Smart newsagents will leverage Poo Pourri TV coverage
Poo Pourri was voted a hot product on The Living Roon on the Ten network tonight – introducing the product to more peoplet. Every bit of leverage helps.
If only we could leverage the James Hird story
There has to be a weekly magazine cover story in the James Hird / Essendon supplements story/saga. This is the kind of thing The Bulletin would have covered and we would have used it to drive incremental sales. Come on Aussie weekly magazine publishers – find an angle and use it. Even a one-shot promising never before published details. This is a topic that’s crying out to drive magazine sales in Victoria and probably elsewhere.
A single drop of long on-sale magazine titles not appreciated by newsagents
With more and more newsagents reducing space allocated to magazines newsagencies are no longer geared to warehouse stock sent to last through a long on-sale. Whereas in the past holding bundles of stock for three months was acceptable, today it is not.
Technology should be used to apply product based on sales through the on-sale. Publishers will say this is not viable for them.
My message to publishers is that the model of supplying to us stock to hold for three months through an on-sale is not viable for us even if all supplied product will eventually sell. Today’s efficient newsagency does not have the luxury of the space required.
I am more likely to cut off long on-sale titles supplied in this way.
What’s your price for A2 cardboard?
In a Lincraft store in Sydney earlier this week I noticed they sell their A2 cardboard for $2.49. This is in a business which promotes itself as being a discount outlet offering good value.
I’m sure there are Lincraft shoppers who would say that the same product in a newsagency would be more expensive when, in fact, most newsagents would have exactly the same product at a lower price.
My questions today is what is your price for A2 cardboard? Anyone asking me is told $2.20 is a fair price for a quality product. depending on your location and other overheads you could go higher as I know a couple of newsagents do.
The difference between newsagency businesses and Lincraft is that we do not promote ourselves as being a discount business. If shoppers are to believe the marketing of the two types of businesses we should be more expensive. But we are not.
So, should we price to meet shopper expectations? If we did this with the cardboard and other products we’d increase our prices, make more money and probably not lose any sales.
Newsagents who price low to show they are competitive are often giving away margin unnecessarily in my view. try it out with your cardboard. Raise your prices 10% and see what happens over three months. If unit sales are the same, raise them again.
There are some items people purchase from you because of convenience. These are the items which will carry a higher price. When pricing them, think about it as subsidising other items off of which you do not make what you want.
Appeal to foodies with Feast
Feast magazine continues to receive excellent support on SBS, making it a food title of interest – thanks to consistent promotion on each issue. We use it as a title to appeal to real foodies and those interested in the food journey. We make sure the full cover is on show and place the title with food magazines as well as featuring it with newspapers or at the counter. It responded to these off-location placements.
Were you overloaded with magazines and calendars today?
I’ve received emails from several newsagents angry as the volume of magazines and calendars delivered today. I thought I’d open this post for feedback from anyone who wants to identify supply they consider to be unreasonable.
Why we should support Slam Skateboarding
Slam Skateboarding yesterday sent this tweet to its 24,400 followers on Twitter – naming newsagents as the place to purchase the latest issue which is on sale today. If you’re on Twitter, re-tweet their tweet. On your business facebook page promote this issue with the image they have used. In your magazine rack – make this the hero title of the section. They support us – we support them.
The smoke and mirrors of Victorian Government’s Small Business Day
This Saturday, October 4, is Small Business Day in Victoria. Yipee – I can hear you cheering from here. We Victorians are being hounded with TV ads telling us to shop in and support small businesses.
I am sure there are some in the current government who will point to this as support for small business. Such a claim would be disappointing and not the full story.
The best way any government helps any constituency is through policy as reflected in actions of the state legislature through to the actions of government departments as directed by their ministers.
The current Victorian government, like its predecessor, has presided over a period of almost no useful support for small business.
Take Myki, the public transport ticketing system. The current and last government saw small businesses sidelined in the sale of Myki tickets. Whereas previously newsagents were the key retail outlets offering these tickets for low but reasonable margin, since the launch of Myki 7-Eleven is the prime partner. This is small business policy in action.
Next time a Victorian politician claims they support small business, ask them how in legislation and department actions, ask them for evidence. I struggle to think of any.
Using Ebola to sell magazines
Uncensored cuts to the chase in cover stories and the latest issue about Ebola is no exception. We have it above newspapers – although I am not sure about the placement of The Walking dead calendar as that detracts from the seriousness of Ebola.
Promoting New Idea BBQ Essentials
Ww are promoting the New Idea BBQ Essentials title at the counter, with weeklies and with newspapers for the first week of the on-sale. It’s a good-looking title that we expect to do well in these impulse targeted locations. With BBQ season kicked off and this method of cooking so popular on radio and TV it should sell well.
Woman’s Day wedding issue
Info just in from Network Servcies on a special edition for eastern seaboard states (excluding far north Queensland) of Woman’s Day out tomorrow:
There’s an additional Woman’s Day being delivered tomorrow to replace the stock that is currently on the shelf. It’s the same magazine, but with a 16 page cover wrap of George Clooney’s wedding.
