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

Toys R Us releases its own tablet

In a clever move, US you retailer Toys R Us is releasing its own tablet computer. This gives it a product not available elsewhere, a product through which it can promote its own offers direct to its consumers.  I say this is a clever move because: it’s packed with kid-friendly apps, it’s physically kid-fiiendly, it deepens the connect between the retailer and those who use its products and, it’s their own product and not as challenged by competition by other tablet makers.  Check our the report at CNN.

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Media disruption

What are you doing about penalty rates?

We have until September 20, 2012 to make a submission to the Senate Committee considering Nick Xenophon’s private member’s bill seeking to establish a fairer penalty rate regime for small businesses including newsagents.  Read more about this here and here to see an email from Nick Xenophon on this.

Newsagents should respond.  I am, supporting the bill and explaining that if the bill passed, I would employ more people, improving customer service and making my business more competitive.

It’s time for us to act … it sure beats complaining.

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Newsagency management

Promoting marie claire magazine

We have been promoting the latest issue of marie claire magazine with this display at the entrance to our women’s magazine aisle. Most copies sold of this issue have been sold from this location. It has been working a treat for us, especially over the last few days.

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magazines

Promoting Prevention magazine

We have been promoting Prevention magazine on the aisle end. This the second promotional location for this issue given the terrific publicity it has received thanks to the belly melt diet book. The issue is selling well from here as well as the usual location for the title.

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magazines

Newspaper covers up main news headline of the day

An the ad from Woolworths promoting Weet-Bix covers the main page-one headline of the day in the Sunday Herald Sun newspaper today.  Okay so AFL fans would say the story about Geelong was the main story of the day.  It wasn’t. The page one news story of the day was about sex education being provided to kids as young as five.  If the editorial team decided this was the lead, why take money from Woolworths to cover up the headline?  Nuts.

My rant about the cover-up aside – Woolworths is smart is calling the promotion a Sticky Special. This gives the mechanism for delivering the promotion greater relevance.

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newspaper masthead desecration

Sunday marketing tip: Up-sell scripts for use at the newsagency sales counter

Up-selling is a challenge for many in retail, especially in the local newsagency. To many, it feels uncomfortable and forced, a chore employees often do only because they have to.

Those most successful have usually found how to inject themselves into the up-selling process. It can take time to find the words that work. Smart retailers provide their employees time and encouragement to discover this for themselves.

To force it and demand a pitch be made across the counter can do more harm than good.

Here are some example or up-sell scripts. Some are full scripts while others are the opening words. They are designed to kick start your own ideas.

  • Would you like fries with that? Every store has a good impulse item which works with the majority of sales. If not, find the product. Then, the upsell question is a service and not a sales pitch.
  • We have a special offer today with every purchase…
  • Have you seen this, it’s just in…
  • The boss wants us to quit this item so we are offering two for one…
  • We have a free gift if you buy this today…
  • Did you want any candy with that today?
  • Would you like to taste one of our new candy bars?
  • We have a special offer today for customers who spend over $50, if you spend another $50 you get it at half price.
  • Have you seen these, they’re just in…
  • If you join our loyalty club I can give you 5% off this purchase today.
  • We have a free gift for every purchase over $50 today, you’re just $10 off getting this free gift you wanted to look around some more.
  • Would you like one of our re-useable shopping bags – they are only $2.50 and they’re environmentally friendly.
  • Would you like to go in our gift voucher lucky dip? It costs $10 and there are vouchers inside from $10 to $50.

Asking for extra business is half the battle to getting extra business. Retail employees are more likely to engage if you have good offers to pitch. Find items of relevance and price them for efficient selling. The best items are those which fit with the most common items you sell – like fries fit with burgers.

Allow your team the time to develop the words which work for them to turn your good ideas into extra sales.

Remember, up-selling is personal.

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marketing tip

GLITTER WARNING: DeAgostini Cake Decorating partwork glitter NOT edible

The tub of glitter packaged with the launch issue of the Cake decorating partwork now on sale in newsagencies (and 30 Woolworths outlets!) contains glitter that is NOt edible. Given that this is a care decorating product I would have thought that the glitter was edible. That is what some customers thought as newsagents have already told me.

To warn customers, the team at one of my stores created a warning notice. It’s the black on yellow notice in the photo.  Click here to download a copy of the glitter warning notice.

Network aServices and DeAgostini should have strongly warned newsagents about this. The risk of litigation in the event of harm caused y the glitter is considerable given the very hard to read warning on the lid of the glitter.

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Newsagency challenges

New Kindle Fire launch kicks off season of innovation

Amazon’s launch of the new Kindle Fire yesterday with new models and more competitive pricing kicks off a season of product releases taking the digital access platform options to a new level. The new launches from Amazon, Apple and others will give consumers experiences to challenge the love many still have for reading works and looking at pictures on a page of paper. The disruption of the print channel gathers pace with these releases.

