This is a silver lining story. We’re short of space – who isn’t this time of the year?! We had nowhere to put the large Hallmark Mickey Itty Bitty stock. The team placed them above magazine at the back of the show. Now, more customers look at the back of the shop as a result.
Great stuff!
It’s good to see Gerry Harvey still fighting on the GST front, his targeting of Australia Post and its new ShopMate service that he says makes it easier for Australians to purchase products GST free from overseas retailers and bring them into the country.
I am interested in the issue but not so much the shill of Harvey in making the pitch. I think this campaign would have more cut through if small business people were fronting it and explaining to Australians how their use of the service could ultimately cut jobs here.
The latest reports look like Harvey personally is losing out. Australians would care more if local businesses they know are losing out.
It was a thrill to see earlier this week some of the new Star Wars products to be launched shortly. While the majors have been and will continue to be all over Star Wars, we have an opportunity to play in this space in some gaps left by the majors.
For newsagents to get the most of these major brand opportunities they / we need to engage with suppliers more directly and not so much through agents and wholesalers who bundle toys from various suppliers.
The best way to leverage mega brands like Star Wars is for us to get closer to manufacturers. This is a space for the marketing groups as they can pitch to these large suppliers on behalf on more and in a way that is of interest to the suppliers.
Australian distribution newsagents are certain to find this UK comment site interesting.
In a coffee shop in Cairns Monday they offered me two blends from which to choose: Bang and Grind. The name of the coffee shop is Bang and Grind. At several other points in the business they leveraged their business name, leaving you in no doubt about where you were.
I hadn’t read the signs when choosing the coffee – the barista said Grind was mellow and Bang was a eye-popping wake-me-up. Even their behind the counter pitch was on point. Bang was my selection and it was true to the pitch – excellent for the morning.
I love experiencing a retail business where every touch point is true to the brand and the principles of the business. Band and Grind in Cairns is such a business. A visit there is a lesson in business.
It is easier for a business to control more of their pitch when they have more control over the products we sell. It’s rare we are in this situation in our newsagencies. This is why I say it’s important for us to focus on brand name products to sell in our businesses. The more recognised the brand the more we can achieve with it.
It is easier to sell products people know, understand and trust. Teenage Mutant Ninja Turtles are such a brand. Thanks to success of the latest movie, major retailers have achieved excellent sales. Newsagents can tap into this success to with licenced product.
One learning from the sales flowing as a result of the movie is that the traditional range is selling as well as the movie-themed range. This was unexpected by suppliers. The sales boost of the traditional products speaks to the power of a brand through the entire range connected with the brand.
We can make more money in our businesses selling licenced product than from cheap no-brand products.
The sign I saw in a Newslink store earlier this week shows Cleo has been added to the pack of Bauer titles available from these shops at a discount to the cover price. The inclusion of Cleo with the weekly titles could be an indication of challenges for the title.
The frequency of Grand Designs magazine is increasing from four to six times a year. This title has found a valued place in our home and living section thanks in part due to the TV coverage on ABC and Lifestyle. We co-locate for the first two weeks to make the most of PR around each new issue.
The Australian Financial Review had a report yesterday about a favourable tax ruling for News Corp. in Luxembourg in 2009. The report is accessible to all despite the vast majority of AFR content being bend a paywall. News Corp. tends to do the sale – leave reports negative to Fairfax outside the paywall.
The more newspaper publishers report negatively on their competitors the more free news we can access. The AFR report is a cracker given recent reports of corporate tax avoidance.
Pacific Star, operators of sports radio station SEN and MyMP is acquired Morrison Media, the publishers of Frankie. The only other print media they own is Inside Football. From their ASX announcement Pacific Star says the Morrison business will operate from a separate entity, business as usual. Morrison Media has had some challenges in recent times since the split with the founding team behind the highly popular Frankie title.
Hubbed appears to have let the domain for its blog expire, taking it offline. While not a big deal, it shuts down a communicate channel the company had used to promote Hubbed to newsagents. This is happening at a time where there appears to be a shift in the services mix promoted by Hubbed.
This ANF endorsed and promoted business started out seeking long-term financial commitments from newsagents for computer based kiosks for handling bill payment and parcel services. Now, it appears to be more focused on a missed delivery parcel collection service for which no technology kiosk appears to be necessary.
