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

Cynicism in media regulation arguments

It’s interesting to see the media companies get into a lather about the possibility of more regulation when some of these companies have refused to give newsagents an operational environment of less regulation. They have self determination today and reject the creation of a new office to advocate public interest yet they have been happy to leave us in a high regulated state with little control and a model that is competitively disadvantageous to most we compete with.

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Ethics

Inspirational gifts sell

We have expanded our range of inspirational gifts and homewares and are thrilled with the result. Shoppers are commenting and buying! What is interesting is that the customers span generations. We had assumed these would be purchased mainly by older shoppers but have been surprised that people as low as their early twenties purchase these – for themselves and older people. We need to stop assuming how our customers will behave.

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Gifts

Knowing where to place magazines

Someone here mentioned supermarkets and planagrams to guide product placement. here’s a photo showing what the engaged team at one of my newsagencies has had in place for ensuring correct placement of titles.  This is in a store with all new staff – the backing cards have helped guide accurate placement and show customers where a title would be if we had it in stock – when we’ve sold out.

Click on the image for a larger version.

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magazines

Four gluten free cookbooks fail to sell

Gotch sent us these four gluten free cookbooks in January. They all failed to sell. What is frustrating that we were sent some of the titles twice. even more frustrating is that Gotch has not sent us some titles that could sell. How they work out what we should and should not get is beyond me – clearly it is not based on data they should have about what would work for us. It feels like some scale out decisions are based purely on moving stock from a warehouse to another location – even if temporarily.

This is what we need the ACCC to look at. They oversaw the deregulation that left us with a magazine distribution model that makes newsagents less competitive.

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magazine distribution

Shock as NRL range sells in Victoria!

The NRL branded Beanie Kids are selling in Victoria and we’re shocked – when we should not be of course!

We have customers purchasing these as gifts for friends interstate and we have some purchasing them as they do follow NRL. Either way, we’re happy to have the range and to be in a position to use them as a traffic generator.

We have the AFL and NRL stands next to each other on the lease line facing into the shopping mall, next to our broader plush display.

The experience is a reminder: you /  not your / our customer … risks can pay off … having a unique product generates excellent word of mouth and additional traffic.

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Gifts

Excellent cover Rolling Stone

The new David Bowie album is getting plenty of media attention and that should drive interest in the latest issue of Rolling Stone. This is a good reason for newsagents to promote it with the full face on show. We are going run it with the newspapers at the weekend as the shoppers we see then are Bowie fans – in our heads at least.

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magazines

Cheap Easter cards get even cheaper and I’m not worried

A deep discount shop near one of my newsagency appears to be having trouble selling their Easter cards. The have upped the ante from one dollar a card to now offering three for two dollars. In the meantime, our Easter card sales are on track to deliver 15% year on year growth off a good base from 2012.

While it’s annoying to see these cheap product shops in what is otherwise a premium shopping centre, I do understand that they attract a different shopper who is loyal only to price. In other words, not that loyal at all.  We has shoppers coming back to us for easter cards because of our range and the exceptional customer service – we have several instances of this very specific feedback. These customers, returning because of an experience they love, are more valuable than someone going back to the deep discount shop to purchase a $1 card.

I talk to many newsagents who feel they have to compete in this cheap card space. While I tried this ten or twelve years ago, I am glad I stopped confusing my shoppers and offering cheap product in a quality service based business. Today I don’t try and compete on price as I see it as confusing my shoppers.

I make more from one Easter card than what my deep discount competitor makes from twelve cards. I am glad to be in my position compared to theirs.

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Greeting Cards

Electronic cigarettes in the counter

Check out the e-cigarettes a colleague saw on the counter of a tobacco retailer in Clayfield Queensland recently. They are at a good price point and certain to interest some shoppers.  There are now many brands of e-cigarettes available in Australia.

Had these e-cigarettes on his counter. As you can see from the display they are priced a lot cheaper than a standard pack at just under $20 and they do not take up a lot of room either.

A colleague from one of my shops was in the bank earlier this week and someone there was ‘smoking’ an electronic cigarette. While he was getting glances, no one challenged him.

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Tobacco sales

Good timing for RB7 partwork launch

I love the display and tactical placement promoting the launch issue of RB7 created by the team at one of my stores. With partworks this year accounting for more than 10% of magazine sales and attracting new traffic and with the grand prix in town it makes sense to jump on this opportunity.

