While Halloween in the US is huge compared to here in Australia, my experience is that it is growing every year. An average suburban newsagency fully engaged with the season could make between $1,000 and $2,000 in sales with between 50% and 60% GP – regardless of what nearby supermarkets and deep discount stores might do.
This terrific report from CNN in the US provides an insight into the $6B season for US retailers.
I’ve heard from several people in recent weeks that WH Smith is close to making another retail acquisition in Australia and that their focus is on the newsagency channel. The reports have intensified this week with a specific acquisition target being named. If true, it will change the newsagency landscape in Australia and reveal more about the plans WH Smith has for their engagement in Australia.
While I am not joining the rumours and naming the reported target here, I will note I think that WH Smith is investing in Australia for the long term. I am certain they have a plan that requires a retail critical mass that they do not have with their current retail footprint.
As their plan evolves, newsagents will realise the potential impact at the local business level. Smart newsagents will step up to the challenge.
Further to my post from September 5 about refreshing the dog and cat display at the counter, I can share that the jumbled and more orderly display work almost the same in terms of sales – the orderly display is slightly ahead. The big news is that in two weeks we have sold hundreds of dollars of dogs and cats from the counter. So much so that we’re short of stock until our order comes in so we have dogs and cats in together.
Here’s my message: plush sells at the counter if you display it in a way that is noticeable and that makes sense. We have people purchasing $19.99 items on impulse – with cards, newspapers and or magazines. yes, there have been newspaper customers who have added a $19.99 item to their paper purchase.
Our counter story is not only these dogs and cats – they are of a bigger picture story that is all about overall gross profit and margin dollars per sale.
The Hillary Clinton cover on the latest Woman & Home gives us an opportunity to get the title out in front. This is a title not often in the spotlight. The Hillary cover is a perfect opportunity for us to refresh interest. This is what cover choices by magazine publishers are all about. It’s also how we can sell more magazines.
We have allocated double pockets to display the current issue of Vogue which comes with a tote bag. At first look you’d think the bag is designed by Jean Paul Gaultier. I’m not sure that it is. The information on the packaging is less than clear. Anyway, we have allocated extra space for the next few days to try and move the stock as showing the bag off this way is essential for shoppers to see what they get. Too often newsagents fold the gift behind the magazine – hiding the bonus value.
We often sold out of the 3 copies of the telegraph we received from network Services so they increased us to 7. I;d have thought 5 was okay but not 7. A review of our history shows volatility. It does not make sense for them to more than double supply. It makes me wonder if they are dumping excess stock they have to allocate. Better in our shop than their warehouse.
As I mentioned yesterday, some newsagents who lodged returns during Network Services Netonline planned system outage – from 1pm Friday to 6pm Saturday – are receiving emails from Network saying that their returns have failed. Some in Network and XchangeIT tell newsagents to call their software company. This is Network’s problem to resolve as the company has now confirmed.
I like the Peppa Pig products from Network Services. They are a terrific addition to our Peppa Pig range. Yes, I don’t like the low margin … I wish I was making the 50% and more off these that I make off other Peppa products. But it’s icing so I’ll put up with the inadequate margin for now. We have these items at the counter as they don’t fit on our existing Peppa stands.
I refuse to display the Take 5 / Recipes+ discount pack which came out today. I don;t have a space pocket in the weeklies section nor do I want to support the discount magazine strategy by Bauer that is not delivering the sales bump they need when you do a title for title comparison in the latest audit.
Bauer is discounting Woman’s Day and NW to chase sales this week. Newsagents are the ones doing the discounting actually as our GP is based on the discount pack price. I’d love to know if other retailers like supermarkets make margin on the discounted price or the cover price of the titles in the discount pack.
Walking past a Hungry Jack’s yesterday I saw two large banners with RUOK? on them, hanging under the menu. It made me wonder if asked they asked if you wanted a large size meal for 50c more they would ask if you are ok? Of course, their involvement in the RUOK? campaign is to raise awareness and that’s a good thing.
My concern is that their involvement and the involvement of other businesses encourages us to ask the question of someone so we can tick the box that we have done our bit for another year. It makes it too easy. Asking how someone is is not always easy but it is vitally important.
Asking if someone is okay is not about ticking a box,. It is not about you. It is about asking the question and listening to the answer and engaging in a conversation. The question itself is about much more than RUOK?
I am concerned that the commercialisation of RUOK? as I’ve seen at Hungry Jack’s runs the risk of diluting the importance of asking a friend, partner, an employer or an employee if they are ok.
I get that having a day focuses attention and cuts through interns of media coverage. It also makes it a billboard you quickly pass and forget. This is where we as individuals and, more important, as employers need to play an on going role – checking in with those with whom we work and those we employ. We need to engage in conversations that go beyond the slogan RUOK? and ask how people are doing and engage with them beyond a question.
Talking with someone about how they are is a conversation, often several conversations. It is not one question and an answer. This is important way beyond one day a year. It is important way beyond standing in line to order a burger. While I applaud the Hungry jack’s promotion of the campaign, I wish it was not part of a menu. I wish their involvement was more about funding support and education in places where we can engage with people about mental health – like workplaces.
In our newsagency channel mental health is a serious issue for employees, customers and for newsagents. Indeed, many newsagents straggle daily because of personal and business circumstances. Maybe for us today ought to be a reminder to check in with a colleague to ask how they are doing and to listen to their response and explore any conversation that flows.
I like the fresh approach from magazine distributor Gordon & Gotch in their contact with newsagents. The emails are helpful, easy to read and opening opportunities to new titles we can use to expand our magazine range.
