Shop Til You Drop goes fortnightly
The Australian is reporting that Shop Til You Drop is moving to fortnightly publication in October. This could be a good move, one I am some other publishers will be watching.
Former madison editor speaks out
Newsagents may find the column in The Daily Telegraph penned by Lizzie Renkert, former editor of madison for Bauer, interesting reading. It talks about giving everything and then some to the company and the magazine, the feeling of being cast aside and opportunities outside.
Magazine publishers unhappy with magazine delivery day change
Following the publication of the results of my survey of newsagents about the change to magazine delivery days I have been contacted by more than ten magazine publishers. None are happy with the change. They all express feeling helpless to impact the change. Several are actively working on a change to distributor as a result.
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.
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.
Newspaper front page coverup belies claim of local support
The Herald Sun says it’s a local paper, focussing on local stories. They why cover the photo of local hero Cadel Evans on the front page of the newspaper on Saturday with a stuck on ad promoting home delivery? Ridiculous.
I understand retail newsagents removing these stickers as all they do is tell our customers to get their newspaper elsewhere.
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.
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:
- Only sell what you can track – by scanning a barcode or pressing a PLU (stock code) to track the item.
- Do not use department keys to sell items as this denies you the opportunity of tracking individual items you sell.
- Enter into your computer system everything you sell. Record stock you receive by supplier so that you can track supplier performance.
- Enter into your computer system everything you return to suppliers – consignment stock, returns or damaged goods.
- Record all sales and other activity at the sales register by employees.
- 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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
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.
Stuck on ad says stop buying this newspaper from a newsagency!
The ad stuck on the front page of The Daily Telegraph yesterday not only obscured the headline of the page one lead story of the day as well as part of the newspaper masthead, it was promoting home delivery – something many retail only newsagents make nothing from.
No wonder stickers like this get removed before customers see the newspaper.
Suggested due diligence for newsagency buyers
My work with newsagents sees me get involved in many changes of newsagency ownership situations. Often, the involvement is sought to help get to the bottom of a dispute. If the purchaser undertook reasonable due diligence many of the disputes I see could have been avoided.
Here is my incomplete due diligence list. I say incomplete as it is what I suggest you do which is so often forgotten – in addition to the usual:
- Use an accountant who is knowledgeable about newsagencies to audit the figures provided by the vendor.
- Do not use the vendor’s solicitor or accountant.
- Request sales reports direct from the software being used in the business – for comparison against the sales numbers in the P&L. If they do not compare be wary.
- Compare expected stock on hand by department with sales by department. Here you are looking for inflated stock – there is no point in paying fullprice for other’s mistakes.
- Request a list of customer accounts in a spreadsheet with customer name and purchases in the last year. Look for related party transactions and large customers and ensure that their value is secured. I have seen a situation recently where sales were inflated with fictitious purchases.
- Review roster sheets and compare these with claimed hours worked in the ‘normalised’ P&L a broker is likely to have provided.
- Request a full list of inventory sorted by when the item last sold. Pay attention to items which have not sold in the last year.
- Consider having the stock take on settlement done using the computer system in the business – this is far better and more accurate than having a stock take done externally. It also leaves you with a valuable asset – accurate stock on hand data.
- Request a list of all forward orders placed in the name of the business. Review all of them and cancel any you are not happy with. This is especially important leading up to major seasons such as Christmas.
This list is by no means complete. I have listed items which tend to be overlooked. My goal is to help purchasers purchase based on accurate business data.
There will be some newsagents who are not happy with me publishing this list. If you have nothing to hide then why worry? Transparency around a good business can only add value.
Footnote: I have published a list like this several times here. This latest version reflects learnings following recent purchases.
Will the Chinese edition of Reader’s Digest sell?
Check out the copy of Reader’s Digest received by one newsagent yesterday. The Chinese edition I think. Odd, especially given their sales history. No justification for this action by Network Services.
Did anyone else receive this issue of Reader’s Digest?
Another crack at the dog grenade
Following success late last year, we are having another go with the dog grenade – a fun gift for people with dogs.
We are passing on some of the additional discount we achieved with our buying and still achieving above 50% GP. early indications are that the dog grenade will be a repeat hit for us and we’re happy about that.
NSW Lotteries indemnity insurance
Q-Sure now has the ability to cover NSW Lotteries Indemnity. $620.00 with $20,000,000 Fidelity Cover and $30,000,000 Errors and Omissions. Qsure can place quickly and notify NSW Lotteries direct to save time. I mention this as a service. I have no commercial arrangement whatsoever in relation to this. I mention it here to help newsagents save money.
Contact: Peter Sheedy Dip. FS(Brok), Q-Sure Insurance Brokers, AFS Licence 246 526. PH 07 3835 0302. Email: mailto:peter@qsure.com.au.
Farewell Mick Baker of Rochester Newsagency
I received a call a couple of weeks ago from Mick Baker of Rochester Newsagency. He’d just sold his business with settlement scheduled for the end of this month.
Mick has been using newsagency software from my Tower Systems company since 1987. This has been a long term business relationship.
In selling up, Mick has decided to pursue other interests with his life. He’s looking for a new career. Plus he’s writing poetry and has already had some published. I wish him all the very best with what he does next.
Mick has been an exemplary newsagent, offering excellent service to the people of Rochester and those who pass through. He’s seen his business change and the channel change and through all the changes he was cheerful and positive. That’s what I love about Mick, his positive nature, his focus on moving forward and that he is an unsung hero.
After Mick called to say he’d sold, I found myself thinking about other people like him I’ve encountered in this channel over the years, positive people who genuinely contribute in their local community and to the community of newsagents. There are plenty of Mick Bakers but not enough.
TV show talks down print newspapers
I saw the premiere of the Stephen King mini-series Under the Dome last night. Early in the show a resident in the town where the show is set confronts the editor of the local newspaper about a story lead. During the brief interaction the resident says she doesn’t read newspapers, that she gets all her news online. Even though it was in passing it was delivered in a biting way, as a stand out message.
Not only are we dealing with actual falling sales of newspapers, we are dealing with perception surrounding the medium. Oh, and we’re dealing with poorly engaged publishers.