This promotion of calendars at the counter has been driving sales for us. It’s not right behind the counter but off to one side, a dead side what rarely works for us. But this calendar promotion is working. We know based on customers noticing, asking for their team and purchasing. This is the second location promoting the AFL calendars in-store.
An email today from the ANF to members was solely about Hubbed, the agency business in which the ANF has a 5% share. The email underscores a conflict for the ANF as the national association representing newsagents. The email, essentially a promotional letter from Hubbed, indicates that Hubbed is relying on ANF staff:
We are taking on additional staff as we speak and also leaning heavily on our friends at the ANF to provide support in the roll out process so that we can effectively manage document receipt, installation, training and marketing.
There are other suppliers who provide the ANF with real dollars funding for conferences and award sponsorships who could want to lean on the ANF for staff support. Why is the ANF providing this to Hubbed and is such a tight relationship healthy for newsagent members and the channel more widely?
Just by asking these questions some will say, as they have done recently, that I am talking Hubbed down. I am not. rather I am seeking transparency for newsagents.
The ANF love affair with Hubbed must be challenged since the ANF is not doing this on behalf of members. While there have been some answers to some of the questions I have raised, I am yet to see any evidence of reasonable due diligence on the Hubbed business model for newsagents.
As I have noted previously, I’d like to see a public debate to test the business model and the newsagent contractual arrangements at the core of the model. If Hubbed is as good as the ANF Hubbed partnership says it is then it would emerge from the debate in a stronger position.
As for the rest of the email – which was thin on specific detail, I am surprised they are rolling out Hubbed given the challenges some tell me of getting a consistent contract.
I logged on to Facebook last night and saw this photo and story from one of my newsagencies about the customer who won a Samsung Galaxy Tab 2 in our Hallmark Cards Father’s Day in-store promotion.
I love this Facebook post for a few reasons: the post itself is conversational, encouraging and gently promoting the business and the value of shopping with us, the prize helps drive excellent sales and promote the business and the photo is a happy reminder of what shopping with us can be like.
What I like the most is the initiative of Jayden to do all of this without being asked.
Growing traffic and sales in a newsagency business is a function of many small steps. In-store promotions, prizes and social media stories about these are just some of the small steps. These and similar activities help us and those in the businesses with us enjoy our businesses more.
I have decided to return the Bauer supplied magazine display stand to Bauer, replacing it with a stand on which I can display what I want.
While I like the format of the Bauer stand, its construction and the ease with which we can move it around the newsagency, that it must only display Bauer stock is too restrictive for today’s newsagency.
I want fixtures that allow me to make decisions that suit my whole business and not just a single supplier.
In terms of magazines I want to promote my magazine range rather than titles from one publisher.
By returning the Bauer stand I am reclaiming the floor-space used for the stand for my business. Sometimes you’ll see Bauer titles in the stand and other times not. More often you will see titles from a selection of publishers. This is as it should be in every newsagency.
We should promote the overall magazine range more than single titles as it’s our range that is our point of difference when it comes to magazines. Sure there is value in promoting certain issues of magazines – but not to the detriment of other magazines we sell.
This is why I am returning the Bauer stand. I want more control over the floor-space I pay for.
We’re using products from three different suppliers to support this aisle-end display promoting official AFL products. It’s faces into the front of the store and capping our magazine department.
I love that the in-store team has grouped items from multiple suppliers to tell a story. I also love that they have done this in a small footprint. Indeed, this display would work in newsagencies of all sizes.
I’ve noticed AFL product displays in several supermarkets over the last week so I’m comfortable we’re in this space at this time of the year too.
The lowest margin items on the display are the calendars from Network and we only have these out of necessity. Thankfully we’re achieving a fairer margin with our cards from Hallmark and the plush items.
I’ve seen a mixed result for the launch of Taste magazine this week. Two newsagencies twenty minutes apart with similar traffic but different demos – one (with older shoppers) sold out in two days and the other sold 1 copy.
We’ve been promoting taste with placement in food, with newspapers and with weeklies (see phone from one of my stores). We’ll continue this support for all week and then pull back to two locations. I suspect it’s a title, like Feast, that will sell through the on-sale.
