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

Bauer discounts TopGear at 7-Eleven

The 7-Eleven Facebook page is promoting TopGear at $6.00 – $2.95 off the usual price.  The deal is also being promoted on various websites that list deals and discounts – such as OzBargain.

This 32% discount shows 7-Eleven as a place for magazine deals – better than newsagents.

I would not be surprised if Bauer and 7-Eleven have negotiated a rebate based on sales to top up lost margin dollars – so 7-Eleven would be no worse off. However, I have no specific knowledge of this.

I am not happy about this deal. Newsagents account for more sales of magazines for Bauer than any other single channel. We should be offered cover price deals like this with backend rebates to protect margin dollars.

We have to ask – why is Bauer boosting the smaller 7-Eleven channel with a 32% off deal ahead of newsagents?

Here’s an announcement about this promotion that fell my way yesterday:

TopGear Australia has partnered with 7-Eleven in an Australian magazine industry first.

The innovative marketing partnership allows TopGear fans to download an e-voucher to their desktop, tablet or mobile phone from 7-Eleven’s Facebook page.

The voucher can then be presented at any 7-Eleven store, and guarantees purchase of a brand-new issue of TopGear Australia for just $6 – a saving of $2.95.

The promotion is the brainchild of TopGear’s web and news editor Dylan Campbell and was implemented by marketing guru Georgia Mavrakakis.

The voucher has been shared across TopGear’s 84,000-strong Facebook fan base, along with 7-Eleven’s 506,000 Facebook fans.

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Ethics

Robo Fish a terrific counter promotion

We’re promoting Robo Fish at the counter with this simple fish in the bowl display.

The supplier thought of everything giving us what we needed to set this display up in a small amount of space and to make the product look compelling for shoppers at the counter.

This is a terrific fun product and brings smiles to the faces of shoppers – I love that since even people not buying this get enjoyment from seeing the fish swim.

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Counter offers

Mobile phone recharge survey for newsagents

I have prepared a quick four-question survey for newsagents on selling mobile phone recharge. You can participate in the survey here. I created the survey because of the increasing number of newsagents I hear saying they will quit the product category given falling commission.  I’ll publish the results here.

In 2005 I wrote here about  a copy of a Vodafone mobile phone recharge invoice for a major supermarket showing their commission was 16% while for newsagents we were on 5%.  I suspect the difference between what supermarkets get and what we get continues.

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phone recharge

How the changing fashion ‘magazine’ can impact newsagents

I have been following a number of online and App startups in the fashion space, watching how they are connecting with readers interested in fashion and how they are providing an alternative to print fashion magazines.

Since magazines exist solely as a delivery platform for advertising, connecting with shoppers and monetising their enaggement is a holy grail for sites and Apps.

Monogram is an interesting App in this space.  It leverages the understanding and concept of magazines, collating content into magazines interesting to different shoppers. Monogram also encourages contributions to the magazines. The description of how it works is simple:

Monogram is a collection of fashion magazines created by the community. It’s a place to share your fashion stories and inspirations without having to start your own blog or building an audience. If you already have a blog, Monogram is a community to help you extend your reach.

Beyond our oversupply and undersupply challenges, beyond other retailers selling magazines and often getting trading terms that give them a competitive advantage, beyond Apps created by national and international magazine brands, there is considerable disruption from businesses like Monogram that more directly connect shoppers with common interests.

Leveraging the global interest in and engagement with crowd sourcing and using social media skills, among other techniqies, Monogram is building a following and helping people engage in their interest in fashion away from print magazines.

Newsagents need to be aware of trends such as this as we plan for our businesses. The world is changing beyond what we see in front of us and in our immediate community.  The more we understand this the better informed our business plans are.

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magazines

Selling cards for International Father’s Day

We are promoting a small range of cards of International Father’s Day on a stand facing into the shopping mall.  We are doing this promotion off-location since we suspect shoppers in the centre who could purchase such a card will not be in the centre looking for one.