This is a simple yet effective display in the right location to drive maximum commercial benefit for us. It helps that it has a local connection.

3 likes
magazines

The best placement for Zoo

In addition to the usual placement of the title, we have been promoting the latest issue of Zoo at the counter with other AFL titles. This is where we expect to grab impulse purchases. It’s discounted this week – giving an added reason for shoppers to check it out.

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magazines

Its Logie time again

While I think the attraction of the Logies continues to fade, certainly in my circles, we are still promoting the connection with TV Week in-store with this in-location positioning at the entrance to our women’s magazine aisle. We will leave this up all week and tap into other Logie promotions in the coming weeks.

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magazines

Offensive front page from The Daily Telegraph

I am offended by the front page of The Daily Telegraph today. That they are using their newspaper to run a commercially interested political agenda with little regard for facts is bad enough but to suggest Stephen Conroy is the same as Robert Mugabe, Stalin and others is offensive. It is evidence of the lengths to which News will go to get its own way. News can’t be objective on this issue so they have tossed out even trying to look objective.

The sad thing is that so many people rely on The Daily Telegraph for their news … and they vote. The role of a newspaper is to report news, not seek to influence public opinion based on mistruths.

The kind of bias demonstrated by The Daily Telegraph reminds me of media coverage I have seen in government controlled media in China and Vietnam in the last year.

For a more balanced perspective on the issue, check out an excellent piece at The Conversation by Martin Hurst from Deakin University.

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Ethics

Book supplier Hinkler disrespects newsagents in Woolworths Naplan move

Newsagents who took on the Naplan educational book range from book distributor Hinkler have been surprised to see the same range at Woolworths check-outs at a 10% discount.

Had they been told Woolworths would stock the Naplan books, newsagents I have spoken with have told me that they would not have taken on the product.  It’s my view that Hinkler has disrespected newsagents by not disclosing the Woolworths move.

As Australia’s supermarket duopoly push more into our space – and they will – suppliers to newsagents who also supply the supermarkets need to be up front with us about their arrangements and plans with supermarkets. To sell to newsagents without disclosure will see their products dumped and, sometimes, alternative products sourced.

Our channel is different to supermarkets. We offer a value-based service whereas the supermarkets usually only compete on price. In pursuing their price strategy they disrespect brands. Suppliers who care about their brands will focus more on newsagents and less on supermarkets.

Yes, we attract different shoppers, but they are not ad different between newsagents and supermarkets as they are, for example, between newsagents and deep discount stores.

What Hinkler has done to newsagents with this Naplan range sucks.

17 likes
Book retailing

Product placement as social commentary

I deliberately placed this timber sign: Teaching – not in it for the income in it for the outcome – at the front of the placement of these signs because it’s how I feel about teachers and because for two years now the Liberal state government in Victoria has failed to deliver on their promise. Ted Baillieu said he’d make Victorian teachers the best paid in the country and for two years he has welched on that promise. So I was happy to use this sign as the lead in our refresh of this homewares range.

I like being able to place product to make a statement. But I also like selling products with an optimistic message as this whole homewares range has. The optimism in the text of the range gives the shop and optimistic feel.

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Gifts

A reader’s view of the new look AFR

The Australian Financial Review is the newspaper I am most likely to purchase if I purchase a newspaper. As I have mentioned here before, it’s the most on-target and consistent newspaper I’ve seen.  So, I was keen to see the new look product.

I’m impressed. The redesign has resulted in a better product. To me, it feels more substantial – less like a daily newspaper and more considered.

Given that I can and do access my news via digital platforms, I find myself looking to print based product for analysis and opinion I can’t digest on the fly. The re-design of the AFR feels like these are more in focus. It’s a good looking product.

I am happy to see Fairfax investing in its print product. The extent of their investment across three mastheads in recent weeks should encourage all of us who derive income from selling them.

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Newspapers

The is the issue of Quarterly Essay to promote

Every so often an issue of Quarterly Essay comes along with the perfect feature to promote at the counter or with newspapers. The latest issue warrants such support. Political junkies will want to read Not dead yet by Mark Latham. But they probably won’t come in looking for it – hence the prompt to place with newspapers or at the counter. This is a magazine issue to chase sales for. Mark Latham is getting plenty of media coverage this week – this will be top of mind for many  shoppers.

