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

Wellbeing turns 30 tomorrow

WBG151_CoverIssue 151 of Wellbeing magazine, on sale tomorrow, marks the 30th anniversary of the launch of this terrific Australian title.

Wellbeing is a beacon brand title in the health section, a title we place to draw attention to a section because the brand itself is so well known.

The 30th anniversary issue has a stunning gold-foil cover. The publisher sent me a pre-release copy and it looks better in person than in this photo.

The anniversary is an excellent reason to place this issue of Wellbeing in prime position in your health section as well as in a secondary location – showing it off to shoppers who would otherwise not browse the title.

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magazines

An anonymous personal attack

I have received calls in the last 24 hours from several people who have received an anonymous note in the mail attacking me. Here is how this note opens:

Mark Timothy Fletcher – this is a message for you but since I don’t own a blog, this was my next best way to get my opinion out there for comment.

Mark Timothy Fletcher is a highly critical blogger of those who do not share his ‘noble’ views and usually have little scope to reply to his various attacks through his various blog sites.
As such I through a bailout approach was in order to allow you to judge my opinion of this man’s sordid business venture… I don’t think it likely he will put himself out for the judgement he casts on so many of us and our interests.

“Those in glass houses should not throw stones!”

(sic)

The little scope to reply comment upsets me in that all comments here are unmoderated except for the first comment someone makes. Commenters here themselves would know that the comments are unmoderated. While it frustrates me that such a false accusation is made, that it has been made speaks to an agenda of the writer.

If you receive this anonymous note please send it to me along with the envelope as it will help identify the source. Send to: Mark Fletcher 3A Lynch Street Hawthorn 3122 or mark@towersystems.com.au.

The note goes on to claim that I am the sole director of a business in Cairns – Head Office CBD.  This is true. An ASIC search will confirm it. I have mentioned this before in public forums.

Head Office CBD is an adult shop in Cairns, a retail business serving guys, girls and couples. The anonymous letter makes claims about that business which are false and misleading.

The only reason I own Head Office is to help a friend. They purchased the business a few years ago and for personal health reasons irrelevant here needed to urgently exit the business. At barely a few days notice I took the business on to protect their investment. Over time I paid them out and then put the business on the market – just ask Fritz Herscheid at Barrier Reef Business Brokers, he will confirm that he has been contracted to sell it.

Head Office CBD, in addition to being a regular adult shop, also offers access to a Cairns council approved male-only cinema lounge. The anonymous writer appears to be offended by this. I am not sure why as I’ve not sought to push this on them – they have sought out this information for themselves for their own purposes.

Head Office is a legitimate small retail business providing a lawful service which does more good for the community than if the business did not exist. Neither I nor the people who work in the business do not judge those who shop there or use the cinema lounge just as newsagents don’t judge people who purchase adult magazines or buy cigarettes. Live and let live is good motto.

The writer says they are personally sickened that these types of venues exist in australia (sic) let alone owned by somebody who likes to hold himself in such high moral esteem. I don’t hold myself in high moral esteem. I’m flawed. I’m human. Adult shops and male cinema lounges and other similar venues provide a valuable public service to people of all walks of life.

I am proud to say that under my leadership this has been a good, clean and safe business. It’s also been a profitable business providing work for local Cairns employees.

It’s odd that the note is written from a deeply personal perspective yet they writer refuses to identify themselves – leaving one to wonder about their personal convictions.

I cannot think of why the writer has written and distributed this note. My only guess is that it is a response to my Coming out blog post of May 22. I’d welcome their public comment here about it.

The lack of a comment suggests they do not have the guts to stand by their words.

In the time I have owned Head Office I have learnt things about retail, shopper theft patterns, remote business management and human nature that I had not learnt through other retail businesses I’ve owned.

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About us

Terrific colour blocking of stationery

whitccolourstatCheck out the colour blocking of stationery that I saw at a newsagency-like Whitcoulls store in New Zealand earning this week. It looks good, very appealing. Their clever buying and in-store colour blocking helps them position paper clips, bulldog clips and rubber bands differently to what we see in the average Australian newsagency. This approach appeals to a broader audience.

Click on the image for a bigger picture.

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Colour blocking

Fun approach to censoring a greeting card

censorcardI like the approach by fashion stationery retailer Typo to censoring greeting cards with words that may offend. The sticker not only censors the worrying word, it draws attention to the card on the card rack, thereby driving shopper interest. It also shows those customers who might be offended that the company respects their views. This is a win win.

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Greeting Cards

Just read: Stop Press – The Last Days of Newspapers

stoppressStop Press – The Last Days of Newspapers byRachel Buchannan is a compelling read by a respected journalist and historian. It’s a homage to Australian and New Zealand print newspapers and a call out for for future of journalism. Newsagents come in for a mention as a business channel affected by the declining sales of print newspapers. I recommend the book for those interested in the future of the print product.

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Media disruption

Groundhog Day at the Courier Mail

I’m told that the ABC is running a report that some copies of today’s Courier Mail has a printing error with some pages – page 2, page 10 and some others –  publishing yesterday’s news. Some people are going to have a tough day today.