It’s going out as a redistribution, so it will have the same bipad and issue code.
It was run after Monday’s XIT file release, so the files for this stock will be out in the late file batch this evening (after 6.30 PM).
Weddings are big sellers, so stores can expect almost a full supply of what they usually receive of Woman’s Day.
I can foresee complaints from customers who have already read or purchased Woman’s Day. A 16 page wraparound will not be worth a full cover price to some.
How a newsagent allowed a staff member to steal from the business
A newsagent discovered massive theft by accident this week on checking the business numbers. The theft was allowed because the business did not sell items with accuracy. For example, many items were sold through the computer system as you would on a manual cash register. This permitted negative sales by department. The employee wanting to steal only had to do a -$100.00 (negative $100) sale and they could take $100.00 from the cash draw … and that’s what they did, often.
While it is stressful and upsetting for the newsagent involved, the outcome is a direct result of their actions.
Newsagents can cut theft. It starts with good management, following best-practice theft management advice.
Finance Minister makes case for selling government owned Australia Post retail outlets
At his press conference on Sunday announcing the privatisation of Medicare, Finance Minister Mathias Cormann made the case for privatising the government owned and protected Australia Post retail outlets.
There is absolutely no good reason for the Federal Government to own a private health insurance business today. Medibank Private is a commercial business, operating in a well-functioning, well-regulated competitive market with 34 private health funds. There is no reason as to why the Government should be involved in that commercial, competitive market. Furthermore, by selling Medibank Private we will remove the current conflict which the Federal Government has by being both the regulator and the largest market participant.
The justification used for privatising Medicare applies 100% to the Australia Post corporate store network: these are commercial businesses operating in a well-functioning, well-regulated competitive market. The government is the regulator and the operator.
The only difference between the Medicare situation and Australia Post corporate store situation is the size of the competitors. Medicare’s competitors are big businesses whereas Australia Post’s competitors are small businesses, like newsagents.
If this government was fair dinkum about competition, government ownership of businesses and small business it would sell off Australia Post owned retail stores. Further, it would sell them to small business operators as part of a strengthening of the franchised network trading under the Australia Post name. This would end government owned retail outlets from competing with small businesses.
Further on in the press conference the Finance Minister is clear about the privatisation case:
REPORTER: What do you say to policyholders, particularly older Australians, who specifically joined Medibank Private because it was Government-owned. I spoke to one this morning and he was pretty annoyed, he did join because it was Government-owned and he was pretty upset.
MATHIAS CORMANN: The Government has made a judgement that in 2014 it was no longer appropriate for the Government to run a private health insurance business. Private health insurance is a very well functioning competitive market which is well regulated. There is no public policy reason for the Government to continue to be involved in this market. We believe that on behalf of taxpayers that the capital that is currently tied up in Medibank Private can be used better. Furthermore, I would say to the member of Medibank that you spoke to, that he or she will be able to have access to at least the same level of services into the future if not better because in our view without public ownership, without the restrictions that public ownership brings with it, Medibank Private will be able to go to another level.
Australians would be better served with locals awning and operating Australia Post shops and these being on a fairer competitive footing than the government owned outlets today.
Take care with your backups
This photo shows a USB stick received at my software company last week. It’s from a newsagency sending in a backup for assistance. The damage to the stick and, in particular, the part that stores data was such that the backup was useless.
There is no point in backing up your data if you do not take appropriate care of the backup medium. Bending USB sticks kills them and their capacity to store your data.
Layering product placement to drive sales
We have a three step approach to pitching our 2015 diary range – in part because we don’t have space for one big display and in part because we know that pitching to shoppers several times in a visit helps drive sales.
If you look carefully at the photo you can see our layering approach in action for 2014 diaries. The diaries are placed in three locations: two floor display units, on a column and on the wall.
If we had the diaries in one location we have one shot for them to discover. Also, that approach requires a larger single location space commitment. Our approach makes better use of smaller space spots. Plus it situates the diaries such that more shoppers will see them.
Counterfeit money warning: Gold Coast
Queensland Police has asked that this information be shared:
The Gold Coast Police District and the Gold Coast Major and Organised Crime Squad are warning local businesses and members of the community to be vigilant after a recent increase in the use of counterfeit currency during the holiday period.
The Gold Coast Major and Organised Crime Squad is investigating several reports of people manufacturing and distributing counterfeit $50 and $10 notes on the Gold Coast.
Detective Inspector Knowles has urged business owners and community members to be mindful of people presenting large value notes for relatively low value purchases.
“In many of the transactions involving counterfeit notes we are seeing people buying a soft drink and handing over a fake $50 note to get legitimate money back,” Detective Inspector Knowles said.
“Shop attendants and business owners should check notes for the security features including the coat of arms watermark, the red and green diamond-shaped pattern lining up correctly, the clear plastic window is part of the note and not stuck on, and the Southern Cross stars look genuine and do not scratch off with moderate rubbing,” said Detective Inspector Knowles.
More information on detecting counterfeit notes can be viewed on the Reserve Bank of Australia website:http://banknotes.rba.gov.au/assets/pdf/counterfeit-detection-guide.pdf.
