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Is Hubbed good for newsagents?

More and more newsagents are asking what I think about Hubbed. My answer is the same to all: do your homework, make sure you understand how it works, be certain it is right for your business before you sign anything and get every promise and commitment in writing.

I don’t know if Hubbed is good for newsagents because key information has not yet been made available. What I do know i that I will not, at this stage, be signing my newsagencies to Hubbed. I can put the $7 a day or $17 a day to more profitable use. Also, I see myself as a retailer and not an agent.

Hubbed is for agents who want others to generate traffic for them and who are happy to make a tiny amount from transactions.

Newsagents can’t rely on their industry association for guidance as it became conflicted when it accepted a 5% share in the Hubbed business. This is a mistake on the part of the ANF in my view.

At the Sydney GNS Market Fair the Hubbed people told newsagents to go to the Tower Systems stand and ask if the company will support Hubbed because POS Solutions is. (I own Tower Systems). Hubbed has never approached Tower. If they wanted to integrate to any newsagency software then they should approach this in the same way any supplier does and follow well established industry standards and not engage in juvenile trade show antics.

Ashley McGrath and David McLean from Hubbed reached out to me in January to talk about Hubbed before the launch. They sought my thoughts: We are shortly moving to pilot and, as an industry leader, I felt it would be worthwhile touching base and getting your thoughts on what we’re doing. Before engaging I wanted to know if they had a commercial relationship with the ANF. They refused to answer so I declined to meet. I wanted to understand whether newsagents were being represented by their association.

So, I’ve had no meeting with them and they have not approached me since. Yet here they are playing games talking about newsagency software integration when back in january they were adamant that such integration was not part of their plan.

All I have to go off is the contract offered by Hubbed to newsagents. Read my questions on the Hubbed contract for newsagents.

In terms of the business areas being pursued by Hubbed, I see bill payment as dead, especially the apparent approach being taken by Hubbed – the Australia Post offer seems far superior and more shopper friendly.  The Visa card offer exists already thanks to Touch and ePay. Parcel handling is available for no up front cost thanks to N Parcel (ANF owned) and Parcel Point. Subscriptions are available through Touch. Gift cards are available through several suppliers.

I don’t see enough traffic generating value for $7 or $17 a day. But to assess the cost one needs to add in the retail space (costing between $5.00 and $10.00 a day in a shopping centre) and the labour cost.

I am raising these questions here because the ANF has abandoned its responsibility to its members and all newsagents. It is not able to objectively ask questions that need to be asked so that newsagents are more informed.

Hubbed may be good. Right now there is not enough information. If they have something so good and so valuable maybe we should setup a debate which newsagents can attend for the issues I have raised here can be explored.

All I want is for newsagents to be fully informed before signing any contract.

So, is Hubbed good for newsagents? I don’t know and I don’t see how anyone can know based on the incomplete information out there right now.

Footnote: my questioning of Hubbed here is leading to some attacking me behind my back. Anyone doing this is more suspicious in my mind. Every question I have raised could have a reasonable answer. Attacking me and not answering the questions should raise alarm bells. I’ve been open about my questions. I wish answers we being provided in a similar open way.

34 likes
Hubbed

Network Services vs. Gordon & Gotch

Several newsagents have mentioned to me that during the Bauer Connections conference last week a comparison was drawn between the performance of magazine titles from Gotch versus Network with the inference being that Network success reads as Bauer success over Pacific.

If the feedback I’ve heard is anything to go by the comparison did not help build support for Bauer / Network. On the one hand Bauer people say they want the channel to be stronger yet their newsagent engagement is selfish, often seeking to drive consumers to their titles and away from competitor titles. A publisher focused on the broader health of magazines in newsagencies would take a more co-operative approach.

7 likes
magazine distribution

Pacific Magazines a lone publisher supporting newsagents at GNS Market Fairs

It’s been good to see newsagents engaging with Pacific Magazines on their stand at the GNS Market Fairs.  Pacific has been pitching their nexus newsagent partnership and showing off the tools within nexus that make this a real partnership.  At the fairs newsagents have been able to get free training as well as insights into how newsagents are driving shopper traffic and in-store engagement using the free tools in nexus.

It’s disappointing other magazine publishers have not embraced the trade show opportunity this year to better connect with newsagents.

4 likes
newsagency marketing

Sydney GNS Market Fair busier than Melbourne

While it still has a few hours to run, the GNS Market Fair in Sydney has been considerably busier than Melbourne. To me business is measured by newsagents on the floor, their level of engagement and the business being written by suppliers.  I’d go as far as saying this is one of the best GNS fairs in Sydney I’ve been to.

