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

Memo to Your Brides Guide publisher from a newsagent

bridesWe received the Your Brides Guide yesterday for the first time and I’m ready to early return the lot. However, as it’s a full copy return and bulk, I am going to give it a couple of weeks before I freight it back to Network at my cost (which sucks!!).

While the title comes with three months delayed billing, that does not give it any rights.

The publisher says, in a note with the title, Your Brides Guide is a High value publication with low space requirement. No it’s  not. This title has a high space requirement. It does not fit in traditional magazine fixturing. Either I create something new or I place it with wedding gift lines off of which I make more than twice the gross profit.

The publisher says open up a copy in your newsagent and watch sales go through the roof. Really? First off, the business is a  newsagency not a newsagent. The owner of the business sis a newsagent.  You say sales will go through the roof yet offer no evidence to support your claim.

The publisher claims Almost $7 earned per copy sold.  Based on shopping centre rent and given the space requirements of the title – especially if I open a copy like they want – I would need to sell two copies a week just to pay for the space it would take. The earnings comment from the publisher shows little understanding of the operating costs of many newsagency businesses.

For this title to be of any real interest I need to be making at least $14.00 per issue and preferably more.

More newsagents will reduce their magazine focus if the numbers continue to fail like they do for Your Brides Guide.

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magazine distribution

Herald Sun puts itself ahead of the news

newspapercoverupThe big story of the day in Victoria is the tragic death of three people killed in an accident involving a BP fuel delivery truck.  The photo accompanying this front page store in today’s herald Sun newspaper has been obscured by a stuck on ad promoting the BBC earth series which starts with the Herald Sun tomorrow.

The placement of the ad is disrespectful to the families of those killed in the tragedy.

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newspaper masthead desecration

Chocolate Heaven is easy to sell

bhgchocThe Better Homes and Gardens branded Chocolate Heaven one-shot is a tasty title. One customer yesterday said to me I could eat every page. People are passionate about chocolate!

We have it next to BHG as well as copies with food titles and copies next to newspapers.

Having this title where they are likely to purchase on impulse is crucial to our success.

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magazines

Two golf magazines to put together

magsgoldmcGold fans who appreciate the skills of Graeme McDowell are more likely to purchase both Golf Magazine and Better Golfer Australia if they are placed together given he’s on the cover of both.

Attention to placement can drive magazine sales.

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magazines

Oversupply of The Australian at Sydney Airport

ozqanI had a some spare time at the T3 terminal of Sydney Airport yesterday mid morning and counted almost twice as many copies of The Australian newspaper available for free than total copies of the Australian Financial Review, the Daily Telegraph and the Sydney Morning Herald.

While the photo shows one of of several locations of papers in the Qantas Club lounge, it was at the boarding gates where there was a huge difference.

I don’t get why they have so many newspapers being given away. I often see people take a paper, quickly scan it and then bin it. Is that a sale? If I was an advertiser relying on circulation data I’d hope not.

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Newspapers

Placement drives magazine sales

magswwopWe have placed the one-shot – The Complete Illustrated History of World War 1 – next to People’s Friend as both appeal to the same customer. I am confident of getting impulse purchases of the WW1 title by People’s Friend customers.

Simple moves like this ware another way we can drive magazine sales. Supermarket staff would never take this type of initiative – unless they are reading this and have both titles in-store.

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magazines

Excellent article in The Monthly on Australia’s supermarket duopoly

Every newsagent in Australia ought to read Supermarket Monsters by Malcolm Knox in the latest issue of The Monthly.

The article goes to the heart of our mission of newsagents – to stop supermarkets taking our retail channel in their quest to gobble up independent retailers in Australia.

Once you’s read the article, share it with your staff. Put a copy on your noticeboard to remind you of your mission.

This article is an excellent example of why The Monthly is an important publication in Australia. It covers issues in a depth and clarity about which Australians need to know.

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Competition

A look at UK supermarkets

UK Channel 4 current affairs Dispatches program is running a fascinating series on UK supermarkets which I highly recommend.

