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

Shaun The Sheep opportunity for newsagents

shaunthesheepI received a unit of Shaun The Sheep flockstars from Network – timed to connect with the release of the movie. On their own these may do okay. Add to them the Shaun The Sheep merchandise from Jasnor and I can tell a story.

This is an example of opportunities newsagents can leverage, ways we can connect products from multiple suppliers to drive a 1+1+1=4 result.

Promoting products around a movie release can be terrific for driving new traffic as well as driving impulse purchases. Your marketing is easier thanks to hype and marketing for the movie. I saw this with the first Despicable Me movie and more recently with the Paddington Bear movie.

Of course, Frozen is the best example but everyone was in on that. What I like about Shaun The Sheep is that it is not as big and as widely available as Frozen product. This presents us with an opportunity.

I first saw the Shaun The Sheep opportunity last year. This new product from Network arrived at a good time.

if you are not convinced about the appeal of Shaun The Sheep – the brand has 2 million fans of facebook.

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Newsagency

Disappointing to see the AFL support Coles

colesaflI have complained to the AFL over their exclusive promotion of Micro-Figures with Coles timed for the start of the AFL season. Local newsagency businesses are key supporters and sponsors of local grass-roots football teams. The AFL should be careful about supporting Coles as it will make us wonder about the respect given to our local team support.

Given its reliance on local teams to feed passion for the game, the AFL should focus on local businesses for retail partnership.

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Competition

Lucky Dips help sell magazines in the newsagency

ldipWe are leveraging Lucky Dip promotions for K-Zone and Total Girls with full cover placement next to each other. My thinking is that placement next to each other makes sense as they have a similar promotion. Our placement respects that this issue is different.

Whereas our competitors operate in a robotic way when it comes to magazine placement, we can think and act locally based on title cover and other local factors. This is part of what separates us as magazine retailers, it is an opportunity for us to show off our point of difference to shoppers and to magazine publishers.

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magazines

Delayed billing does not make a magazine title more appealing to newsagents

oztop100We received two copies of The Australian Top 100 Graduate Employers. We have early returned this title as it sits in a  segment which does not work for us, we do not have a spare pocket and it’s expensive. I made a judgement call on these factors and knowing what I need to name from each pocket each week to pay for space.

The delay of billing for the title to June did not enter into my consideration and nor should it. The value of a magazine title to any newsagency is profit and not the timing of payment for stock.

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magazine distribution

Foreign newspapers thicker than home town newspapers

nk1With the shrinking in size of some capital city newspapers we are seeing some days when foreign language newspapers are thicker. This is a reminder of the importance of these newspapers to our businesses. Some foreign language titles are stronger than ever, not suffering the same sales decline of the major dailies. Their success is all too often unnoticed by newsagents.

This is great news as newsagencies are the prime retail outlets for foreign language newspapers. Foreign language are an opportunity we ought to embrace for our profit. They are an excellent example of good news in and for ur channel, good news which is too often overlooked.

Footnote: I included an image of this weekend’s Neos Kosmos because I like their front page tribute on the passing of former Prime Minister Malcolm Fraser.

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Newsagency management

Sunday newsagency marketing tip: introduce yourself to someone you don’t know

The most valuable shoppers in your business are those who have not shopped with you previously, those who rarely step into your business.

Think about how to reach those people. The best place to start is your front window, your window on the world which passes by. Use that space to call out to those people who do not shop in your type of shop. Invite, through your display, new traffic. Surprise them with your products and your display.

Another place to connect with people who do not shop in your business is to talk with them.

I have heard newsagents talk about individuals and even sections of their community and say they don’t shop with us. It’s said as a negative. I say, flip it around and consider it a challenge, an opportunity, to get those who don;t shop with you shopping with you.

Introduce yourself to people you have never talked to. Attracting new traffic starts with making a connection. Your hello personally or through a fresh looking window could be all it takes.

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marketing

Sunday newsagency management tip: make your back room inspiring

First up – I think back rooms are not good in retail businesses. They attract stock, paperwork and people – all three of which should be on the shop floor. That said, I understand most newsagencies have one and the owners probably think a back room is vital to the business.

