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

Magazine distributor hinders sales of World of Knowledge magazine

The science of magazine allocations continues to amaze me. We did not sell any copies of the launch issue of World of Knowledge. Believing in the title, we promoted issue 2 as I documented here. We sold out our allocation, ordered more and sold some of the extra copies – ten copies of issue 2 all up. Network Services, demonstrating its allocation prowess, sent us 3 copies of issue three. This is despite them knowing that sales of issue 2 were strong for us by the time they did (or should have done) their allocation. Three was never going to be enough. We’ve ordered more and are awaiting approval for that. We’ve sold one copy and should sell the other two in the next day or two.

This is a story for magazine publishers. Take control of your allocations and use current sales data from newsagents when setting the allocation. Better still, give newsagents control – we want what you want … more sales of magazines. I am sure if I had control for my newsagencies magazine sales would increase.

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magazine distribution

Location of newspapers leads to plush sale

Following the discussion a few days ago about the location of newspapers in newsagencies, here’s a story passed on by a team member from one of my newsagencies from this past weekend:

Another interesting customer story – a lady picked up a couple of cards, then asked if we had the newspaper. I directed her to where they were, and she ended up buying teddy bear, turning a smaller sale into one totalling over $50. And she was also thrilled to get a discount voucher…

This is the type of story I love, one indicating planning working and delivering incremental business. not all shoppers are of a mind to look at what’s in front of them as they head to a destination. However, for those prepared to shop we try and make it worth their and our while.

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Newspapers

Why GNS matters to newsagents

OfficeMax and Staples (formerly Corporate Express) continue to pitch to newsagents, chasing wholesale stationery sales. Both businesses are US owned. Both businesses also sell direct to the customers or newsagents. Strengthen them and you strengthen your competition.

It doesn’t make sense to me that newsagents would support OfficeMax or Staples. They are our competition. Strengthen them and you strengthen your competition.

While GNS can be challenging, it is a business in the middle of transformative action. It’s different today than a year ago and will be even more different in a year’s time.

Here’s why I think GNS matters and why newsagents should support it.

  1. GNS is newsagent owned. Our support for GNS shows our support for the one commercially unifying proposition in the channel. If we can’t support a wholesaler we own what hope is there for the channel? For some newsagents, their shares are worth more than their newsagency business.
  2. GNS is local. It’s an Australian business, employing Australian people and feeding many Australian families. Like Australian newsagencies.
  3. GNS is a newsagency business. There is excellent newsagency specific knowledge within GNS. This helps us – if we allow it.
  4. GNS comes to us. Through state based reps and a national round of trade shows GNS comes to us to our back door to our businesses.
  5. GNS helps newsagents. Through in-store expert advice, GNS can help you re-plan and reinvent your stationery offer.
  6. GNS is listening. The changes in the business over the last year or so have been driven, in part, by newsagent engagement. Try telling a US conglomerate what to do!

Newsagents have a choice where they source stationery. Those who support GNS support the newsagency channel. Those who support the US companies are, in my view, shortsighted and selfish – they are not supporting the newsagency channel.

I’ve written this of my own accord and without encouragement from or knowledge of anyone in or involved with GNS.

I have written this because of a catalogue I received last week from one newsagent, an OfficeMax catalogue rebranded for their franchise / marketing group. Newsagents pitching this can’t, at the same time, saying to their local shoppers support us as we’re an Australian business. Okay, they can because their newsagency is Australian owned. However – this same business prefers to support a US stationery wholesaler over the Australian, newsagent owned, stationery wholesaler.

27 likes
Newsagency challenges

Optus PPS continues to fail to connect with newsagents

Following my post last week, other newsagents have let me know that they, too, have been contacted by Optus.  Here’s the text of the email received by me and plenty of newsagents last week – newsagents who had not signed up with Optus despite what the email says.

Welcome to Prepaid Services (PPS), we are delighted to announce that you can now order stock directly from us.

Thank you for your decision to continue as an Optus Prepaid Mobile retailer, we are committed to working with you and our team is looking forward to bringing you a high standard of service, along with great value Optus Prepaid offers. At PPS we believe that customer experience is paramount and we are looking forward to working with you closely.

