We can’t work out why Network Services would increase our supply of PlayStation Australia when we have not been selling out. There is nothing in this issue to justify the increase. All we can put it down to is that Network has spare stock they need to send out in order to charge the publisher distribution fees. Network wouldn’t do this to Coles.
How cigarette stock is managed in a newsagency provides an excellent indication of the employee theft risk. If a business does not track all movements of cigarette stock it is more likely to be victim of employee theft.
I choose cigarettes because tracking all stock movements is easy and because cigarettes are often stolen by employees if they think sock movements are not being tracked.
Do you track all cigarette stock movement? If not, why not? Tracking it shows your employees that you are serious about an accurate stock count. It also helps you order more accurately and thereby not over stock. It also quickly identifies any discrepancy in stock on hand.
I have seen businesses where there was no tracking of cigarette movement, stock was stolen and plenty of cash was stolen because the criminal employee know that management of the business was weak.
My experience of uncovering and tracking employee theft in newsagencies and assisting police and prosecutors is that a business introducing and maintaining tight control on cigarette stock movement will reduce the incidence of employee theft.
Why newsagents would not do this is beyond me.
I have updated the flyer I published here last year that was designed to help advise newsagent employees where the profit made in the business goes. The updates improve clarity of the message. Click here to download the document in Microsoft Word format. Feel free to change it as appropriate to your needs.
By informing employees of where all revenue received by the business goes we are trusting them and hopefully encouraging more valuable engagement in the running of the business.
More and more reports are coming out of the US about shopping malls that are closing and being abandoned. What’s interesting is that it’s mall based shopping that is challenged and not shopping itself. The New Yorker has an interesting report quoting Rick Caruso, CEO of the company with malls delivering best-practice per square metre sales. Caruso malls are outdoors and more about the LA lifestyle experience.
This trend is one we need to watch and assess whether it is unique to the US or something we are likely to see in Australia because right now, we’re seeing more malls being built than close – leading some to say we are over served with retail space.
There was a time when being in a newsagency in a shopping mall was the preferred outlet. Today, that preferred location is more likely to be a high street situation in an area with a strong sense of community.
A newsagent colleague is thankful to the person who stole a crossword magazine but removed and left the cover for returns processing. Nice.
In a supermarket a few days ago I saw this World Cup themed display promoting beer. Whereas other retailers had displays of soccer balls and players, this retailers was focussed on the competition through products they sell. Very clever.
The display is also interesting because it adheres to the basics of good visual merchandising: pyramid in shape and telling a story.
While newsagencies don’t have the product range for this type of World Cup promotion, I am sure with some thought we could have done more to connect with this international event than just sell magazines, stickers and cards.
In a large book and clothing shop a couple of days ago I noticed a structural column in the middle of the shop that would otherwise be an eyesore was host to a beautiful garden with live plants shoppers were encouraged to touch.
Here, deep in the shopping mall and in the middle of a large busy shop, they had turned a challenge into an opportunity for left-field shopper engagement. Kids and adults stopped and touched the plants. Most smiled.
Using a structural column for this is unexpected. I found it made more interested in what else they were doing in the shop – kind of if they are smart enough to do this they must be doing some other cool things.
I love the use of the bright blue fabric to draw attention to the entrance display in this shoe shop I saw on the weekend. From across the mall you could see the blue. It was the brightest spot in the store, it drew you to have a look … and that’s the goal of any display.
I saw this coffee-themed display is a supermarket a few days ago and stopped to take in everything they had done to make such a stunning display. I call it stunning because it stopped me in my tracks – it had everything: clear signage, a pyramid structure, an excellent range of products – from individual items to hampers – that combined told a story and additional information – see the blackboard. I’d say this is one of the best visual merchandising displays I’ve seen in a supermarket.
Go into a capital city shopping mall with major retailers and this is the type of display you see greeting shoppers at the entrance: pyramid in shape and telling a story, enticing shoppers to step into the business.
I’m posting this photo of an example of how a cake shop is using colour blocking to create a more visually effective display. We have many opportunities in our newsagencies to do this – to collect products together based on colour. The result should have a strong visual impact. It should also bring to the spotlight items that otherwise might not have had the opportunity.
I’ve added a new category of posts on the blog: colour blocking – to make it easier to see past posts about this.
In the first half of 2013 there were 23 lottery jackpots with a first division pool of $15 million or above. In the first half of this year that number dropped to 19.
Newsagents looking to understand why lottery sales this year compared to last may be flat or down should look at the impact of jackpots on their lottery sales. While jackpots impact businesses differently, the reduction this year over last is certain to have impacted some.
Breaking doen the games is also useful in that Powerball has had more jackpots from what I can see yet this has not delivered the level of sales bounce retailers want in some businesses I have seen.
As the survey here in May revealed, jackpots play a vital role in driving shopper engagement with lottery products.
