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

Sub Tropical Gardening magazine quits newsagents

stgPaul Plant, the editor of Sub Tropical Gardening Magazine has advised readers in the latest issue that his special interest title will no longer be available in newsagencies. Plant blames higher production costs and lower advertising revenue as the reason for the move.

In his note, Plant says that wastage per issue is between 40% and 60%. It’s good to see a magazine editor writing about this wastage. However, since they set their print run size the wastage is up to them.

Plant also says We will save you not only time but also money and fuel in avoiding having to source our title from newsagents.  Seriously? – as if the only reason people who purchase the magazine from a newsagency only purchase this one item. Of course, that’s not true.

I expect there would be people who discovered this title when browsing in a newsagency. Some of those would have become subscribers as a result of the introduction from our channel. Others would have purchased the title regularly from a newsagency.

Thinking people only come to us to purchase Sub Tropical Gardening Magazine and nothing else is ignorant.

By all means Paul Plant make business decisions which are right for your business. But own your decisions. Don’t put down your retail partners who have served you well. Don’t say things that don’t pass a fact check.

All the best for the future of Sub Tropical Gardening Magazine. Australians interested in browsing interesting garden magazines will still come to newsagencies – as we the the magazine specialists of Australia.

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Magazine subscriptions

Network Services sends newsagents unsaleable magazine junk

magjunkThis photo shows part of the cover of a magazine received in a newsagency yesterday, sent by Network Services. Click on the image and look at the detail. That gunk on the cover is from stickers placed on these titles when they were on sale in other newsagencies.

As the angry newsagent who tole me about this wrote in their email: How dare they send unsaleable magazines.

Shame on Network for sending out such poor looking product. Where is their quality control? Non existent clearly.

This title is now on its third time around from Network Services. What appalling behaviour.

Shame on you Network Services and shame on the publisher involved in pushing this title on newsagents.

That this has happened speaks to the weak situations newsagents find themselves in. Our major competitors are not treated this way. That this is done to us disadvantages us, it makes us less competitive.

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magazine distribution

Why the Happiness? issue of Psychology Today magazine makes me unhappy

maghappinessThe usual supply of Psychology Today magazine for our newsagency was doubled for the Happiness? issue which went on sale yesterday. This 100% increase in supply is despite us rarely selling all the story we are usually supplied.

The irony is extraordinary. How can I be happy about such an unwarranted oversupply. It wasted our time, paper, fuel. What a waste! A very unhappy situation.

I look at this situation with this issue of Psychology Today magazine and shake my head. There is no sense to it. the distributor could say we have to send out what we are sent. From their business point of view I understand it. But it is ridiculous. It is shameful that the distributor, intros case Gordon and Gotch, can double supply without any justification in our accurate sales data.

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magazine distribution

Have you heard of Bomb magazine?

Screen Shot 2015-02-16 at 6.46.20 amMagazine Distributor used Twitter Friday to promote newsagents again and shared images of four magazines. While I love the support from Gotch for newsagents, I’d prefer them to choose titles more newsagents are more likely to regularly carry. For example, I’ve never heard of Bomb magazine. I looks to be a niche title for a specialist market.

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magazines

Promoting Australia The Story of Us in the newsagency

susWe are promoting Australia The Story of Us from Pacific Magazines in several locations in the newsagency to make the most of the opportunity, of the launch of the four-part title and the premiere of the TV show of the same name on the Seven Network last night.

We thought about the best place to promote the title and decide on placement with newspapers, in the middle of the main magazine aisle and at the counter. We will assess this space commitment late this week before deciding if we will change the space allocation.

Australia The Story of Us is a terrific looking title – excellent quality. I’m hoping the TV premiere last night gets people looking at it.

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magazines

Valentine’s Day is a great day to be in retail

Saturday was a great day in retail with many infrequent shoppers out.

