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

The gift damaging the magazine

magcrushWe’re seeing damage to copies of Take 5 today because of how it was packaged with the lipstick gift.  The weight and the size of the lipstick caused damage in shipping.

The other problem is the magazine is not strong enough to hold the lipstick – it’s pulled forward.

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magazines

Shame on Philip Morris

cigsI am appalled by the advertising I saw being used by Philip Morris in the Philippines earlier this week promoting Marlboro cigarettes.

DON’T BE A MAYBE BE> Marlboro reads to me like a pushy message, a demand almost. Like if you don’t smoke Marlboro you will be a maybe and who wants to be a maybe? Not Filipinos who fight to break of subsistence living and dream of being more than a maybe.

This ad is a taunt that I think is designed to play into the unique psyche of Filipinos.

This type of advertising for products that cause cancer and many other health problems is appalling. Smoke these things and maybe you’ll get cancer. Hmm, I don’t think that’s what the MAYBE in the ad means though.

Shame on Philip Morris.

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Ethics

Bauer / Coles discount promotion #2

awwcolesdealColes is also offering an amazon deal for the bundle of The Australian Women’s Weekly and Australian House & Garden for $9.95. As is printed on the bag – it’s a $4.95 saving. This is extraordinary.

I am told Coles receives margin at the full cover price of the two titles – but don;t have any evidence supporting the claim.

This bundling of these two premium and respected titles makes them look cheap and the marketing desperate.

It also, as with the other deal in my earlier post today, drives magazine shoppers to Coles and away from local newsagents. Is that what Bauer wants?

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magazines

Bauer / Coles discount magazines promotion #1

bauercolesdealColes is offering a range of Bauer titles in a three for $10 deal that I expect will hurt newsagency magazine sales where they compete directly with Coles. If the titles offer value why the need to discount and if there is a need to discount why only in one  channel?

I am yet to see any evidence of this type of discounting driving sales outside of transit location.

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magazines

To newsagents selling Peppa Pig…

scottpeppaABC MD Mark Scott yesterday sent this tweet to his 59,400 Twitter followers showing him having a sit down meeting with Peppa Pig.

Sales of Peppa Pig items – cards, wrap, plush, stationery etc –  are strong thanks treating the brand as a hero.

With GP of 50% and more and with the traffic it generates, Peppa is a valuable brand to have.

Should Peppa have the time I’d, too, gladly set aside time for a business meeting.

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Newsagency opportunities

What newsagents want from an association in order for them to join

Here are all the responses to the third question on my newsagent association survey from the weekend. The third questions asked: If you are not a member of an association what must they do to get you as a member?