No matter where it is – at home or the shop – make your back room a place of inspiration. On the walls have images, posters and other items to inspire you. On your desk have items that inspire you. These could be photos, cards, postcards, clippings from newspapers or magazines, items you have collected on your travels.

The items on your walls and desk should be personal, reminding you of thoughts, moments and experiences from which you draw inspiration and optimism.

A back room with the right items can be a great place to work on your business.

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Management tip

Terrific gifts with Yours magazine

yoursbagI like the gifts of tea and a Mills and Boon book with the latest Yours magazine. They fit well with the title in my view. This is an example of where bagging the magazine works. We have Yours in its usual location as well as on the aisle end – pointing into the dance floor.

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magazines

Some newsagents actively embrace training opportunities

Screen Shot 2015-03-20 at 5.45.13 pmOne comment I from several suppliers at the newsagency suppler management forums I hosted this week was that newsagents don’t embrace training. While this could be said for some newsagents, I know of plenty who do embrace training. I see it myself with the newsagents who do the free training offered by my newsagency software company.

Take the Cut your magazine bill session scheduled for next week. It has only three spots left. The week later, the Loyalty marketing session is full.

I encourage more newsagent suppliers to host free online training. The engaged newsagents will take it up, learn and benefit. The unengaged will ignore it and, eventually, complain that others are treated differently to them.

To suppliers I’d note:  days of dealing with all newsagents the same are over. Newsagents who are more engaged are more valuable to themselves, their employees and their suppliers. This is not about size, it’s active engagement in transforming your newsagency to a brighter future.

Engaged newsagents embrace training and other engagement opportunities from any supplier and all you need for this to be successful is a small pool.

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Management tip

Checking out your competitors

Screen Shot 2015-03-20 at 4.20.20 pmSocial media makes it easy for us to see what competitors are doing without becoming a stalker. You can follow them on Facebook, Twitter, Instagram and elsewhere. Don’t think it’s odd as they probably already follow you.

Following a competitor on social media can be inspiring – not so you can copy them but more to inspire you to do better yourself. This is true with the kikki K Twitter feed – it’s an excellent example of a feed to follow and from which to gain inspiration.

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Competition

WH Smith announcements coming?

With senior management from WH Smith in the UK here to meet Australian franchises – Wild and Supanews – I’m told there will be announcements relating to these businesses and maybe other business activity they are considering for Australia.

My expectation is there will be movement on their Australian retail footprint as the Wild and Supanews footprint is not sufficient a retail footprint for the WH Smith model of wholesale supply to work as they expect. While I have no inside information, I speculate that they would need around 500 retail outlets here to achieve the level of efficiency in the supply chain they should be looking for. If I am right, considerable more acquisition or new store activity would be needed.

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Newsagency challenges

Strong Darrell Lea branding drives sales

dleeI like the Darrel Lea Easter packaging this year. It’s bold and colourful. It cuts through visually in a way which works for the season – separating it from other Easter products this year.

Darrell Lea lost plenty of newsagent outlets when the company was sold and their retail footprint considerably expanded. I know of some retailers who started stocking the product as changes from new management flowed through and a more compelling retail offer emerged.

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confectionary

Fairfax article presents inaccurate message about newsagencies

The article published this week by Fairfax with the headline: Do we still need newsagencies? is inaccurate and reflects poor research. It is written with subtle support for newspaper home delivery, a part of many newsagency businesses which loses more money today than years ago.

There are quotes from newsagents which are not supported by evidence. I am surprised Fairfax editors let them through – but they do support the pro newspaper stance. For example:

but I would say that in the last 12 years magazine sales have fallen approximately 50 per cent, way more than newspapers

I don’t see this supported in the data I see in my benchmark studies.

Another newsagent is quoted as saying:

People are buying cards rather than gifts.

If this is the case the business needs to look at its card supplier and its gifts mix. I know of plenty of newsagencies where dollar for dollar gifts match cards and both are experiencing double digit year on year growth.

A real estate anger is quotes as asking:

It is a dying industry and unless they find a way to re-invent themselves, I can’t see the traditional newsagent surviving.

I agree with this 100%. However, reinventing should have started ten years ago.

