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

The ANF can’t hide forever

Ever since I and other newsagents started speaking about the poor representation of newsagents by the ANF on the proposed magazine supply rule change trial being organised by the MPA, representatives of the ANF have attacked some speaking out but refuses to engage in real dialogue.

There was Ann Nugent, QLD ANF staffer, reportedly speaking out about me at a public meeting, ANF Chair Stuart Kilborn on the phone to a newsagent he’d never spoken to complaining, ANF CEO Alf Maccioni responding to newsagents putting down those challenging the ANF approach and the ANF SA rep, Colin Shipton out in SA reportedly putting down any who disagree with the ANF.

While the ANF is entitled to say what it likes, this approach of attacking those questioning its strategy and then ducking for cover and not engaging reminds me of a propaganda film used in the US in the 1950s: Duck and Cover.

I proposed a debate with the ANF CEO so that newsagents could judge for themselves. Refusing this opportunity of transparency damages the ANF and opens for question among newsagents why it is not open to publicly talking about its policy position, a position it established without consultation of those it claims to represent.

The suggested debate (or discussion if you prefer as I don’t see it as adversarial) offers the ANF an excellent opportunity from which to show newsagents their approach is right, it shows them not ducking for cover.

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magazine distribution

Leveraging the GoT franchise

IMG_7795With the latest series at an end, now is the time to leverage Game of Thrones merchandise. Anything with Jon Snow is especially popular. If you are asking what is game of Thrones you are too late. If you are asking which suppliers have product you are probably already too late. For these pop culture items buying needs to be ahead of the wave for you to maximise the opportunity. This is a space not occupied by traditional newsagency suppliers.

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newsagency of the future

Newsagents ought to try the online Tatts experience

Screen Shot 2015-06-21 at 9.56.56 amI have been trying out the Tatts mobile and online facilities to understand how they operate and compare the experience to the usual in-store experience.

Regulars here will know that I think online represents a far greater risk to newsagent lottery traffic and revenue than supermarkets yet newsagent associations have focused their attention primarily on the risk of supermarkets.

My experience with the Tatts App and their website has been terrific. It saves time and offers services someone short on time would like. I approached it with the mindset of a consumer: an irregular purchaser who is short of time and can easily forget to check tickets. The App and / or website experiences address each of these needs based on what I have experienced.

Purchasing a ticket on the App takes seconds. You are notified of the win and payment is made before most shops are open. The auto generated email announcing the win is good – cheerful, brief and to the point.

While there is a limit to what I can purchase on the App, the way around that is to setup a favourite ticket on the website, like, for example, a System 10, and the Applets you select the favourite.

You can’t use the App from overseas. To make these purchases you’d need to use the website accessed through a VPN that looks to Tatts like you are in Australia.

If I was a Tatts shareholder I’d be thrilled with what Tatts is doing online as it is important for the future of the business. It reflects the way services purchases are moving.

If I was a Tatts retailer I’d be concerned at the regulations Tatts imposes that drive the cost of providing the service up. I’d prefer the costs to be falling and the only way to achieve this is with less regulation on retail space allocation, corporate image and training requirements.

I encourage newsagents to try online as I have, go and eyeball your toughest competitor.

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Lotteries

Bauer Media doubles supply of Wheels magazine without justification

magswheelsThe newsagent who sent me this evidence of oversupply of Wheels magazine must be wondering if this is payback for some offence as there is no logic behind Bauer Media’s decision to double supply of Wheels magazine. There is no evidence in the data either. Look at April, Bauer bumped supply from 4 to 8 even though at 4 they were not selling out. The newsagent feels helpless. They also feel their work in ensuring accurate sales data is wasted.

Bauer is the driving force behind the MPA supply rule change trial, a trial with a rule of no early returns.

Bauer Media does not need any trial to sort out its own systemic oversupply to small business newsagents. No, all it needs to do is change its practices.

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magazine distribution

Tatts scratchie game on your mobile

IMG_7811Tatts has launched Scratch & Match play on mobile devices. While a promotional game without cost at this stage, it demonstrates how mobile based games can be played.