As a thank you for signing up you will receive 2 x$29.95 SIMs and 5 x $2 SIMs from us in the next 30 days.

We would also like to confirm some great changes to our stock policy and payment options including:

  • Removal of the restocking fee when returning any Optus Prepaid products
  • Free shipping on any orders until 30th September 2013
  • Additional payment options including credit card online or over the phone Bpay® coming soon

Getting Started
You can order stock from us over the phone on 1300 307 979 or via the website:www.prepaidservices.com.au

To order online please login using:
Email address:  XXX@XXX.COM
Password: &^%$#&^

To order over the phone please quote your PPS Account Number:

Place a web order before 30 September and receive a $30 credit on your account

  • No minimum order value
  • New customers only
  • Limit 1 credit per customer
  • Credit is non-refundable
  • Credit will be applied to your account within 30 days of your first web order

If you have any questions, please feel free to contact a friendly member of our team.

Click here to download the PPS How to booklet.

Kind Regards

The Team at PPS

This failed communication is another misstep by the company since terminating the relationship with Jenlist. These missteps challenge our confidence.

7 likes
phone recharge

Sunday newsagency management tip: magazine sell through data is the best evidence of magazine over / under supply

Newsagents have easy access to magazine sell through data data through the Magazine Sell Through Rates Report with which they can make a case on oversupply by a magazine distributor.

Using industry standard calculations, a Magazine Sell Through Rates Report identifies the titles that are failing to meet minimum performance levels.

Magazines delivering a sell through of lower than 50% are, in my view, under performing. These titles are titles that I would label as over supplied.

The sell through is the percentage of the stock supplied that was sold.

The image shows one page from a magazine sell through rate report from a newsagency. I’ve obscured their identity.

My management tip for newsagents today is to run the Magazine Sell Through Rates Report.  Look at what it shows for the last year. If you have titles consistently below 50% sell through this is evidence you ought to send to the ACCC as proof of poor treatment by your supplier.

Magazine distributors say to the ACCC that newsagents have control. This is not the case, not with certainty and not for the long term.

This report offers further evidence to magazine publishers as to why newsagents sometimes early return a title without apparent justification.

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magazine distribution

Sunday newsagency marketing tip: advertise on Google

With more and more retail sales involving one or more searches online, newsagents ought to consider engaging in advertising on Google. You get to choose the search keywords you advertise with, the amount you spend, the geographic area you target and the duration of advertising.

I’ve used Google Adwords for a number of retail businesses with success.  It’s a good fit for newsagents. The keywords I suggest you targeting, coupled with your geographic location, are: stationery, magazines, greeting cards, gifts and any other services you care to promote.

Ads are running almost immediately.  Given the control you have over the spend it’s easy to control the financial exposure to the business.

This is not something for the channel to do, it’s best done at a local store level. But make sure you have somewhere to send them – a website or a page on a website.

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marketing

Cool audio accessories

Check out the range of urban ears products I saw at a WH Smith store in Melbourne last week.  The name is excellent but it’s the colour co-ordinated packaging that really makes the range stand out.  I’m yet to hunt down the supplier. Any newsagent in a transit or CBD location could do well with this range or similar.

WH Smith stores are constantly bringing new ranges into their stores, keeping the overall offer fresh – well worth checking out by other newsagents. Click on the image.

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Newsagency opportunities

NANA launches Tatts fighting fund

Following my announcement here on Monday that Tatts has commenced a trial with Coles selling lottery tickets in petrol outlets, NANA, the NSA / ACT newsagents association has launched a fighting fund, asking newsagents for money. The fighting fund will be: tasked to combat the very real threat of unfair competition, arrest the rate of the loss of retail customers going on-line, block any misuse of market power, negotiate a new win-win business and contractual arrangement with Tatts Lotteries, as well as the future legislative framework of who can and cannot operate lottery terminals with the NSW State Parliament.

This is a national issue and should be tackled uniformly by the ANF and the lottery agents association working together. The last thing any association shold be asking for right now is more money from newsagents.

The associations should have seen this coming – ever since 7-Eleven put lotteries into petrol following their takeover of Mobil. Indeed, they should have started lobbying back then.