Other newsagents I have spoken with say they’ve seen good interest in the first two days. The key is getting the title in front of shoppers – hence the importance of newspaper and weekly magazine placement.
The software change to produce the new style barcode on Tatts tickets that newsagents can scan with their newsagency software has commenced roll out. We’re aware from VIC and QLD. Newsagents can only scan the barcode if their newsagency software has been updated to do this.
We have been selling several specific plush lines at one of my newsagencies for just a few months. We priced the plush here differently to my other stores because of the store location, 10% lower. As we have seen sales grow now to close to $3,000 a month we felt it was worth pricing the product where it sells elsewhere.
The most popular branded range was increased from $8.95 to $9.95 – without any impact on sales. We’re thrilled since plush shoppers can become habit based shoppers. With rent increasing 5% year on year and labour increasing around the same, we need more traffic, shoppers buying more and GP to increase. This is why we look at what we sell items for – not to gouge but to achieve a price that works for us and the customer.
Every customer buying these items is offered an opportunity of cash off their next purchase with out discount vouchers program.
My experience is that we get more value by charging what I’d call full price and then offering a discount for a deeper basket than simply selling products at a lower price. Customer feedback is that the discount is seen as more of a reward.
Pacific Magazines has invested considerably in creating the Nexus marketing platform for newsagents. Using the website we can sent emails and txt messages to customers we have data for.
I have seen several situations recently where newsagents sold out of items solely as a result of a Nexus email promotion. In a couple of minutes they created and sent an email advertising products not associated with Pacific Magazines.
That Pacific lets (encourages) newsagents use Nexus to promote anything in a bonus.
I like Nexus because it’s a free and proven way for us to bring customers back sooner. That can be money in the bank.
Click on the image to see a sample of the email I sent out for one of my stores last week.
I’m hearing from plenty of newsagents that the various One Direction related magazines and other 1D products are not selling well. Indeed, even with their tour close there has been no noticeable increase in sales.
We’re doing what we can, supporting the titles with good placement and sometimes co-location in my newsagencies and while we’re doing okay, the group is not delivering the sales of a year or more ago.
Not that I’m an expert but one 1D fan I spoke to last week said a couple of the magazines need to keep up with their photos as the boys have changed considerably. That’s always going to happen with boy bands.
I checked out the small business policy information from the Liberal party to see what we can expect from the new federal government. While the published material does not contain much in specifics for small businesses, there are these specific promises we ought to expect progress on:
Reviewing competition laws and policy
We will conduct, for the first time in two decades, a root and branch review of competition laws and policy and deliver more competitive markets.
Extending unfair contract protection to small business
We will extend unfair contract protection currently available to consumers, to small businesses. We will ensure that big and small businesses get a ‘fair-go’ and do the right thing by each other in their respective marketplaces, delivering real and lasting benefits to consumers.
While I would prefer a more detailed and thorough small business policy, I wanted to see what the majority of the country voted for, to understand what to expect from the new government. Given their handling of promises of the previous two governments they will have to expect that attention will be paid to the promises they have made.
News Corp. Australia has this morning released the long-awaited results of the national newsagent remuneration review. I see the changes announced as a reinforcement of commitment to newsagents from News. The headlines as I see them are:
Three year contract. This gives newsagents certainty, something they can sell. It will help newsagency sellers and buyers. But most important, the three year contract term will help banks better understand and price the value of a newsagency business. This should make borrowing to purchase a newsagency easier. The three year term also encourages newsagents to consider capital investment within the context of such a term.
Consistent fee structure. Under Kim Williams leadership News transitioned from a state and regional business with many silos each with its own approach to management and each with its own newspaper delivery fee structure to a more centrally run company. The new fee structure of essentially two fixed fee-per-copy fees – category 1 (20 cents a paper) and category 2 (25 cents a paper) – quits close to fifty fee structures. Gone is a fee that reflects a percentage of cover price. I see this as focusing attention on the distribution business as a freight business.
Fixed fee-per-copy replaces sliding scale delivery fee. Gone is the discount for second and third newspapers delivered to one address. The new approach treats each delivery as a delivery. This move to a fixed fee-per-copy approach is sensible from what I can see. This change should increase the income earned by many newsagents.
