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

Diverse range of guys magazines

Several times recently people have raised the question here about the value of carrying magazines that don’t cover their costs. Here are two magazines not currently paying their way for us but magazines I choose to carry because they show off our range and make for good impulse purchases by those interested and as gifts.

We are giving MANSPACE and SHAFT extra support by placing them so the full cover of each is on show.

One of our value propositions is to offer a competitive magazine range. To achieve this we need range and a competitive presentation. Yes we can and should argue about margin and supply. However, we should also chase incremental magazine business where we can. Good growth is achievable from fringe and smaller market titles.

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magazines

Kudos for frankie

frankie was named Magazine of the Year at the Australian Magazine Awards. This is deserved kudos for a popular magazine that is attracting valuable shoppers to newsagencies. here’s what they said on their blog established to communicate with enwsagents and other retailers:

We are very humbled to have won the Australian Magazine of the Year at the 2012 AMA’s.

After eight years and 50 issues, we know that we couldn’t have gone this far without the dedication and enthusiasm of the newsagency channel.

Thanks to you, we’ve seen each issue grow from strength to strength with Australian readers.

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magazines

Newsagents tagged in Home and Away one-shot TVC

Here is the TV commercial currently airing promoting the Home and Away one shot. This is not a title to ignore. I started a small social media campaign on the weekend and interest has been excellent, driving traffic to the store already.

The tagging of newsagents in the TVC is important and it’s good to see Pacific Magazines get that and support us.

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magazines

Vodafone commission cut to 1% in UK

Vodafone has cut the commission made by newsagents in the UK selling mobile recharge to just 1%.

If this happened in Australia, newsagents would make thirty cents on a $30.00 recharge voucher sale. I’d have to consider seriously whether to continue offering the product.

The current margin structure is dangerously slim. I know we can achieve more if we sell handsets but that has another traffic-flow and labour cost making to not viable for everyone.

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Financial services

Supporting newsagents raising money for Movember

Allan Wickham of newsXpress Eli Waters is growing a mo to raise money for men’s health as part of Movember. I urge you to click here support Allan here as he chases a fundraising goal of more than $2,000 this year. Other newsagents and newsagency employees growing a mo for Movember and raising money should let me know so I can promote them here. Since we see so many customers every day in our stores we can be great ambassadors for this wonderful cause.

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Social responsibility

More suppliers join the interactive product play

I have written here previously about the tremendous success we have been having with the interactive story book, card and toy range from Hallmark.  They and interactive products from other suppliers, are now a vital part of the card and gift mix in-store with excellent year on year growth.

Bloomberg recently published a story about US toymaker Hasbro refreshing it’s popular Furby product into an interactive toy. They are targeting Furby players from decades ago with a retro pitch and today’s kids with an interactive pitch.

A good gift department in any newsagency today has an excellent mix of interactive toys and gifts, taking the product beyond the static of yesteryear and somehow interacting with people as well as devices such as the iPad, iPod and iPhone. These toys that interact with sound from other devices are hot this year in Australia from what the sales data I can see. We are gearing up for Christmas by expanding the range.

The Merry-Oke product from Hallmark was a top-seller last year. While we expected good sales this year we did not anticipate the very strong early interest. Indeed, sales have been so strong we have ordered more.

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Trends

Terrific Christmas card range La La Land

I love the range of Christmas cards released by Australian company La La Land. We received our stock late last week.  These wonderful cards from Australian and international illustrators are visually fresh and well made. Customers love their point of difference. I love the point of difference.  Customers also love that they are made in Australia and eco-friendly … yes I have had shoppers comment on this.

While major card companies rightfully dominate space allocation and sales in our stores, some fringe companies can help us drive revenue we otherwise may have missed. They achieving by producing products that speak to a consumer who may not shop the major brand. La La land, for example, speaks to the frankie magazine buyer. With frankie being such a good selling magazine in our business it’s natural we want to help that customer spend more with us.