I could not see it on any Australian Tv schedule so I downloaded it through EZTV. The program is interesting as it gives some hope to the power of the major supermarket groups.  This is relevant in Australia because we are in the middle of cycle of management in our supermarket duopoly that has been driven by UK supermarket experts.

There are other episodes in the series on supermarkets – they look equally fascinating.

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Competition

Buying visual merchandising props as important as buying stock

vmEvery retailer wants unique products that no other retailers nearby have. I have heard plenty get upset when a nearby retailer sources the same product. Good visual merchandising can help you tell a different story with the same product, it can help you pitch to a different customer.

My experience is that investing time in purchasing merchandising props can deliver an equal or better outcome than in the stock itself.

Unusual props used creatively can give you a unique traffic-generating story that turns inventory investment into cash in the bank sooner.

We look far and wide for props with which we can create in-store theatre of which we can be proud.

The days of putting products on the shelves are over. We have excellent competitors and we need to do better than them.

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visual merchandising

Australia Post focused on online

auspostonlineshopThe message in Australia Post retail outlets through to their vehicles is that the government owned organisation is focused on online. Their leveraging of their retail and vehicle network provides them a low-cost platform from which to pitch for business and compete with other players in this parcel space.

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Australia Post

A terrific local kids products supplier

justkiddinJust Kiddin is a small Melbourne based business – offering Australian designed tents that are ideal for the newsagency customer.

Weighing close to only 1kg, these tents can be displayed in almost any situation from the floor to the ceiling. They sell easily. They also support a terrific margin.

We have had them for a year and I’m thrilled with the result.

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Gifts

Kudos to Gordon & Gotch for their handling of the Bauer / Network IT failure

Magazine distributor Gordon and Gotch was impacted by the IT meltdown experienced by Bauer Media’s network Services last week. Kudos to Gotch for sending out this email to newsagents:

Dear Valued Retailer,

Due to the Network / XIT problems last week a number of returns claims sent last Wednesday /Thursday (30th and 31st July) were not received at Gordon and Gotch by month end cut off.

You are a store that has been impacted by this and when you review your month end statement this claim will be missing.

The amount of any July claim submitted on time but missing from your statement can be deducted from your August payment.

If you are not sure of the amount or would like to speak to our Credit Department please phone 1300 650 111 and they can talk you through the process.

This shows Gotch being on the front foot while Network spent last week, the weekend and even this week on the back foot dealing and not dealing with their IT failure.

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Customer Service

News Corp. David Attenborough DVD promotion to soften impact of newspaper price rise

attendbThe same day the the cover price of the Herald Sun and other News Corp. newspapers increases the company is launching the David Attenborough DVD series in a marketing campaign that is expected to be successful in driving sales as people collect the coupon that is necessary for getting a DVD.

Shopper interest in the DVDs is strong and we are still a few days away from launch. Key to achieving maximum success will be access to enough newspaper and DVD product. Some parts of News Corp have a good track record with such promotions while others have a poor track record. In this regard, I’m happy I’m in Victoria.

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Newsagency opportunities

Very cool date-based card range

articoI love these year-themed birthday cards from Artico that have at the Melbourne Gift Fair this week. They tap into the strong interest in nostalgia. They make for a wonderful gift. Each CD has 20 hits fro the selected year.

While spinners can be challenging, this one has a small footprint and is easy to locate in different locations in-store. I can see the range working in a card department, with magazines and elsewhere.

I don’t see this range as competing against an existing card range but more complementing it.

The folks at Atrico have not asked me to blog about this.

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Greeting Cards

Gotch magazine returns audit crackdown

Newsagents have told me about a crackdown by magazine distributor Gordon and Gotch on magazine returns claims. They are cross-checking supply and sales data against returns claims and going back to newsagents where the data does not add up.

While Gotch has spot checked returns for years, they now appear more attentive. Newsagents over claiming returns are more likely to be caught.

While there is plenty wrong with the magazine distribution model, consistent over-claiming of returns is not justified and could result in criminal proceedings if Gotch decided to take it that far.