Newsagents, especially those with LPOs, ought to read the announcement from Australia Post last week about terms, services and other major developments.
Australia Post has moved to strengthen its vital regional and rural store network by announcing a package of initiatives that includes increased payments to post office operators and wider access to point-of-sale technology enabling customers to access more services.
Their rural sustainability package will be of particular interest:
Offering connection to Australia Post’s electronic point of sale system (EPOS) for 432 LPOs that currently use manual processes. This will allow these stores to offer customers additional services such as payment by credit card or EFTPOS and banking services
Increasing the minimum guaranteed annual payment for LPOs and introducing a minimum payment for CPAs
Increasing payments for providing working space to mail and parcel contractors
Increasing payments for representing Australia Post to the local community
Removing the EPOS transaction shortfall fee
In a move that respects the ownership Australians feel over Australia Post, they have opened an online conversation through which they are seeking feedback on a range of fronts including their announcement last week. Newsagents with LPOs ought to take a look at this as a channel through which to communicate with Australia Post about concerns.
I’ve whacked Australia Post a bit here. This time, however, they deserve kudos and appreciation for how they are dealing with a complex set of challenges. A lesson for newsagents is that Australia Post is publicly embracing change on a range of fronts.
Thanks to Tech expert and commentator Paul Wallbank for the tip on this.
I passed a WH Smith store in Melbourne last week and they were using this 2 for $8 promotion to attract shoppers in-store.
While the deal was not good value in my view, the actual promotion was done in such a way so as to make it feel like a good deal.
The stand itself is excellent, ideal for this type or promotion. The supplier collateral, tailored to the stand, helps give shoppers confidence in the offer promoted.
There is nothing stopping newsagents who want to play in the c-store type space running deals like this on a stand like this.
With WH Smith expanding in Australia, expect to see more of this type of unit and promotion.
We are supporting the launch of Simpublia magazine with prime placement in our science / news / related area. Simpublia is a good looking special interest title targeting readers of value of newsagencies – hence our support for the launch.
I’ve been asked a couple of times recently about marketing fees they pay to their franchise / newsagency marketing group and the obligations of the groups to disclose how the funds are spent.
One business owner told me their group, which operates under a franchise agreement, has refused to provide any visibility of marketing funds collected from members and how they have been spent. The group in question is collecting well over half a million dollars a year.
The law is clear on marketing funds for groups that fall under the franchise code of conduct.
Here is what the Trade Practices (Industry Codes – Franchising) Regulations 1998 says about this:
17 Marketing and other cooperative funds
(1) If a franchise agreement provides that a franchisee must pay money to a marketing or other cooperative fund, the franchisor must:
(a) within 4 months after the end of the last financial year, prepare an annual financial statement detailing all of the fund’s receipts and expenses for the last financial year; and
(b) have the statement audited by a registered company auditor within 4 months after the end of the financial year to which it relates; and
(c) give to the franchisee:
(i) a copy of the statement, within 30 days of preparing the statement; and
(ii) a copy of the auditor’s report, if such a report is required, within 30 days of preparing the report.
(2) A franchisor does not have to comply with paragraph (1) (b) for a financial year if:
(a) 75% of the franchisor’s franchisees in Australia, who contribute to the fund, have voted to agree that the franchisor does not have to comply with the paragraph; and
(b) that agreement is made within 3 months after the end of the financial year.
(3) The agreement referred to in paragraph (2) (a) will remain in force for 3 years, and franchisees must vote, at the end of that time, in accordance with paragraph (2) (a), for the agreement to remain in force.
(4) If a franchise agreement provides that a franchisee must pay money to a marketing or other cooperative fund, the reasonable costs of administering and auditing the fund must be paid from the fund.
If you are in a marketing group or any franchise group and contributing to a marketing fund, they have an obligation to report to you. If they have not been doing this you can report them to the ACCC.
I’ve heard of several newsagents in the last few weeks being targeted by scammers. In one case it was an advertising scam where the caller asked if they wanted to continue with their charity magazine advertising – there was no magazine. In another case, a newsagent was contacted by a scammer posing to represent an energy provider.
It’s important your employees know what they can an cannot agree to on the phone. Be clear in the rules and avoid being hit by a scan. The ACCC Scamwatch website has excellent information on this. Be sure to look at the small busyness section.
The Raspberry Pi is a cheap computer that has achieved mass appeal including with geeks. The Ultimate Guide to Raspberry Pi Magbook is a good title for promoting where geeks can see it and see your business as worth visiting. We are using this as a title to pitch relevance to a shopper who might otherwise not find products or titles relevant to them.
There are plenty of products we can pitch to the Raspberry Pi fan: activity packs, geek-themed impulse lines, Dr Who products and plenty of licenced products. These and others are opportunities whereby we can use a magazine to attract a shopper who could be considerably more valuable to us than for the magazine purchase itself.
Check out the Raspberry Pi website to learn more about the customer – it’s fascinating.
