform your business.

$220.00 a month is all it costs to access the Tower newsagency software package. The $220 is paid by credit card. Stop paying if you want to stop using the software.

We make this offer now as we think some software companies are considering quitting the newsagency channel. You can see this through their lack of engagement with newsagency specific development, non-attendance at trade shows like the Sydney and Melbourne Gift Fairs and lack of engagement in the structural changes in the channel.

Developing software and backing it with good support for newsagents is expensive. A software company with less than 500 customers will struggle to keep up.

1,755 newsagents use our software – our closest competitor has 600.

We have experience switching from POS Solutions, Computerlink and AccessPOS to Tower.

Pay as you go customers have access to weekly online training workshops, 130+ professional training videos, software updates, our friendly help desk, our after hours support team, our theft check service and our business performance assessment service … for no extra charge.

If you have current hardware, the only up-front cost is for installation and training. This new pricing option saves capital, it eliminates the need for a lease or bank financing.

You will see from the simple agreement that you can turn it off at any time and not pay a cent more. You are in control.

Come and see the software and meet our team at our user meetings – details enclosed.

THE TOWER NEWSAGENCY SOFTWARE

For $220.00 a month you can use our newsagency software covering:

  1. Point of Sale, tailored specifically for newsagency business use.
  2. Magazine Management, scanned returns, early returns prompting.
  3. Stock control including stock take, reordering and supplier links.
  4. Customer accounts including Lay-By, book-up and statements.
  5. Home delivery including run list management, subscriptions and more.
  6. Loyalty including points accrual, discount vouchers and other facilities.
  7. Business performance reporting – printed reports you can rely on.
  8. XchangeIT support: electronic invoices and returns.
  9. Support for supplier EDI files including Sands, Hallmark and more.
  10. Theft mitigation. Tools to help you detect and stop theft.

SUPPORT AND TRAINING.

Included in the low monthly fee is access to the extraordinary Tower AdvantageTM service:

  1. Live, Australian based, help desk support with newsagency experienced help.
  2. After hours support access through an extensive mobile phone network.
  3. Software updates as released.
  4. Access to more than 130 software training videos.
  5. Access to more than 600 Knowledge Base articles with step by step instructions on how to use the software. This is better than a manual.
  6. User meetings around the country with free training and management help.
  7. Weekly online, live, training workshops.
  8. Weekly user support email with tips and advice.

BUSINESS MANAGEMENT HELP.

Tower Systems is there when you need, helping with advice, insights and guidance as much or as little as you want. These services include at no extra cost:

  1. Theft Check. A professional, police investigation quality, check of your business data to uncover potential employee fraud.
  2. Business check. An analysis of business performance as reflected in your business data – looking for growth and other opportunities for the business, helping you see what you may be missing in your business.

The time is right to make this offer as only Tower Systems has the capacity, commitment and vision to help newsagents leverage best-practice technology in a valuable and unifying way. Let us help you.

NOTE: Here is our response to any competitor who comments that this offer sounds desperate: – it would if it was coming from a company with 500 or fewer customers that is not growing. Tower Systems is strong and growing. We serve 1,755 newsagency businesses. We are making the offer because we have the capacity to and because we have a vision for a bright future.

[1] All existing purchase options remain available for newsagents installing our software.

Note: I was not going to write about this here but feel I have to because of the misleading information published by POS Solutions on their company blog. Their Subscriptions blog post followed the Tower announcement. It contains inaccuracies not only seemingly about the Tower offer but also Xero and other pay as you go offers. It also neglects to address the mandatory annual fees situation. Note – Tower does not charge mandatory fees. Reading this post and others from them it is as if they would prefer to trash others rather than innovate for themselves.

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newsagent software

The time is right for partworks publishers and Gotch to treat newsagents differently

Screen Shot 2016-02-15 at 1.48.20 pmWith only one significant magazine distributor now, the time is right for Gotch to do things differently – and I think the company will. One such area of difference ought to be with partworks. Those of us who commercially appreciate and leverage partworks to their full potential for our businesses ought to be treated differently than those who treat them as another magazine.