Newsagents facing lottery refits right now are the ones who should be most concerned as this Tatts move goes to the value they can derive from the capital investment Tatts is asking them to make.

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Lotteries

Discount vouchers driving sales in newsagencies

Every couple of days I hear new stories about how shoppers are engaging with the Discount Vouchers we are using in place of the old VIP card points-based loyalty program. Each story shows changed customer behaviour. Here are two stories from the last couple of weeks:

A chap purchased a bunch of AFL card packs and a Discount Voucher was printed on the receipt offering cash off his next purchase. He said he’d be back as a result of this.  This chap was not a regular.  A week later he was back and purchased more cards, using the voucher for a discount.  He received another voucher and said he’d be back again.  What started as a once off purchase is now regular business for us.

A first time customer purchased three greeting cards and received a voucher offering $1.50 off their next purchase. They explained they don’t live in the area. Our brilliant sales expert asked if they had a printer at home – they did so we showed them our deal on ink. They bought two cartridges and received an additional $2.50 off the already good price. They received another voucher, for $3.50. They bought a door stopper for $29.95 and got $3.50 off.  No more they said with a smile. They gave us the voucher from the door stopper to give to someone else.

These true stories show how front-ending loyalty can change shopper behaviour in an immediate and valuable way. Shoppers love the transparency of the Discount Vouchers. As a retailer I love the incremental sales.

The newsagency business model needs changing at the store level and nationally.  The nature of our businesses and the channel is such that such wholesale change is unlikely. The Discount Vouchers offer a practical way for us to change at the store level, to play outside the field of the old and less trusted VIP and points based loyalty programs.

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newsagency marketing

Check your direct debits

We recently stopped doing business with a supplier who regularly swept our bank account based on sales using a direct debit facility. Several weeks after closing the account they swept our account twice for money owed by another business in our centre.

This is a cautionary reminder to newsagents to shut down direct debits if you cease doing business with a supplier.

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Ugh!

Horror skulls make customers squirm and shop

These horror skulls are a heap of fun. They are squishy in a skin crawling way.  The skulls are oozing with maggot like worms. Customers who pick them up pull a face and then, usually, smile.

We are using the horror skulls at the front of the shop to attract kids. Kids bring parents. Parents buy them for their kids and often browse the shop.

It’s basic retail and it’s working for us.

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Gifts

Optus signing up newsagents who have not signed up

I am guessing other newsagents have received the email from Optus advising that their new account is now active and pitching gifts and offers – when newsagents have not signed up for Optus.

Optus is not handling going direct to retailers well. Indeed, this latest unsolicited communication is demonstrating poor management or dreadful presumption.

19 likes
phone recharge

Where is the newspaper stand in your newsagency?

We do not have a traditional newspaper stand in any of my newsagencies. Newspapers located on retail shelving in the rear third of the store.

I was in a newsagency earlier this week where they had the old newspaper publisher mandated stand at the front of the shop, stacked with newspapers.

While this space is profitable, because of current volume, the sales trend will see it be loss making in the next few months. The newsagent is reluctant to move newspapers because it’s my bread and butter. I argued it’s also the bread and butter of the two local supermarkets, three petrol outlets,a nearby convenience store and national brand convenience store. Newspapers are not the point of difference they used to be.

The newspaper stand could be repurposed into a feature gift, homewares, plush or stationery display. Done well, featuring unique product, it could generate considerably more GP than current newspaper sales.

Prime real estate in a modern retail newsagency needs to call out, promote, what the business stands for.

Given where newspaper publishers have placed their products for sale, it is appropriate for newsagents to reclaim the old-style newspaper stand at the  front of the shop for making a more relevant and valuable retail statement. Newspapers work fine in less expensive less high profile space. Such a move can be done without losing a single sale.

Where are newspapers in your newsagency?

11 likes
Newsagency management

Stunning cover for delicious magazine

The cover of the latest issue of delicious magazine is stunning. It cuts through against the colour in a busy magazine department. The use of red is inspirational. I can stand at the entrance to the aisle with the title and see it from metres away – it’s the title I first notice. We have the full cover on display as anything less dilutes the value of what they have created.

