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

You know you’re on a winner when shoppers buy products as you’re putting them out

The wet and cold winter weather in Melbourne was on our side this week as we put out a new line of heat packs at the front of the shop. As one of our team members started putting these funky products out we sold two. We were thrilled.

The first customers were drawn to the funky looking products. This is pretty special to us. It’s a goal – drawing traffic for products other than traditional newsagency lines … good margin products.

A challenge for newsagents in this gift / funky gift space is the constant change – we have to manage for that whereas in traditional categories of cards and magazines our suppliers do it for us. Harder work but compared to magazines better margin. Plus we get to make our businesses different.

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Gifts

K-Mart copying popular plush line?

This line of bug-eyed plush items being promoted by mass merchant K-Mart look surprising like a line we have been selling with tremendous success for more than a year. Their price point is very low. It matches the quality of the product.

What separates us with plush is our more creative engagement with the products in-store than you see in K-Mart. We see every shopper as a plush prospect.

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Newsagency opportunities

Tour de France guide selling well

The Official Guide to the Tour de France is selling well for us – nine copies in two days.

We are pitching it here at the counter as well as with our sports magazines.  It’s great seeing people add it to purchases at the counter on impulse.  This where a 25% margin product at the counter is okay – if it is selling in sufficient quantity.

We expect sales to do very well this weekend. We’ll assess sales Monday or Tuesday in the context of a move from the counter.

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magazines

407 newsagents have their say on magazine distribution changes

69.5% of newsagents prefer Wednesday as the second magazine delivey day of the week according to my survey of newsagents receiving 407 responses in just four days.

Only 13.8% of those responding prefer Thursday, the day selected by the magazine distributors.

Click here for the survey results.

This result flies in the face of the claim by the distributors that they consulted prior to making the move. Consultation of newsagents would have shown that Thursday is not a good day. Indeed, the result articulates the concerns of newsagents about Thursday, that they may lose sales to supermarkets and other retail channels – indeed, 65.4% are concerned about this.

Magazine distributors and publishers need to take note of this live concern held by newsagents. It’s borne out of what we see on the high street and in shopping centres. If any party would know what could happen to shopper traffic it’s newsagents who live this battle every day.

Do magazine publishers want to participate in a decision that facilitates a shift in magazine purchases from newsagencies to supermarkets, petrol and conveniece? I bet not since that is a shift that would not play out for them in the long run. The problem for us is that some publishers may not understand the risk for them oof migrating sales from independents to mass groups.

Click here for more on my concerns about Thursday as the second day for magazines.

Okay, this worry about a Thursday on sale could be nothing, it could be us worrying unnecessarily. Is that a risk the magazine publishers are willing to take? A genuine consultation process would have thoroughly explored these issues.

The survey results show newsagents as understanding of the need to move from three days to two. I thought the response on this was quite reasonable.

My understanding is that Thursday was selected primarily because of Who magazine. Because of how key content is sourced, out of the US, an on sale earlier in the week than Thursday would not be possible. Indeed, I am told from within distributor ranks that being ready for Thursday will be a significant challenge.  If that’s the case then why not deliver Who on a Friday through IPS and leave all other titles for a Wednesday delivery? Surely a deal could be struck between Pacific and Gotch to permit such a move.

I am sure there are many complex factors that fed into the decision. However, from where I sit, it feels like newsagents were not consulted and or listened to. The result is not good for us. The magazine distributors win. Some publishers win. The vast majority of newsagents are worse off.

It is not too late to throw the issue on the table for genuine consultation. That’s what I hope will happen given the weight of the survey results. Do I think it will happen? I’m not confident. Our suppliers have a track record of mouthing how important we are and how they value our opinion. The actions of too many suppliers tell a different story.

So, magazine publishers and distributors … are you prepared to reconsider the decision and actively consult with newsagents? We sell close to 50% of all magazines sold in Australia. We’d appreciate being part of the conversation on such a business critical move.

Footnote: while we can’t be certain all responses are from newsagents, we can be certain, thanks to the survey software, that only one response per computer was received.  Given the readership of the blog, I’d say the vast majority of responds were newsagents.

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magazine distribution

Last Newsagency of the Future workshop today

I am in Cairns today for the last of the current round of Newsagency of the Future workshops. It’s been terrific evolving the workshop as I’ve gone around the country talking with newsagents in many different situations.

Yesterday, I shot a video of a shorter version of the presentation. This should be available from the blog in the next week.  Slides need to be integrated and some other post production done.

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newsagency of the future

CEO Magazine promotion supports US stationery business

Newsagents are disappointed that the latest issue of CEO magazine as it’s promoting a competition with a year’s worth of office supplies from OfficeMax.

