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

All eyes on Melbourne for the next five days

The Gift Fair and Home and Giving Fair start in Melbourne today. These are two excellent events for newsagents to attend. Indeed, if last year is anything to go by, we should see between 700 and 900 newsagencies represented on the floors of these and related events over the next five days.

Plenty of these newsagents will be there for the full five days … yes, there is that much to see and that much value to gain.

My newsagency software company Tower Systems has been exhibiting at this event for five years now. From the first fair we realised the value of this event in reaching out to newsagents as it was the more proactive newsagents who attended. It’s been a contributor to our growth over the years.

Newsagents who embraced gifts five and more years ago are leaders in the newsagency channel. Many of them will be back in Melbourne again this year, looking for new products – often products you would not associate with a newsagency.

Based on people I have spoken with I expect to see plenty of newsagents at the events this year for the first time.

There will also be gift and homewares business owners at the fairs attending and sharing wonderful insights with newsagents.  these are people we can learn from by networking with them and talking business. That’s bonus value from attending events like we have have in Melbourne over the next five days.

Maybe I’ll see you there.  Tower is located at the Melbourne Showground venue.

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Gifts

If ACP Magazines is sold…

The hot topic for many involved in magazine publishing in Australia yesterday was the report that European magazine publisher Bauer was in negotiations to purchase ACP Magazines.

Several newsagents I spoke with during the day wanted to talk about what such an acquisition might mean.

The way I see it, ACP being sold to Bauer or some other established publishing business could be good for the company and magazine publishing generally. Good competition fosters good competition and this results in better products.

Magazines live or die by the value those reading them discover in their pages. A publisher purchasing ACP will help it deliver better products. A private equity player purchasing ACP is less likely to focus on driving value through content – in my view.

Newsagents can only sit and watch what happens with ACP with more than passing interest from the sidelines.

Check out a recent blog post by Colin Morrison, former ACP Chief Executive now based in Britain, about the challenges the company faces.

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magazines

Shop floor offers promote a stationery value proposition

We have been running shop floor based offers to show off stationery deals to shoppers entering the store for a card, magazine, newspaper or something other than stationery.

Strategically placed and carefully priced to drive impulse purchases, the dump bin offer is an effective way to make a point to shoppers – that shopping with us can deliver surprises … beyond good value opportunities we have become known for.

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Stationery

Too many Scooby Doo titles?

We received these Scooby Doo titles last week and wondered about their relevance to us.  Four titles, two copies each in a segment which is challenged in all but the top selling titles. I’d feel better about the titles if they were part of a broader Scooby Doo story, something I could build something more meaningful around. I am looking more and more for this, opportunities to take a title beyond a pocket and drive interest by retailers elsewhere in the business.

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magazines

It’s time for a code of conduct for newsagency brokers

Rather than getting involved in commercial deals outside the remit of a traditional association, newsagent associations should spend their time and newsagent money on association services. One such service could be the development of a code of conduct for newsagency brokers.

Newsagency brokers are vital to the renewal of the channel. They assess, package and promote newsagency businesses for sale. They chase the highest price for the vendor as their key goal yet they look for support from existing newsagents to help their businesses.

Some newsagents have paid more to purchase their businesses than real net profit can justify. Even one is too many.

One newsagent I spoke with recently shared the profile provided by the broker. It was a work of fiction.  The figures did not meet even basic accounting requirements.  Beyond the usual (an sometimes questionable) add backs, there was no accountability on the veracity of the claimed sales.  I know the business. The sales claimed were not being achieved in the business at the time it was offered for sale.

Brokers have an obligation to the future health of the channel.  Incoming newsagents paying too much to purchase their businesses will kill the channel.

I know some excellent brokers. This post is not about them. It’s about those who package businesses with information which inaccurately reflects the financial performance of the business.

We need a code of conduct for brokers. Newsagent associations could develop this if they consider themselves to be relevant to the businesses.  It would be money well spent.  Brokers who sign up and submit to auditing could get a seal of approval.  This could give buyers more confidence.