Newsagents have an opportunity with minor card seasons like this to reinforce our position as the go-to retail channel for all greeting card purchases. That’s what we are doing placing this display on the lease line facing into the mall.

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Greeting Cards

Is this why newspaper publishers don’t use retail newsagents to grow OTC sales?

It struck me this morning standing in line to order a Bacon and Egg McMuffin in Sydney for a breakfast on the go that in front of me was a key reason newspaper publishers virtually ignored retail newsagents to drive over the counter newspaper sales.

Newsagents can’t offer the same value proposition as, say, a McDonalds. McDonalds advertises in the newspaper, it has products that can be bundled with a newspaper and thereby deliver access to the newspaper for almost nothing yet record it as circulation.

I can see that a newspaper ‘sold’ through McDonalds with a meal bundle is more valuable and rewarding for a publisher than a newspaper sold in a newsagency at full cover price. They would think that the McDonalds ‘sale’ is more certain and can be budgeted for. The advertiser probably makes this point too.

Since we don’t have fuel, burgers, suagry frozen water drinks or many other highly sought after daily purchase items that we control with which to bundle newspapers we will not be the focus of attention of newspaper publishers. I suspect we represent the old-school approach to newspaper retail they maintain because they have to and not because we represent what they see as future.

I wish newspaper publishers would give retail newsagents a go. I am certain that retail newsagents can grow newspaper sales through genuine partnership with newspaper publishers.

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Newspapers

Rocks Gems & Minerals partworks reissue?

Like many newsagents I suspect I was surprised to see the Rocks, Gems & Minerals partwork reissued yesterday – even though it did not look like a reissue thanks to new packaging and National Geographic branding. I don’t remember it looking like this last time around.  The stock code in the EDI file points to the previous issue so this is connected to the previous rocks title we received.

72 copies, that’s what we received in one of our stores.

What do other newsagents think?

If we had control of our ordering, we’d have asked for 30.  here’s what galls me and, I am sure, most newsagents. We have to pay to return the unsold stock. We are penalised for a poor scale out decision, we have to pay for someone else’s mistake. It’s a disgusting impost on any business let alone small business newsagents at the end of the magazine food chain.

And magazine publishers wonder why some newsagents are actively and openly discussing exiting the category altogether.

Supply is the problem. It is drowning the newsagency channel and no one in authority appears prepared to do anything about it.  The result will be even more magazine sales lost from the newsagency channel to supermarkets.

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magazine distribution

Red Nose Day charity well-loved

Of all the charities we support at the counter and elsewhere in the business, the Red Nose Day support gains the most attention and engagement. It’s well known, easily understood and appreciated.

While I have said here many times that the counter today has to be about high-margin (above 25%) product, we do schedule in space and time for charities we care about. Red Nose day is one of those charities. I especially like it as we choose to participate rather than having it sent without reason or connection to us.

If this year is like other years we’ll move all the stock in a couple of weeks.

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Social responsibility

Rolling Stone brand front and centre

We have spread the Rolling Stone brand, in three magazine titles, across the best shelf in our music section as we feature the Bob Dylan one-shot, the Led Zepplin one-shot and the regular monthly magazine. Our commitment is to maintain this full face placement for the next two weeks. We’ll give the Dylan title a run with newspapers at the weekends – given the shoppers we typically see then.

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magazines

Terrific one day conference in Victoria yesterday

I was grateful for the opportunity to speak at the Lottery Agents Association of Victoria conference yesterday in Melbourne. It was terrific seeing a large room full of retailers giving up their Sunday to network with others and talk business.

The agenda was varied, full of challenges to build stronger and healthier retail businesses.  I really like one day conference events. People retain more. There is also an urgency since you only have a day to cover your messages.

Talking with people in the breaks I met people embracing change in their lottery businesses and newsagencies. Suppliers too – breaking with tradition and encouraging retailers to make independent moves.  Very encouraging.

For my part I put together a session picking up on some of my Newsagency of the Future themes as well as consideration of the opportunities we find in change in retail.

