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

New Idea early publication delivers excellent sales bump

nidecayThe image shows the sales decay for New Idea between Monday last week and mid Saturday afternoon compared to the average for three weeks at this time last year. In addition to excellent overall year on year growth being achieved for New Idea (against trend I’d note), you can see the impact of the early publication on sales for Thursday, Friday and Saturday. Yes, a terrific sales bump, vindicating the decision to go early.

What is interesting in the decay curve is that the Thursday on-sale of the special issue did not create a Monday-like spike. Sales were strong for sure, but not as high as we see on a Monday. I think this is representative of habit. It will be interesting to see our sales for this coming Monday.

Being in a shopping centre, we are better placed than a high street located newsagency to leverage sales on a Thursday and the weekend.

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magazines

N branding on How Your Body Works TVC irrelevant

The N branding on the How Your Body Works TV commercial currently running is irrelevant. The N is used by few newsagents. I’d guess than under 10% of retail newsagents use it in their branding. The N stands for nothing. Indeed it can’t stand for anything as there are no disciplines around its use.

It’s a waste of money the publishers using the N in their advertising. It will do nothing for sales of this part series.

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magazines

Coles launches home brand crosswords

olescrossColes has launched a series of home branded crossword titles priced at $2 each. They are published for Coles by Hinkler. I’m not sure who creates the actual crosswords. I wonder if this move will challenge pocket allocations for Lovatts or Puzzler titles in Coles supermarkets. If the Coles treatment of other suppliers in response to home brand moves is anything to go by I suspect it will.

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crosswords

Leveraging International Traveller

COVER no barcode_IT 13Newsagents would have received a boost in supply for the latest issue of International Traveller last week. This is a special edition, it should achieve a 15% or more sales boost based on past experience – hence the bump in supply. We have International Traveller placed with Australian Traveller next to women’s magazines – since women make most of the travel decisions.

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magazines

Sunday newsagency marketing tip: be clear in your message

What are you calling out to those who walk by your newsagency and those who see your marketing in the local paper, on your car or elsewhere in your community?

What are prospective customers seeing to entice them into your business?

Are you speaking with a single voice, delivering a clear message? Or, are you saying so much, pitching so many things, that your message does not have the cut through it needs?

The old school approach by newsagency businesses for the shopfront was magazine posters, newspaper posters, seasonal posters, a drink fridge, lottery posters (if you have lotteries) and maybe something else. This is out of date.

The best practice approach today is to attract shoppers with a pitch that is relevant to today, something that is fresh this week and will be changed by next week. Something attracting a shopper beyond the shopper who will visit regardless of what you promote at the front of the business.

Newsagents often tell me that it doesn’t matter what they put at the front or in the window of the shop – customers don;t notice.  If they don’t notice it’s probably because you have encouraged them not to because of a sameness week in week out.

How you pitch your business is critical in attracting more shoppers and getting them spending on more valuable items. It’s up to you. Your newsagency shingle will not do this for you.

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marketing tip

Sunday newsagency management tip: setting tasks for your team

instructionsEnsuring business runs the way you want when you are not there can be challenging. I have found a diary works as a single place for communication between everyone involved. However, that can be limiting when you have a lot on or very specific things to be done.

This management tip is what I have seen in one of my businesses. It’s how the manager communicated with the weekend team this weekend when there was more than usual to do.

Creating a document with photos showing display unit placement is a terrific way to ensure that what you ask to be done is done how you want it done.

Sometimes employees get it wrong because how we have communicated our requests is wrong.

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Management tip

A Sunday inspiration

I love the song On Top of the World by Imagine Dragons. Besides loving it as a song, I love that it is inspirational, that it it’s about acknowledging defeat, but not letting that deter your will to try again. For me, it’s a song to play when you need to shut out the world to concentrate on plans for the future or many analysing why something didn’t go as planned. It’s a reminder of the importance of confidence.

And I know it’s hard when you’re falling down
And it’s a long way up when you hit the ground
Get up now, get up, get up now.

Here’s the video if you’re interested:

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Newsagency management

Celebrating the Hawthorn win

hawthornYesterday we surrounded the Herald Sun cover story of the win by Hawthorn over Geelong with this placement of Hawthorn plush above and around the newspaper. It was a talking point with customers and that’s important in AFL-crazed Melbourne. It showed us as being connected with the story of the day.

