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

The best source for labour rate and public holiday information

Some newsagents retain association membership to access labour rate and public holiday information. If this is you, save yourself the money.

  1. Click here for an accurate public holiday list.
  2. Click here to access the Fair Work Ombudsman Award finder.

Here are other free resources some newsagents use associations for:

  1. Advice on checking shopper bags for possible theft.
  2. Advice from the Federal Police on reducing the impact of theft.
  3. How to do a magazine relay in your newsagency.
  4. How to address magazine oversupply.

I think newsagency associations are out of touch with the needs of newsagents. Also, given they serve two different businesses, they are conflicted and less effective for each.

Save your money – invest it in your business.

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Newsagency management

In the US for a week

I am in the US this week for a conference with elite Hallmark Gold Crown retailers in Kansas City. I have come over early to see some new retail businesses in New York and to attend East Coast COMiCON in New Jersey.

I’ll continue blogging while I am away as I have some topics to catch up on. Plus I have been writing a series for next week on newsagency management rations I hope you find useful.

While I am in the US I am plugged into business back home thanks to technology so I will comment on issues as they arrive.

I’m also contactable here as my Aussie number diverts at my cost.

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Newsagency management

What local cafes can teach us about magazines opportunities for the newsagency

cafesteachusIn a café near a newsagency I was visiting a few days ago I noticed a selection of magazines available for browsing. Talking to the newsagent there was a disconnect between the magazines they focused on and those which were popular in the café. This presented an opportunity for the newsagent to learn more about magazines the currently sell yet which could be better featured – based on data from the café owner about what is popular with their customers a few doors away.

Sometimes, marketing insights we can leverage for our business can be found in businesses with which don’t have an obvious connection.

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magazines

Supporting the Win a Car promotion from Pacific Magazines

winacarWe are promoting the Win a Car competition from Pacific Magazines with the floor display unit in prime location.

We currently have the unit next to the counter. We will change location each week to connect with different destination shoppers visiting the business.

The Win a Car promotion is something we look forward to as it attracts shoppers, drives sales and gives us new customers for our marketing database.

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magazines

Using Twitter for newsagency marketing ideas

Screen Shot 2015-04-09 at 8.46.51 amI am inspired by this tweet I found yesterday.

A colouring book as an art therapy book!

It is wonderful how comments from others can have us look at our businesses differently. What we see as an item for one purpose could be seen by others as having a completely different purpose.

Maybe we change the art department to art therapy. My mind is racing with how we can promote this.

The more we promote our businesses in non traditional ways the more we will attract people not used to walking through our door.

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Newsagency management

Thoughtful spinner adjacencies drive sales in the newsagency

spinideaSpinners get a bum rap. I like them. They offer the ability to change your pitch easily. They also allow you to disrupt traffic flow and this can help drive sales.

I  two spinners together achieve more than they might achieve when alone.

In placing spinners we do so with thought. In terms of adjacencies, we ask ourselves: who is the customer. You get less value placing two spinners which appeal to different customers next to each other than if you place two spinners which appeal to the same customer next to each other.

Moving spinners is like a dance. You need to choose your partner wisely and move them around the floor gracefully, using all the space and ensuring you both have a good time while you are at it.

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Newsagency management

Using the POS software customer display to reinforce your messages

cdispThe only place we promote discount vouchers is on the customer display as a reinforcement and reminder. This is an ideal place to reinforce the pitch as it encourages those with a voucher to get it out to use with their purchase and to those without one to look forward to receiving one. It’s an unobtrusive pitch at the right time in the transaction cycle.

Customer displays work well in reinforce messages. My advice is to not overdo it – have two or three messages in rotation. Any more and it becomes a PowerPoint presentation and they can be boring. Repetition is key for the brief moment you have a customer within range to see the customer display.

I can’t say for sure that the customer display is a factor in success with discount vouchers but I am happy with our use of this customer touch-point in reinforcing the voucher message. It shows an integration of behavior and promotion – something sometimes missed in small business retail.

