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

Another vintage magazine for newsagents

I was happy to see Vintage Made magazine arrive in-store as it’s another magazine connecting with all things vintage – like Vintage Caravan magazine.

What is interesting about these vintage titles is that we have access to gift and homewares products that serve the same shopper. These are opportunities for us. In fact, this is a good example of where magazines can help us grow other parts of our businesses.

When I hear a newsagent saying there is no future in magazines for newsagents I shake my head at the ignorance of the statement. Indeed, in our magazine sales data we can be guided on gift purchasing and calendar purchasing. From these two categories we lift the overall GP of the business.  Vintage is hot right now and Vintage Made and Vintage Caravan can help us connect with that interest.

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magazines

Strong interest in Tour De France

Tour De France titles are selling very well, up on last year’s good numbers. We’re very happy with the results achieved from the counter space allocation – this has been assisted by having access to extra stock.

In fact, I am surprised more titles have not tapped into this opportunity.

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magazines

Appalling treatment of small business newsagents by ATO

Check out the advice provided to newsagents about the changes to handling of Tax Packs this year. The Australian taxation Office expects us to put up a sign, hand out flyers and answer customer questions. Imagine the response from one of the major supermarkets, petrol outlets or convenience stores to such a request.

The $8.00 payment by the ATO is an insult. It is a pittance for the time we will spend, for the cost of employee time in answering these questions. The payment is below minimum wage – this from an organisation that polices us to ensure we fulfill our tax obligations.  Indeed, the ATO is effectively taxing us to do this work for them.    This is not fair ATO.

It disgusts me that the ATO treats small business newsagents in this way.  I’m complaining to my local federal member to ensure my complaints are heard.

51 likes
Ethics

Tatts promoting online over retail outlets

Check out the ad running on large screens in a major shopping centre on the weekend promoting the $50 million OzLotto jackpot. Neither of the Tatts outlets in the centre were promoted in the ad – only Tatts.com. That’s a clear indication of the focus of the company. With the requirement on retailers to support corporate branding I’d expect Tatts to connect with their supporting retailers with this in-centre advertising.

While Tatts could argue that this is a branding campaign and that any retailer in the centre with their branding will benefit, I’d say it’s a call to action campaign and a supportive supplier would have promoted the outlets nearby where a $50 million jackpot ticket could be purchased.

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Lotteries

Symply Too Good in pharmacies

I was disappointed to see this display for Symply Too Good cookbooks in the pharmacy right next to one of my newsagencies.

While Annette Sym has been a supporter of newsagencies and our channel has been a supporter of her products, this apparent move to pharmacies will challenge the relationship. The price point is odd – $15.00 as advertised makes these more expensive than in newsagencies.

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magazines

Pink poster book sells well in impulse

Our placement of the Pink poster book at the front of the newsagency, facing into mall has worked well, selling two thirds of our allocation in six days. Placing it right behind New Idea – with a Pick cover story – was key to this success. We’re very happy getting the poster book as an impulse purchase with New Idea.

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magazines

Harry cover helps AWW sell well

Prince Harry on the cover of The Australian Women’s Weekly is helping drive excellent sales. It’s a stunning picture that cuts through. We’re seeing the best sales in a year with this issue and we’re not doing anything out of the ordinary to promote the title. We have it in its usual location plus at the front of the newsagency facing into the mall as well as with daily newspapers. We have ordered more copies as we’re on target to sell out.

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magazines

Great EOFY news from a newsagent chasing growth

I received a text message from a newsagent a few weeks ago advising they were rinning a gift sale to reach $100,000 in gist sales for the financial year. They weere close and wanted to pass their goal.

This morning I got a message advising they had reached $98,718.43 in gift sales, just shy of their goal. The GREAT NEWS is that this is 32% up on their gift sales of $74,784 a year earlier.  The FY2011/12 year was up on the 2010/11 results of $45,000 in gifts.