A newsagent spoke with me last week about the challenge of getting out of paying the lease on the kiosk which is not earning the business any money. I suggested they speak to the ANF since it was their endorsement that encouraged them to sign the long term lease finance agreement.
On a recent overnight flight I received poor service and while I did not complain the airline staff knew they had let me down on a simple request. I’d forgotten the experience until I received this gift pack of cheese and wine at the office last week. The note said it was from the crew of the particular flight on which I’d had the experience.
How you apologise in business is important, especially if it is to do with products or services over which you have complete control. It involves you actively listening to your customer, owning the situation and being clear in expressing your apology.
If circumstances are such that you can’t apologise to the customer at the time, a gift or card could be appropriate after the event – as happened with me last week.
While sending a gift pack is not appropriate for most complaints we hear in our newsagencies, we can provide satisfaction to concerned customers through engaged listening through to an apology card sent to them or having a small gift – a sample product – on hand as a gesture.
How you apologise is key to turning a negative into a positive.
The charity message pitched on the Collins Debden diary stand is connecting with shoppers. I heard a couple mention it Saturday prior to selecting a diary ti purchase. People understand the plight of the Tasmanian devil. I think it helps that it’s an animal charity too given the number of man related charities promoted in newsagencies already. Well done Collins Debden on choosing a charity people recognise and pitching it with excellent cut through on your floor display units.
By placing loose soap we sell in an organza bag with a product tag inside has driven excellent sales growth for us. It also streamlined selling at the counter, shifting the packaging work from the counter during a sale to the shop floor during quite times.
I think the sales boost has come from shoppers understanding what they actually get when the purchase the soap – we’re showing how attractive the soap can be as a gift.
Further to my report from the weekend that WH Smith is acquiring the Supanews business, I am told that Supanews outlets will be rebranded WH Smith.
Rebranding the Supanews stores as WH Smith would make sense as it would strengthen the presence of the WH Smith brand in Australia. WH Smith branding is important as it would make their push here more meaningful internationally.
The core benefit to WH Smith of the Supanews acquisition on top of their Wild and Kennys acquisitions is more outlets through which to offer their considerable range of home brand products. I’m told Wild franchisees are navigating the pitch of home brand product and WH Smith sourced product at the moment.
From a newsagents perspective, the Supanews acquisition is the most important indication yet of their intentions for Australia.
In April this year I started to comment that Loom Bands had run their course in Australia this time around. In the months following I wrote about magazines late to the party that did not sell. A couple of months ago I commented about discount stores promoting Loom Bands at low prices.
The moment we had five or six suppliers with Loom bands products early this year the writing was on the wall, it was time to quit the product line.
The only way to sell Loom Brand products now is at a deep discount.
This is why I was surprised to hear from a newsagent in South Australia that Ancol has Loom Brands as a feature product in their Christmas catalogue. I checked online and found 600 piece box sets for $3.50 – not much more than the wholesale price newsagents are paint for these.
Creating Christmas catalogues can be challenging because of the long lead time, competition with others sourcing products from common suppliers and varying degrees of interest from newsagents early in the year when you are building the contents of the catalogue. The challenge for those creating the catalogue is the cost of a dud product on them and the retailers they serve.
With Loom Bands, the signs were there early this year. Of course, my concerns could be misplaced and the bands in the Ancol catalogue could see out in participating newsagencies.
I am surprised Bauer Media’s Network Services is promoting stationery lines to newsagents. While 50% margin may be hot for products from a magazine distributor, it is not hot given what we achieve through non circulation product suppliers.
I’d be surprised if there is any take up for this offer.
Take the Pumponator. At $24.95 it is over priced and even at that inflated price 47% margin is too low. I sold it for less and made more.
I see no sense in non circulation product suppliers distributing through a magazine distributor.
To promote the products in your stunning window display – of course it’s stunning! – stick flyers in an acrylic unit suck to the outside of the window so people who like products in the wind have something to take away reminding them of what you have on offer.
The acrylic will cost around $20 and the flyers you can product and print in-house for next to nothing.
So, while your shop is closed and people are checking out your window, you have a marketing pitch for them to take away and remember your business.
Simple.
Brands matter in retail. There are plenty or articles and papers claiming that shoppers will spend more on a brand they trust. They can also make a purchase decision faster than if presented with the same product un unbranded backaging. This is why I spend time ensuring brands are respected on the shop floor.