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Newspapers

The Australian plain packaging claims expose poor editorial judgement

Labor’s plain packaging fails as cigarette sales rise

This June 8 headline and accompanying article published in The Australian has been shown to be based on specious information as last night’s Media Watch program explained. Relying on respected government sources and tracking back connections between the journalist and the source for data relied upon to big tobacco the Media Watch report destroyed the report by The Australian.

With newspapers challenged for revenue, their best chance at a future comes from fearless and accurate reporting and not doing the bidding of businesses looking for an outlet for their spin.

While I understand big tobacco and those who support them and their spin (in newspapers, blogs and other outlets) the real story that matters is the health outcomes we all hope for of less people getting ill and dying from tobacco related illnesses. This public health issue is why we need fact-based reporting and not spin that serves the tobacco companies.

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Ethics

Making the most of male card customers

Newsagencies are visited by males more for cards than other retail outlets – several studies over the years have shown this.

Male card customers tend to appreciate an offer of help to choose a card and or a gift more than female customers.

Are your staff trained to make the most of male card customers?

The right approach on the shop floor can help turn a $2.00 cheap card purchase (if you sell those!) into a $7.95 and more purchase. For a small time investment and some words of encouragement you’ll have a customer walking out with confidence in their purchase rather than the regret of the $2.00 it’s all I could find feeling.

If every newsagent in Australia immediately from today focused on male shoppers looking for cards I have no doubt that we would see a measureable increase in card revenue.

With the card department delivering the best gross profit in our newsagencies why wouldn’t we invest in this activity? Only newsagents who are not retailers would ignore this opportunity.

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Greeting Cards

An excellent window display offers inspiration

chcwinI love this window display I saw in a home furnishings store Sunday night in Christchurch. I love it because it demonstrates the successful pyramid approach to building a display and because it uses seven tables, chairs and frames for the structure on which the products are placed – providing us with ideas we can easily follow. Click on the picture and see how easy it would be to recreate this type of window display in your newsagency.

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visual merchandising

Generation wealth cover story has broad appeal

magsaustpropThe Generation wealth cover story in the latest issue of Australian Property Investor is an opportunity for us to pitch the magazine beyond the property section that’s usually hidden far away from the spotlight. I think it is the kind of cover that could get people browsing this title who would usually not notice it.

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magazines

Sales of Mollie Makes continue to grow

molliemakesjune2014Sales of Mollie Makes magazine continue to grow – it is now in our top grouping of monthly magazines. All we have done to achieve this is to understand the opportunity, place the title next to weeklies and continue to order more stock.

This is an example of where being an engaged magazine specialist pays off. Had we treated Mollie Makes in a more traditional way it may not have been placed in the spotlight and may not have found the excellent growth it is achieving.

Mollie Makes is profitable for us and I love it.

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magazines

Bauer speaks out on Coles magazine discount

Julie Green, National Channel Manager – Newsagents, at Bauer Media has issues a statement about Coles discounting Woman’s Day today in Victoria:

It has been brought to our attention that Coles has made the decision to discount this week’s current edition of Woman’s Day to $2.10 in their Victorian stores.

Bauer Media would like to state categorically that it does not support this decision and is not funding this promotion in any way.

Our extensive research has clearly demonstrated that discount price promotions of this nature do not perform positively both in terms of sale numbers or brand equity. The magazine category within a grocery outlet serves as an impulse sale which in turn builds baskets. They are not discount sensitive. Our strategy for magazines continues to be to add value to the purchase, not discount the product. We have spent considerable time, effort and resourcing to launch the Reader Rewards magazine loyalty program for newsagents that meets this strategy. The investment is substantial and ongoing. To then have this inappropriate activity happen in an alternative channel is extremely disappointing and frustrating.

We strongly urge those newsagents with Reader Rewards to exploit this competitive advantage. An issue of a magazine can be sold only once – claim the sale of Woman’s Day early by leveraging the reward of a free magazine with shoppers. Reader Rewards provides a key point of difference that will build customer traffic, loyalty and repeat purchase that will outlast and outperform this singular promotion.

It’s terrific to see Bauer being so clear on this issue.

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Competition

At Christchurch Gift Fair

chcI’m at the Winter Gift & Homeware Fair in Christchurch and enjoying looking at gift opportunities from a different perspective. With some  common suppliers between Australia and New Zealand this fair is proving to be a good opportunity for catching up away from the business of Australian trade shows.

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Gifts

Jamie’s cheap plush @ Woolworths

jamiescheapplushAs part of the Jamie’s garden feature at Woolworths is this range of cheap plush being pitched near checkout counters. This plush is of the same quality as $3.00 plush items I have seen in in deep discount stores. At Woolworths it’s priced at $5.00. To me, the price seems high for the quality of what you get.

These gripes from a retail competitor aside, it’s a very clever and well thought out integrated campaign from Woolworths. They have a world renowned celebrity chef running a healthy eating campaign that has plants, plush, books and food being promoted. It’s this broad base across multiple departments that makes it an interesting campaign to watch. Very clever by Woolworths.