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Greeting Cards

The paywall challenge for newspapers

The Guardian published a report today on website access for Britain’s newspapers. The News International titles come off badly – because of their pay walls according to the report. It would be interesting to see data for The Herald Sun.

Charging for something readily available elsewhere for free was always going to be a challenge.

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Media disruption

Sunday management tip: turn the unknown into the known

I get to see sales data from many newsagencies and one of the most frustrating lines in sales data is a line labelled as unknown. This is where the software does not know what has been sold. Most often, it is because the sale has been done as what is a called a department sale. The sales person presses, say, stationery, and enters the amount for an item. While this does track the sale as stationery, it does not track the item itself.

There is a cliché saying: you can’t manage what you don’t track. The thing is … this saying is true.

Every department sale, where a physical item is not tracked specifically, is an opportunity for fraud. It is also a missed opportunity to know about your business and therefore to make better business decisions.

Most concerning of all is the message that a department sale gives your employees. It tells them that you don;t respect data. They can take this as leadership and not respect your data too. We need to lead by example in our businesses. respecting business data is an important part of this.

There are no excuses for department sales, for using a computer system as a glorified cash register.

Get rid of the department sale and you will reduce the opportunity for theft, know more about your business, save time through fewer keystrokes, save mistakes through fewer keystrokes and be a better newsagent.

Your software company should be able to help you eliminate department sales. It’s easy.

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Management tip

Sunday marketing tip: price compare where you can

We know from consumer research by several organisations that Australian consumers think newsagencies are expensive places to shop. While I think it is too difficult for us to address this nationally, some newsagents can address it locally.

If you are in a high street situation and unencumbered by landlord rules, why not choose some common everyday items and regularly price check against national competitors located nearby. I tried this in a couple of shopping centre situations and each time the landlord pointed out the lease clauses my action breached. High street newsagency leases should not have such restrictions.

While there is the risk that the chain you target strikes back, if you are not rude and promote the price comparison in a professional and consistent way you could slowly educate local shoppers to change their shopping habits and that has to be a key goal for any newsagent.

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marketing

Read Mark Colvin’s excellent Andrew Olle lecture

I urge newsagents to read the edited version of the Andrew Olle lecture delivered Friday night by Mark Colvin, respected journalist and presenter of ABC radio’s flagship PM program. Colvin gets to the heart of challenges facing journalism and media outlets, he talks about facts and truth … and makes a lot of sense. The last paragraph sums up the core message:

If we want a world where journalists can be paid to tell the truth we have to negotiate these massive changes at the same time. Good journalism – journalism of integrity – is a social good and an essential part of democracy. We have to do everything we can to try to preserve it.

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Ethics

Chasing superdraw sales online

OzLotteries make it easy to buy a ticket for tonight’s $21 million and Tuesday’s $100+ million. Their website delivers a compelling pitch as does their email campaign. Click on the image to see the email I received yesterday. They are doing what they need to do. I love their pitch even though it frustrates me.

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Lotteries

Quick survey on customer and employee theft in newsagencies

I have created a three-question survey on customer and employee theft in newsagencies this year compared to last year. I’ll leave this up until Monday afternoon.

To take the survey please click here. It will only take a few seconds.

Every week over the last few months I have taken calls from newsagents facing sizeable theft situations. Talking with someone yesterday I had the idea it would be good to harvest more data about the extent of the two key types of theft in a newsagency. Hence the survey.

The survey software (Survey Monkey) doesn’t track your details, you can respond anonymously and it only allows one response per computer.

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theft

Pitching The Monthly with newspapers

We are pitching The Monthly with newspapers because of the terrific cover and the story headline: The Honest Woman. This cover will polarise shoppers, that’s why we wanted it in a higher than usual traffic location. I am confident we will a sales boost as a result.

This is how we can grow sales of some magazines, by being tactical in our placement and engaging in pursuit of impulse purchases. I see plenty of cases where this works to the benefit of the newsagent and the publisher.