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Newsagency management

Pleasure from Coles magazine placement

iout'I know I shouldn’t have but I did get pleasure from this placement I saw at a Coles supermarket Wednesday. They covered Inside Out with Clean Eating with a cover shot of Pete Evans the controversial paleo diet promoter. I like that Inside Out is covered as this title is $2.00 less in Coles than elsewhere. I also like the dumb placement – pitching paleo food next to Barbie magazine. Some would say such an adjacency makes absolute sense.

When will magazine publishers realise that supermarkets don;t care about professionally managing magazines?

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magazines

Newsagents: check if you have been oversupplied Scoop too

scoop8Check out this oversupply of Scoop magazine by Network Services yesterday. This newsagent received two copies on November 6 last year and has not sold any. The allocations experts at Network decided to send another copy.

What a waste! This oversupply makes the small business newsagent less competitive.

There is no evidence to suggest this newsagent will sell the extra copy yet it has been sent – by a company newsagents are expected to trust to get supply right.

It is no wonder newsagents are doubtful of the motives behind the proposed new magazine supply rules.

Network ought to be ashamed of yet another example of oversupply which makes newsagents less competitive.

At least you get to top the magazine for return – but what a waste of paper discarding the rest.

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magazine distribution

Why newsagents are moving on from some gift suppliers

A gift supplier asked me yesterday why their sales to newsagents were falling yet gift sales in newsagencies were increasing. I explained the simple answer – newsagents want a point of difference as suppliers not offering this may get business early on but lose it as newsagents want to enhance their offer.

In a country town a couple of months ago I met with a newsagent who got into gifts a while back, they arranged for a supplier rep to call on them – it was their first visit to the town. Two years later the supplier rep had three accounts in the town and was disappointed when the newsagent said they would not order from them again.

While I understand suppliers want volume, there are other alternatives. As many newsagents themselves are showing, they can make more money out of fewer, more valuable, customers than out of higher volume lower value customers.

To gift wholesalers concerned about declining sales to newsagents I say look at how you sell. If you are opening accounts in locations competitive with the newsagent then either rely on those locations or place product with the newsagent who supports their desire for a point of difference.

Another factor is in the buying by the wholesalers themselves. It is frustrating to see the same range from three different wholesalers. Differentiation is vital today.

The longer a newsagent is in the gift space the more discerning their buying becomes. Wholesalers need to understand this.

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Newsagency management

The monthly partworks shopper valuable for the newsagency

monthlypworksWe have a number of partworks customers who shop with us monthly we don’t mind as they pay for new parts as they arrive by credit card. The monthly visit is to collect issues we have for them. If they skip a month it’s okay as we have been paid.

With more newsagents pulling out of partworks we are finding more customers prepared to drive a distance to collect series they are passionate about.

Serving this customer is all about making it easy for them. This includes easy payment, clean storage, good communication on arrivals and chasing issues which may have been missed.

With partworks customers more valuable for other purchases compared to regular magazine customers, these are services we are happy to provide.

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partworks

The Walking Dead opportunity is set to grow again

wdWith the latest series of The Walking Dead TV show set to debut in Australia, interest in licenced products is set to increase. We have had this licenced range for a long time and have embraced extensions as they are released. What is fascinating I that the licence appeals to guys and girls of a broad age range. People purchase the products as gifts as well as for their own use, on impulse and as a destination purchase. While getting into it now is late in the day, the opportunity is there for newsagents looking to expand beyond the traditional.

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Newsagency opportunities

Early returning Cosmopolitan Bride

cbrideWith a sell through of 30% and less, Cosmopolitan Bride is a challenged title for us in the crowded wedding space. The challenge would be okay if supply was cut by 50%. Since this is not happening, we have taken to early returning early in the on-sale to manage space and cash.

I cannot understand the deliberate oversupply of a title like this when there is no evidence in the sales data that we even cover our core costs of carrying the title.

Check your supply versus your average sales.