NSW newsagents at the fair were upbeat too, talking about changes they are making in their businesses, talking like retailers more than agents. This has been good to see.

5 likes
Newsagency management

Sunday newsagency marketing tip: make an ad, post it on YouTube

Only newsagents in regional and rural areas have access to TV advertising that is cost effective for an individual store. Get within 250km of a capital city and the price is prohibitive.

My tip today is: shoot your own TV commercial. Stick with the 30 second limit. See how you go pitching your business in a commercial as if it was to go to air. Okay it won;’t get in a TV network – but this idea is not about that. This idea is about you nailing your message.

What is it you pitch about your business, what makes your business so compelling that they will remember the ad and visit your shop?

Preparing an ad for your business can be good for the business as it forces you to think about your business from a different perspective.

So go on, let’s see You Tube flooded with 30 second ads made in-house by newsagents. Have fun.

10 likes
marketing

Sunday newsagency management tip: choose how you spend your time

Newsagents are time poor. This statement is made too often and it is rarely challenged. I think we need to challenge it – if only to think before we spend our time doing something.

I see newsagents doing things like ordering stock manually that they could do in a more automated way. I see newsagents running a business with full time management overhead which not be the case if owned by a big business operator. I see newsagents work from offices that are a hoarders dream more so than an efficient and organised office.

We can choose to NOT be time poor. Now before you say I have no idea what I talking about, consider what you do in an average day if you’re 100% in your newsagency. List down every single thing you do. I did this recently with a newsagent, they kept a notepad in their pocket. When we reviewed the list a day later they agreed that they could cut a third of what they do by delegation and close to another third by saying NO, I WON’T DO THAT. Yes, we need to say no to some things we do today, things that if they are not done the business will not be hurt.

For example, cut the time you spend with reps. If the relationship makes you money – sure see them. If it’s not making you money, cut it off. In another newsagency where I had this discussion the owners listed six rep visits a month they could cut. Will they? I suspect not. Should they? yes … because they say they are time poor.

In another example, consider outsourcing tasks that are more efficiently handled outside the business. I know a newsagent who uses an external bookkeeper. This provides another set of eyes on the business, keeps them on top of paperwork and frees the office / back room time for more productive work. yes there is a small cost but once they looked at it it was cheaper to use a bookkeeper than twice or three times the time for the owner to do the work in the shop or at home.

We can all make choices to stop busy work or work better handled in another way. We can have more time for work that matters in our newsagencies. We can make the decision to not be time poor.

16 likes
Management tip

Father’s Day in full swing

The sales data from my stores yesterday shows Father’s Day in full swing with cards and gifts selling well. We’re on track to achieve a better result than last year. I’ve been interested to see the season unfold given some have been concerned about the impact of a much earlier Father’s Day this year – September 1. I expect this last week to deliver some excellent numbers.

0 likes
Greeting Cards

Peppa Pig show in the shopping centre drives sales

We sold close to $600.00 worth of plush today in one of my stores, more than three times the usual amount. The person in charge of the store noticed centre management was running a Peppa Pig stage show. Here’s Jayden’s story – all his own initiative

The centre had a peppa stage show today. It was packed, there were no free spaces in the car park!

I had the stand on the lease line at the busiest entrance to the store. I haven’t provided a price on the stand. If a customer wants to know how much they are they have to ask one of us. At which time the customer has already convinced themselves that they want the product. Rather than walking up to a stand that says $12.95 and contemplating wether they want it or not.

Same rule applies to beanie boos which are now $8.95 up from $7.99.

I had a hand full of customers buying a plush item and then redeeming their Discount Voucher on a Father’s Day card, or vice versa.

Brilliant!

11 likes
Newsagency management

Finding a sweet spot for snakes in our newsagency

These plush snakes did not work for us. We tried them in several locations and we could not sell one. The moment we cit the price they started moving. In fact we sold half our stock in a little over a week. We’d not sold one for ,ore than two months.

The lessons for us snakes are probably not right for our customers and a slimmer margin should be tried sooner on slow moving stock. Yes we’re disappointed but we are grateful for the experience. Oh, and NO, I di not wish they were sale or return. Sale or return is a blight on our businesses.