They remuneration decision shows that News is committed to the newsagency channel. Beyond the increase in fees, the more valuable changes are contract tenure and the fixed fee-per-copy. My understanding is that these moves will increase the income earned by distribution newsagents.
While newsagents will be frustrated that they have to wait for six months for the remuneration changes to take effect, the time is necessary for News deliver changes to its internal systems. The delivery pricing model is quite different to what some News systems have been used to.
I see the remuneration and contract changes as part of a broader process being undertaken at News. The company has work to do with retail newsagents to drive single copy sales. As a retail only newsagent this issue is important to me if I’m to continue to sell newspapers.
News also is yet to fully address the issues of consolidation following the suspension of the T2020 project in Queensland earlier this year. That said, the FAQ document accompanying the announcement indicates the company is supportive of voluntary territory consolidation. I’d be keen to see it go beyond this and actively encourage newsagent-driven distribution territory consolidation.
News has a website with some details. All affected newsagents will start receiving letters from today.
While these are my views, what really matters is what other newsagents think. Over to you…
Key to achieving the best possible gross profit for a newsagency is balancing the reasons shoppers visit your retail business, balancing the products that attract them.
By balancing I mean making sure you attract shoppers across a range of products and product categories and not relying on one or two. Relying on one or two such as magazines, transport tickets or lotteries means you suffer more if they suffer.
Also, the more shoppers visiting for low margin agency and circulation product lines the harder it will be to reach above the average gross profit range of 28% to 32%.
If, on the other hand, you can attract shopper traffic for higher margin lines like gifts, greeting cards, plush and stationery then you’re better positioned reach above the gross profit average. Attracting shoppers for more products and categories, too, balances your business and insulates you against a downturn in one category.
The question is how do you do this, how do you attract new shoppers for the destination items? It does not happen by putting some of these higher margin products on the shelves or a floor display unit. No, you need to make a statement, you need to show off your business as being a specialist in the area. This is achieved with range, in-window or front of store display and external marketing.
Reach outside your comfort zone with what you sell and out of your shop in promoting this – to reach new customers and thereby drive a better gross profit outcome for your business. Be guided by the gross profit you want to achieve. The current industry average of 28% to 32% is too low. Our entry point target should be 40% but with magazines at 25% and newspapers often at below 20%, we need traffic for gifts (55%+, plush 55%+, stationery 50% and cards 60%+ to get to the overall 40%.
While I see this as basic retail management, to some newsagents it will seem like hard work – getting the products, displaying them to attract new shoppers and promoting outside your four walls.
Achieving above average gross product requires above average effort. It’s worth it.
Why does this matter? Traffic for low margin traditional newsagency lines is falling, what are you doing about it?
I love watching customers in a newsagency, from when they enter the shop to where they go and, more important where they look. I watch their heads to see what they notice, where they turn. I learn plenty from being a voyeur.
In one newsagency I was working with recently shoppers tended to enter and look down at the flat stack of magazines. This was a surprise to the owners since they focused their attention on the top pockets of their magazine fixture. Magazine sales were consistently below the industry average. Changing their focus to building from the flat up drove an immediate sales lift – all because we followed where the customers were looking. While this is not the only reason for below average magazine sales, it was a factor, one to address.
Watching where your customers look and taking note of what draws their attention can be instructive. Major retailers can do with the technology tools. We in small business need to live with personal observation. And that’s my marketing tip today – watch your customers, learn what they notice. Do more of that.
How’s this a marketing tip? Tune your business more to what interests your existing customers and you will sell more.
This in-car USB charger is another hit product we’re enjoying at the counter as we evolve further from candy ftp a broad roster of impulse purchase items priced between $3.50 and $9.99.
While not for everyone for us in a major shopping centre these products at the counter are a commercially valuable point of difference. Customer feedback is excellent too.
While we have been in this low-value high-margin impulse item space for most of this year we think it will take us another six months of so before we settle on rules for the types of products that work best for us.
In a second ad promoting their own magazines News Corp’s. Courier Mail had this full page ad pitching subscriptions for several titles today. While I understand the role of subscriptions, it is frustrating to see the scale of discounts offered for customers that appear to be harder work to reach.