My advice to newsagents is to have a structured transparent process for scanning returns as well as for arriving and selling stock. Fudging figures to get a bigger credit that is not justified in supply and sales data will result in you being caught.

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Ethics

Gold Coast Bulletin souvenir edition not in newsagencies

News Corp’s Gold Coast Bulletin published a special edition yesterday commemorating the handover of the Commonwealth Games. As their own report indicates, this special edition was not available in newsagencies.

News Corp has passed up another opportunity to demonstrate its commitment to the newsagency channel.

The company for years has said newsagents are important to them – their actions do not match their words.

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newspaper home delivery

Information can be more valuable than a discount

snakeInformation is key to being able to sell products. Indeed, information can help us generate more money in the bank than a discount off invoice when purchasing a product.

By that I mean: a discount is only valuable when you sell an item and information is what can help you sell an item.

Take this snake. I have found out from the supplier – Wild Republic – that it sells well in garden centres for people wanting to put in their garden. I’d only ever thought of it as a toy. Now I see it as more than that. I have new customers I can pitch it to. Plus I have new visual merchandising ideas.

While I can buy the snake at a terrific discount off invoice, it is the information about the other customers for the snake that is of more use for me as this is what will see a greater financial contribution to the business from sales of the snakes.

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Gifts

Crosswords with weeklies work

magscrosswThis photo shows how we place the That’s Life and New Idea crossword and puzzle titles with That’s Life and New Idea. We sell more of these from here than in our crossword section. Making the extra space is funded by the additional sales.

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magazines

Coming of age at the Melbourne Gift Fair

giftsIn two days at the Reed Gift Fair and the Home & Giving Fair in Melbourne on the weekend and talking with many wholesalers, not once did someone say they do not supply newsagents, not once did someone criticise our channel. Indeed, man suppliers talked about enjoying dealing with newsagents because of the healthier traffic we have compared to many gift shops.

The reception this year for newsagents is the best I have ever experienced in many years coming to these fairs.

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Gifts

Showing to sell

donutvmI love this photo I took at the Home and Giving Fair at the show grounds in Melbourne yesterday as it is a reminder of the value of showing off a good product.

The donuts are soap. Left in the retail packaging they look good. Taken out and placed on a tray they look stunning. I’d expect a tray of donuts out on display like in the photo would sell far more product that boxes of the products on display.

Visual merchandising experience in the traditional newsagency has mainly been with magazine displays. What a modern newsagency sells today requires smarter and more creative engagement. Indeed, this is essential as we grow our gift, toy, plush, jewellery, fashion and other higher margin category sales.

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visual merchandising

Learning from the Total Girl TV ad

I caught an ad on TV last night for Total Girl magazine and learnt a bit about the title that can help with merchandising decisions.

Newsagents are assaulted every day with e-mail, mail, calls, faxes and reps all wanting attention for they products. I’m sure I’ve read a flyer about Total Girl magazine. This ad last night, seeing it unexpectedly and when nothing else way vying for my attention, it got through. It made me think about the challenge for our attention.

That Total Girl is being promoted on TV is enough of a reason to get it in the spotlight, to leverage the TV exposure.

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magazines

Reaching out beyond the magazine fixture

magreachoutWe have clipped several of these fixtures on magazine shelves to call out titles we want to feature. This week we have chased New Idea Jumbo Puzzler for special treatment. the simple acrylic gives is an additional spot, holding plenty of stock and easily noticed by shoppers.

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magazines

If you work for Bauer Media or Network Services…

Many newsagents have reported that they have not received electronic invoices from Network Services for magazines due to arrive tomorrow. The files should have been received by now. No one at Network Services is responding.

Given the IT meltdown that occurred at Network this week, the company should have taken extra care with files to be sent Friday plus they should have had help desk staff working Saturday.

Unless there is something I and many newsagents are missing this looks like appalling customer service by Network. Publishers with titles coming out Monday will suffer.

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magazine distribution
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