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

Sunday newsagency management tip: start here in achieving better magazine supply

The first step in exerting control over magazine supply to your newsagency is to advise the magazine distributors of the total pockets available. Putting this in writing to them provides them with information the most likely do not have today. It establishes your land mass, thereby providing them with the information necessary to not over supply you.

While the magazine distributors do not work together on equitable ranging – stupid as that is – them knowing your total number of pockets and their own knowledge of the titles their computer carries means that they should behave more fairly toward you.

Write to the distributors, let them know your pockets and send this in an express post envelope or as registered post – so you can prove the received it.

You should send this letter any time you change the amount of space you allocate to magazines.

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marketing

Here’s a reason I’d like to control my magazine supply

Here is an example of why I want to control my magazine supply.  In a newsagency in Queensland last week I saw this food title. I’d love to have this in my newsagency, it could work as part of my Keep Calm Carry On range. the current push model makes it difficult for us to use what we know to get more of what will sell in our shops.

Magazine distributors rely on flawed models that continue to supply magazines in an inefficient way. If only they wanted to sell more magazines.

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magazine distribution

Having fun promoting your business

Further to my newsagency marketing tip from two weeks ago, check out the sign I saw today outside a cafe. This is terrific, very funny – something that shows they have a sense of humour. It makes this cafe more memorable than many others I walked past.

I’m sure there are fun things we can write on signs outside our newsagencies to show off our sense of humour and promote enjoyment to those who visit with us.

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Fun

Optus decides to manage newsagent and other retail outlets directly

Optus announced Friday that it will move to managing its retail partner network directly, just as Vodafone decided a few days earlier. This disappointing decision by Optus brings to an end a long-term association between Optus and Jenlist – a supplier which has been important to newsagents, delivering excellent service and leading many newsagents to make good money selling Optus handsets and SIM cards.

True to their professionalism, Jenlist communicated with newsagents in a timely and clear manner:

Dear Jenlist Retailers and Industry Partners,

Optus, and its subsidiary, Prepaid Services, have made a decision to directly manage distribution of Optus Prepaid products to Jenlist Distributors Retailers from 11th July 2013.

Therefore, Jenlist Distributors will not be able to supply Optus Prepaid products to you from the 11th July 2013.

Prepaid Services are currently contacting Jenlist retailers for arrangement of the supply of Optus Prepaid from 11th July 2013.

Until then, Jenlist Distributors will continue to supply and deliver Optus Prepaid up until the 10th July 2013

Jenlist Distributors thanks you for your ongoing business for the past 15 years, and we look forward to continuing the supply of our wide range of products available to you, including unlocked mobile handsets & accessories, torches, batteries, and power & computer accessories.

You can continue to place orders with Jenlist:
· on our web site, www.jenlist.com.au,
· via phone, 1300 781 758
· Fax, 1300 781 759
· or your Jenlist Sales Representative.

If you have any questions, please feel free to contact me personally:

James Simadas
Mobile: 0411 683 131
Email: james@jenlist.com.au

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Newsagent suppliers

$500 Napoleon Perdis gift pack a popular gift

I am thrilled with the shopper response to the $500+ Napoleon Perdis gift pack that one of our Mother’s Day card shoppers will receive.  We are receiving excellent feedback. On Thursday I had a mum say she was going to tell her sone about the competition.  Pretty good word of mouth!

Having a $500+ gift for one of my customers is a big pitch, something the customers like – especially where some retail groups have a $1,000 prize across a whole group.  For key seasons having prizes for shopper engagement is important, especially prizes for your shoppers..

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Gifts

Interrupting shoppers to drive magazine sales

What started out as lazy collateral placement has proven to work when promoting magazine competitions. Take the latest Win a Car collateral from Pacific Magazines and the holiday promotion from Bauer – using the header cards in this way – sticking out – draws attention. I’ve see it work myself. And that’s the battle – getting people to notice a promotion in the sea of colour that for many blends into a visual blur. So, we often use promotional header cards in this practical way – sticking out and hopefully getting more noticed than a neater approach.

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magazines

I’m still not a fan of Uncensored magazine

In 2006, I asked Is Uncensored the worst magazine ever? The post was somewhat controversial, it attracted 57 responses.

I checked in with Uncensored recently and didn’t like what I saw. It’s a controversial magazine catering to a fringe. The cover story about the Sandy Hook shooting, for example, is disappointing. I don’t like offering it in my business. But it gets shelf space because I am not the censor of what magazines I sell and because today range, even of fringe titles, can be important commercially.