  1. Close the QNF, close NANA, close VANA and replace all the staff and board members at the ANF with people who have a plan for helping newsagents.
  2. All I want is for them to be relevant.
  3. Get better quality board members. The nana board is clueless if you listen to their statements in the last few months. They sound years out of date and irrelevant.
  4. Hire smarter people.
  5. Fill your boards with newsagents who actually put their head up and speak to other newsagents. The current boards at the state and national lever are faceless men.
  6. Publish a national journal that has professional editorial principles.
  7. Stop investing newsagent funds in things like hubbed that will never work because the world has moved on from that. The ANF investing in it without transparency then and even now is the biggest reason to not join.
  8. I was a member of the ANF and VANA and quit them When they told me to keep paying the   Bill Express equipment lease when others told me to stop. They never apologised for getting it so wrong.
  9. Get smarter people on the boards who actually have a plan for the future of newsagents and who are more open and transparent with newsagents.
  10. Stop wasting newsagent funds on flying around the country going to meetings and dinners that don;t achieve anything for everyday newsagents.
  11. They do not provide anything of substance for the fees charged.
  12. Show me what they are doing to help my business that is worth the membership. The ANF seems too busy endorsing products and services instead of lobbying to fix problems in the channel.
  13. Become relevant in today’s market and focus on ways to add value to our businesses not just provide OH&S info and deals that they get a kick back from.
  14. I was a member, but resigned. found that I got nothing out of the association.  When I did use them, I never had any results.
  15. VALUE FOR MONEY
  16. Do more for newsagents and show some backbone
  17. Show some effectiveness in representing our issues to principals and lawmakers
  18. Be proactive in promotional programme to promote Newsagents as a destination shopping experience and not just keep our industry as a shop that nobody knows much about except that we deliver papers.
  19. Use people qualified for the positions.
  20. Act for our behalf with full transparency with no self interests.
  21. Do their job and protect newsagents’ interests
  22. Achieve results
  23. Be seen to be making meaningful progress on magazine oversupply. I cannot think of anything else. I paid my dues for 10+ years and got nothing but a ring side fight at a little kids squabble. I think I have paid enough to get nothing.
  24. Member tas anf – until all associations co-operate fully will not get value for money. Ben Kearney does get involved and does good job. associations should not be involved in commercial operations though – their impartiality should be paramount,.
  25. Represent us on core issues getting a better deal for us from newspaper publishers and magazine distributors. They need to show these core suppliers that the newsagency industry industry is more valuable to them than the supermarkets and other outlets they are currently giving so much attention to.
  26. Once the associations achieve and maintain this, then they can look for new industry wide opportunities for us that ALL newsagents will benefit from.
  27. They lost me because they treated my subagency as second class even though they were willing to let me join and pay my dues for little or no benefits that other newsagents were receiving.
  28. Fight hwt and fairfax about better commission
  29. Actually be an association and serve newsagents and not just the newspaper deliverers.
  30. We were a member and have recently resigned as they have been no help with the T2020 fiasco nor the Intralot deal some years ago. They are still allowing themselves to be dictated to by the publishers
  31. Forget about deals on ins etc and tackle the big issues.
  32. Was a member . Would not consider again.
  33. Stop supporting businesses like hubbed without due diligence.
  34. Start working on what really matters to newsagents: magazine oversupply; fair compensation for retail newsagents of newspaper sales; labour rates.
  35. Be relevant to today’s world and stop looking after the distribution only newsagency businesses, probably because VANA is being run by one.
  36. Start giving us what Newsagents want, represent the industry. Stop trying to make commercial inroads to support their overheads. Stick to what associations are set up for represent and lobby for their members.
    do something in the interest of newsagents!   Take on the oversupply issues and have a win!  Take on coles/woolworths special promotions they get regarding magazines and have a win!  They just don’t seem to do anything and if they are having wins on our behalf – they are pretty lousey at self promotion.
  37. They do nothing, the industry was deregulated over 10 years ago and they have stood by and let all sorts of change occur to the detriment of the channel. Here are some specific examples.  1. Newspaper distribution- why are the still allowing the situation where a retard masquerading as a retailer who is also a distributor control what his subagents get to the point that it costs the sub agent sales, the ridiculous extreme of this is Melbourne papers in a prominent se qld holiday area, where the only agent open on a Public Holiday afternoon is the only one who doesn’t get Melbourne papers- because he isn’t a newsagent?   2.I have seen no evidence of any effective lobbying or working to relieve the pressure brought on by stupid penalty rates that are crippling weekend trade and holiday trade.   3. The same lack of effective lobbying for leasing issues.  4. When the QNF is staffed and associated with brokers who are also directors or strongly connected to one marketing group and clearly use their insider trading knowledge to their own advantage.  4. After the flood and all our Insurances went thru the roof, the QNF went on a roadshow to justify the insurance companies position, even if you were in an area that had never flooded and had no chance of flooding.  5. I have not seen any actions to remove the restrictive trade practices of the Magazine companies, starting with having to pay a bond, gross over and under supply issues, holding new entrants/owners to ransom because of previous owners bad business ethics.  6. Being an active business partner and working to resolve real issues, providing guidance and real retail education.  7. The one thing they did wade in on and hold up for 18 months was the changes to the lotto renumeration model, I am led to believe that had they not charged in it would have gone thru a lot sooner- who in their right mind could expect that the model would be different to what had been accepted in every other state.     Address all these things and they might start to gain some support, but until then forget it.
  38. Grow a spine, have a new set of teeth fitted and offer some value for our investment.
  39. 2. Is not easy to answer. Any help I have asked for has always been productive. However after all these years why can’t they get the magazine companies to adjust supply?
  40. To little, to late, the ANF-QNF is an absolute joke. The QNF sells out it’s own members, I know from personal experience. No need to say anymore..
    stop getting involved in commercial enterprises and focus just on industry issues.
  41. Need qualified people to represent the positions and to stop getting involved in commercial opportunities that the Marketing groups already cover.
  42. Start tackling national issues such as weekend wage rates.
  43. I was a member of the QNF. I pulled my membership because of a lack of response to a problem I had with a magazine supply issue.
  44. BEEN A MEMBER FOR 18 YEARS. PUT MORE EFFORT INTO MAGAZINES, KEEPING NEWSPAPERS RELEVANT AND STOP FIDDLING WITH PERIPHERALS LIKE NSTOCK.
  45. Stop wasting newsagent money.
  46. Unite the industry and fight for the industry as a whole. The Pharmacy Guild is a good example of what the associations SHOULD be doing.
  47. The first thing they have to do is gain my trust, however as I am no longer sure what they actually do, I’m not sure how they would go about gaining that trust.    Perhaps if the ANF were to list some significant outcomes for Newsagents over the last couple of years it might be a start so I could then weigh up the pros & cons of being a member.     Given the ANF is unable to meaningfully negotiate with Newspaper Publishers or major magazine Distributors/Publishers, putting together a list of significant achievements might be the biggest challenge they have taken on in the last few years.
    nothing. We have no interest inbeing a member of any association. After 35 years being a newsagent and  being in various associations they have NEVER benefited us only cost us lots of money
  48. Tackle real issues. Magazine distribution would be a massive step.
  49. Stop wasting money. Communicate better. Do things that are relevant to newsagents.

