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

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

Being proud

I was thrilled to see the writing on the blow-up trophy used in a display in our newsagency.

No. 1 Newsagency.

I like fun of the statement and the pride behind it. Being a good business starts with everyone involved believing in the business.

The trophy gives us something to live up to.  That the team did this without being asked makes me happy.

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Newsagency management

Getting in early with Christmas keepsake opportunities

We have the just-released Christmas ornament Keepsakes at the front of the business, facing shoppers as they enter.

I like these products for several reasons – quality, the Hallmark brand and their appeal to collectors.  It’s the appeal to collectors that is most important here. Collectors are valuable shoppers – their purchases over time and their excellent word of mouth promotion of products they like and collect.

We have plenty of other collectibles in-store and they work a treat too.

I like that this Hallmark Christmas ornament Keepsakes range is not available to everyone.

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Gifts

More promotion of Pacific Magazines FIJI competition

This is another display we have in-sore promoting the FIJI trips on offer thanks to a competition being run by Pacific Magazines in newsagencies.

We are promoting the competition in several locations to make the most of the opportunity – here, next to newspapers and with the magazines themselves in their usual location.

It’s our experience that promoting a major prize in several high-traffic locations in-store at once works better than one big display. This is more likely to deliver the sales uplift we want.

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magazines

Prevention opportunity thanks to Today Tonight

Newsagents should be ready to make the most of coverage of the latest issue of Prevention magazine on Today Tonight tonight. As the flyer from Pacific Magazines says, coverage like this leads to a terrific sales spike.

This is an opportunity for newsagents to embrace.

Place Prevention with your weeklies, at your counter, next to newspapers – where you get the most eyeballs.

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Newsagency opportunities

Can you recommend a gift for a terminally ill male?

Every newsagent has stories of unusual questions asked by customers. This question, can you recommend a gift for a terminally ill male?, was a surprise because of the dark certainty embedded in the question.

It’s the kind of question you remember.

It’s the kind of question more likely to be asked in a newsagency than in a petrol outlet, convenience store, supermarket or some other major retailer.  It’s a question shoppers will feel more comfortable asking in their local newsagency.

Having an answer for this question and all manner of tricky and often personal questions is a point of difference many of us live in our newsagencies and while we can’t necessarily bank the results, there is comfort in the comfort customers have in asking us these questions.

Our customer left happy with the magazine we suggested as the ideal gift.

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Newsagency management

Promoting Zoo and Empire works

We have a floor display unit promoting the latest issue of Empire magazine and Zoo in the reading area of our men’s magazine area. We did this knowing that the titles targeted different shoppers. Yet we had a customer yesterday purchase both titles – from the stand! We suspect that we would not have got the sale at all had it not been for the floor display unit. Getting magazines out from their usual locations helps drive impulse purchases by browsers, especially guys who visit to pass the time of day.

This issue of Empire, by the way, is one to promote outside of usual locations. It’s a cover set to appeal to people who may not otherwise have the title on their radar.

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magazines

Supporting the Pacific Magazines FIJI promotion

We are supporting the Pacific magazines FIJI holiday promotion at several points in-store including this floor display unit located near our range of newspapers.

This is an ideal in-store promotion … who wouldn’t want a holiday in FIJI?  Tis is why we are making the post of it – it’s easily understood and it is promoting titles that sell well for us.

We will promote the competition in several locations in-store through the course of the promotion.

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magazines

Great reason for promoting Zoo magazine

The free pack of Fisherman’s Friend with the latest issue of Zoo magazine is the perfect reason for giving this magazine time in the spotlight. We have it at our Ticketek counter, a counter also used for around 40% of all other purchases.  So, plenty of our shoppers will get to see the magazine and the gift. I guess we are making a judgement in our placement at the Ticketek counter – as it’s AFL finals ticket time. It’s sales we are chasing and this week we have many shoppers only in the first couple of metres of the business.

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magazines

Belly Melt Diet helps sell Prevention magazine to newspaper shoppers

We are promoting the latest issue of Prevention magazine with newspapers … because of the free Belly melt Diet booklet with the magazine. Putting it next to the newspaper gets the title seen by shoppers would not usually consider Prevention.

Remember, it was this simple tactical placement next to newspapers that led to us selling out of the latest issue of Your Garden magazine. It also helps us drive greater value from newspaper purchases and that’s more important now than ever.

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magazines

ACP Magazines announcement tonight

The announcement that ACP Magazines will be sold to Bauer Media Group is expected to be made later tonight or tomorrow. This information is from a couple of people inside the company.  The Sydney Morning has just posted a story too.  The purchase will be good for the future of the ACP business … hopefully good for newsagents too as the company will be back in control of publishers.

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magazines
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