1 likes
magazines

Looking for new ideas at the newsagency sales counter

I was in a department store recently and noticed these colourful shoelaces at the counter of the shirt department. The placement struck me as odd and then i realised it was genuis. Give the customers the unexpected and they will notice it more.

Many newsagencies offer the same at the counter, maybe so much so that it’s noticed that much. What if you tried something completely different, ridiculous even? maybe it would be notices and purchased. There is only one way to find out.

We often complain that customer are store blind in our shops – maybe we make them so by not being creative in our displays and placement.

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retail

Comparing the performance of like magazine titles

I am using the MPA magazine performance report in our newsagency software to compare key directly competitive magazine titles to uncover growth opportunities.

The first pairing I have looked at, comparing year on year sales on a moving annual total basis is OK! and Who. Our OK! sales are down 26% while Who sales are up 10%. The titles are treated almost the same. The only difference is that OK! has a second location in the Bauer basket building stand on the shop floor.

The difference is greater than I expected. Who has sold 77% more units in the 12 months to now compared to OK!.

Real data like this comparing titled targeting the same shopper can help us be certain of the more valuable title for our business and to know which title presents the easier sales growth opportunity.

Sales data is a vital metric and I encourage newsagents to look at this as I have, comparing like for like titles.

7 likes
magazines

Where are your Easter cards?

As with all major seasons we place Easter cards in with our gift display – as well as in the main Easter card display. Co-locating a selection of cards with seasonal gifts helps anchor the seasonal display. It also reminds shoppers to get a card to go with the gift. With gifts attracting shopper traffic of their own it;s imoportant we promote cards with gifts.

Where are your Easter cards?

2 likes
Greeting Cards

Great billboard campaign in Sydney promoting The Daily Telegraph

The Sydney CBD has plenty of these billboards up today promoting today’s issue of The Daily Telegraph, yes today’s issue. They look terrific. I like the campaign. It promotes the relevance of the paper. It reminded me of some countries where they put the front page up as a poster and people gather to read. I saw several people reading these today.

Thankfully there wasn’t a ad covering any editorial.

5 likes
Newspapers

Pity about the newspaper headline

News Limited showed today that they no longer think headlines sell newspapers. Check out the trashing they have the headline of the day on The Daily Telegraph today in Sydney.

What’s the point of the headline if they are going to obscure it in this way? It shows the newspaper as an ad delivery platform first and foremost. News comes a distant second.

3 likes
newspaper masthead desecration

It’s a miracle! The Week rises from the dead!

The Week magazine ceased publishing in Australia on October 12, 2012. I liked the magazine but would never actually pay for it. I can get the same review of the week’s news free online. Anyway, it died.

I was shocked to see The Week in one of my newsagencies on the weekend. Was this a miracle? Had The Week has risen from the dead?

No, this is no miracle, it’s the UK edition from Dennis Publishing and distributed in Australia by the Bauer owned Network Services.  This is no miracle, it’s a scam!  There is no justification for sending the UK edition here, taking up our shelf space and using our cash.

The Week failed in Australia, abysmally. The failure cost newsagents money as we were oversupplied the title consistently. Now, some genius has decided that the UK version of The Week should be on our shelves.

Dennis Publishing and Network Services should know better. This is a sneaky move. Okay, they may sell some copies but why have I been sent stock in my store out in the Melbourne suburbs where the Australian edition failed to sell? Why didn’t Network ask me before they decided to spend my money this way? They want me to pay them on time yet they deny me mechanisms with which to reasonably control the level of debt.

This supply of the UK edition of The Week is another form of oversupply. It disrespects and abuses newsagents in a way Network would not treat the supermarkets or other magazine outlets.

Network and Dennis Publishing are treating us as suckers.

I am writing to the ACCC, documenting this example with history of the Australian title. Network will argue to the ACCC that I can stop the title and I can return unsold copies. Well, it’s not as easy as that. I have to submit the request and they have to decide if it’s acceptable. I can’t just cut the title.

FYI: The company behind the Australian issue of The Week, Dennis Publishing Pty Ltd, collapsed owing a considerable sum – see the creditors report here.

11 likes
magazine distribution
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