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magazine distribution

People coming late to support newsagent pressure on proposed magazine supply rule changes

It is interesting seeing those who claim to support and serve newsagents now supporting requests for the ACCC to listen to newsagent concerns about the trial of new magazine supply rules after the ACCC has agreed to hold a public conference on this. Makes me wonder where they were over the last couple of months when those more engaged with newsagents were publicly agitating on this matter. They were silent.

It’s easy to run with the crowd when it runs past you.

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Ethics

Here’s what I look at when asked to help a newsagency in trouble

If your newsagency is challenged – losing money, risking closure, not paying bills on time – and you’d like help on this, here is a list of information necessary to asses the situation.

  1. A comparison of trading periods. Start with the latest three months compared to the same period a year earlier. In the Tower software, this is the Monthly Sales Comparison report. Compare transaction volume, basket size, sale value, GST collected and then unit sales and revenue by department and category.
  2. Report on items not sold in the last six months. Lets look at dead stock in the business, what’s not turning for you.
  3. A product efficiency report. Look at your top 20 items and what sells with those items – as well as the percentage of times those items are sold alone.
  4. Your latest profit and loss statement.
  5. A weekly analysis of gross profit weekly by week for the last thirteen weeks. Add a line for each week showing your labour cost (wages plus super plus any other employee costs including your own wages). Add another line showing lease costs.

These five overall packages of information will provide a good indication of the health of the business and the current direction in which it is headed.

Once I have all this information I can usually find steps to take to improve the situation. It could be that I have more questions that require a deeper analysis of data.

I often find that newsagents assembling this data for me discover opportunities in their business which they could have discovered long ago. One newsagent recently discovered stock not performing which they were certain was performing. Another discovered their roster was bloated.

My key message here is that data matters. Data can explain where your business is at and provide a pathway to a better situation.

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Newsagency challenges

Marvel Chess partworks continues to drive terrific traffic

IMG_4679Customer loyalty to the Marvel Chess part series remains strong. I think this has something to do with the size of the parts – it is easier to collect from a newsagency than from a Post Office or to risk damage in the post. Supply is reliable – enabling us to serve needs.

A recent check of basket efficiency indicates that partworks customers are the most valuable we have out of all magazine customers. This efficiency – based on other items purchased with partworks, – is one reason I remain committed to partworks.

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partworks

Show off the knitting needles to drive BHG sales

bhgdispThe photo shows how we have the current issue of Better Homes and Gardens magazine on display in the usual location for the title. Fanning the title out this way across two pockets leverages the knitting needle gift – our sales are strong.

We also have BHG with newspapers and at the counter. The gift is well targeted to the BHG customer.

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magazines

What newsagents and other independent retailers need have to make a case to a landlord

If you want to make a case to your landlord for rent relief – short or long term – here is a list of what you will need to assemble to enable you to make a case.

You cannot go to a landlord and ask cut my rent or seek short-term rent relief without evidence to back your claim. It’s a rookie move to ask for a rent related deal without evidence, without making a case.

Here is the evidence I suggest you assemble and fully understand before you prepare your case:

  1. Current profit and loss (most recent year or to the end of the most recent quarter) and for the same period a year earlier.
  2. Sales transaction count year to date compared to a year earlier.
  3. Details of every step you have taken to improve traffic and sales including external marketing and costs associated with each activity.
  4. Details of steps you have taken to manage costs.
  5. Changes made to the business over the last year. Assume your landlord has not been to the shop and seen the work you have undertaken.
  6. If possible, comparisons with other newsagencies – an understanding of how you compare, especially if it shows you as doing better than most in key parts of the business.

Once you have all of this information together look for a narrative, a story, which supports the proposal you want to make to the landlord.

If your P&L shows your profit is stable or improving, your case will be hard to make. If it is falling your case is easier. You should not manufacture figures to suit your case though. Look at the accurate data and listen to what it tells you.

If your P&L shows profit declining or you making a loss, consider what you actually want.