I’d prefer tio see more investment by News Life Media in their newsagent relationships.
While I’m pleased to see the new look Vogue Living being promoted in the Courier mail today, I’m disappointed newsagents are not explicitly promoted. We are the biggest single magazine channel in the country after all. Plus we are more likely to promote this title beyond just putting it in the shelves as other retailers do.
A missed opportunity News Life Media.
I’m speaking about how newsagency software well used can make your business more valuable as part of the workshop series at the GNS Market Fair in Brisbane today. I also touch on some themes from the Newsagency of the Future workshop. If you’re at the fair say g’day.
Factors driving our double-digit year-on-year growth in ink sales for us are the re-location of ink behind the counter and the promotion of ink with good signage that visually connects with the flyers we distribute to homes in our area.
15% of our ink customers now use discount vouchers when purchasing ink and this is driving shopper loyalty. As a regular purchase habit based product ink is important for newsagents to get right. It can easily generate new traffic and weld-on existing customers.
Getting ink right includes range, price, product location, in-store signage, customer service and loyal shopper rewards. These are all things that can be done with little retail experience thanks to the support of suppliers in our channel like Tonnex and Dynamic Supplies.
Key to growth is change – staying on top of the range, changing your marketing and updating product knowledge.
The terrific growth we’re achieving with ink is particularly pleasing since the landlord placed an Inkspot ink kiosk out the front of our newsagency shortly after we opened.
Thanks to the attention driven by the new Hello Kitty partwork we had a customer a couple of days ago spend $117.45 on Hello Kitty products, on impulse.
By ordering in Hello Kitty product to time with the launch of the part series was genius on the part of our team member responsible.
This is the type of action newsagents need to engage in – being proactive retailers based on trends they see in store. It’s action that can be taken within a budget, even a small budget. magazines and cards provide wus with excellent guidance as to brands and trends we can tap into to drive sales.
While some newsagents will prefer to be agents making a percentage from products and services controlled by others, I am certain there is more money to be made by us exerting more control ourselves. Every day I see examples – like this Hello Kitty one.
Now if only we could get partworks supply sorted out.
It’s good to see Inside History magazine promoting newsagents on Twitter. Their tweet to 3,391 followers included a link to a listing of newsagency locations carrying the title. Magazines promoting our channel as Inside History is doing deserve our support.
I like the poster promoting Snickers bars created to time with the election campaign. Clever, non partisan and true to the Snickers brand.
It’s been good to see national brands through to independent retailers connecting with the election in these ways. It makes an otherwise dull and fake campaign more enjoyable. Indeed, it’s sad that the ads do that.
There is no better illustration of the diversity in the newsagency channel than partworks. Some newsagents hate partworks with a passion. Some newsagents love partworks with a passion.
The newsagents who hate partworks tend to display them poorly if at all and early return – angered at the freight cost. Newsagents who love partworks often sell out and vent anger at the delay in getting more stock to sell.
A smart magazine distributor would give newsagents control over their partworks allocation. I suspect that if they did this the channel would sell more partworks. Newsagents would be happier and publishers would be happier.
Why is it so hard to implement smart partworks allocation?
I feel completely let down by the election campaign. There has been little in the way of passionate debate about nation building policy. Little discussion of what is important economically for the whole country, as opposed to select special interests. Little to boost consumer confidence from any of the major parties. Little in the way of a vision for the future of the country. And, little in terms of encouragement for small business beyond some tweaks at the endges.
We lack strong political leaders in Australia, conviction politicians who even though you may not like their politics you do admire their leadership.
Right now we are in the middle on considerable structural change in Australia in terms of our business mix and natural resources revenue. We are also in the midst of tremendous structural change world-wide, in retail as well as more broadly in economies – just look at some of the European countries. These challenges need real leadership for the good of the country, beyond partisan politics.
I’m disappointed that this election is not presenting me with the quality of leadership I’d prefer.
By moving wedding to under women’s fashion we freed up 24 pockets next to food titles for more food titles. This has enabled us to put the Symply Too Good titles and other health related titles in a better position. Food is performing well for us so this additional space for the category makes commercial sense.