This is truly EXCELLENT NEWS. A husband and wife newsagent team making deliberate decisions and moves chasing growth in a high margin and traffic generating category. What an excellent end of financial year story.

To provide context, this is a regional mid-size newsagency. While some older categories are declining, they are growing sales and new traffic by being professional outcome-focussed retailers. And they are banking the results. This makes their business more valuable when they decide to sell.

Stories like this make my day.

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Gifts

Sunday newsagency management tip: measure everything

Measurement is key to the success of any retail business, especially a newsagency in the middle of a perfect storm of change.

Measuring sales, stock, employees and suppliers.

Without accurate and consistent measurement, you are not able to make good business decisions or to hold others to account for their actions.

By measuring you can make better decisions.

Here are some simple rules for accurate measurement in retail:

  1. Only sell what you can track – by scanning a barcode or pressing a PLU (stock code) to track the item.
  2. Do not use department keys to sell items as this denies you the opportunity of tracking individual items you sell.
  3. Enter into your computer system everything you sell.  Record stock you receive by supplier so that you can track supplier performance.
  4. Enter into your computer system everything you return to suppliers – consignment stock, returns or damaged goods.
  5. Record all sales and other activity at the sales register by employees.
  6. Reorder replenishment stock by using your computer system to create orders for you.

My making your business data driven you are better equipped to take the emotion and gut feel out of business decisions.  This will improve decision quality and accountability and, hopefully, the return you achieve from these decisions.

Businesses which do not measure stock, suppliers, employees and sales accurately often find themselves faltering without knowing why – because they have no accurate data on which to base research.

Yes, I know … this is not new or fresh advice. I publish it today because I’ve spoken with some newsagents this week for whom it was new advice. Please read it and pass it on.

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Management tip

Sunday newsagency marketing tip: how to run a Christmas in July promotion in your newsagency

Today I am repeating an idea from two years ago because it’s time.

Christmas in July is growing in popularity in retail businesses.  It can provide a good retail focus and sales kick in between major seasons. It is an opportunity to move stock while having fun with Christmas out of season.

Christmas in July is an excellent opportunity for newsagencies.

A couple of years ago we moved in excess of $2,000 in boxed Christmas cards at a 75% margin.  Our Christmas boxed cards later in the year were stronger than ever so the July promotion did not pull forward sales.

A Christmas in July promotion could be as simple as a sale based around the season or it could be a fully integrated campaign covering the whole of the business.

Christmas in July is a particularly useful campaign if you sell items which would help with celebrations in the home or if you sell items which work as Christmas gifts. While the opportunity is promoted as Christmas in July, it is a chance to get some early Christmas sales happening – ahead of most other retailers.

Check with your local council or business association as to what they have on – more and more are running Christmas in July events. be sure to check with charities too.  A quick search online shows plenty do. Talk to suppliers to see whether they have anything which could help you embrace the opportunity.

Remember, the real focus of a Christmas in July promotion is to increase sales. Every move made as part of the campaign must progress this opportunity.

  • Run the Christmas in July campaign over no more than two weeks in July. One week could be enough.
  • Choose dates which are away from any other promotion – it works best with little competition.
  • Get all employees together, seek their ideas and explain the value of the season you are creating.
  • Set aside a defined space in-store for promoting stock connection with the season.
  • Dress the team and the store to suit the Christmas theme.
  • Display any spare Christmas stock from last year.
  • Play Christmas music.
  • Choose a day for an extra special celebration and make this an all-out focus.
  • Have a competition for the kids around the theme. This could be a coloring competition – offer to display their works of art as parents and family will visit to see.
  • Create a giant Christmas stocking which one lucky customer can win.
  • Use the event to discount slow moving items – try and create a real sense of bargains.
  • Promote the event using a flyer to houses around your location – it is a great way to draw people into your shop. On the flyer, promote the activities and any specials.
  • Call the local paper and get their attention.