I edited out one response as I considered it defamatory and I am publishing this post – as opposed to comments here which are published by the commenter.

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Hubbed

Terrific set your own supply initiative from Network Services

Kudos to Network Services and their publishing partner for giving newsagents the opportunity to set their own supply for the RSPCA trading cards. That Coles and Woolworths will not have this product and the free gift of a pack on Woman’s Day next week makes the opportunity compelling.

setyoursupply

The most important aspect of this is that newsagents set their supply – as long as Network adheres to that.

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magazine distribution

Newsagent association relevance survey results

assnrelHere are the results of the newsagent association relevance survey I ran Sunday through yesterday.

Of the 225 respondents, 163 (75.81%) said they were a member of an association and 52 not.

Of those currently a member, 63.31% (107) said they were not getting value for money from their membership.

The third question contains the most valuable data – what newsagents who are not part of an association want from an association for them to consider joining. I will publish that list here shortly.

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Newsagent representation

Trying out the cashless butcher

chaslessLast week I tried the cashless butcher I wrote about in May. Now that they have made the transition I wanted to experience it first have.

I’d note: they are really cashless. I tried to pay with cash and they said no. In fact, I’d forgotten to bring a card and had to go back to the office to get one. In the ten minutes I was there over two visits I was the only one who asked. I think this is due to the local clientele and the excellent signage they have in-store.

The photo shows the Tyro payment station facing the customer. They have three of these – in front of each register.

It’s a busy shop. The move seems to be working well for them.

Given the average low denomination transaction value in newsagencies and the higher traffic count I suspect a cashless move like this is not ideal for our type of business. However, as our shopper mix changes, which it will, and our average sale value increases, which it will, this is a move that could work for us at some point.

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Newsagency management

Wizard of Oz Itty Bittys very popular

ittysuccessWe have had the next range of Itty Bittys from Hallmark in store for a couple of weeks and already we have ordered more stock. Our sales are being driven by placement off-location: with cards as well as at the counter.

Dorothy, the Lion and the Tin Man are the most popular. I’ve seen plenty of customers add them to the basket.

A bonus is customers purchasing the set. I’ve seen this happen a few times.

The success of the new Itty Bittys is a reminded of the importance of well-known brands in driving sales for us. These brands are far more valuable than cheap un-branded product. Cheap does not always mean banking good margin dollars.

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Newsagency management

Good timing for Christmas card themed magazine

cardsmagsWe have seized the opportunity of Creative Christmas cards being in-store early and have placed it with weekly titles for the next couple of weeks. It should sell well from here – justifying the prime position we have allocated.

Card making magazines are popular for us. This title is an opportunity to attract a new shopper.

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magazines

Ros Reines fails to backup sledge of newsagents

rostwitRos Reines from Sydney Confidential in The Daily Telegraph recently claimed to 17,500 Twitter followers that some newsagents don’t put out magazines each day. I responded and found out it was two newsagents in Bondi. Reins has not responded to other questions I’ve put.

A professional journalist would check the facts before publishing. I want to know if Reines checked the facts. What was the title being sought out? Were staff in the businesses asked? Was the title some place else and not in the usual location? Was the comment based on unopened bundles? If so, these could have been extra stock.

If the newsagents in question did not have titles out that should have been out, shame on them for their treatment of the products and for their damaging of our reputation.

Right now, however, we don’t have the facts and Ros Reines is not responding.

This is not a gossip piece like you find in Sydney Confidential. This is a sledge against a small business channel, a sledge that needs to be responded to.

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Ethics

Promoting cards with magazines

cardsmagsWe love opportunities to integrate products from one category with another. Who this week gave us an opportunity to promote a card from the Spirit humour range. The card placement pitches this card as well the rest of the range placed nearby.