Anyone who may have any information concerning the manufacturing and distribution of these notes is urged to contact Crime Stoppers.
Anyone with information which could assist with this matter should contact Crime Stoppers anonymously via 1800 333 000 or crimestoppers.com.au 24hrs a day.
Expensive magazine partworks returns
Several newsagents have contacted me about the freight costs in sending boxed of unsold part 1 of new partworks back to the distributors. My experience is that distributors will cover this if you contact them and explain that the allocation of oversupply is their responsibility. If the supply model was more accurate such wastage could be avoided.
I was talking about this with a non circulation product supplier recently. They were shocked that newsagents had to pay to send back unsold stock, especially where newsagents had no say in the allocation of stock in the first case.
Magazine publishers: are you happy with this retail display?
Hey magazine publishers, are you happy with this display of magazines that I saw in a supermarket at the weekend?
Even if fully stocked this display would look scruffy with the covers hard to read. The display does nothing to support the products in a way that I’d call respectful of the product. There is a problem with the design.
The continued poor management of magazine supply to the newsagency channel risks more displays like this in supermarkets as unfair paternalistic behaviour encourages newsagents to further reduce their commitment to what should be an important channel for newsagents.
Magazine publishers and their distributors can affect change in the decisions newsagents make about magazines. That they are not doing this makes me wonder if they do want the supermarket share of magazine sales to increase.
The photo was taken in a mid-size regional supermarket. While it is not representative of what you see in major city and suburban supermarkets, it does reflect a magazine model a particular group has settled on for their model.
Think before you place product in retail
Product adjacencies are vital in retail. Get it right and you can drive excellent incremental business. In addition to ensuring that products placed next to each other speak to the same shopper, you need to ensure that the products are safe or at least feel safe together. That’s not the case with this placement of peanut butter next to fly and mosquito killer. While not actually harmful given the packaging, it feels as if it could be harmful and that’s enough for me. I’d not buy the peanut butter from here.
Brilliant monochrome ModelArt Australia cover
I love the monochrome cover of the latest issue of ModelArt Australia magazine. It stand out in the sea of colour surrounding it on the shelves. Better still, the cover is perfect for showcasing the Model T. This cover for is a reason for giving the magazine time in the spotlight and that’s what we are doing.
4 Corners on tobacco and e-cigarettes
If you’re in front of TV tonight check out the ABC’s 4 Corners two-part British documentary on tobacco. It also touches on e-cigarettes. If you miss it, catch it on iView. It’s a fascinating insight into a product category that is still important to plenty of newsagency businesses, albeit a declining number.
The AFL promotes newsagents
The AFL has promoted newsagents to their 255,000 Twitter followers in promoting the AFL premiers magazine which is out now. Their tweet was retweeted 23 times – extend the reach of their support. Good stuff AFL!
Footnote to suppliers promoting newsagents – please don’t use the term good newsagents if the newsagents themselves have no control over whether they get your product.
Why is the ANF promoting discount stationery?
The ANF and GNS are both shareholders in Newspower. They also both exist to serve newsagents. These two connections between the two organisations alone ought to align their interests yet recent activity by the ANF suggest they are not aligned with GNS.
On Friday, the ANF sent out an email to newsagents promoting Buyers Paradise – a business that appears to offer remainder stationery and related lines. Their pitch is about price. It’s a pitch at odds with the brand focus of GNS. Brands support our channel, often funding industry events.
The ANF support of Buyers Paradise looks misplaced to me. But maybe there is something I am missing. If you think I am please let me know.
The ANF will say it was an advertisement. Indeed, the subject line makes it clear: ADVERTISEMENT: New profit source for essential stationery supplies – everything @1.50 plus bargain deals on gift supplies, party supplies, batteries. However, all actions by the ANF need to be considered through their charter to serve the interests of newsagents.
If I was an ANF member and a GNS shareholder I’d want to know why the ANF is actively promoting a GNS competitor. I’d want to know what due diligence they have done into the Buyers Paradise business. I’d want to know whether there is any connection here that could impact on Newspower given that the ANF and GNS are each shareholders in Newspower.
I checked out Buyers Paradise on ASIC and found that it’s a registered business name but not a company. While that is not a big deal, it does put them on a different footing to, say, GNS.
I emailed the ANF Friday about this but have not yet received a response.
Relocating crossword and puzzle titles in the newsagency
As part of a refresh of the magazine offer in the newsagency we relocated crossword and puzzle titles last week. The photo shows the new placement. The result improves shopability and better represents the category.
Whereas we previously had the titles over two tiers with a third of titles obscured, in this new display all titles can be easily seen. We are hoping for a further sales boost from the move.
We have a small selection of crossword and puzzle titles with our weeklies.
Overloaded with The Block magazine
We have been sent three times more copies of The Block magazine than we sold last year. That doesn’t make sense to me. This is a perfect title to be supplied using the Bauer Media Sales Based Replenishment program and not using newsagencies as warehouses.
I decided to early return stock at the weekend and reduce our exposure. Space is too tight.