Christmas in July is an excellent opportunity to get suppliers on board.  Maybe they could provide products for you to give away as gifts – I.E. every shopper gets spending over $10 a ‘Christmas’ gift.  Suppliers could use your promotion as an ideal time for trialling products and getting your customers engaged.
Events like Christmas in July are all about giving people a reason to visit your newsagency. Making the event fun and relevant to the season (winter) should make it a winner for you.

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marketing

Online scratch games to challenge scratch ticket sales?

Check out Crazy Scratch. It’s being promoted in Australia via Google AdWords. You can play with real money. Newsagents need to consider Crazy Scratch and the others in this space when planning capital investment in lottery products.

While governments will seek to regulate cross border sales of lottery products, the internet tends to not recognise borders.

The lottery business game has fundamentally changed.

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Lotteries

Disruption in digital device platforms

US book retailer Barnes & Noble are experiencing pressure with sales of their nook falling. These purpose specific devices are challenges because of many other multi purpose devices filling the need of reading platform. I see people reading books, newspapers and magazines on their tables – iPads, samsung and Slate – as well as on their smartphones – maybe soon on watches.  In the pressure of what you carry in a bag or handbag, a single purpose device was always going to have a limited life.

Some newsagents were keen to get into the book e-reader reseller space. History is showing it would not have boon even medium-term good for us.

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Media disruption

Do you cover your window with magazine posters?

I was surprised to see this suburban newsagency with prime window space covered with magazine posters yesterday. This is so old school. It blocks a view of what’s in-store, what could entice shoppers in. It’s also odd to me that they are promoting these magazines so late in the week, when 80% or 90% of sales would have been done by now.

It’s basic stuff like this that we need to change. Magazine posters on the front window of a newsagency placed like this have no place in today’s newsagency, not if the business wants to live beyond the weekly magazine cycle.

I’d be interested to hear what others think about this.

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magazines

There are plenty of overseas magazines I’d like to see available to newsagents

I was in the US checking out some retail businesses and noticed plenty of magazine titles I’d like to see in my stores. I was particularly interested in titles that appeal to niche (valuable, loyal) interests.

Take geek for example. I can see this working well for us.  I’d love a way for us to nominate overseas titles we’d like to support in our businesses.

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magazines

Developments in meals on the run

I was in the US earlier this week and noticed a new type of meal on the run in convenience, petrol and transit stores. The boxes of meals I saw offered three ‘courses’ in packaging not requiring refrigeration.

While I’d prefer a piece of fruit to the over processed food in these boxes, they do illustrate new products being introduced by manufacturers keen to drive sales in a changing marketplace. They illustrate the need to keep evolving I guess.

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Convenience retail

Tax pack questions already!

Like other newsagents I am sure questions are coming thick and fast about tax pack availability. The decision by the ATO to not use newsagents as pick up points will frustrate many taxpayers and newsagents. Some customers won;t wait for answers – they jump the queue and ask while you’re serving a real customer.

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Ugh!

Gotch claims consultation that has not occurred

A letter from magazine distributor Gordon and Gotch confirming recall arrangements following the change in magazine delivery days says that through XchangeIT, software companies were consulted. My own newsagency software company, serving 1,800 newsagents, was not consulted.

While it’s of no consequence since the software will handle the changes, I am unsure why Gotch claims there was consultation when there was not.

7 likes
magazine distribution

Shoddy treatment of Psychics Directory

Whoever is responsible for sending the Psychics Directory out with a white stocker covering a newsagent’s price sticker ought to be ashamed. This magazine should never have been sent out in this condition. It’s unprofessional, unmerchantable. The quality assurance process at Gordon and Gotch ought to have stopped this product getting out.

I have to ask – did any of the psychics see this coming?

10 likes
magazine distribution

Tapping into Pink popularity

Newsagents with this Pink poster book should get it into a good location to make the most of her fan base here. Her current concert series has sold around 500,000 tickets I’m told. This is a ready made market if ever there was one.  This is a title to have with weeklies or at the counter.  My understanding is that the title is not widely available.

6 likes
magazines
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