Once newsagent who brought the competition to my attention said they were early returning the title as a result.

It’s a misstep that this small Aussie publisher is promoting a giant american business in this way. The alternative was that they promoted Australian businesses, like newsagents, in the promotion. It would have been easy to organise. Plus it would have done kudos for the magazine from readers and from the retailers who sell the magazine – us newsagents.

OfficeMax is fierce competition for newsagents. Click here to see who owns OfficeMax, it’s an American company with an extraordinary footprint in Australia in the school book and stationery supply space. They claim to be the largest education supplies company in Australia.

Anyone supporting OfficeMax is not a supporter of Australian newsagents in my view.

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magazines

Coles using petrol outlets for click & collect online shopping

Coles Supermarkets has expanded its online shopping pick up offer with the opening of click and collect locations at shell petrol outlets. The photo shows the collection lockers at a Shell location at Garden City in Queensland.

Magazines are among the products Coles customers can purchase and collect using this service. In fact, I’ve seem magazines pitched as basket builders by both supermarkets.

Newsagents who say online will not affect their business do not understand the fundamental shift taking place in how and when people buy.

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Newsagency challenges

Promoting Dolly and the free clutch bag

We are promoting the latest issue of Dolly magazine and the cool free clutch bag gift that comes with the magazine with this off-location display at the entrance to the aisle with our newspapers and placed facing onto the dance floor. This location places the magazine in front of more shoppers, many who would otherwise not see it.

We’re also promoting Dolly it in its usual location in our women’s magazine aisle.

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magazines

Newspaper publishers cutting circulation jobs?

I have heard from several newsagents of more redundancies at Fairfax and News businesses – in the circulation area, the part of a publishing business that deals with newsagents the most.  One report has the entire circulation department of one News Limited capital city operation being closed with responsibility transferring to Sydney.

Yesterday, Seven West Media announced 100 jobs are to go at The West Australian.

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Newspaper distribution

Lyoness loyalty / pyramid program promoted to newsagents

Several newsagents have mentioned they have been approached to consider the Lyoness ‘loyalty’ program. I say ‘loyalty’ as Lyoness looks to have elements of a pyramid scheme. from what I dead, what you make depends on those you attract to the program.

I urge newsagents considering Lyoness to research the model online. In a few minutes I found several reports here, here, here, here and here.

While the lure of something bigger seems appealing, there are enough warnings about Lyoness to make it unappealing to me for my businesses.

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Newsagency management

Did we quit One Direction too soon?

Given the massive spend by Coles on their One Direction campaign – offering 10,000 tickets to an exclusive concert by the boy band. 1D fans are talking up this promotion on Twitter. In-store Coles has excellent collateral and there is a TVC.

So, I’m thinking that maybe we should not have quit our 1D stock a couple of weeks ago. Coles doesn’t invest his amount in a failure.

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Newsagency management

Jenlist appoints administrator

Jenlist Distribution, the business responsible for creating and supporting the newsagents network of Optus resellers for the last fifteen years has today gone into voluntary administration.  Here is their announcement in full:

Dear Valued Retailer,

This is an important email.

As you would be aware, after 15 years of servicing the General Route market on behalf of Optus Prepaid Mobile, Optus/PPS propose to terminate the agreement during July 2013, as they are able to do, between Optus/PPS and Jenlist Pty Ltd (Trading as Jenlist Distributors).

Optus/PPS, as they are able to do, seek to enter into fresh arrangements with you, directly between you and Optus/PPS.

Unfortunately Jenlist Distributors advise that due to the proposed termination, we find ourselves in a position where we are unable to continue to operate Jenlist Distributors and write to inform you that Jenlist Distributors has appointed a voluntary administrator today, 11 June 2013.

We deeply regret the inconvenience and impact this may have on your business. I would like to personally take this opportunity to thank you for your patronage, trust and friendship over the years and wish you the very best of business in the future.

Action going forward:

The Administrator needs to talk with Optus/PPS on 11 June 2013 to provide the opportunity for Optus/PPS and also the Administrator to discuss the position. The decision to appoint an Administrator has been made by myself as sole director of Jenlist Distributors. Optus/PPS have not been consulted. The Administrator has suspended trading to allow time for the Administrator to talk to Optus/PPS on 11 June.

I think it is unlikely that Jenlist Distributors will re-commence trading, but that is up to Optus/PPS and the Administrator. From 11 June 2013, Jenlist Distributors has ceased to accept orders to supply stock.