If I did have complete control I’d not carry the title as I’d focus on a different message with my magazine product mix.

Is it the worst magazine ever? No. In fact, it’s no worse in its writings on fringe topics than, say, the IPA Review, a magazine we also carry.

I need to stop looking at some of the magazines on the shelves.

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magazines

Malware attacks spike, hitting newsagents

Malware attacks affecting newsagency businesses through their computer systems is on the rise. In the last week several businesses have been harmed.  It’s too late after you’ve be affected to ask what you should do to protect your business.  Act now. Use a respected anti-virus program. Keep your protection up to date.  The time being wasted helping newsagents who were not adequately protected is ridiculous.

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newsagent software

Are magazine publishers and distributors abusing newsagents with delayed billing?

It feels like there has been a rush among magazine publishers to send more titles to newsagents with delayed billing.  It feels like someone has opened the floodgates.

I am concerned about the number of delayed billing titles I am seeing in my own newsagencies – from multiple publishers! Do other newsagents feel the same?

Delayed billing of itself is sort of fine, it’s the long shelf life attached to the delayed billing that offends and as long as there is not an increase in the range of titles supplied.

Four months is too long for us to hold a title – unless it is selling well and is profitable for us after allowing for shelf space, labour and opportunity cost.

Delaying billing does not make a long shelf life okay and magazine publishers need to understand that.

delayed billing does not justify a publisher using our space and labour to showcase their stock. Space and time cost money!

I know some publishers think newsagents are less likely to early return a title that is not billed until the end of the on-sale.  While their assumption is probably right for some, it is not the case for all.  Retail space in shopping centres is expensive and this is what I consider when early-returning … am I getting the return I need to deliver a profit? If not, the title goes back regardless of whether billing is delayed. The only way I will keep an underperforming magazine title on the shelf longer is if the retail space it takes is being paid for by the supplier through a subsidy.

If you are a magazine publisher considering delayed billing as a way of keeping your title on newsagent shelves longer, be aware that delayed billing of itself is not the way to achieve this.

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magazine distribution

More Scooby-Doo! products help drive sales

Our sales of the Hallmark Scooby-Doo! branded interactive story buddy product are terrific. We’re now chasing a mid-season bump by adding more Scooby-Doo! branded merchandise.

In addition to the Hallmark product and a comic, we have added Scooby-Doo! figurines.  This display has products from three suppliers, making the most of the licenced product opportunity.

We chase licenced product opportunities from multiple suppliers to tell a good story and maximise sales. Licenced products are valuable!

From our display, we have shoppers purchasing all three items as a gift, delivering to us a far more valuable basket.

This is what we need to do in our businesses – pursue licenced opportunities to drive basket depth and to establish our businesses as the go to stores for these well-known brands.

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Counter offers

Terrific Take 5 gift

I love the nail care gift with the latest issue of Take 5. It’s a perfect gift for the Take 5 shopper.  We are using the counter unit in a placement above our weekly titles in a feature space we reserve for opportunities like this. We also have the magazine in another location as well as its usual location – it’s got three opportunities to be browsed and purchased.

We have the counter unit here and not at the counter as we no longer place magazines at the counter – that space is reserved for higher margin impulse purchase items.

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magazines

How newsagents can access Vodafone products

Following my post earlier this week I have been contacted by Vodafone with information on how newsagents can source products following the end of the contract with Silverfox.

Vodafone is the management of its convenience and newsagency distribution. There have not been any cuts to the distribution network itself, just the move to a direct relationship with the creation of a Prepaid Distribution Channel (PDC) Sales team.

As Silverfox still is the contracted distributor up until Sunday the 11th of May, and are currently still selling into the channel, Vodafone agreed not to advise the channel of the changes until late April. Here is a statement from Vodafone:

Vodafone Distribution to your channel is changing. Effective Monday, 13 May 2013, distribution of product, SIM and POS requirements will be managed directly by Vodafone. Over the coming weeks you will be contacted by telephone or face to face by a Vodafone representative to discuss this change. If you need to contact Vodafone directly, please email PDC@vodafone.com.au

Vodafone will mail welcome packs to 6000 electronic recharge outlets advising them of the changes and how to order.

There are no changes to the delivery of Vodafone recharge vouchers.

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Newsagency management

Staples loses some key staff – could be good or bad news for newsagents

CRN reports that Staples has lost thirty Australian staff members in recent months, possibly indicating that all is not happy in the Staples world following their take over of what was Corporate Express.