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Greeting Cards

The impact of heightened security on retail

securityuogradeHere’s the note we received from our landlord on the announcement of the raising of the security threat level. My first thought was the note was an overreaction but on reflection it makes sense to me. I’m glad they sent it.

I’m posting this note here to show newsagents operating outside a shopping centre the sorts of things landlords remind their tenants about at times like this. I hope the reminders in the note are useful.

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Newsagency management

How is Homes+ selling?

homesplusWe have had the launch issue of Homes+ in prime position with home and living titles  as well as a stint with newspapers. We’ve not sold a single copy, making the space and labour investment worthless for us.

How is it selling for you?

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magazines

Sunday newsagency marketing tip: host a bake off

With the surge in gourmet home cooking on the back of a flood of reality TV shows covering baking to chaffing skills to complete dining experiences, newsagents are well placed to engage with the local foodie community.

Select a recipe from one of your popular food magazines run a competition for customers for judging on a day you set aside for an in-store event. They all have to bake the same dish you choose.

You could go further have choose a starter, a main and a dessert. But that could be challenging in heating so starting the idea with a cake, slice, biscuits or something similar which can be delivered and served cold could be more practical.

Find an independent judge with experience in food judging. Set aside some space where you also promote your food titles. Get the local paper in for a photo. Have fun. Remember to let the publisher of the magazine you choose know. Take lots of photos for your business Facebook page.

If you worry about space and too many entries maybe limit the size first time around. Or, plan to go big and hire a local hall or get council approval to do something on the footpath in front of your newsagency. I think it’s important for an event like this to be in or near your business. The commercial connection, however subtle, is important.

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marketing

Sunday newsagency management tip: use a focus group to guide you

Focus groups are used by many businesses to test new products, advertising campaigns, business names, product packaging, business ideas – just about anything a business might be considering. While usually a big business approach, focus groups can work in small businesses like in your newsagency.

For clarification on what a focus group is and how it works, take a look at the Wikipedia page: Focus Group.

My newsagency management tip today is to use a focus group to harvest feedback and thoughts about management decisions you face in and about your newsagency business. You could convene a group of people not currently connected (this is important) with your business for advice and feedback on:

  1. A store image change.
  2. Product category changes.
  3. Product selection where you might be considering multiple options.
  4. Consideration of a new service.
  5. Community group engagement choices.

Sometimes asking the opinions of others helps us see our options differently and this can lead to better business decisions. Convening a focus group does not commit you to their advice. The investment, however, gets you listening to more people think and talk about your business.

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Management tip

Another Herald Sun cover-up

hsucoverThe Herald Sun yesterday took money from Mazda to obscure the photo of page one of the newspaper lauding the North Melbourne victory. !@*&ers is one North Melbourne fan said ripping the sticker off before buying it. I get that News wants the advertising bucks but getting between an AFL fan and their victory is dangerous, especially in Victoria.

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newspaper masthead desecration

Weekend survey: newsagent association relevance

I have created a three-question survey on newsagency association relevance. Please click on the link to take the survey. I created the survey as a result of a discussion with a newsagent at the Melbourne gift fair who said they got more value from their gift association membership than from their newsagent association membership. As newsagencies evolve away from the core old newsagent association concerns matter less.

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Newsagency management

Why I cancelled future Bauer merchandiser visits

I observed a Bauer merchandiser visit in one of my newsagencies on Thursday. The entire time was spent recording what we were doing: where magazines were placed and other data. I think photos were taken but I cannot be sure. It felt like we were being marked and judged.

In the ten to fifteen minutes or so in store the Bauer merchandiser did not add any value to the business whatsoever.

If what I saw yesterday is what is done by these merchandisers in other newsagencies what a waste for newsagents and how utterly disrespectful.

Given what I observed and that another Bauer merchandiser was recently filmed moving a Pacific Magazines titles into a poor position in favour of a Bauer title I emailed Bauer to cancel all future merchandiser visits. To their credit they acted quickly and took us off the merchandiser visit roster.

This is my business. I want people in the business who want to help me grow the business. The days of treating newsagents as kids to be marked as if school are long over.

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magazines

Visual merchandising tip: use a backing colour

bb-inspireIt’s amazing the different inserting a colour sheet in a fixture can make to bring focus to products. Without the backing sheet the products blend with colours from other shelves showing through. With the sheets you see the product on the shelf and not what is behind it.

This is a simple and effective VM tip.

The photo is from a Hallmark Gold Crown store I visited in the US earlier this year.

7 likes
visual merchandising