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magazines

Promoting eco bags at the counter

We’ve moved some confectionery from the counter and replaced it with a range of eco bags in cute owl bags. Owl products sell well for us. As the photo shows the placement has been done in a way to interrupt customers at the counter.  We’ll maintain this counter placement for a couple of weeks and check sales data before deciding if we move them on. This is the second location in-store for these bags.

1 likes
Gifts

What to make of The Babycare Book?

I don’t know what to make of The Babycare Book. At first I thought it was another outsourced title using cheap content from overseas.  Inside, I discovered it was from Bauer, from the Mother and Baby team. I’m surprised the cover does not connect to the overarching brand and that the product itself does not have the production quality of many other Bauer titles. As I said, I don;t know what to make of it.

This space is already well covered for us so we early returned The Babycare Book.

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magazines

The risk in small business penalty rates push

When I first heard about Katter’s Australian Party platform of lower penalty rates for small business I thought it was a good move, one I could support. Upon reflection, this may not be such a good move for us.

Imagine you’re a small retailer in a regional town with a regional shopping centre on the edge of town anchored with one of the major supermarkets and their partner variety / department store.  Imagine area has relatively low unemployment.  Imagine you’re looking for someone for Saturday and Sunday shifts and as a result of legislation giving you a different penalty rate compared to the majors someone working for you on a Sunday is paid less than working for a larger retailer.

The only way to address penalty rates is across the board, for all businesses regardless of size.

My issue with penalty rates is not related to business size. My concern is that we pay a premium for inconvenient hours, such as working on a Sunday. However, for many who work on a Sunday this is their day of work of choice or of necessity because of education and other obligations.

Many small businesses I know would struggle to attract good employees if they paid less per hour than other businesses nearby.  Indeed, I expect that should legislation pass allowing small businesses to pay lower penalty rates many of us would actually pay the market rate just to attract good staff.

This issue is considerably more complex than the slogan of lower penalty rates and I hope that Bob Katter and his followers consider that as they embark on their election campaign.

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Hiring employees

Plush, gifts and cards growth reflect newsagency reinvention focus

I’ve been looking at sales for the first two weeks of June and comparing them to the same period a year earlier.  What is usually a quiet time of the year is good for us: cards up 16%; diaries up 22%; magazines up 1%; gifts up 500% (off an average base); plush up 12% (off a very high base).

Average sale value is up 10% and overall revenue up 6% off of flat traffic.

What we can see in the data is that our focus on cards, gifts and plush as traffic drivers is working.  This has been our focus for some time – generating traffic from products we decide on for our business.

Plush, cards and gifts account for 39.5% of our sales – up from 26.4% for the same period a year earlier. This is the number I was most interested in as it reflects on the reinvention of the business. Such reinvention is vital for all newsagents, reinvention around conscious decisions we take on our businesses and the products we target for generating traffic.

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Newsagency challenges

Perfect time for a comfort food promotion

We are pitching That’s Life as our magazine of the week this week because of the free comfort food cookbook that comes free with this issue. In Melbourne especially, this is a perfect week to pitch comfort food. We have it at the counter and tagged as our Magazine of the Week.

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magazines

Too many copies of fete magazine

We received our first issue of fete magazine last week, twice as many copies as we should have been sent to launch this titles to our customers.

I’m happy to launch magazines, especially low volume titles, but I am not happy receiving too much stock. the distributor has sales data for similar titles and would have known from this that they were oversupplying. In this case I early-returned stock.

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magazines

News Limited less than transparent in price change in SA

The imposition of an 80 cent per copy surcharge on newspapers delivered to newsagents in certain areas continues to stress the affected newsagents and leave plenty of others quietly wondering why they dodged this bullet.

News Limited has not imposed the delivery surcharge in all regions where it could apply, leading to questions about the motivation of this move. It has also not so far adjusted the cover price printed on the newspaper.