Of course, good brokers could establish this for themselves and pub list it on their blog or website.

Any newsagency broker code of conduct should be framed within the view of the incoming newsagent as they will be there in their business after the broker receives their commission and the vendor moves on.

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buying a newsagency

Up on Darrell Lea opportunity and newsagents

The expression of interest in Darrell Lea registered with the administrators of the business on behalf of newsagents remains on foot but still a long shot.

There are people at the table with deep pockets and this will be appealing to the administrators and the secured creditors.

Having lodged an expression of interest puts newsagents in the room and this was a key goal. It’s possible we could play a role, somehow, in what emerges from the discussions going on at the moment. If we had not put in an expression of interest this would not be an option.

Expressing interest in Darrell Lea has seen newsagents talked about in a positive light in the media over the last two weeks. This alone raises our relevance in the eyes of the public. In fact, this became clear in an interview I did with a radio station yesterday. We got to have a good discussion about newsagents and their relevance and the changes we are all chasing.

There are some in the channel talking down newsagents having a crack at Darrell Lea. Working on change is harder than criticising it.

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Newsagency management

Good that’s life! school fundraiser campaign

that’s life! is offering five $1,000 cash grants to participating schools around Australia in the run up to the Australian Government’s National Literacy and Numeracy Week (NLNW), running August 27 to September 2. This money can be used to buy whatever educational equipment the schools need.

Over the next four weeks in the run up to NLNW, and during the week itself, that’s life! will feature a series of kid-friendly puzzles and learning challenges to be utilised by schools and students during NLNW.

This is an excellent opportunity to promote that’s life! in a second display, contact local schools and promote in other ways. Newsagents could also offer some local promotion or incentive to raise funds for schools.

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Social responsibility

Great counter promotion for Zoo

I love the collateral for the latest issue of Zoo. It’s simple, providing good visual cut through.  It’s also clear in its goal.  Both factors help us in our environment of considerable competition for attention.

I also love the display created at the counter by one of our team members. This is an excellent place for the title. The display rocks!

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magazines

Promoting Total Girl

We are promoting the latest issue of Total Girl magazine with the Charm It and Beanie Boos products, products which connect beautifully with this issue.

Promoting three products in the one display like this will get more people looking at the offer.  Our goal is to drive sales of this issue of the magazine.

This display is at the entrance to the magazine department.

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magazines

The Threat of Real Distortions in the EFTPOS Market

Tyro, the EFTPOS partner for many hundreds of newsagents, today issued a press release relating to their submission to the RBA on EFTPOS. It starts with…

Australia’s four major banks and Woolworths and Coles will potentially be the big beneficiaries if a new regulation of the EFTPOS payments system is allowed to proceed, the country’s only independent EFTPOS provider warned today.

Under the proposals, the major banks and retailers will be allowed to negotiate special deals for themselves, while charging small and medium sized retailers higher fees if they wish.

This is because the big four banks and Woolworths and Coles through their ownership in eftpos Payment Australia Limited (ePAL) are being given the freedom to just do that.

Click here to see the press release and read more about the Tyro position on behalf of their small business customers. The Tyro fight is important to newsagents.

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EFTPOS fees

US newspaper paywall update

PaidContent has published a terrific update on the state of US newspaper paywalls – based on a report by the Newspaper Association of America. Check it out. Fascinating. It includes the insight that the metered paywall approach being used here by Fairfax is the most common with 87 percent of newspapers allowing readers access to a certain number of articles before requiring a digital subscription.

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Media disruption

Who is funding The Sunday Telegraph free deals?

I was contacted recently with a story about a nearby greengrocer who is offering a copy of The Sunday Telegraph for free with every purchase over $10.00.  The usual price for The Sunday Telegraph at the greengrocer is just $1.  The posters are professionally done, making it look like a corporate-driven offer.  It’s hard for a retailer a couple of doors away to compete with this.

The person who drew this to my attention notes:

Two things amuses me about this brand devaluation: the advertised home delivery promotion is $1.50 per week so no incentive for me to commit to that AND there is no in-paper “hook” to get me to become a regular purchaser when this discounting ends.