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Newspapers

Australia Post Licenced Post Office Agreements run for 20 years?

I was surprised to read reports this week that Australia Post Licenced Post Office agreements run for 20 years with little opportunity to exit the agreement. The ABC had this story yesterday.

Given the considerable challenges being faced by Australia Post and that small business LPOs shoulder costs of many of those challenges, the length of the agreement is an issue to consider.

I’d be interested to hear what LPO operators have to say about this.

There are some days I look at the traffic of Post Offices and think it would be good to have it. But then I consider why people are there and think I am better off attracting shoppers who are looking for higher margin items and others prepared to spend up on impulse lines. I suspect the conversion rates of postal and bill payment services shoppers to other items is low. It’s what newsagents found with Bill Express.

For me, it comes back to being a retailer or an agent. While I choose to be a retailer, if you own and LPO or have one within your newsagency business and decide to focus on being a retailer, the length of the agreement could be a challenge.

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Australia Post

Ready for big Father’s Day sales

fdlastdayWe’re all set for a huge day today serving last minute Father’s Day shoppers. Our card have been refreshed as have our Father’s Day gifts. While we’re out of plenty of items we have depth within the gift department to have enough products on show to make a broad-based pitch for the season. We’re not forgetting magazines – they are a popular gift this season.

In addition to the usual Father’s Day gifts we have some excellent high end items as well as several ranges that play into collector interests – all with excellent margin.

Based on previous years, today should be terrific – we’re looking forward to it.

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Greeting Cards

Who wants to be lumped in with this shop in the minds of shoppers?

messyshopA customer recently asked if we had something they could not find in the other newsagency. This surprised me as the centre in which we were in at the time only has one newsagency, mine. It turns out they see a Tatts shop which sells papers, greeting cards and a ton of junk poorly displayed as a newsagency.

I don’t want to be considered as having a business like this one.  In fact, my shop is very different to theirs. It’s neat, appealing in layout, professional and carrying premium gifts and no cheap imports like this shop in the photo focusses on. That said, the comparison makes me want to make it even more different.

We can’t control the businesses shoppers compare us with but we can control how our own businesses look.

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Newsagency challenges

Vintage Caravan with Frankie

magsvcWe decided to give Vintage Caravan magazine a shot next to Frankie thinking the titles appeal to a similar shopper and their covers have a similar look – to my eye at least. This is the type of thoughtful move to differentiate us from our competitors.

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magazines

Canadian publishers closes 11 newspapers

Canadian publisher Transcontinental Inc announced earlier this week that they would close 20 newspapers.

In the wake of this announcement, Transcontinental Inc. is also announcing that it is reorganizing its weekly newspaper portfolio and effective today will stop publishing 20 of its titles, which for the most part will be integrated with other publications it holds in the same regions.

This is what happens when newspapers don’t make a profit from their product.

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Media disruption

Network Services fails newsagents again

netonlineMagazine distributor Network Services is shutting its help desk at 1pm today because its Netonline website is closed for maintenance from 1pm.

I don’t see any connection between Netonline availability and the ability of Network Services people to provide service.

Through my newsagency software company I have oversight of a help desk and it runs rain hail or shine – regardless of whether technology is online or not.

Customer services businesses are about serving your customer. Shutting your doors for half a day does not make sense. Newsagents are being let down here.

I can’t recall this happening prior to Bauer taking over the business.

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Customer Service

Fairfax plays hardball with small business newsagents on Trader Tag

Further my post last week, Fairfax owned IPS has confirmed it will play hard ball with newsagents in clawing back commission incorrectly credited to newsagents.

It’s a bit rich of the company to force a mistake two years in the making to expect newsagents to resolve it and pay Fairfax in one hit.

Attempts by newsagents to engage with the company on the matter are ignored. This is appalling service from the company.

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Ethics

Thoughtful product adjacencies drive newsagency sales

hammeradjThe moment we placed the fish and hammer BBQ lighters on either side of the Poo Pourri people started looking at the toilet spray as a Father’s Day gift. Indeed, we sold a bottle of Poo Pourri within minutes of making the change yesterday.

the hammer and fish BBQ lighters act as indicators for the target of the items in this display. The result is a reminder of the need to think carefully about product placement – sometimes it is what you place next to a product that gets that product selling.