As for the plush, a couple of stands I looked at were almost empty so I guess people are buying these things.

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Competition

Another retail theft

crookretailThe shop I mentioned a few weeks ago as having experienced a violent break in experienced another break in at the weekend.

If there can be such a thing this was a good theft. Seriously, a good theft.

At 5:30am, the lone burglar broke in through the front door, wandered around the shop a bit, pocketed two products and, after seeing there was no cash around, left – without doing any permanent damage.

The security system picked up some excellent face shops. I can see his defence – alcohol affected and therefore of diminished responsibility.

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theft

Sunday newsagency management tip: run your newsagency to afford your replacement

BEFORE YOU SCROLL ON: This is the type of blog post here that attracts little comment, few likes and little attention yet it goes to the heart of what hundreds if not thousands of newsagents need to do in their businesses today. This like all the other Sunday tips is a challenge.

If you want to sell your newsagency it will need to generate sufficient net profit to pay for someone to work the hours you work in the business. If your businesses is not generating sufficient to profit to pay for your hours and deliver a profit it will be of less interest to prospective purchasers.

I understand this suggestion will frustrate and or challenge newsagents who today cannot draw even a basic wage in return for their time. If you do want to sell at some stage you will need to address this.

Newsagents have more capacity to improve net profit than they often think.

The three top areas on which to focus to improve the money you make in your newsagency: overall business gross profit, average shopper visit spend and frequency of shopper return. Focus on these and you will improve the profitability of your newsagency.

You improve gross profit by working on the price of what you sell (for products where you have price control) and the range of products you offer. You improve shopper visit spend, basket size, with more active shop floor management, better displays and a better range of products. You bring shoppers back more often with a loyalty program attuned to the needs of your shoppers.

If your newsagency today is not paying you a reasonable wage for your time, you need to act with urgency to address this. It is unacceptable to blame others. It’s your business. You decide what you sell, how it is displayed, how it is priced and how your customers experience the business.

I’ve seen newsagents realise this and reenergize their focus on their business with success. I have seen newsagents add ten percentage points of gross profit to their business and more. It starts with the decision to take control.

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Management tip

Sunday newsagency marketing tip: give shoppers something to play with

sandsellsAlways have something at the front of your newsagency, at your entrance or just inside the front door if you are on the high street, for people to play with.

The right product to play with will attract new shoppers or people who, like kids, bring shoppers.

This product does not need to be something you traditionally sell but it needs to attract shoppers who will purchase products you traditionally sell.

For us, recently, the right product has been kinetic sand. Like many newsagents, we have sold many packs of sand, thousands of dollars worth, in the last few months. More than half has been purchased by people who never shopped with us or were infrequent shoppers.

The sand attracted them because they could play with it. Most who played purchased. Many who purchased sand purchased cards, magazines and other products.

The sand was a very effective marketing tool for us.

It’s a policy we have – always have something at the front of the newsagency facing into the mall that shoppers can play with.

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marketing

Nude Pink cover shot helps drive Who sales

whopinkThe nude photo of Pink on the cover of Who magazine is driving shopper interest in Australia and gaining media attention overseas. This is a magazine where the full cover needs to be displayed to get the full impact of the stunning artistic cover shot. Pink remains a hot performer in Australia – she’ll help us sell more copies of Who.

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magazines

Any other newsagents missing the Spectrum from The Age

I heard from a newsagent today who is missing the Spectrum part (part 2) of The Saturday Age for three quarters of his supply. There other newsagent in town received full stock – putting this newsagent at a disadvantage with will surely cost sales.

Has anyone else experienced this today? It is poor Fairfax customer service that it is not easy for newsagents to get issues like this handled on the weekend.

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Newspapers

Excellent visual merchandising of cushions

couchVMI saw this display of cushions at the Gibson / Unity showroom in Melbourne earlier this week. While the cushions themselves are impressive and make a perfect gift offer for a newsagency, the display itself was even more stunning. Using a couch as the ‘stand’ is perfect. It’s the type of visual merchandising that is perfect for this item and perfect for a newsagency: casual, fun and visually impactful.

How we display what we sell is as important is the products we offer.  Suppliers who offer visual merchandising inspiration – like on show at Gibson / Unity right now – are more valuable for us as more newsagents transition from the traditional newsagency offer to something more current.

While the space taken by the couch could be a challenge for some newsagents, I could see a reasonable impact being achieved with a chair or two as the ‘stand’ for the cushions – using the couch idea but finessing it to the space available.

Some products work better when not placed on regular shelves. 

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visual merchandising

Selling the visual merchandising fixture

fixturesaleWe purchased this wire frame of a female torso for a display we are creating in-store and another retailer saw it and purchased it at a nice margin. It’s cool when this happens, and surprising. It’s a reminder to not underestimate what we can sell in our businesses.

A newsagency selling a wire female torso – who’d have thought!

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visual merchandising