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magazines

McHappy Day opportunity with New idea

10 cents of every copy of next week’s New Idea sold will be donated to the McHappy Day campaign run by McDonalds. The fund raising goal this year is $3.6 million. Connecting us with the campaign through the New Idea donation is a good reason to give the magazine extra attention.

We know from boxed Christmas card and Mother’s Day card sales the value of a charity tie in and newsagents often push this with extra collateral. Our plan in my stores is to draw attention to the charity component of a New Idea purchase next week.

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Newsagency opportunities

Being positive about magazines

Check out the video from a couple of days ago shot at the Australian Magazine Awards were Ita Buttrose was inducted into the Hall of Fame. Watch Ita talk up magazines beautifully.

I love her positive attitude about a product so important to us. Yes, she discusses digital products – but in context.

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magazines

Christmas purchases kicking in

Almost as if following direction, shopper interest turned 90 degrees to Christmas this week. Without considerably changing product placement and disc plays, Christmas related purchases took off. Cards were the biggest beneficiary of the interest in Christmas for us. Our major Christmas offer goes out over early next week. We’ll get done what we can on the weekend given the strong showing ver the last couple of days.

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retail

T2020 coverage on ABC radio

ABC local radio in Brisbane this morning covered the T2020 newspaper distribution changes being driven by News Limited. You can hear the audio here. Alf Maccione, CEO of the ANF and Tony Philbrick from Southbank Beach News were interviewed.

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Newspapers

Newsagents shift 800 magazine sales to supermarkets

I was talking with a magazine publisher recently about early returns and they shared this story.

1,000 copies of a mid-tier magazine were returned by newsagents the day they arrived in-store. Most were returned by newsagents who would usually sell out or at least come very close to selling out. In almost every case the newsagents left themselves with less stock than their most recent average sales.

On seeing the 1,000 early returns, the publisher decided to reallocate the stock to supermarkets. 800 copies of the 1,000 copies sold.

The newsagents who early returned their stock helped 800 shoppers buy the title in supermarkets. This could have these shoppers looking for the title in that channel in the future. The newsagent action also encouraged the publisher to pay more attention to supermarkets.

There are consequences for early returns beyond getting your magazine bill down, consequences for all of the channel.

I don’t want newsagents to lose magazine sales we should not lose. Our future depends on the extraordinary traffic magazines generate for us. We need to ‘protect’ this traffic by not losing a single certain magazine sale.

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magazines

Officeworks sells stamps?

Maybe I missed this but Officeworks sells postage stamps and they’re promoting this in a new email campaign pitching their business as a complete one stop shop for pack and post services. The email is impressive and is set to be appreciated by their business targets.

Newsagents need to watch the stationery space carefully. There can be no doubt that it is in play. Officeworks are improving their business ahead of Staples expanding their retail footprint further.

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Stationery

Excellent Halloween sales numbers

Halloween ended for us yesterday with sales up more than 100% on last year. This is a good result off of strong numbers from a year before. It’s financially more valuable for us than Father’s Day – not only because of the numbers directly for the season but because of other items halloween shoppers purchased.

It’s the basket efficiency of Halloween that I really like.

Up until mid Wednesday we were not discounting. In the end, we sold out and that was our goal. We ended up bringing in considerably more stock than planned – once we saw how this season was behaving compared to previous years. It was good to see our original sales forecast blown out of the water.

I am confident that some shoppers visiting us for the first time because of Halloween will be back soon.

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newsagency marketing

Home and Away 25th anniversary special set to drive sales

The one-shot magazine celebrating the 21st anniversary of Home and Away sold very well. I expect the one-shot celebrating 25 years will do just as well. It comes out Monday and pacific magazines is supporting this with plenty of marketing including ads and social media. I like the pre-sale promotional flyers provided to newsagents yesterday for customisation and printing in-store. We have set aside prime space to go hard promoting this opportunity. We will use it to pull traffic to the store and to extend the basket. Pacific announced details late yesterday to nexus marketing program members.

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magazines