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Newsagency management

Using the wedding to attract shoppers

wed1Our second placement of the New Idea wedding exclusive is this floor display unit next to our sand at the front of the shop facing into the mall.

My thinking behind this move is that the New Idea cover will attract shoppers by itself and others will notice it when watching their kids play with the sand. As soon as I moved the magazine display unit here we sold a copy of the magazine. Notice the placement to have the full cover on show.

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magazines

Leveraging the exclusive wedding photos to drive sales

wed2We have given additional space to New Idea to leverage the exclusive photos of the Brad Pitt and Angelina Jolie wedding. This additional space will run through the weekend.  We did not move any title out of the weekly section to create this.

We also have a pocket of New Idea at the counter. We’re not missing any opportunity for impulse purchases.

Sales of the special issue have been strong. This looks like a winner for Pacific Magazines.

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magazines

Selling three word search magazines when the customer wants one

cross-sellA customer who could not walk far asked me to choose the best large print word search yesterday. Not sure which was the best,  I showed her these three.  She bought them all. While this was not a deliberate move on my part I am thrilled with the result. It was helped by me genuinely being unsure which title would best suit her specific requirements on font size.

The experience is a reminder of how good service can help us drive sales.

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magazines

Newsagents respond to survey on magazine oversupply

I recently asked newsagents to provide specific examples of what they consider to be magazine oversupply.  Here’s what I asked for: Please list details of what you consider to be magazine oversupply: Title name, most recent supply, average net sales. Please use a separate line of text for each title. This data will be published on the newsagency blog as part of a series about the broken magazine distribution model that disadvantages Australian newsagents.

  1. Your Stars Magazine Supply since Autumn 2013 2 (jumped to 3 for Winter) TOTAL Sales since April 2013 Autumn 14 increased to 5
  2. British Football Weekly Supply 21/8 = 2 Never sold a copy in 5 years Have cancelled supply but it keeps re-appearing….
  3. Mustang Monthly Supply 21/8 = 3 Normal supply = 2 No sales in last 12 mths
  4. Tamiya Model Magazine Int. Supply 21/8 = 3 Normal supply = 2 No sales in last 12 mths
  5. Just to balance the ledger here’s G & G titles EWW 4 2 INSIDE OUT 5 3 DELICIOUS 6 3 MR WISDOMS SUDOKU 6 3 TATTOOS DOWNUNDER REISSUE 5 0 TRAIL ZONE 2 0 TATTOO CANDY REISSUE 15 0 SATAC UNIVERSITY GUIDE 3 0 FEAST (N/A) 7 3 JUST BIKES 21 11 MARIE CLAIRE (N/A) 8 4 IT GIRL 14 6 ANH PRES DETOX 6 0 CLASSIC ROCK 6 3 FUN TO LEARN BAG O FUN 12 6 VIC FISHING MONTHLY 4 0 BETTER HOMES & GARDENS (N/A) 34 25
  6. BetterGolferRedist 13 0 Dolly 20 5 Extreme Action 6 0 FourFour2 4 1 INKED GIRLS REDIST 3 0 INSIDE SPORT 3 1 SCOOBY DOO MYSTERY MAYHEM 3 0 SCOOBY HIGH SCHOOL 4 0 SIMPSONS WINTER WINGDING 6 0 TMNT-TURTLES MUTANT MISSIONS 4 0 INKED GIRLS 7 2 CLEO MINI 6 0
  7. Oversupply is more than I request. Womans Weekly 46, average 8 per week Thats Life 32, average sales 13 per week The issue we have is that we have to pay freight costs for any over-supply without any chance of recovering this cost on any unsold magazines
  8. weekly telegraph 17 and our average is 5 sales and it has been going on like this for 5 years
  9. Power Torque, 7, 0 Delivery Magazine 5, 0
  10. LIMELIGHT 14 COPIES AV SALE 7 COPIES BELLE 38 COPIES AV SALE 20 COPIES FRANKIE 44 COPIES AV SQLE 25 COPIES
  11. Symply Too Good No 1 – 9, sold 4 in last year Symply Too Good No 2 – 9, sold 3 in last year Symply Too Good No 3 – 9, sold 3 in last year Symply Too Good No 4 9, sold 2 in last year Cosmo Brides – 12, sell av. of 4
  12. GOT 12 NW magazines last week and selling 5-7 last 10 weeks, this week we get 21
  13. GOT 12 NW magazines last week and selling 5-7 last 10 weeks, this week we get 21
  14. Monocle, 5, 0.6 Aust Ironman, 5, 0 Aust Horse Performance, 15, 0.4
  15. lol
  16. GO CAMPING
  17. Reader’s Digest Last Issue received 12 Sell 1 every 3 months
  18. Catalogue, rec’d 6, av 1, usually receive 3 Select AFLK Albums, usually rec 2 or 3 at a time, just received 6 when we have 7 on hand, assume end of season trying to clear warehouse. Very angry as I have to pay to post back from remote area, costs a fortune, wipes a good part of profit on any sales, grrrrrrrrr
  19. mens health magazine, the last three issues getting 8-9, selling 3 max. latest issue we get 21
  20. Cleveland western, 60, 0 Commando Library, 2 every week, 0 lovatts Mega, 6, 1.4 bristle busters, 8, 2.3 mens fitness, 6, 1.4 Just Cars, 16, 4.6 AWW, 40, 17.6 Country Homes, 7,3.6 Grass Roots, 13. 5.6 Kit Homes, 6, 2.2 Watch, 8,2 New Internationalist, 10,0 Performance Horse, 9,1 Family Tree, 12,2 Rhythms, 8, 0.6 Delivery, 11, 0.6 Power Torque, 11, 0.2 4wd Touring, 18, 0.4
  21. AUST FLYING SUPPLY 4 SALES 0 FLIGHTPATH SUPPLY 6 SALES 2
  22. GETTER GOLFER SUPPLY 2 RETURN 2 SUPPLY 2 RETURN 2 SUPPLY 3 RETURN 3 THIS TIME ROUND SUPPLY 9 AND NO SALES YET ……