I am sure we can provide greater sales certainty for the UK publishers, Gotch and our collector fans.

In one of my newsagencies we had to gift to get the new DC Comics Graphic Novel Collection. We received 5 copies. I was in a remote newsagency in Queensland a week ago and they received ten. Whereas we treated it as an event, connected with related product we sell, this other newsagents had it placed in with magazines with no special support.

I understand the frustration with partworks and the supply model and that this gets newsagents being frustrated with partworks. Allow partworks experts / specialists better attention and allocation support and the UK publishers and Gotch will soon see the network grow and sales beyond the first few issues stabilise as more of us will confidently promote putaways and that is where we make good money off of partworks as their loyalty facilitates loyalty to our businesses in other departments.

We have the technology in our shops to provide the distributor and publisher certainty for the supply model.

Now is the time for us to act on this.

Yes, I am advocating some newsagents are treated different, better, than others – based on their commitment. They treat partworks differently than others so let’s see this encoded in distribution practices.

IMG_7392With TV commercials on for partworks promoting us, we are reminded of the launch investment of the publisher and the opportunity for publisher / distributor / newsagent to agree a more equitable approach.

There is so much more that could be achieved for partworks. From where I sit, the biggest barrier is the will of the publisher to engage.

If you hate partworks, I get it – they are not for everyone. Please don;t attack those of us who love partworks and the traffic surge that flows from a TV campaign. This post is aimed at those who hate them getting less and those who love them having more control over what they get.

10 likes
magazine distribution

Sunday newsagency marketing tip: a store within a store for school holidays

IMG_7223I love this cubby house I saw within a toy shop in Sydney recently.  Kids see it and they run to it. They know it is there for their pleasure. Newsagents focussed on toys and other items for kids could create something similar for school holidays and promote it outside the business in the local paper, to parents groups and on social media. Having this in-store will change the feel of the shop and make your kid focus clear.

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marketing

Too many old school suppliers to the newsagency channel still don’t get it

The newsagency channel has changed … because retail has changed because how people shop has changed because how people get news and information has changed.

Too many of our old school suppliers don’t get it. They think they can continue pay party commissions, expect premium space and expect us to focus on them ahead of where we make our real money.

Too many old school newsagents don’t get it .. you know, those who run their businesses as they did 10 and 20 years ago are in businesses with no future. these are the businesses closing, as they should.

Newsagent associations don’t get it. They focus on old school stuff and try and copy proactive marketing groups for new stuff.

I have spoken with three newsagents today who are being treated badly by suppliers because they are putting the needs of their businesses ahead of individual supplier needs. The newsagents are being smart. The are building stronger businesses from which the suppliers will most assuredly benefit yet the suppliers are too arrogant and stupid to see this. They think they can demand the newsagent serve them ahead of everything else.

My suggestion is if a supplier is being too demanding, beyond the value of the return of their products for the business, quit the supplier. Be done with them. This is true for any supplier including magazines and newspapers and lotteries. You own your business. The needs of your business have to come first.

And if you are paying association fees expecting the ANF to work on these issues for you – save your money, back yourself instead.

19 likes
Newsagency management

Lotterywest launches retailer development workshops

I like this retailer training initiative from Lotterywest. The only enhancement I’d like to see is for the training to be available online – but still live to facilitate lower cost engagement.  Here is their announcement

Last week we made an exciting announcement to our retailers in our weekly e-newsletter InTouch, about the launch of our Lotterywest Retailer development workshop program.

The program has been introduced to provide retailers and their teams with regular professional and business development opportunities during the year. We’ve chosen topics based on feedback retailers have shared with us over the last six months.

Take a look below to see what’s on this year.

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Workshops are for owners, store managers and staff. Meet our workshop presenter, Danielle from the Chamber of Commerce and Industry Western Australia (CCI WA) who we’ve been working with to customise the workshops to best suit the business operations of our retailers, whilst providing practical skills, knowledge and tools to enhance workplace performance.

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Lotteries

mUmBRELLA on how to drive magazine viability

Miranda Ward writing at mUmBRELLA has represented newsagents well in our fight with supermarkets on magazines.

I am pleased to see this quote from me as it is a message publishers need to get.