Later in the article is an ignorant quote from a newsagent:

For 10 years I have been in the business and the trend now is move more into the gift business,” he says. “There are higher profits and higher margins.

No, gifts are not a trend now, they were a trend ten years ago and more. Now, the trend is beyond gifts.

The article finishes only with a supporting statement about home delivery. Newspaper home delivery is declining. Newsagents make less in real terms today than five years ago thanks to paternalistic publisher behaviour.

Newspaper publishers have a history of selfishness when it comes to newsagencies. This narrow-focussed poorly researched article reinforced that view.

Do we still need newsagencies? Yes, but not for the mixed message reasons Fairfax outlines in this sloppy article.

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Newsagency challenges

Japan Post / Australia Post game on

With the Treasurer announcing his approval yesterday for the take over of Toll Holdings by Japan Post, he has set the stage for intensified pressure on government owned Australia Post.

While much of the pressure will be felt at the delivery end of the Australia Post business, there could be implications for the retail side of the business including licenced Post businesses.

The acquisition, even the proposal of the acquisition, is a reminder that things change and we need to be prepared for change in our businesses.

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Australia Post

#5 of five provocative suggestions to challenge how you view and manage your retail newsagency

This week I will publish five deliberately provocative suggestions on aspects of retail newsagency management and operation. My goal is to challenge newsagents and their suppliers to break free from the past and engage in more present day retail

Suggestion #5: trash your counter.

When you are closed, take everything off your counter and from behind your counter. By everything, I mean everything: all products, stickers, posters, signs, technology, EVERYTHING.

Next, put on music you love. Turn the volume up.

Clean the counter from top to bottom and inside out.

Now, place the essential items back on the counter: technology and mandatory signs.

Finally, place product at the counter but to it from the customer’s side. Make conscious decisions with the goal of driving impulse purchases at the counter. In placing products, place less, tell a consistent story, constantly think of your shoppers. Create a fresh offer at your counter, something which causes your customers to comment on the change.

Oh, and fill any shelves or drawers at your counter which items which must be there.

Your counter is probably one of the most active places in your business. make it relevant, efficient and profitable by rebuilding your counter (and behind) offer from scratch.

Don’t delegate this job to anyone else.

While I am publishing the suggestions I am not necessarily advocating them for all newsagents. I see this blog as playing a role in challenging how we look and manage our businesses and from that encourage newsagents to think carefully about decisions they make.

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Management tip

Sportsmen promoting newsagents

sportsradioI caught an ad on radio last night promoting The Sportsman newspaper as being available in newsagents. It was a clear call to action and/or channel was the only channel promoted. We ought to appreciate this newsagency channel specific support by providing deliberate support of our own: through smart placement where more shoppers are likely to see the title and remember hearing the ad on radio.

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magazines

Unfortunate AWW cover up

awwbattyI think the latest issue of The Australian Women’s Weekly would sell better without the free chocolate mini cookbook suck over the terrific cover of Australian of the Year Rosie Batty. While the cover mount would have been planned months ago, it’s unfortunate to see it as Rosie is news and has been taken into the hearts of Australians – maybe even more so than chocolate.

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magazines

Inviting all Perth based newsagents

Screen Shot 2015-03-18 at 12.26.48 pmIf you’re in Perth and are interested in considering what your future could be, I encourage you to book for the first Newsagency of the Future workshop. It’s on in Perth next Thursday at 10am. Attendance is free.  I promise you will be challenged and encouraged.

Perth. Thursday March 26. 10am.  Country Comfort Inter City. Great Eastern Highway Perth.

Any newsagent is welcome to attend.

Click here for the booking form, or email your details to bookings@towersystems.com.au.

I will share insights relevant to newsagents and detail opportunities available to newsagents to attract new shoppers and to improve what we make from existing shoppers. I’ll back this with data from some newsagency businesses growing against the channel average.

This will be a practical session from which you will have ideas you can implement right away. It is for newsagents who want to improve their businesses.

This Perth event is the first of a national series that will include Melbourne, Sydney, Brisbane, Canberra, Adelaide, Hobart, Cairns, Townsville, Gold Coast, Sunshine Coast, Newcastle, Parramatta, Geelong, Launceston.