We ought to embrace the opportunity of new titles, not all but some. The information accessible through the Gotch emails helps us make that decision. It helps us be newsagents – the only real magazine specialists in Australia.
I follow Jamms Restaurant from Lass Vegas on Facebook because it’s one of the best American diners I have eaten at. Their food is delicious. Their service is exceptional. But this post is not about their food or their service. No, it’s about how they use social media.
The folks at Jamms use Facebook well. Almost every post includes a photo of food along with a simple message. Even though I can’t get there all that easily, the posts keep me connected with their menu and remind me of the business and how much I enjoyed going there.
I rate a business Facebook page by how long I remain liking it. Often I’ll like a business Facebook page and a week or two later unlike it once I see the posts they publish. I want to keep my social media feed empty of uninteresting content and unwelcome distractions.
I enjoy the Jamms posts as the food photos are often a guilty pleasure.
I like this post from today because it is all about the presentation – for Jamms and for us newsagents. We can make a slow moving product a hero by presenting it better and in the right location. The challenge is understanding the presentation that connects best with our customers.
Product displays in newsagencies tend to be up for a long time in a newsagency. A week at least for magazines and often a month for window and gift displays. Smart and engaged retailers are updating displays daily. Window displays weekly or even more often. In-store displays a couple of times a week and major changed weekly or at longest fortnightly. It is all about the presentation when we want to attract new shoppers to our business, people who might otherwise pas us by.
Newsagents who lodged returns during Network Services Netonline planned system outage – from 1pm Friday to 6pm Saturday – are receiving emails from Network saying that their returns have failed. Some in Network are blaming their newsagency software supplier. Others in Network are acknowledging the problem is Network’s to resolve.
If only the left hand in Network Service knew what the right hand was doing.
This problem is 100% Network’s to resolve.
I skipped over this ad in today’s Courier Mail as I at first thought it was for a rewards program when in fact it’s selling the newspaper and a bunch of other stuff. While I am no advertising expert, I am a consumer and I look at this ad and wonder what they are trying to sell to me. Packing newspapers up in this way makes the paper look irrelevant. I found myself looking at the other items on the list and thinking would I want that and then considering if that alone was worth the price.
If the goal is to detract from the print product this ad works.
Given the capital investment in producing and distributing the print product, newspaper publishers ought to focus more on that product and driving its desirability rather than sprinkling sugar around it to draw attention away from the product itself.
Fairfax is ceasing giving newspapers to bus lines in Victorian for giveaways to passengers. The company has said that it will try and encourage the bus companies to purchase subscription deals instead.
I spent yesterday at the second newsXpress national conference for 2014. It was a terrific day with stories of success by newsagents who are changing their businesses, introducing new traffic drivers yet who are not forgetting the importance of core categories.
While some in our channel are only now realising that change is important, I met with business owners who started making major changes years ago and who are not into the next generation of change.
In addition to a full conference day, there was a busy trade display with many suppliers who had never exhibited to newsagents previously. It was a thrill watching this first time interaction – it’s all about change for newsagents and for suppliers.
This was a practical conference with some excellent business management and merchandising workshop – attended by more than 100 newsagents from around the country.
I got to see the new in-store interactive Coke machine in action on the Gold Coast yesterday. It’s a heap of fun. You stand in front of the machine and it puts a wig over your image. It selects the wig based on its own assessment of how you look. In the morning it thought I needed to wear a baseball cap and look like a rapper and in the afternoon it was a mullet. Hmm…
I can imagine customers having a lot of fun with this machine. It;s a short step from that fun to them purchasing product from the fridge and that;s the goal. This unit is an excellent example of interactive retail that could drive beverage sales in newsagencies.
Sons of Anarchy is another hit TV show with an excellent merchandise opportunity for newsagents, especially if you are looking for male-skewed items. With different suppliers holding different licences it can be a challenge to get a broad range with which to tell a story. Sons of Anarchy products could sell all year based on interest in the TV brand. One way to assess interest is download traffic.
Scammers are chive in contracting newsagents saying they need to access your computer system to install an e-pay update. This is a scam. Do not them them touch your computer system. this happened today to a newsagent in Queensland who just contacted me.
As a retailer focussed on the bottom line, I wonder of baby #2 will deliver the sales bump of baby #1. I’m guessing not but I am not an expert in these things. The key value of the royal family to me and my business is sales of products.
Watch this and share it with your staff:
Brilliant.
On Saturday a guy asked for my help in choosing a card. He said – I can’t sing, I seed a card to sing to my wife. They’re in the middle of a tough situation and wanted a singing card because his wife loved music. He was thrilled that we had a card that played Stand By Me.
It’s perfect he exclaimed. He shook my hand.
It is heartwarming moments like these from the shop floor that stay with me. I’m very lucky to have experienced this.
The success we are having with craft magazines – up 31% year on year – is proof that customers will reach dow magazines that interest them. We’ve made it hard for our customers, placing the craft titles down below our weeklies. A best I expected we would hold steady. I did not expect growth. It goes to show that people with a strong interest in a topic will put themselves out to purchase.
A young boy – 5 or 6 – presented at the counter on Saturday and asked if we had Happy Hoppers. I took him to our display on the shop floor. On seeing this, he yelled out at the top of his voice: mum, they have them they have them! Others in the shop smiled.
The joy expressed by the kid was infectious. It gave me a real boost.
I love that he asked for the product by name and love even more his excitement at finding it in our shop. This is a $2.95 destination purchase to remember.
Everyday in our shops we have engagements that provide us with a reward that can be more valuable than profit. I love it.