While I’d like to think this is good news for newsagents, that Staples is struggling, I suspect that we are seeing teething problems relating to the fairly recent full ownership of the Australian business by Staples.

I remain concerned that Staples will get it right in Australia. The ramifications of this for newsagents would be considerable. Staples in the US is loved by small business owners. Their product mix, pricing and small business support pitches resonate.

A good indication of what we could expect Staples to do in Australia can be seen in Officeworks stores. They have  lifted their game over the last year. Promoting the local connection of their team is something I have seen in several stores.  They have also refreshed their in-store story.

Newsagents with stationery as an important category have to consider what they have done to refresh and refocus their image and offer over the last year. Are you keeping up?

I appreciate Paul Wallbank alerting me to this story.

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Newsagency challenges

Promoting AFL cards and AFL Beanie Kids

We are promoting two AFL branded product categories by adjacent shop floor placement.

We have the AFL Beanie Kids toward the front of one entrance to the newsagency and directly behind and just to the left of them the Hallmark AFL cards. This way, people drawn to our Beanie Kids display will also notice the Hallmark AFL cards.

Both the Beanie Kids products and Hallmark cards are an excellent licence get for the respective suppliers. That we have got both gives us a strong pitch, a differentiating pitch in our shopping centre.

Licence products are important as they are less likely to be in deep discount outlets. It reflects the premium nature of plenty of what we sell in our plush, gift and card departments.  But we have to chase them – often pursuing a licence through three or more suppliers.

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Gifts

Great range of Mother’s Day cards

We’re thrilled with the range of Mother’s Day cards we have for this year. The many new designs present a fresh pitch. We have the cards on the lease line facing into the mall. We plan a couple of moves of the range as the season progresses- we find moves like this work for us.

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Greeting Cards

Comprehensive newsagency software training program launched for newsagents and newsagency employees

My newsagency software company today launched a comprehensive training program for newsagents and newsagency employees. Made up of in excess of 120 professionally produced videos (more than 7 hours of peer reviewed training) this training is unique in that…

  • There is no extra fee to access the training.
  • It’s newsagency business specific.
  • Newsagents register employees and can track progress.
  • There is no limit on how many times the training is accessed.
  • Training can be accessed anywhere.
  • Fresh content will be added regularly.

There is no other training resource in the newsagency channel like this.

This training will make newsagents and their employees more productive in their use of newsagency software. The businesses benefit, suppliers benefit and those working in a newsagency and undertaking the training benefit.

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Newsagency management

Fairfax to take newspaper home delivery customers from Tasmanian newsagents

Representatives of The Examiner, a Fairfax owned daily newspaper serving Northern Tasmania, started meeting with newsagents four weeks ago to advise them that they, Fairfax, would be taking control of home delivery customer management.

Newsagents were shocked, it was the first they had heard of this move. Up until now, newsagents have managed all aspects of home delivery of The Examiner – customer billing, payment, stops, starts, run management.

I’ve been told that ANF was advised by Fairfax of the move in November last year. It has also been put to newsagents that the ANF ‘ticket off’ (approved?) the move back then.  Newsagents I have spoken with want to know why the ANF kept this news from them for four months.

UPDATE (1:15PM) The ANF has advised that they first heard of this in January and even then in extremely vague terms. They did not and have not ‘ticked off’ the Fairfax plans. I note that my original information came from someone told by fairfax. the ANF has written to Fairfax to correct this misinformation.

The Fairfax pitch is that they will take charge of the customers, manage all aspects of the account, promote subscriptions and promote an associated digital offer.  This appears likely to lead to a lower level of remuneration for newsagents.

Fairfax is offering nothing for the effective take over of the customers, many of whom have been acquired directly, through the hard work of newsagents.

Fairfax representatives have apparently said that they will give customers the option of paying for home delivery at the post office. Really?  I’d be shocked if they did this. there is a perfectly good retail network in place today – newsagents.

Fairfax is also planning to require all customers to pay in advance. They are apparently offering customers a voucher to sweeten this move.

As recently as five years ago The Examiner purchased territories off newsagents. Back then, the company considered the home delivery customers acquired by the newsagents had a goodwill value. This latest move could be seen as takeover by stealth. This is one of the concerns of newsagents – what happens to their goodwill?

The ANF is getting legal advice in Tasmania. This feels too little of a response too late. I’d prefer legal advice from those with national experience in this space, experience in dealing with publishers. This legal advice ought to have been sought in immediately Fairfax advised the ANF of their intentions.