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Newsagency management

#4 of five provocative suggestions to challenge how you view and manage your retail newsagency

This week I will publish five deliberately provocative suggestions on aspects of retail newsagency management and operation. My goal is to challenge newsagents and their suppliers to break free from the past and engage in more present day retail

Suggestion #4: mark your stationery up by 125%.

We are often told that people think stationery in a newsagency is more expensive than elsewhere.

My advice today is for you to meet their expectation. If you mark your stationery up by 100% or less, increase your mark up. I suggest you go as high as 125%.

I know of newsagents who have done this and not dropped any sales.

People shop for stationery in newsagencies because of convenience in most cases. This also gives you permission to charge more.

If you are not sure about this suggestion, do it for a category and track sales for three to six months. I am certain you will soon mark all stationery up by more than you have in the past. It’s money in your pocket.

While I am publishing the suggestions I am not necessarily advocating them for all newsagents. I see this blog as playing a role in challenging how we look and manage our businesses and from that encourage newsagents to think carefully about decisions they make.

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Management tip

Unhappy with news coverage

newsnewsTalking to a Sydney newsagent today, they expressed frustration at the commentary News Corp. is running during the state election campaign. Rather than sticking to news, News Corp is “meddling” and therefore giving newspapers a bad name. I tend to agree with this view considering the front page of The Daily Telegraph yesterday.

I get that News is trying to set the agenda. This cover story and the headline especially disrespects politicians (okay they may deserve some of that) but it also disrespects a section of voters.  The Tele should stick to reporting news. Inside the paper they had terrific stories which should have been on page one.

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Newspapers

News Corp Woolworths magazines offer

wwofferHere is the display unit funded by News Corp. into Woolworths in support to the terrific gift with purchase with a number of their magazine titles. It’s frustrating to see a publisher invest in such an extraordinary point of difference. For the odd title I get it but across all these titles with a good gift and excellent inspire support. I wish this was in the newsagency channel. I’d give it prime front of store location. Sales would boom!

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magazines

Newsagency of the Future – A FREE business building workshop for newsagents

Perth. Thursday March 26. 10am.  NEXT WEEK.
Country Comfort Inter City. Great Eastern Highway Perth.

Join me for a look at the state of the newsagency channel, trends impacting on us and how we can create stronger and more valuable businesses.

I will share specific insights relevant to newsagents and detail opportunities available to newsagents to attract new shoppers and to improve what we make from existing shoppers. I’ll back this with data from some newsagency businesses growing against the channel average.

This will be a practical session from which you will have ideas you can implement right away. It is for newsagents who want to improve their businesses. Content will be challenging and truthful. Practical opportunities will be shared including changes you can make right away without having to join a group or deal with a specific supplier.

If you are doing it tough, not sure of future plans for your newsagency or not making what you want / need to make from your business, this would be a good workshop to attend.

Participation is FREE. The session will run for around two hours.

Any newsagent is welcome to attend. Click here for the booking form, or email your details to bookings@towersystems.com.au

This Perth event is the first of a national series. Later in the series, the workshop will be videoed and this made available. Future locations will include Melbourne, Sydney, Brisbane, Canberra, Adelaide, Hobart, Cairns, Townsville, Gold Coast, Sunshine Coast, Newcastle, Parramatta, Geelong, Launceston.

I own Tower Systems which has its newsagency software in 1,800+ newsagencies and owns 50% of newsXpress with 180+ newsagency locations. I also owns two newsagencies and writes at www.newsagencyblog.com.au. I’ll draw on all this in the context for the sessions

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Management tip

Is Network Services loading you with Naplan books tomorrow?

I’ve heard from a newsagent who is being loaded with Naplan books from Hinkler via Network Services tomorrow. These are books the newsagent can source direct for substantially more margin.

This is an example of an action by Network no covered in the code of conduct which is part of the trial set to be authorised by the ACCC. It is an action which disadvantages us. It is an action applied to us and not our competitors. It i an action which ought to shame Network and Hinkler.

I’ll be early returning all my stock.

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magazine distribution