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Media disruption

OAMPS denies FNQ retailers insurance

At least one major insurer is refusing to renew insurance coverage for retailers in Far North Queensland in response to weather related claims over the last two years.  This is a challenge as these businesses need coverage to meet lease and other obligations.

Insurance companies are in business to assess and fund risk. This is what they do. For a company to refuse coverage, it fails in its core business.

I feel for the retailers now left without insurance and a week or two to organise coverage.

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Newsagency challenges

Low value parcel processing tackforce report out

On Thursday, the federal government released the report from the Low Value Parcel Processing Taskforce. The taskforce was a government initiative as a result of  from last year’s Productivity Commission report on the Australian retail sector recommending that while the low value threshold should be lowered or removed, it shouldn’t happen while the costs compliance outweighed revenue gained. This taskforce report identifies how the government can make the collection of revenue more cost effective and provides a roadmap for getting there. I like the recommendations put forward. They make sense. However, there is a long road ahead if they are to be implemented.

Why does this matter to newsagents? We are losing sales to online, especially overseas online. Any measure that can be taken to ensure an equal regulatory playing field for all retailers ought to be welcome.

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Newsagency management

Where do you place Organic magazine?

I usually place Organic magazine with gardening magazines.  When I saw it is a shop earlier this week with food titles I realised I had been making a mistake. This is a magazine foodies will purchase, especially if they are into organic food. So, I am changing location and following the better location – with food.

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magazines

DeAgostini agrees to Woolworths trial of cake decorating partwork

I am told that UK publisher DeAgostini has agreed to a trial in Woolworths outlets for the Cake Decorating partwork which has launched in Australia.  While only a trial in 30 Woolworths stores, this is a move set to hurt newsagents, long term supporters of partworks and the only retailers capable of handling the customer service queries and requirements around partworks.

Shame on DeAgostini and Network Services for this.

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partworks

How the Bauer purchase of ACP is good for newsagents

I have been asked by many newsagents over the last couple of days about whether the purchase of ACP (and Network Services) by Bauer is good for magazines and the newsagency channel. As I noted a couple of days ago, I see the purchase as being good. Here’s why:

  • Bauer is a successful publisher with a proud history in publishing. It is better for ACP to be owned by a well resourced publishing family than a private equity business.
  • Bauer has experience in several marketplaces. Their experiences provide them insights to better inform business planning for Australia.
  • In the UK, Bauer is used to newsagents receiving 25% of cover price.
  • They also operate the Bauer Postal Network in Germany competing with Deutsche Post. This network can reach 82% of all German households.  BPN grew out of their logistics business. Check out their website – they have a good sense of humour.
  • They care about their titles. This is evident from their corporate websites. Content is the key. I like how they represent themselves overseas.
  • They have experience distributing magazines in Germany.  In purchasing ACP they will purchase Network Services.

As with any takeover, there are bound to be changes. I’d expect them to be focused on driving sales and thereby the return Bauer achieves from their ownership.

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magazine distribution

Smart consumer flyer supporting Women’s Fitness launch

I like the consumer flyer provided by ACP to support the launch of Women’s Fitness magazine next week.  This gives newsagents something to hand to shoppers promoting the title and its availability in-store.

I like the ability for stores to include their details. I have suggested to ACP that next time this is a fillable PDF – i.e. newsagents could type onto the flyer rather than stamping each copy.

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marketing

Rolling Stone opportunity

The latest issue of Rolling Stone is an excellent opportunity for newsagents thanks to the Michael Jackson cover celebrating the 25th anniversary of the release of Bad.  Many who would not usually purchase the magazine will consider this issue. To grab their attention we need to pitch the title outside its usual location: newspapers, the counter or at an aisle entrance. Grabbing sales is about tactical placement rather than a billboard display.

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magazines

UK publisher Eaglemoss abuses newsagents with Chess partwork

The DC Chess Collection partwork from UK publisher Eaglemoss is being sold incomplete through our channel.  It turns out that customers who want to complete the collection with the chess board can only do this by subscribing direct.

This is appalling, an abuse of our channel.

The requirement that you can only get the chess board by subscribing through Eaglemoss is disrespectful of newsagents who so strongly support partworks.

That we have a magazine distributor that could allow newsagents to be abused in this way is disappointing.

Unless Eaglemoss recants, this is one partwork I will no longer support.

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magazine distribution

Magazine distributiors need to provide clarity on T2020

A concern for many newsagents is the potential for changes to magazine distribution arrangements as a result of the News Limited T2020 project.

Gotch and Network have each said they are looking at how T2020 will impact their businesses.  The big questions for retail newsagents is whether there will be operational and margin impacts.  These are questions also being asked by people looking at purchasing newsagency businesses.

I have spoken with Gotch and Network and neither is making any statement at the moment.

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magazine distribution
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