I’d be interested to hear from others who may have noticed a similar offer from a local business – not one of the majors as we know about them.

I understand publishers are trying a range of activities to drive newspaper sales from subscriptions to deals around single copy sales. It is vitally important that they do not harm the established newspaper outlet by working with a new outlet.

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Newspapers

Hallmark refreshes Father’s Day

We are receiving plenty of terrific comments from shoppers and from employees about the new range of Father’s Day. With so many new designs in the seasonal offer, Father’s Day 2012 looks fresh.

The new collateral and black display units also help in making the offer look more enticing.

We have four units back to back on the dance floor. We don’t take regular cards down for seasons.

The new designs should help us achieve our goal of double-digit year on year growth for Father’s Day cards.

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Greeting Cards

Double opportunity fromScience Illustrated

While the cover of the current copy of Science Illustrated looks good, it is the back cover is more compelling. Check it out.

How to survive floods earthquakes bushfires taps into topics close to us.

I was thrilled to see both the front cover and the back cover on show at one of my newsagencies this week. Excellent initiative.

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magazines

Check out WH Smith in Australia

Newsagents should check out the expanding range of WH Smith stores in Australia if they get a chance. This UK group is presenting a good alternative to the traditional newsagency model and the usual transit location model we have seen here in Australia.  I mention transit locations as this is the focus at the moment of the WH Smith model here.

I’m off to New Zealand today for a couple of days of meetings and got another opportunity to check in with their Melbourne airport stores. The larger store, past immigration, is as impressive as ever – easy to shop, well zoned and easily managed with a lean employee roster.

If you get an opportunity check out one of their stores, especially a larger one when you get to see a fresh newsagency model in action.

I’d note that the WH Smith stores I have seen in Australia are different to what I have seen from many of their UK stores.

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Newsagency management

Pre selling a new gift line

I have copied an idea from another newsagent and started pre-selling a new gift line we will be carrying shortly. Just a simple A4 at the counter and a sample of the item – showing how it works – has generated 20 pre-sales in a week. $200 in locked-in revenue. Nice.

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Gifts

A small Aussie magazine we should support

When working through our food titles I came across Creative Sugar Craft. At first I thought this was an overseas title and sort of ignored it.

On my second look I noticed it was an Australian title, a good Australian title (I like cake!) – this got me to take time to think about how I could support the title.

Creative Sugar Craft is a title for these days of the amazing popularity of cupcakes and other baking. Get it in front of the right people and it will sell. While that statement – get it in front of the right people and it will sell – could be made about almost any title I think it’s more true with this one for several reasons: it’s a quality special interest title, it’s about a topic which is hot right now, it plays to our point of difference in the magazine space.

We are supporting by Creative Sugar Craft placing it at the front of the column, at eye level, with the full cover on display.  We will also put it on our list of titles which we give extra attention to – at the counter and even with women’s weeklies … to increase the eyeballs that see it.

I encourage newsagents to seek this title out and give it careful attention.

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magazines

Promoting family circle magazine

We are promoting the latest issue of family circle magazine with this display in-location and several other activities including placement with women’s weeklies, featuring it at the front of the store and time on the counter over the next few weeks.

With a sell through for us of 97%, family circle is a terrific success. I put this success for us down to a mix of the product being excellent and us making sure that shoppers see title title through our various activities. Our hard work pays off in sales.

family circle is not always a destination purchase for shoppers – probably because it is not monthly. This is where we, as magazine specialists, need to play our role and chase sales. In our case, this work is working a treat.

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magazines

When the power goes out

The power went out at 4:30pm at the the shopping centre where I have one of my newsagencies yesterday.  Thankfully, we have an uninterruptible power supply on our main computer and this enabled us to shutdown in an orderly manner.  An investment of a couple of hundred dollars provides excellent insurance against this type of incident.

Regardless of the computer system you have, I’d suggest all newsagents use a quality USP – this is not something to go cheap on.

I took the photo in-store yesterday … shopping centres get dark when all the lights go out.