This is not an unexpected move by Tatts. I have written here many times that digital is the biggest threat to in-store purchases of lottery product – far more so than supermarkets getting lottery products.

You can check out the game here: http://bit.ly/1LbvjQH

Players can access more games by answering survey questions. I expect Tatts would say this is the purpose of the game at this stage. I think it is more a proof of concept.

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Competition

Tip: Feature National Geographic

IMG_7803This issue of National Geographic is worth putting in the spotlight as it may be browsed and purchase by people who would otherwise not consider the title. I had a couple of guys looking at car magazines pick it up yesterday when I moved it so they could see the cover.

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magazines

EB Games shows how to run a sale

IMG_7774I love how EB games at Westfield Knox dressed their store for a sale at the weekend. You could not miss this – the signage was visually strong and consistent. Nothing timid about their approach – no three or four signs. They gave over the whole store to the sale. I am inspired by their approach. It is especially good in a shopping mall where the traffic you attract will primarily be from foot traffic already in the mall.

Click on the photo for a larger version.

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Management tip

Network Services can’t even get the supply of Bauer Media titles right

IMG_7799You’d think a magazine distributor owned by a publisher could get the scale out of that publisher’s titles right. Sadly, Bauer media’s own network Services has failed on that score. They have increased our supply of the Take 5 Crime & Puzzle Special from 12 copies to 16 to 18 despite the evidence showing that ten copies is appropriate based on our sales history.

While Bauer fronts the ACCC and says the company wants a strong newsagents channel and wants to be part of developing a fairer model, here they are doing the opposite. I know if I complain to Network they will say the increase is an error. I am tired of hearing that excuse.

I think I have been sent the extra stock because Bauer wanted it somewhere, anywhere – regardless of what would be considered fair based on the sales data.

Bauer complains through the MPA that I am wrong on the issue of the magazine trial. If only they put as much energy into fixing their magazine supply model as they do into complaining about newsagent concerns.

This increase in supply of Take 5 Crime & Puzzle Special is appalling, unwarranted, unethical in my view.

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Ethics

Overloaded with Muscle & Fitness magazine by Network Services

IMG_7805Magazine distributor Network Services increased our support of Muscle & Fitness magazine from 2 cipies to 4 to 8 and now to 9 despite the evidence indicating that three copies is probably optimal for us. Network will say it’s a mistake – surely they could not have done this deliberately. The publisher, if I spoke with them, would likely say the last thing we want is wasted inventory in circulation. I would not believe either of these responses. We have been sent increasing copies of this title because the magazine distribution model to newsagents is broken. This oversupply by Network Services of Muscle & Fitness is appalling and unfair – in fact, it is unethical.

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Ethics

Sunday newsagency marketing tip: use video to show off products

Choose two or three products from your shop that you are most excited about and shoot a video showing them off and promoting them using your phone. Load the best of the two or three videos on your business Facebook page.

Sure you will feel awkward and you’re bound to not like the video. The more times you do it the better you will get.

You customers are bound to provide feedback – over the counter and via Facebook.

Keep each video short, fun and about the product you are featuring.

Do your homework to ensure you can speak knowledgably about the product. Talk like an expert. This is you adding value, showing why purchasing the product from your business is better for those viewing the video than from somewhere else. Don’t say this, show it.

A good video will be shared by those who see it on your page. This helps spread your message further.

I appreciate it will be easy for you to dismiss this idea. Please don’t. Give it a crack.

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marketing

Sunday newsagency management tip: take care where you place a price label

As we carry more expensive items in our newsagencies we need to adjust our approach to price labels. Whereas in the past a price sticker or barcode label on lower cost items most often was placed on the front, more expensive items require a fresh approach.

Items priced at $100, $200 and more need to be priced discretely. This could be done using a swing tag so there is no adhesive on the item or its packaging. Alternatively, a label could be placed on the base of the item so the product itself is not affected. Better still, you could make a price label and place this on the shelf next to the item. This is the approach we take for items at $200 and above.