Coles and Woolworths have not so far imposed the 80 cent a copy surcharge. This is already hurting retail newsagents as newsagency shoppers change outlets. Here’s what else has happened in the last few days:

  • Two country newsagents have lost up to three quarters of their paper customers.
  • A delivery round has lost over 100 plus customers and they are receiving cancellations daily.
  • One newsagent who is retail only has cut his paper supply by half.
  • Every corner deli is losing paper sales and early morning customers and most have indicated that if this trend continues they will have to put off a staff member.
  • Delivery drivers will soon have to be put off as the trend of paper losses continues.
  • There are many businesses affected by News Ltd’s decision.

Questions put to News Limited remain unanswered. Newsagents feel treated poorly.

It will be some time before we understand the real game being played here. So far, based on the evidence, this appears to be a move that will harm newsagents unreasonably. There is no other explanation for the approach News appears to be taking and the lack of consistency in pursuing a more economically viable approach to distributing their product in all areas of Australia.

From what we can see at the moment, a small group of South Australian newsagents are being treated unfairly.

12 likes
Newspapers

Vintage Caravan magazine is alive and well

While Vintage Caravan magazine is no longer being distributed by gordon and Gotch, it is alive and well and available to be socked by newsagents – for a better margin.  here’s a letter to newsagents from the publisher.

Dear valued Vintage Caravan Magazine stockist,

It has been brought to our attention that Gordon & Gotch have been wrongly informing some of you that Vintage Caravan Magazine is “no longer in production” and that this incorrect information has also been being passed on to our customers.

The truth is that we have ample evidence of Gotch’s wrongdoings with regards to the distribution of Vintage Caravan Magazine and when we attempted to pull them up on this they reacted by ending our distribution agreement.

As a consequence of this we have made the decision to switch to IPS for distribution from the next issue and hope that this resolves some of the supply and remittance problems we have experienced with Gotch over the past two years.

Vintage Caravan Magazine is getting bigger and stronger than ever and has a growing and loyal readership and we will be increasing the magazine by an additional 8 pages from the next issue on.

We have also just been accepted by the distributors for America’s biggest book seller Barnes & Noble so no, we are not going away anytime soon!

I just wanted to take this opportunity to quash these malicious rumours on the head so that I don’t keep getting emails from my panicking customers who have been made to believe that their beloved magazine is no longer available.

If any of you have any documentation to indicate where this unethical misinformation is coming from I would appreciate it if you would send me a copy as this is grounds for legal action against Gotch and highly defamatory to my business.

I hope that you will continue to stock Vintage Caravan Magazine and place your orders now through IPS.
If you would like us to include you on our online stockist list please email me direct with your address so we can add you to the list.

Kind regards,

Lisa

Lisa Mora
Editor/Publisher

Email: editor@vintagecaravanmagazine.com.au | www.vintagecaravanmagazine.com.au
Phone: 0439 993 963 | Postal address: PO Box 1052, Maleny QLD Australia 4552

6 likes
magazine distribution

Careful who you talk to…

Ash Long, Editor of Melbourne Observer, is an active supporter of newsagents in the pages of his newspaper. He also consults when making decisions, such as on cover price, that could impact us.

Earlier this week Ash shared a story with me about a potential Melbourne Observer advertiser and a newsagent that bears sharing. In Ash’s words…

I am a very careful reader of your blog, and take in every point that is made about how publishers need to support newsagents. Within our small business, we do the best we can, with newsagents listings in-paper and online, and “talking up” the newsagency channel as often as we can in the paper.

We had an occasion today where we had a potential advertiser  wanted to see our newspaper first hand, which we encourage. We like our advertisers to make an informed decision. Our customer, at our invitation, went across the road from their shop to their local newsagent.

It disappoints me that our potential advertiser said that the newsagent “talked down” our product. Now, the newsagent is quite at liberty to make any comments on whatever subject they want. But do they realise they talked themselves out of a small regular sale, and lost us a sale too?

You often say that retail is theatre. I agree. Theatre involves delivering our “lines” to customers. These should always be positive lines to build sales. Casual, thoughtless commentary slowly kills the newsagent’s own business, paper by paper.

I am happy for you to relate this experience on the blog. You may use my name and that of the Melbourne Observer should you choose, but I would prefer that the newsagent not be identified.

My own experience is that the Melbourne Observer attracts loyal readers, readers who can be leveraged in to purchasing other products.

9 likes
Newsagency opportunities
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