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Newsagency management

Staff recommendations promote newsagency magazine sales

I’ve written here before about our use of staff recommendations to bring attention to magazines that otherwise be missed in the sea of colour and text we present in our magazine department.

At any one time we have two or three titles we feature with a personal recommendation.  the photo shows our latest recommendation – for new magazine renegade Collective. we chose this title as it needs help in being understood.

Creating these recommendations does not take long once you have looked and understood the magazine. The reward is worth it. At the very least you further separate your magazine offer out from that in supermarkets.

The artwork for the recommendation text was developed in-store by one of our creative team members. It’s is consistent for all recommendations.

Click on the image for a large version.

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magazines

It’s all about Apps

Apps are huge today and we’re trying to tap into the popularity of this software by featuring app related titles at the heart of our IT magazine titles. The free cable with The Essential Apps Guide got it prime place in this small display.

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magazines

Sunday newsagency marketing tip: think Grab and Go if yours is a convenience model

Convenience store owners and their suppliers talk about Grab and Go offers, products that are compelling, easily understood and good value, products places at or near the counter and other high-traffic locations.

The term Grab and Go defines the type of products to place in this high-profile impulse purchase situation. In newsagencies, focussing on Grab and Go items is essential for those with a convenience-centric model.

I mention this term here to help change perception. We have spent too long offering the same old products at the counter. We need to focus on fresh impulse lines that offer more than 25% GP. Newsagents in the convenience space need to get serious about convenience and thinking about products in the context of Grab and Go is part of that in my view.

There is an excellent article at Convenience Store Decisions about this. I encourage convenience-centric newsagents to read this.

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marketing

Sunday newsagency management tip: ring up all your sales

Too often newsagents start ringing up all sales in the Point of Sale software after they have encountered an employee theft situation. I have no sympathy for them since it’s retail 101 to track all cash down to the last cent in your business.

The excuse of it takes too long is nonsense – it takes seconds and can save thousands.

The excuse of we have to then to do lottery sales on two devices is because tatts won’t let your Tatts terminal send the sale value to your register. They do even more than this for 7-Eleven. Get over it.

The excuse of the counter is too busy to make this happen is nonsense – many many newsagents handle this without a problem today.

One way you will certainly reduce the opportunity of being a victim of theft is to ring up everything you sell using your newsagency software.

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Management tip

Newsagency of the Future workshops this week

The free Newsagency of the Future workshop this week are:

  • May 20 @ 11am Canberra Rydges Canberra Capital Hill, Cnr Canberra Ave & National Circuit Forrest ACT 2603 Parking: Onsite parking available $10.00 flat rate
  • May 21 @ 11am Newcastle Crowne Plaza Newcastle, Cnr Merewether St & Wharf Rd Newcastle NSW 2300 Parking: Valet parking $28.00 per day subject to availability or free street parking.
  • May 22 @ 11am Albury Hotel On Olive, 579 Olive St Albury NSW 2640 Parking: Free parking
  • May 23 @ 10am Geelong Four Points By Sheraton Geelong; 10-14 Eastern Beach Rd Geelong VIC 3220 Parking: Cunningham Pier 3min walk to venue $7.00 per day
  • May 24 @ 11am Hobart Mercure Hotel Hobart, 156 Bathurst St, Hobart TAS 7000 Parking: Onsite underground parking available at a cost of $1.00 per hour.

Click here to book online or email bookings@towersystems.com.au. This session is open to all newsagents and suppliers.

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Newsagency challenges

Newsagents in the news on shop lease

Check out the story in The Morning Bulletin in Rockhampton about the closure of two newsagencies.  It’s a reminder of the importance of getting rent right from the outset and not agreeing to lease unless you are 100% happy.

I have recently walked away from two new lease opportunities because the terms were not what I wanted. A newsagency opportunity I walked away from three years ago because the terms were not good is, I’m told, about to close because the tenants are walking away from a ‘bad’ lease.

Get the lease right at the start. Changing it mid-term is challenging with most major landlords.