This is all the responses received without any editing by me.

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magazine distribution

How I know the New Idea Brad & Angelina special will be hot

Overnight I ran a Facebook campaign promoting the release today of a special edition of New Idea with wedding photos of the Brad Pitt & Angelina Jolie nuptials. The interaction tells me this will be a good seller. Thousands of interactions with the Facebook post, 200+ new likes a ton of shares. So before we’re even open we know the interest is massive. Social media can help us engage even while we are closed.

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magazines

Coles carefully selects words to guide how you view the experience

If you have used a self service checkout at a Coles supermarket recently you would have heard the voice from the machine welcome you to Coles assisted checkout and at the end say Thank you for using Coles assisted checkout.

The only assistance I have seen is if something goes wrong. You then wait, and other wait, for a Coles staffer to fix the problem. No, you scan your own items, bag them, feed in your payment and collect your change. These self service check outs are about Coles offering less service, less assistance rather than more.

The only explanation I can come up with for Coles using the term assisted checkout is that they want you to think of it that way – that they are assisting you. They are trying to tell you that this is them helping you when the actual experience is you helping them reduce labour costs.

Calling it a Coles assisted checkout is nonsense.

A Coles I visit regularly to check magazines has replaced six full service lanes with these self service check outs, leaving them with two full service lanes. While some customers happily use the self serve checkouts, many do have problems. You can see the look of frustration on their faces.

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Competition

Newsagents need to be wary on e-cigarettes

E-cigraettes are being regularly pitched to newsagents so I thought I check in with the current situation regarding the regulation and sale of the products. The sale of nicotine containing e-cigarettes is banned in Australia which is kind of odd since nicotine contained cigarettes are still legal.

While the sale of all e-cigarettes, including non-nicotine containing product, is banned in Western Australia, it’s not the case elsewhere from what I can see.

This is a category of product to approach with caution given that it’s possible you might not know what you are stocking. I was approached yesterday by a start up importer and they were not sure about the nicotine content of their product. Ignorance is no defence.

Quit South Australia has published a useful fact sheet. The Therapeutic Goods Administration of the federal government also has useful information available online. The Conversation last month published a report worth reading on this topic.

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Ethics
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