One lady purchased a valentine’s Day card after lunch and I quipped with a smile: leaving it a bit late! She smiled and said after we said we’d give Valentine’s Day a miss this year he went and gave me a card so her I am. We shared a good laugh.

Later in the day a mum brought in her son (in his late twenties and who still lives at home) and said – there you are, go on, you have to get her a Valentine’s Day card. This mum then selected the card and pushed him to the counter.

I still can’t figure out, however, why someone would purchase three Valentine’s Day cards.

It was a busy day with plenty of laughs and terrific sales.

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Newsagency management

Newsagents label magazine in different ways

magsoldschoollabelCheck out how one newsagent labels magazines. While the photo is fro last year, it is from a CBD bed newsagents which considerable magazine sales. The label itself reminded me of what newsagents used to do twenty years ago and here it is being used today. While it does not have the useful of today’s label, it does at least allow shop floor management of when the return is due.

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magazines

Sunday newsagency management tip: never give up

No matter how tough your situation, no matter how impossible the road ahead, never give up, there is always something you can try, a step you can take to move forward.

While I expect that comes across as glib, the words are sincere.

I have never seen a difficult situation being faced by a business for which there is not something else to to try, someone to speak with, steps you could take to explore hope.

I have seen people give up too soon, locking in what they saw as inevitable yet which could have been avoided by owning the truth earlier.

There are newsagents facing tough situations today who may feel it is too late to change their business model. I say it’s never too late. There are also newsagents today when see dark clouds yet who are not acting because they thing a storm is inevitable when, in fact, they can avoid rough weather by acting now.

We have more control over what our businesses are, what they stand for, who they attract and their very future than we think.

I have seen businesses on the brink of bankruptcy turn around. I have seen businesses with barely 20% of revenue they once had turn around.

We are losing too many newsagency businesses because newsagents have given up.

This has to stop.

It stops by us believing in ourselves and our colleagues while at the same time acknowledging the challenges unique to our channel and those outside our channel.

We need to talk positively to each other, without ignoring the challenges of retail  the economy, print media and other factors. Indeed, those downers can be leveraged for a brighter future – if we adopt the attitude which is my management tip today: never give up.

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Management tip

Sunday newsagency marketing tip: use dead space for marketing

pwtvNewsagencies have dead space that is often not used where you can draw attention to products and drive shopper engagement by investing a few minutes of time. Take Something Sweet, the new partwork launched this past week. We ran a strip of the first issue on the floor in one of our magazine aisles. It used space which is never used, cheap space down low where people often don;t look. Shoppers noticed, sales engaged and we’re on track to sell out of part one easily – moving 120 copies and probably more.

the space cost us nothing and the placement was done in under two minutes. It made a difference in the aisle, drove sales and leveraged a good looking product which is being advertised on TV right now.

This is an example of no-cost marketing we can undertake to drive basket depth – drive additional purchases from shoppers in-store. Try it … it works.

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marketing

Growing Valentine’s Day gifts in the newsagency #5

vhThese Quick Stick hearts have been a hit for Valentine’s Day. the season is a perfect opportunity to get them out of the stationery department and onto a seasonal display. Why not? An excellent point of difference with a traditional newsagency product. Not my idea – an engaged team member did it. Terrific!

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marketing

Supermarkets do Valentine’s Day poorly compared to newsagents

valawfulI have seen Valentine’s Day displays in ten supermarkets this week when comparing parts of their businesses to ours. each supermarket has done Valentine’s Day poorly. The photo is one of the better ones. yet they will achieve reasonable sales simply because they have the stock. They are used by people who purchase on impulse because of convenience.

Newsagents can and often do do better than this. By better I mean offering a broader range of product people would be proud to give, better quality product in the gift area, displayed with pride and supported with customer service helping shoppers with choices.

It is seasons like Valentine’s Day where we have opportunities to compete with the supermarkets. Key to this is being on the lease line so those walking past can see our point of difference.