A side point about the story is the headline: news agents. Talk about focusing on the agent part. I bet agency business accounted for only a small portion of sales in this business.

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Newsagency challenges

Swamped with applicants for junior newsagency role

I placed an ad on Seek for a full-time junior for one of my newsagencies. I was not happy with resumes being handed over the counter so decided to pay for a proper da.

Within twenty-four hours I had to take the ad down as I’d received more than 200 applications.  Now I’ve used Seek for this type of role previously – but I have never received this number of applicants in the first day.

Beyond the extraordinary response, I am enjoying looking at the diversity of applicants. Most do not come from a newsagency background and I think this is important for our future in the business for which we are hiring.

We are looking for candidates with initiative, fresh eyes, excitement and a love of small business / independent retail.  While it’s a challenge to find these qualities in a junior, I have resumes from some who show terrific promise.

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Hiring employees

UK mums target newsagents in porn campaign

Check out a video targeting how adult-themed titles are displayed in retail, including newsagencies.  The video was produced for National Children’s Day in the UK.

This is a contentious issue for retailers. We don;t control the regulations nor do we produce the product. Too often we don;t control whether we carry the product.

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Ethics

Directioner the One Direction experiencing flat sales

We’ve sold 8 copies of Directioner, the One Direction magazine. I have checked with some other stores and its equally flat there.  We pushed the title for ten days with placement on the lease line, facing the mall. We’re now pulling back as we need the space for products that will deliver better GP for the space commitment.

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magazines

Promoting Harpers Bazaar because we want to

We are giving Harpers Bazaar time in the spotlight this week with prime positioning display – because we want to and not because of the pushy Bauer representatives who visit and try and tell us what to do. This is a special issue, one we are happy to support with tactical displays to drive sales.

I am over suppliers sending reps to my stores to rudely demand space for their product. If they want to pay extra for the space then okay but since they don’t – stop these rude visits.

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magazines

Update on the News Limited move on pricing in some parts of SA

News Limited approached me earlier this week following my post about their imposition of a new freight charge in some parts of South Australia. They provided a press release / statement on their position. I did not publish it here as it did not add to the situation and I didn’t want to put their case. The ANF in SA has published the News statement, unfortunately.

My view is that what News is doing is wrong. They are passing on freight costs selectively.  Also, they are not communicating clearly and do not appear to be communicating with customers – but that may come with time.  The ANF should be as clear on its position.

News should apply freight to all non suburban deliveries – user pays right?! Their selective approach is problematic for them. They could also have produced advice for newsagents to place with the products. Finally, they could have a cover price for the affected areas – to show it’s a News charge and not a newsagent charge.

There are times when publishers treat newsagents as agents and other times when they treat newsagents as retailers. They can’t have it both ways.

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Newspaper distribution

Balancing the business is vital for small business retail newsagents

On Sunday I published a post about the importance of calculating what you need to earn per square metre of retail floor space.  I want to revisit that topic here in this post.  But first a story…

I know a newsagent who is growing sales of magazines, gambling products and cigarettes.  They have a good business in a location that has become a convenience for new traffic.

The growth in convenience traffic has come at a cost as sales of higher margin items have fallen.

Here is their challenge: revenue is up and GP is down. The business is worse off for being busier in some categories.

This is why we need to all know what we need to make per square metre of our stores … so we can chase the GP necessary for us to pay the rent and other fixed costs we have in running our business.  We need to work hard at balancing our business.

By balancing I mean managing the growth of low margin items versus the growth of high margin items. Yes, it’s tricky as one can drive sales of the other – but maybe not as much as we think.  Our data can tell us just how much in our particular business.

A spike in a low margin product category – and by low margin I mean anything at 25% or less – could hurt the business overall.  However, growing higher margin product sales is much harder work. It has to be because of the size of the rewards available.

Now more than ever, newsagents need to balance their business – balance their sales based on GP – for the future health of the business.

No supplier will do this for you. It’s up to you.  I’d be happy to engage with any newsagent wanting to work on this.

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Newsagency challenges
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