Pricing a product with professional are can call out the item for attention by shoppers as they see it as something more than an everyday item. A special price label can make an look more precious. You can control this with how you price.

Pricing products with a price gun sends the message that the items are everyday. While this approach has its place, I think that place is less often in a newsagency on the move and transitioning to a newer model.

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Management tip

Using colour to brighten winter in the newsagency

IMG_7723I wrote recently about the use of colour to give the shop a warmth during the cold months of winter. This photo shows one of several warm displays I discovered when visiting one of my shops last week. The use of colour is excellent – it makes the display noticeable and warm, a nice response to the cold weather outside in the Melbourne winter.

I like the choice of yellow and orange arranged in a chequerboard approach and the thoughtful placement of homewares product in front. Better still, the display works.

5 likes
marketing

Using cards to target new shoppers for the newsagency

IMG_7093We are having success attracting Facebook traffic and in-store visits to the newsagency by calling out specific cards on our Facebook page. With card sales up close to 20% year on year off a terrific base we think the Facebook marketing activity is part of the success.

This is something any newsagent can do for a tiny investment. Sure it takes a moment to choose a card or two and take photos and post on Facebook. It works.

Choose a card you like that reflects the diverse range you carry and use it to reach way outside your four walls to look for new shoppers. You cannot rely on existing traffic to drive card sales. This type of simple social media marketing is vital. Plus it is easy.

Sure this is very basic marketing, marketing chasing a small traffic gain. But it is the best type of marketing you can run success from this will be more valuable in the long term than a big bump from a single big activity that costs more in my view.

Simple small-step marketing works the best in small business retail my experience.

If you are not marketing greeting cards outside your newsagency business you are missing sales for sure.

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marketing

Six tasks to allocate to newsagency staff on a Saturday

Whereas in the past scheduled tasks in the newsagency were set for weekdays, today with seven day trading it is appropriate we allocate tasks for the full seven days.

To this end we have a set of tasks we allocate to Saturdays. This is assisted by one full-timer working Tuesday through Saturday, offering a carry over from the weekday activity.

Here are the top six things we allocate to Saturday tasks – I’d note the list is often longer:

  1. Re-stock traffic generating front of store display units. This involves setting the shop to ensure stands and displays on the lease line are full and reflect a best-practice approach for each brand represented.
  2. Re-set magazines, ensuring fresh titles are at the front with full face display and weekend popular titles are placed with newspapers.
  3. Pull down and completely reset at least one full side of an aisle side. This is ideally done by someone not in the business during the week – to provide a fresh eyes approach.
  4. Process magazine early returns. We so a separate weep on a Saturday based on a sales assessment of titles and return on space and other factors.
  5. Check stock levels for selected departments. We track sales, on hand inventory and work out what we should order over the next week.
  6. Re-set the behind the counter display. This is a weekly refresh to ensure a current offer.

While the task list will vary by business, having a list of weekend specific tasks is key to getting the best possible value out of weekend resources and for keeping the business fresh for regular customers and interesting for first time visitors.

This post is not as much about the six tasks I have listed as it is about having important regular tasks that are Saturday specific. I find the more you trust people who have been given good training the better the results.

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Newsagency management

WH Smith taking over Knox Wild location

The Wild store at Westfield Knox in Victoria, where I have a newsagency, is closing this weekend. WH Smith is reportedly taking over the location. If this is so, it will be interesting to see what they use the spot for – whether it is a Wild store refreshed or one of the other brands they trade under in Australia. Either way it will be good to see up close how they position a corporate store in what is a big and busy shopping centre.

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Competition

Parcel services in the spotlight

IMG_7764In the article on Australia Post in The Australian yesterday they called out three parcel services competing with the government business – Mailman from Officeworks, Senile backed by NRMA and Parcel Point . Their call out listed Parcel Point as competitors. This call out is kudos for those services and a reminder for newsagents that the provision of parcel services is attracting plenty of interest. Certainly the coverage in The Australian yesterday was considerable.