“Supermarkets treat magazines as a commodity. Newsagents continue to range the category as specialists. That has a higher cost for us yet we are not respected for this.

“The MPA needs to reconsider its focus on newsagents as the specialists as the current situation is a band aid approach that does not serve them or us well.”

While the current MPA newsagent only competition is good, it is not a strategy to revitalise magazines in our channel and for all Aussie publishers. No, to do that, we need to be respected for the specialists we are – as I have written before. If publishers do that, newsagents will reinvest in the category and, I expect, the dangerous sales decline of recent years will slow.

The current promotion is a tactic. What is needed is strategy. The MPA is not currently demonstrating an appetite for developing a strategy with and more newsagents.

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magazine distribution

How much time do you spend training staff in your newsagency?

This is a boring topic that many will tend to not read. Please resist that thought. Employee training is important. Employee training can help you save time, reduce theft, increase sales and retail good employees.

Through my newsagency software company I see data on engagement by retailers and their employees on a comprehensive free online software use training curriculum. The curriculum includes more than 130 videos structured into topics based on work role, live online training workshops and other activities.

Ranking seven different retail channels, newsagency businesses rank the lowest for using the free tools. Garden centres rank the highest, making the most comprehensive use of the free training resources.

I am not talking here about a large time investment. Some training videos run only five minutes.

Through engagement data I can see some businesses put a new employee through between an hour and three hours of training, earning the employee a certificate and ensuring a level of competency. This matters if training is not done and mistakes are made that cost the business money.

Regardless of the software you use, my sense is that an employee working 30+ hours a week in a newsagency ought to undertake at least twenty hours of professional development a year to improve their skills and their value to the business.

I’d note my suggested 20 hours is lower than the 2% the federal government suggested years ago for employee training annually.

Hour much time do you invest in formal employee training or professional development each year?

10 likes
Newsagency challenges

Celebrate Life Easter message

IMG_2762The newsXpress Easter collateral this year follows last year’s subtle and loved approach.  The colour change and the message of Celebrate Life guides appeal for the collateral for a season that can be hard to pitch. This photo is from my shop yesterday.

Customer comments are terrific.

3 likes
newsagency marketing

News Corp. newsagent remuneration review for Victoria

News Corp. today announced the results of its remuneration review for distribution newsagents.

  1. An increase in the home delivery fee newsagents are permitted to charge home delivery
    customers they bill for each News publication

    1. Metro agents: increasing from $0.205 per copy to $0.2081 per copy incl GST
    2. Country agents: increasing from $0.2563 per copy to $0.2601 per copy incl GST
  2. An increase in the amount they can charge home delivery customers as a
    postage/administration fee

    1. Increasing from $2.00 to $2.30 incl GST
    2. This can only be charged on each customer invoice if the customer elects to receive their monthly invoice as a hardcopy rather than electronic

It is appalling that a supplier can dictate the fees a small business can charge for such a labour intensive service.

Newsagents, the service providers, ought to be able to charge what they like. But, the system is the system and those in the system entered it knowing the terms.

The fee increase is disrespectful and socially irresponsible.

Victorian distribution agents looking to save money ought to consider quitting VANA, the local newsagent association as VANA is clearly not able to help them on the single most important matter, fair and equitable remuneration. Further, it has never been able to help them. Save the fees and reinvest in your business and you will be better off.

14 likes
Newspaper distribution

A fresh looking magazine offer from WH Smith

I had a good look at the magazine department at WH Smith in the Sydney International Terminal yesterday. It is impressive, far superior to what you see in WH Smith stores in the UK. Whereas in the UK they use old unwelcoming fixtures and support them with mediocre lighting, in Sydney I saw fresh fixtures you hardly notice supported by good lighting.

Here are photos. The first is of the back wall. This is what drew me in. 210 magazines. Full face display. Deep pockets negating the need for a waterfall to hold stock.

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Here is business and current affairs.

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Here is home and travel.

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And here is an overall view for context.

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While I would not allocate this much space in a more competitive situation than an airport terminal, I do like what WH Smith has done here. I hope the photos provide inspiration to newsagents considering shoplifts.