My job is to assist the Administrator and to take instructions from him, assist our staff, assist you, assist creditors and suppliers, assist Optus. We will continue to operate office staff to collect money owed to Jenlist Distributors, and respond to any issues you have relating to you and Jenlist Distributors, and also stock we have supplied. It will assist if you will quickly pay any money owed to Jenlist Distributors.

Contact details:

Jenlist issues – For all issues between you and Jenlist Distributors, in the first instance, please email (preferred) sales@jenlist.com.au or call (less preferred) 1300 781 758 or 02 4739 6131.

Optus/PPS issues – For all issues relating to Optus product call PPS on 1300 307 979.

For Administrator – The Administrator is David Levi, Levi Consulting Pty Ltd. Carolyn Rowe from the Administrator’s staff will be on-site at the Blaxland office. Contact Carolyn Rowe on crowe@leviconsulting.com.au (preferred) or call 1300 781 758. Otherwise, contact Maria Clemente from the Administrator’s office (Sydney) on mclemente@leviconsulting.com.au

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Newsagency challenges

Magazines placement drives impulse purchases on exit

We have had this unit full of magazines placed on the lease line of the shop facing into the mall since last Thursday. It’s generated good sales – a good return on the space. We chose the titles deliberately, the selection is working.

We’ve seen shoppers purchasing magazines as they leave the business, shoppers who had made a purchase returning with a magazine from the stand – in some cases using the Discount Voucher they just received.

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magazines

Connecting the the Man of Steel hype

We are leveraging the hype around the launch of the Man of Steel movie with placement of Empire in the usual location for the title and with weeklies – this is an issue that will appeal to people beyond those who usually purchase Empire.

The hype surrounding this movie is extraordinary – hence our off-location placement chasing impulse purchases.

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magazines

Magazine delivery day change survey for newsagents

Following my blog posts on the magazine delivery day change here and here, I have prepared a brief survey canvassing newsagent opinions about the change as I am concerned that newsagents were not fully consulted.  Please click here the link to take part in the survey.

I am gathering state and type of newsagency data as this could be useful in analysing the results. I suspect we will see different responses in different situations.

I will leave the survey up for a few days to harvest a reasonable number of responses.  I’ll publish the results in full here.

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magazine distribution

Making Zoo Weekly the loss leader at just $1

I saw this promotion for Zoo Weekly magazine and figured people here would be interested. I understand the title mix they are pitching it with, it makes sense. But the message is Zoo Weekly is not worth more than $1. Okay, it’s an offer and the publisher will argue it’s to get people trialling the title. The thing is, Zoo Weekly is a title people drift in and out of depending on spare cash and time. I don’t think trialling boosts regular sales – not in the newsagency channel at least … not that this offer is in the traditional newsagency channel.

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magazines

Must read article for newsagents

Elizabeth Knight wrote and excellent article for Fairfax papers yesterday about newspaper publishers News and Fairfax. It outlines the challenges and provides background on the moves of the two media giants.

Beyond our connection with Fairfax and News products, we also share the challenge of business model reinvention. Knight provides quotes as relevant to newsagents including:

The key to who wins the performance war rests with the company that best adapts to the new environment.

Both media bosses have the herculean task of convincing investors they have discovered the mutant gene that will allow them to adapt more quickly to the new challenge.

We have to convince banks, landlords, non print suppliers and our fellow shareholders. The size of our task is as big as for News and Fairfax if on a smaller scale.

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Newsagency challenges

Sunday newsagency marketing tip: use a single message to cut through and attract shoppers

Newsagencies are usually full of many different products and lots of displays and promotions. Sometimes, we have too much going on for a single message to cut through at the level we need. We wanted to avoid this with our Queen’s Birthday weekend sale so we developed consistent collateral and dressed the store from the front through to the back. It’s a single message that overrides all other displays in the store.

That’s my tip today. For a major season or some other important sales event – go big with a single message and cut through. Use consistent collateral that visually cuts through the sea of colour on your shelves. Ensure it has a clear message. Run it storewide.

Do it yourself. It doesn’t cost much. The biggest investment is in the time it takes to dress the shop. When you are done take a look at what you have created – ensure you’re happy that it does cut through and will be noticed. That’s what it is about after all.

Sometimes simple works best.

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Management tip

Sunday newsagency marketing tip: barricade the back room

For a week lock up the back room. Make sure its empty first! Make everyone who would work from the back room at any time do their work at the counter or on the shop floor.

Yes, I know some will say it’s not possible. Try it and see what the shake up brings.

Too often, the back room is used as a refuge by people who don’t like dealing with customers.  Retail is about dealing with customers. Place yourself closer to them and you’ve got a better chance of swerving their needs.

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Management tip