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Newsagency opportunities

Adding to the magazines we carry

msWe have recently added Manuscript to the list of magazines we sell – proving that newsagents do seek out additional titles to expand their range. I mention this to show magazine publishers who stop by here that some of us actually use a pull model. The challenge is that so much of what we get is pushed and pushed inefficiently that we rarely feel inclined to seek out new titles. The other reason newsagents don;t often order a new title is out of fear for being overloaded.

We regularly look for new titles to carry. And by we I mean everyone involved in the business. This is another factor in our growth in magazine revenue.

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magazine distribution

Newsagents trashing APN newspaper promotion of Staples

classroommakeoverHere’s a photo from one newsagent showing what they have done with the collateral from newspaper publisher APN sent to support the classroom makeover promotion being run with Staples.

The APN collateral is in the trash bin.

As I noted here, newsagents are angry that APN is promoting US stationery giant Staples and not the local newsagent businesses on which they rely to promote and sell the newspaper.

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Ethics

Newspaper circulation drops across the board in latest results

There is no good news in the capital city daily newspaper circulation numbers just released.

The decline is such that there must be a live discussion as when one or more of the titles ceases to be printed daily. Circulation of The Age declined 18.3% down to 106,838 copies. This is around 30,000 copies lower than the circulation of The Seattle Post-Intelligencer a respected broadsheet from Seattle WA, USA when it ceased being printed.

What’s worse for The Age is that there is no dramatic uptake in digital editions – the decline in print is not due to migration.

News Corp has plenty of bad news too with the Herald Sun down 7.9% Monday to Friday.

Shame on newspaper publishers for continuing to ignore opportunities for working with retail newsagents to grow over the counter single copy sales. Worse still, shame on newspaper publishers for not even having a current database of retail newsagents with home they could work on such a project.

There is no good news in the latest newspaper circulation results. The numbers remind newsagents of the need to proactively engage with other traffic generators to build the viability of their businesses.

Do I think we can grow newspaper sales? Yes!

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Newspapers

Discount magazine bundles don’t help Bauer stop deep declines in weeklies

Weekly magazine circulation has declined again based on the latest audit results published at mUmBRELLA.. From the declines speak to the failure of their discount bagged magazine strategy. here are the Bauer declines: Zoo (now terminal) 36%, NW 15%, Woman’s Day 5.7%, TV Week 4.4%, OK! 3.7% and Take 5 3.4%. Pacific weeklies declined too: Famous 14.5%, Who 12%, That’s Life 6.3% New Idea 3.5%.

Consumer habits have changed and some titles are yet to catch up with that in terms of content they offer. The publishers also need to engage differently with retailers. They focus too much on billboard displays and not enough on engagement that fits with retail today, specifically retail in newsagencies.

The publishers have not helped themselves by spreading into retail outlets where magazines are not treated well. Their arrogance has distanced some publishers from the newsagency channel.

In short, publishers need to reset their contact, change how they engage at retail and embrace newsagents as their specialist retailers. We’re all in this together and can support each other. However, supermarkets, convenience and petrol will not see themselves that way.

These declines are not new. The lack of a smart response from publishers is also not new. In some respects it is like watching a train wreck in slow motion.

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magazines

Magazine circulation figures sobering

Circulation of Bauer Media’s Dolly dropped 42% year on year in the latest audited circulation report – as reported by mUmBRELLA. other Bauer titles dropped: Cleo 25%, AWW 4.2%, Cosmopolitan 9.2%, PC & Tech 19%, Top gear 19.8%. Pacific titles dropped too but not at the same level as Bauer: Girlfriend 22%, Total Girl 29%, Men’s Health 19%, Women’s Health 12%, Marie Claire 9%, Better Homes and Gardens 6%.

Frankie, which usually achieves growth, dropped 3.5%.

Only a small number of titles reported growth this quarter.

Magazine publishers could grow sales by changing how they engage with newsagents. I am certain that newsagents could help publishers in return for a more commercial relationship. We could more actively promote magazines and engage in campaigns that increase multi-purchase as well as attracting shoppers back for their next purchase.