Note, not one of the fixtures is purpose built. All can be clipped in and clipped out. This is vital for any fixture in a newsagency business today.

8 likes
magazines

Credit Suisse update on Tatts

Credit Suisse has this morning issues an update on Tatts Group that newsagents may find interesting.

Tatts was unsuccessful in retaining its A$540mn pokies licence refund after the High Court upheld the Victorian Government appeal. Tatts must also pay 20 months of accrued interest and legal costs which we estimate to be A$50mn.

I wonder if media coverage of the Tatts High Court loss will be as strong as when they won. I recall some media outlets were savage toward politicians. Will they now apologise for this? I doubt it as it would not serve their political purposes.

1 likes
Lotteries

The curse of sale or return in the newsagency channel

The next time a supplier representative offers you a product on a sale or return basis, ask for more information. Ask your buy price if you take it firm sale. Ask whether other retailers with the same product are offered sale or return.

I am not talking here about product such as newspapers, magazines you’re your main card range. No, my interest is more with gifts and related items, new card spinners and toy related items.

I label sale or return as a curse because too often I see it stop retailers being retailers, managing a product on the shop floor for maximum performance – because if the background is the knowledge they can return the product if it does not work.

I think a sale or return offer makes retailers lazy. I think suppliers offer it because it is an easy to get a product into a retail business and once there it is more likely to stay.

Compare how you treat sale or return product with firm sale product. I sell plenty of retailers treating the two differently. Firm sale product is worked hard, pushed to sell through, to achieve the necessary return on inventory, space and labour for the business. This makes sense since it is your money at risk.

With sale or return, it is easy to consider that you have no risk. Without risk, where is the pressure. While some retailers will work sale or return product hard, plenty will not and this is why I say it is a curse.

Sale or return is not a benefit. I see it most often as a lazy tactic used by some suppliers because their product is not good enough to support a firm sale approach.

To newsagents I say: take the challenge of being completely responsible for your buying decisions. Chase better deals from firm sale. Work the product hard. Drive a faster return. Look at products differently as a result.

13 likes
Newsagency challenges

Storytelling is magazine placement

IMG_7233The decisions we make in placing magazines on our retail shelves represent a kind of storytelling. Look at the current issues of The Australian Women’s Weekly and Mindfood next to each other.

Each features Helen Mirren on the cover, and for similar reasons related to age. Whereas an average retailer will put the titles in their usual spot, most likely separately. A smart retailer places them next to each other, telling more of a story and, hopefully, driving sales.

4 likes
magazines

Updated newsagency performance benchmarks

Further to a discussion here, I decided to publish updated newsagency performance benchmark targets, to reflect the rapidly changing nature of our channel. These are some of the benchmarks I have provided to newsXpress members, but not all.

I say rapidly changing nature of our channel because that is what we are seeing. The traffic mix is changing as is the mix of what successful newsagents sell.

The benchmarks below are guidelines. They are subject to change as the suggested business model evolves.

It is important to have a goal, a target and that is what these benchmarks represent in my view:

  1. Gross profit: this is the goal gross profit for all product sales not taking into account any revenue or costs related to any agency business. The traditional newsagency average is 28% to 32% as shown through the Newsagency benchmark Studies. I think the goal today has to be at least 45%.
  2. Ratio of Gift revenue to Card revenue: 50% minimum. The goal ought to be 100% or more. If you do $100K a year in cards, target to do $100K in gifts, or more. NOTE: Gift is gift, not toy, collectible or other items. They have their own benchmarks.
  3. Revenue per employee – $250 an hour minimum.
  4. Revenue PSQM $4,500 – $8,500 depending on country versus city / high street to shopping centre and depending of the product mix. Higher GP lower revenue required.
  5. Overall revenue mix percentage targets: Cards: 25%; Gifts/toys/plush: 25%; Stat: 10%; magazines/newspapers: 20%; other: 15%.
  6. FLOORSPACE ALLOCATION: Cards: 25%; Gifts: 25%; Stat: 8%; magazines/newspapers: 15%; other products: 15%; office/back room / counter: 12%. It’s rare you make money from an office or store room.
  7. Mark-up goals: Stationery: 125%; Gifts 110%.
  8. Occupancy cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Location and situation are a big factor in this benchmark. For example, a large shopping centre business will have a higher cost than a high street situation. NOTE: It is easy to say the landlord is responsible for this ratio. As the retailer you are responsible for margin and revenue.
  9. Labour cost: between 9% and 11% of revenue where revenue is product revenue plus commission from agency lines. Labour cost should include fair market costs for all who work in the business.