UPDATE: (1:15PM) Based on what the ANF has advised their timeliness in getting a legal response has been good.

The Examiner prints between 30,000 and 35,000 copies a day. This low number makes me wonder about the viability of the print edition. Okay, as a regional newspaper the economics are different and a lower print run can be more profitable in this situation than in a capital city. Still, 30,000 to 35,000 copies is low. I wonder if the Fairfax move is to prepare the business for a switch to digital only or, at the very least, to reduce print days. They can’t easily do this unless they own the customers. Currently, the don’t own the customers.

I was in Launceston yesterday and spoke directly with several newsagents affected. Outside of their concerns about losing the customer accounts asset of their business and therefore significant goodwill, they explained the nature of their customers and an expectation that a decent percentage would not want the details held by their local business being handed to a national business.

Some said they’d expect to lose at least 10% of home delivery customers because of the move of account ownership from the local business to Fairfax.

Some said they expect Fairfax would lose more customers by requiring payment in advance.

These issues could have been fully canvassed through a more open consultation. As it has been done, the newsagents involved are stressed at the late notice grab for an important and valuable part of their business.

What is happening with newsagents in Northern Tasmania ought to concern all newsagents. Some of our own are being treated with disrespect and unfairly. They have been let down by their association.  Hopefully this blog post leads to more active engagement by all to treat newsagents fairly.

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magazine distribution

Promoting the AWW 80th issue

We’re promoting the AWW special Celebrating 80 Memorable Years with placement next to AWW itself and this placement with newspapers.  I chose newspaper placement over counter as I think people are more likely to make the $9.95 purchase decision here.

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magazines

Making the most of Iron Man 3

We’ve made sure to place Iron Man 3 titles next to each other to make the most of the movie launch. This is a massive movie franchise that should generate sales for us. My plan is to switch these titles to a far more prominent position for the weekend.

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magazines

Pressure mounts on Ancol following loss of schools contract

I am told that at a recent sales meeting, Ancol management disclosed that march sales were down 30% – primarily due to the failure of its subsidiary KW Wolesalers – to win a schools supply contact. I’m also told that another five employees have been retrenched.  If true, both bits of information are not good for newsagents as the shareholders of the business.

Ancol continues to fight the state government on its failure to win the schools supply contract. With the lobbying spend in excess of $100,000, it’s no wonder South Australian newsagents are frustrated.  As I noted previously:

If it was up to me, I’d be questioning the value of the $100,000+ spend on lobbying. What if this same amount was spend on TV in the state promoting newsagents as the go to retailers. The result could be better, full margin, business for more newsagents as opposed to discounted government business for the wholesaler.Ancol management have indicated stationery prices could rise , this is a worry for SA Newsagents who currently on average pay more for their stationery than other Newsagents in Australia

This is a big issue for SA newsagents. What if the lobbying achieves no results? Newsagents would reasonably question why so much was spent on a failed exercise.  Without seeing the submission from Ancol it is hard for newsagents to know if their representatives put the best pitch forward to win the schools business in the first place.

14 likes
Stationery

Why the increase in supply of the Cosmopolitan bundle

Bauer sent us more than double the usual supply of the OK! and Cosmopolitan discount bundle. I’m not aware of any reason for the increase. We didn’t receive any collateral with which to promote the cheap bundle.

Regulars here will know I am not a fan of these promotions, of educating shoppers to not pay full price and of us having to fund the discount for what is already a slim margin product. My on-going frustration aside, this increase in supply is frustrating as Bauer has the data necessary to make a better decision.

5 likes
magazine distribution

Good promotion for harvesting shopper contact details

We are actively promoting the Win a Car promotion from Pacific Magazines with this aisle end display as well as in-location with the promoted titles.

The beauty of this promotion is that it harvests shopper email addresses and mobile phone numbers. These details are attached to our business so we can use them in our own campaign.

Suppliers running promotions in newsagencies ought to take note of this approach of harvesting shopper contact details for us to use.

We will be actively promoting this campaign throughout the running time and not just now at the start of the campaign.

7 likes
magazines

Music magazines doing well

One of the magazine categories performing well for us and some other newsagents as identified in the latest newsagency sales benchmark study is music. For us, I think the growth has come from moving it and giving attention to specific titles – tapping into covers featuring performers whop are in the news. We co-located a couple of times recently but not enough to significantly impact our figures. the vast majority of our growth has come from attentive management of our music titles in their usual location.

5 likes
magazines
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