The photo on the left is the before shot and the photo on the right is the after shot. All I did was turn the wrap so the brand – Hallmark – is represented in a consistent way. To me, the display on the right better reflects value and the messy display on the left.
Allocating a small amount of whop floor time can make your branded displays look better than other retailers. This can make you and your team more proud of your business. It, hopefully, will drive shoppers to notice the branded products and spend more with you – this is the key goal.
I appreciate this management tip may see somewhat obsessive. I think it’s valuable shop floor work through which we can make a statement about our businesses compared to others who may have the same products.
We are making good money out of Meerkats thanks to the popular TV commercial promoting insurance that has been a hit around the world for some years. We have products from several suppliers and are pitching them currently at the counter with success.
Being aware and on top of trends is key to maximising sales and gross profit. Meerkats are a perfect example. They have been hot for all of this year and have made an excellent bottom line contribution. recent sales indicate they remain a good opportunity.
We have had the BHG Puzzle Book with newspapers and it’s worked well. An acrylic is clipped into the slat wall next to The Age – adding a pocket to what was unused space. Most purchases are on impulse – making the newspaper purchase more valuable.
I have heard from two sources that Supanews is to be acquired by WH Smith with the acquisition set to be completed by the end of this month. Franchisees were advised by Supanews late yesterday.
Supanews is a franchise business with some corporate stores but with the majority of the group operating as franchisees. This acquisition will be the first of a newsagency related business in Australia by WH Smith.
Newsagency channel observers will not be surprised as Supanews has been in play for some time and the intention of WH Smith to grow its retail presence in Australia has been evident since their acquisition of Wild Cards & Gifts early in 2014 and then the the acquisition of carcass of the Kennys Cardiology business in mid 2014.
There has been movement in Supanews recently with corporate stores closing or being sold for what I am told are good deals. This appears to have been in preparation for acquisition.
Unrelated to the Supanews acquisition are reports of further acquisition activity by WH Smith in the newsagency channel. I have been unable to confirm reports put to me.
Day one of the taste cookbook collection promotion from News Corp. is almost over in Victoria. We’re out of today’s free cookbook and have been for a couple of hours. We were given plenty for our stock of papers and the extra papers we collected at lunch time but not enough for the Coles customers coming across asking for the cookbook. We gave a few out to these customers but from lunchtime sent them looking for the distribution newsagent as we needed cookbook stock for our newspaper customers.
This looks like it will be a popular promotion. It’s certainly been promoted heavily by News Corp in the Herald Sun, online and in-store – even in retail only newsagencies which is good.
While I have completely switched from print to digital for news and special interest magazine content, I have continued to only read books in their print form. I read a lot and the print experience provided time away from a screen. I like the ease with which I con interact with the book and appreciate seeing shelves full in my home office.
As an author I have experienced book publishing in the digital and print formats. I found the digital experience better for the data provided on engagement and download.
A few days ago I discovered a new book that I wanted to read urgently. The print edition would not be here until next month. Wanting it now, I bought my first digital edition of a book. Within seconds of purchase it was on all my devices: laptop, iPad and iPhone. The reading experience so far is better than last time I checked it out in an Apple store – years ago. If it continues this well the only thing I will miss is the reminder of books I’ve read on the shelves.
As technology evolves, more people will migrate from print to digital for all sorts of content. Reasons for sticking with print will fade as technology improves. Retailers relying on print for their future need to watch the trends with books, newspapers and magazines. Each of these three are being impacted at different paces. Newspapers are on the edge of the cliff, books are playing nearby and most magazines are some way back. However, they are all closer to the cliff than they were a year ago, two years ago …
I did not expect to enjoy digital book reading as much as I am. I only bought this particular book out of urgent necessity. I’m glad to be discovering an unexpectedly enjoyable experience.
I saw a good example of the power of the Disney Frozen brand Thursday when visiting a newsagency. The two stands of Frozen product in the photo were a magnet for kids and those buying for kids.
Placing the two stands together is a smart move as together they are more visual powerful than if apart.
Some newsagency marketing groups are offering their members access to Frozen product from plenty of suppliers – five at least. This allows those stores to sell a strong story that competes with the majors.
Price is not an issue as the bottom feeding deep discount stores are not heavily into this brand yet.
If you are do not have Frozen products on your shop floor you are certain to be missing out.