2 likes
Newsagency management

Fun interactive impulse purchase items brighten up the newsagency

I watched on Thursday when a team member at one of my newsagencies demonstrated this Flash Sphere to a customer. Moments later the customer purchased two. The demonstration brightened the shop, taking it from a static display business to something fun an interactive.  Several shoppers in-store watched the demonstration – most were smiling.

Yesterday we sold more. We think we could be out of stock in a week. Now that’s a nice stock turn.

This is an excellent example of what’s important in retail today – engaging shoppers with our products. However, before we can do this we need to source products that work with such shop floor engagement.

To newsagents reading this saying there is no time for such games on the shop floor I’d say we need to find time as it’s this activity that drives basket depth and helps us provide a more memorable shopping experience.

6 likes
Newsagency opportunities

Promoting the ever-growing frankie magazine

Here’s the in-location display we are using to promote the latest issue of frankie magazine. This space allocation is worth it based on the sales achieved.

frankie shoppers are loyal and they often purchase other items in-store.

We will pare back to a single column next month.

5 likes
magazines

Another good reason to promote Peppa Pig products

Newsagents are about to receive a new Peppa Pig partwork – for which stock is very limited by the way. The partwork is arriving when promotion of the Peppa Pig Treasure Hunt stage show is in full swing.  As I have written here a few times recently, we’re ding well with Peppa Pig activity packs and plush – selling through three or four times in a few months. So far this year the brand is worth several thousand dollars in revenue to us.

The stage show and partwork will keep this brand working a treat through Christmas and beyond. Newsagents should check with suppliers for any Peppa Pig related product they have.

6 likes
Gifts

Making money from the Rudd v. Abbott contest

We have the David Marr Power Trip Rudd v. Abbott book next to our newspapers. This is perfect placement and perfect timing for the book – delivering nice extra margin dollars when purchased on impulse by a newspaper shopper. This is a good example of paying attention to what we sell and locating product for maximum advantage. The book appeals to people who support either politician.

4 likes
Book retailing

In-location promotion example

Here’s how we have been promoting the latest copy of Zoo. The simple yet clever use the the collateral by our team lifts promotion from the shelf so that all those shopping this area of magazines can see it. It’s been the only featured title in this part of our magazine department. I’m posting the picture in response to emails I received following my magazine sales video. People wanted examples of in-location displays.

6 likes
magazines

Building the art magazine range

We’re building our range of art related magazines as part of our focus on growing special interest titles. Vault is a new title for us. It’s an impressive looking magazine. We have it as our hero title in this segment at the moment.

1 likes
magazines

New video: how newsagents can grow magazine sales

Further to my post yesterday about our growth in magazine sales here is a brief video I shot late yesterday where I explore the sales results, explain how we achieved this and call on all newsagents to embrace the category.

I am concerned that newsagents are giving up on magazines. This would be a mistake. With good management and hard work newsagents in almost any situation ought to e able to grow magazine sales – despite the best efforts of some distributors and publishers to make our channel less competitive.

Footnote: this is the first video I’ve shot with a new lapel mic. The sound quality is much better.

29 likes
magazine distribution

Why launch a magazine and block browsing?

While I was surprised we were sent copies of NFM New Farm Machinery as farm titles don’t work for us I was even more surprised the publisher bagged the magazine. Someone needs to tell them about the concept of browsing and how it helps sell magazines, especially new magazines. The folks at Bauer should know better.

3 likes
magazines

Funky cover-mount with Vogue

The clear liquid mounted to the latest issue of Vogue makes it stand out on the shelves. It’s different to the usual cover-mounts of skin cream and lotion. Kudos to everyone behind this … it looks very cool. Hopefully sales kick as a result.

3 likes
magazines

75% sell-through of plush at the newsagency counter

Ten days ago I wrote about a new display of plush, dogs, at the counter. We’ve sold more than 75% of the stock in ten days, achieving an excellent return on the space and inventory investments. We have more dogs coming in. Once they’re almost done we will change things p with a different offer – maybe plush, maybe not.

The other point about this is that $24.95 items work for us at the counter!

4 likes
Gifts

Herald Sun home delivery ad covers-up important front page story

Shame on those at the News Corp. owned Herald Sun for covering the face of one of the accused in the Oklahoma shooting of Melbourne baseballer Chris Lane with a stuck-on ad for home delivery of the newspaper.

The ad distracts from a tragic story with a local Melbourne connection. That they would do this shows disrespect for the news and the feelings of the victim’s family and the broader community. There is no excuse.

Is News Corp. the face of evil?

11 likes
Ethics
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