Newsagents have an opportunity to engage with the category differently to supermarkets, and P&C outlets where the focus is only on the SKU. For a better margin we can nurture and support magazines. It all depends if Australian magazine publishers want this.

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magazines

Strong January sales in the newsagency

January numbers for my newsagency show revenue up 19% year on year. There has also been a significant increase in gross profit percentage. The small team at the newsagency has worked hard to make this happen.

Here are key measurements for the business:

  1. Traffic – up 2%
  2. Average sale value – up 17%
  3. Average items per sale – up 2%
  4. Cards – up 28%. (24% of total sales)
  5. Everyday counter cards (birth to death) – up 26%.
  6. Diaries – up 24%. (5% of sales)
  7. Gifts – up 135%. (8% of sales)
  8. Magazines – up 5%. (21% of sales)
  9. Women’s weeklies magazines – up 9%.
  10. Newspapers – no change. (6% of sales)
  11. Plush – up 5% (10.39% of sales)
  12. Stationery – up 14%. (5% of sales)
  13. Toys – up 210%. (4% of sales)

Two thirds of what we sell has a gross profit of 55% or more. Toys for example is at more than 60% as is plush and most gifts. Magazines remain an important part of the business for revenue and for what we achieve with the traffic.

I appreciate these numbers may seem unreal to some. Like all the data I publish here, I will provide an opportunity to see the reports for themselves, to be certain that the numbers are true.

What we are doing in this business is living by the principles I have been writing about here for years – living by the principle that every day is our pay day.

The key factors to the growth are our whole of business discount voucher program, acting as retailers and not agents, chasing change in what we sell and how it is presented, using data to understand our customers and making the shop a destination for non-traditional products.

The discount vouchers continue to deliver the best result I have seen from a loyalty program. I launched the channel’s first loyalty program more than ten years ago and have used a clip card approach as well as a comprehensive points based approach. Discount vouchers are different again and customers love them.

Newsagents can grow their businesses by standing for something and relentlessly pursuing this point of difference.

Keys to success are multiple traffic generators for the business, above average margin, leveraging existing traffic as much as possible and being ruthless when things don’t work.

This 135 sq m shop is in a Westfield centre with another newsagency, two Coles supermarkets, Target, K-Mart, Australia Post and plenty go gift shops selling cards and gifts. It’s a highly competitive situation. We do not have lottery products or tobacco products as traffic drivers.

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Newsagency management

Comparing the challenges of bakers to magazine publishers

Screen Shot 2015-02-12 at 9.32.59 pmI am grateful a newsagent drew my attention to an article on page of The Australian Financial Review yesterday. Baking giant’s profit crumble on page 27 is a timely read as what Goodman Fielder has experienced with Coles and Woolworths, Australian magazine publishers could also experience as bread and magazines share some common aspects.

Here is what the newsagent wrote to me about this:

The comments in the AFR today regarding Goodman Fielders result (page 27) and the steps this company is taking to recover from a huge drop in profit due to oversupply and massive returns of bread sound just like magazines. I wonder how much push came from the supermarkets or is the effect on Goodmans bottom line the driver. Maybe we can learn something.

We see supermarkets driving some activity with magazines around discounts and bundled deals – all pitching the titles at below their cover price.

I wonder if there is pressure for this to increase – offering discounts, bundles and other promotions. Supermarkets are more active in the magazine space than at any recent time.

The only way we newsagents can address this is to be a unified channel of value to magazine publishers. I suspect, however, that the behaviour of magazine distributors toward newsagents is s barrier to that happening.

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magazines

Promoting Men’s Health mini mag

magsmenshWe are promoting the Men’s Health Cover Model Muscle mini magazine with our news, property and money titles swell as with men’s health related titles elsewhere in our mag department. It’s the right time of the year for the title. We’ve suggested it as a Valentine’s Day gift to some.

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magazines