These benchmark figures don’t all need to be considered together. You can pick one, measure, work on it, measure and adjust as the numbers indicate. The goal is to continually improve to pass the benchmark and work on the next.

I acknowledge these benchmarks are not close to what newsagent associations have recommended or would recommend. My focus is on the future whereas their focus tends to be on old-school products and services. Success in the future comes from diverging dramatically from the past including past benchmarks.

If you have any questions about any benchmark, please contact me. I’d be glad to help.

20 likes
Gifts

News Corp. change is another data challenge for newsagents to handle

IMG_0929Next month, News Corp. introduces changes in the handling of newspaper subscription payments by distribution newsagents. this is the next step in a project started years ago in South Australia.

On April 11 they are moving all subscriptions for News Corp product from a mixture of Pay at Publisher (Office Pay) and Pay at Newsagent (Carrier Collect) to Office Pay. This will affect around 300 newsagents as the News letter notes.

While affected newsagents will be able to handle data changes manually, it will save them time if their newsagency software companies make this easier and faster for them. That is what Tower Systems will do. Other software companies are welcome to note their planned processes here.

This is another reason to offer Touch Networks services as this is how accounts are paid. I am proud to have connected Touch and News years ago to facilitate this in-store payment method. Prior to then, the News payment model did not have an in-store payment option.

11 likes
newsagent software

The new looking magazine department

I am often asked for photos of changes made to the layout of the newsagency based on what I write here or when I speak at meetings and seminars.

This photo, takes this past Saturday, shows part of the magazine department. It runs down this fixture to the back wall where we have 250+ full face pockets.

The display area to the left of the main magazine fixture changes regularly as does what is in front of the magazine fixture to the front of the store.

We also adjust the layout of the magazines regularly.

The key point I want to make here: everything changes, nothing stays the same. I think this is essential in retail today. Shoppers are more fickle than ever. We need to keep our stores fresh and appealing. We need to push back on those few customers who complain about product location changes.

We to lay our businesses out to maximise the return we achieve.

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Click on the image for a high res version.

I have focused on the magazine department in this image as it is the part of the business many newsagents continue to be reluctant to change. Some do, but not enough.

We are in a fight with supermarkets and other retailers. If we do not change our in-store offer we will lose the battle. Range and supply volume – they are topics for another day. This post is about the part of magazines over which we have control – how we lay them out in our businesses.

12 likes
magazines

Using an easel to promote the Easter season in the newsagency

IMG_7150With more and more retailers using easels and noticeboards to signpost seasons, we are doing this for easter, with this placement of the Easter poster next to easter cards. Out of shot, to the left of the cards, is Easter gifts.

For a while now I have thought that hanging posters is not always ideal. Some seasons lend themselves to a different approach – such as what we are trying with Easter at the front of the newsagency this year.

7 likes
newsagency marketing

Newsagents dealing well with the Network Services shut down

Help desk call traffic more than trebled for my newsagency software company today as newsagents updated data managed by their software reflecting the transfer of many magazine titles from Network to Gotch. All in all it was an orderly process. With 1,750+ newsagents using the software it could have gone any one of a number of ways.

While I expect help desk calls to remain high all week and into next week, today was the day of proving the process and testing the value of all of the preparation communication including that from Network.

Small business newsagents can be proud that they are handling significant change with calm professionalism.

Newsagent suppliers ought to take note. What is happening this week is newsagents demonstrating they can deal with challenges of a technical complexity. How newsagents have gone about this is another reason to support our channel ahead of supermarkets and other mass retailers.

Newsagent associations ought to take note. This is all being done without you.

15 likes
magazine distribution
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