Check out the very simple yet visually effective approach being taken by an outlet of the Woolworths owned Thomas Dux supermarket to promote the latest issue of Frankie magazine.
Note the lack of clutter at the counter – this is a very smart, and I suspect effective, way of achieving impulse purchases of the popular magazine.
The Thomas Dux approach is different to what most newsagents would do. We can learn from this.
Tatts is running a competition that seeks to educate customers about purchasing entries online. Their $1,000 Play Money competition pouts you in the running if you purchase or renew your Tatts card, buy a ticket – and you’re in the running. The website seems to indicate that the buying of the ticket is done online – look at the tab: Buy online.
A check of the rules indicates that any ticket purchased using an eligible registration card gets you in the running. It’s a pity their website did not actively promote the retail network for this promotion.
Showing an outcome is common in advertising and marketing in all sorts of businesses. It can work just as well in a newsagency.
Take the humble jigsaw puzzle. By erecting the 3D Eiffel Tower and placing it as a centrepiece of our new Ravensberger jigsaw puzzle display we have attracted new shoppers, people who have not shopped with us before.
What products do you have in your newsagency that you can assemble or otherwise setup to show the outcome your customers can achieve? Expect to increase sales!
What percentage of sales revenue do you spend on rent, labour and marketing. These are three key business performance indicators yet they are often not top of mind for newsagents. Labour should cost between 9% and 11% of revenue, rent should cost between 11% and 13% and marketing should cost between 2% and 5% if you are to be competitive.
If your costs are lower, good. If they are higher, you have work to do.
FYI, when I talk about revenue it is revenue from all products and commission from all agency business.
The shelf life of a daily newspaper is less now than at any other time in its history. Indeed, news stories are often out of date by the time the press machines start rolling.
While the price of other products with a limited shelf life, such as fresh food, is reduced as it nears expiry, newspapers hold their price until returns for pulping.
We ought to price newspapers on a sliding scale – the later in the day the cheaper they become. We could modify newsagency software to set a price based on time of day and to report sales by time direct to publishers.
While some will wait to get a few cents off the price of a newspaper, I doubt those who purchase newspapers for the full experience will care.
I’d suggest full cover price until 2pm at which time its drops to 25% off and then for the last hours of the trading day it drops to 50% off. A trial could test if the timing and the discount quantum is right.
The goals need to be zero returns plus more people purchasing newspapers.
My core interest is in getting more print newspapers in the hands of shoppers who pay something for the privilege. A stand at the front of the newsagency, facing into the mall, offering The Age or The Herald Sun at half price at, say, 4pm could achieve just that. I’d expect getting fifty cents in the dollar is better value for the publisher and their advertisers than copies being returned unsold and having to be pulped.
Given the challenges facing newspapers including falling over the counter sales, falling subscriptions and falling advertising revenue, it is time to experiment with creative solutions. This idea of pricing that accepts a newspaper has a diminishing value with time is the type of fresh idea we need to consider. As a retail only newsagents it’s an idea I’d embrace. It is certainly more interesting to me that the forever promoted subscription deals that try and lure my customers to get their newspapers elsewhere.
I took the photo at the fruit salad counter of David Jones in Sydney, half an hour before they were to close for the night a couple of weeks ago. In this last half hour they slash the price of fruit salads to get rid of them, so they can start fresh in the morning.
Seeing the popularity of the counter at this time of the day is what started me thinking about this idea for newspapers. If I’m in Sydney close to closing time for David Jones I head down to the fruit salad bar and pick up a tub for less than half price. Delicious!
News Corp. is showing today how little photos on the front page of a newspaper matter to driving newspaper sales. They have suck a post-it note type ad for their unlimited digital and weekend home delivery subscription over the photo for the lead story of the day – and they did not cover up a celebrity photo on the same front page. Nuts!
Like I just wrote about air fax – I don’t want to encourage my customers to switch to home delivery.
If the people leading News wanted to grow sales, they’d engage with proactive retail newsagents.
Shame on Fairfax for their cover-up today of a story about asylum seekers on the front page of The Age newspaper.
The placement of a post-it note type ad stuck over part of the lead story on the front page of the newspaper demonstrates a disregard by Fairfax for news.
I don’t want my customers to switch to home delivery. I hope one day Fairfax will realise that retail newsagents can help them increase sales.
We have brought in Jungle Ants in time for school holidays as part of broader story we plan to tell on activity related gifts / toys.
Ant farms have been around forever and it’s terrific to see them packaged in a fresh and enticing way as these Jungle Ants are. We’ve got a whole new generation of kids to introduce these fun things to.
Planning ahead for school holidays is more important than ever for newsagents as we compete more with toy shops and gift shops. School holidays and excellent opportunity to entice new shoppers into our stores. It’s the time for fresh – non-traditional – window displays that speak to the kids and young families who are out in force during this time.