Too often retailers go to a landlord with a problem and not a solution. Work on your solution and use the information you have gathered to justify the solution to your landlord.

My experience is that the best people to pitch a landlord for assistance are the business owners. There are some horror stories in the newsagency channel about so-called leasing experts who have left newsagents worse off than ever.

Prepare your proposal, based on verifiable evidence and present it without emotion.

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Newsagency challenges

Making space to feature a magazine

puzzletopI like what they do at the Newslink store at Brisbane airport to promote the small format Lovatts crossword and puzzle titles. Throughout the magazine department they have acrylics placed on top of the magazine fixture promoting a title. One on each facing in each magazine aisle. This pitches the puzzle titles outside their area and, I suspect, helps drive impulse purchases.

If your magazine fixtures have a flat top, consider doing something similar. This space costs you nothing extra. Puzzle titles sell well outside their usual location in my experience.

I’ve loaded a large version of the photo so you can see what they have done. Click on the image to see this.

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magazines

Selling old magazine issues

sellingreturnsThis photo is from the same store as the previous post – a general store in a Fijian resort. They are selling old issues of magazines at half price – because they can’t return them?

I can see old issues selling in Fiji. Good luck to them.

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magazines

The reach of WH Smith

snithsosCheck out this photo from a general store at a resort in Fiji. If the sign is accurate, UK newsagent operator WH Smith apparently manages their magazines and books. I’m told the same signs are in place in plenty of resorts in Fiji. Given the titles this could be managed out of Australia.

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magazines

Reporting tobacco cover-up requirements in the UK

The Times has a story today, Crisis at the corner shop as newsagents rush to hide cigarettes, which reports on the challenges faced by UK tobacco retailers, especially newsagents, to meet the demands of UK legislation requiring placing tobacco products behind doors.

I don’t like their use of the word crisis in the headline. I am sure there are sone UK newsagents who planned for this from when the legislation was introduced over two years ago. So for them, this is not a crisis. It is unfortunate The Times prefers to run with a negative rather than a positive when reporting on newsagents.

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Social responsibility

Must read: Fairfax report on News Corp tax affairs

Fairfax newspapers this morning have published a report claiming News Corp. has sent $4.5 billion to the US virtually tax free.

Rupert Murdoch’s media empire in the US has siphoned off $4.5 billion of cash and shares from his Australian media businesses in the past two years, virtually tax free.

According to calculations by University of NSW accounting academic, Jeffrey Knapp, over the past 10 years, Mr Murdoch’s companies here have paid income tax equivalent to a rate of 4.8 per cent on $6.8 billion in operating cash flows, or just 10 per cent of operating profits.

If true, regardless of whether what the company may have done is legal or not, the act of minimising tax in Australia is damning for a company which often uses its pages as a pulpit to tell Australians what to think and how to act.

To me, a good newspaper is one which is the social conscience of the community, operated by a business we trust, respect and look to for leadership, a business operating in the open, with full disclosure and in full support of the law and the principles of the community in which it operates / serves.

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Ethics

Hallmark Itty Bittys work on three levels in the newsagency

hittyThe re-launched Hallmark Itty Bittys are working well as collectibles, licence targeted purchases and impulse purchases – yes, all three.

The new stand recently released by Hallmark helps us connect with all three opportunities. The licence branding is key to attracting attention. The small footprint helps us place the stand for maximum impulse opportunity engagement. The depth to the range gives people to aspire to purchasing in building a collection.

Understanding the multiple levels on which a product line works can help us as retailers to maximize an opportunity. It can also help us better position ourselves against other retailers with the same product.

Target, for example, has Itty Bittys. Their approach with the range is good but not a broad as the approach I have outlined.

We have found the keys to success have been: moving the stand every week, keeping it full, placing characters in their designated locations and being able to speak to the product to possible collectors. This last point involves understanding the release schedule.

We have has Itty Bittys on the lease line leading up to Easter and it’s terrific seeing kids drawn to the stand from outside the business.

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Management tip