In the same article they singled our Parcel Point for additional mention with its network of 1,500 locations in Australia. Many of those locations are newsagents.

While I am a Parcel Point outlet in one of my newsagencies that is the extent of my involvement.

7 likes
Hubbed

Bagged Take 5 offer frustrating

IMG_8652We early returned this bagged Take 5 offer because it requires an additional pocket and because it’s a lame offer when compared to the broader offer in Woolworths. Sending them unannounced as Bauer does makes space planning difficult – hence the decision to early return. My view is if we are to pitch magazines at a discount we ought to be funded margin as if the titles are sold at full price.

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Competition

Watching Australia Post

IMG_7753I urge newsagents to read the excellent John Durie article in the deal lift-out in The Australian today. Also read the accompanying piece by Glenda Korporaal. Both articles speak to challenges we face in our businesses, challenges being faced by Australia Post too. There is an optimist underpinning the Australia Post story.

What Australia Post is doing to reinvest their business model is instructive for us. Their moves speak to operating outside the square, confronting tradition and being competitive when if the past competition has not been a requirement.

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Australia Post

Why brands matter

hello-kitty-hospitalmainI have written before about the importance of brands in our businesses from stationery to ink to gifts. A recognisable brand has a cache of understanding embedded with it. If it is a good brand we retailers can leverage this.

The importance of brands was reinforced this week when I read the story about the Hello Kitty hospital that opened in Taiwan. This takes brand engagement to a new level and while it may seem crazy to some, to Hello Kitty fans this would be the place to have a baby.

In our businesses today we have well known brands. Some of us I am sure could more successfully leverage these to drive traffic and sales. Social media lends itself to brand level engagement as it is through this you can connect your business with a brand, reaching people who otherwise may not have connected your business with the brand.

While we are unlikely to brand our businesses entirely as one international brand, we can, in-store, create spaces owned by brands to become destination stores for products from these brands.

Read the hello Kitty story and maybe you will find the brand inspiration I found.

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Brand retailing

Magazine sales boost tip

IMG_1922If you stock Daphne’s Diary check the latest issue out yesterday and place it in a prominent position with the full cover on show. The free colouring book will absolutely drive sales of this title. It’s worked for me already thanks to prominent placement so people can see the gift with purchase opportunity.

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magazines

Another example of magazine oversupply & why the MPA trial is not needed

Screen Shot 2015-06-18 at 5.39.36 pmThe ANF supports the MPA trial as it is better than nothing and so data can be gathered. Despite offers, the ANF has not considered the excellent data in newsagencies. This image is a screen shot from a newsagent showing appalling behaviour by Network services in grossly oversupplying Muscle & Fitness magazine. From March this year Network started increasing supply despite their being o evidence. This poor newsagent is now suffering an increase from 3 copies to 9 copies. No wonder they are early returning.

Shame on Network and the publisher for enabling this situation. Shame on the ANF for not using this data to support action by newsagents to stop this behaviour.

While I am no lawyer, this evidence and thousands of examples like it could be harnessed for newsagents to bring acton against the distributors that consistently oversupply in the face of evidence indicating that there is no justification for this.

Every few days I receive schemed shots like this and reports showing consistent and growing oversupply. This evidence outs appalling behaviour yet it continues – on our channel and not on those we compete with. It is breaking newsagents.

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Uncategorized

Woolworths promotion of Bauer titles makes it tough for newsagents

11406833_367807720075676_7221817184947567036_n (1)Here’s an example of a publisher and supermarket giant working together to devalue magazine brands in a campaign that must reduce newsagent magazine sales.

The Relax & Save campaign offering two Bauer titles for $7 is an enticing offer for price conscious shoppers.

The folks from Bauer will tell Connections members at their national conference soon how much they love newsagents and remind them of their support for newsagents. The evidence in this photo pitches a different story – it is a story of favouring one channel in a way than can only hurt the larger channel, newsagents.

I wonder if Bauer is funding the discount being given to Woolworths for this deal or whether there is financial support flowing in some other way.

12 likes
Competition
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