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Newsagency management

Is Australia Post’s hookup with an online retailer a ‘kick in the guts’?

The Fairfax media yesterday ran a report on Australia Post teaming up with international shopping service Tarazz, saying it would be a kick in the guts for local retailers.

Tarazz reportedly offers around 250,000 items from overseas retailers including Walmart. The tie up with Australia Post is a bold move as it is likely to take business from local fashion retailers according to the report.

Several newsagents contacted me yesterday to alert me to the Australia Post move – given my disappointment that the policy makers (politicians) in Australia for the last fifteen years or so have let Australia Post creep way beyond the remit covered in the act under which it operates. Some were surprised that I’m not angry about what Australia Post is doing.

Unless I am missing something, this is a move leveraging the Australia Post delivery infrastructure. It’s what they are there for – more so than taking over the counter retail sales from small family run businesses as they do when they use their government owned corporate stores to specifically target businesses like newsagencies.

Okay, so they are facilitating an international retailer taking retail sales from other retailers and, yes, maybe politicians should have concern about that and the jobs that could be lost and businesses closed. But it’s not as direct a hit against retailers as Australia Post itself doing what it does to newsagents and other family run businesses.

Given that Australia Post is government owned, it has a higher obligation to Australians, a greater importance around social responsibility. Retailers affected could say this is not a socially responsible move. I best postal workers would disagree.

When it comes to small business, politicians on both sides don’t care. Oh, sure, they will say plenty – but they rarely do anything. They don’t see votes in actually supporting small business.  I wonder if my view on the Australia Post / Tarazz tie up reflects this cynicism.

I am posting this here for others to comment.  What do you think about this move by Australia Post? If you are against it, what are you going to do about it as that’s what it comes down to. Enough voters complaining about something can lead to policy change.

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Australia Post

Best practice use of ACP stand

I was asked by a new newsagent last week for advice on how to use the ACP basket builder stand and took this photo of how we were using it in one of my newsagencies.

I figured I’d post it here and run through how we use the stand.

The photo shows our traditional use. It’s from last week.  This is how we allocate space when we are not featuring a title or a category. On those times, the title or category own the stand.

In the photo you can see we have AWW and the puzzle book next to each other.  We are using Good Health and the Pregnancy title as the beacon titles. They are working, pregnancy one especially. The placement of the two Shop titles next to each other is deliberate.

The last four pockets can be anything as they are the least shopped no matter what we put in there.  That said, we make conscious choices on what we put in them – we do this by placing tiles next to each other that are more likely to work well together.

Taking care about what you put in a stand like this can generate extra sales and that’s what we all want eh?

I urge newsagents to check all magazine supplier stands and ensure that they are promoting titles from the supplier of the stand in the stand.

This stand from ACP and all magazine publisher stands are about making money for us. If they don’t then what’s the point!  It’s up to us how successful the stands are – by what we put in them and where we locate them.

We take this very seriously.

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magazines

Hiding the magazine gift

The latest issue of Country Home Ideas comes with a terrific bookmark as a gift. It’s a good gift, well selected for the typical purchaser of this title.

The problem is that most shoppers will not see the bookmark as it sits at the bottom of the bag and will be covered by magazines in front and traditional magazine fixturing.

While the promotion at the top of the bag is good, will it get people looking? The bookmark is better quality than I expected. hence my concern about people actually looking at it.

We are addressing the challenge by placing the title at the front of our counter section – making the bookmark easily seen.

I am not sure what the publisher could have done this time around for putting the bookmark higher where it could be more easily seen would have meant covering the masthead.  So … I don’t have an answer. I guess my goal here is to point the issue out to newsagents, to encourage them to promote the title so the gift can be seen.

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magazines

Promoting the new branding of New Idea

We are promoting the new branding of New Idea magazine with this terrific floor unit toward the front of the newsagents, a full column display mid store and the new branding collateral supporting the title in its usual location.

We sold plenty of copies of the magazine off the stand in the photo yesterday.  It is easily seen from the front of the store – we selected the location for this reason, hoping to tap into recognition of the TVC.

I love the stand provided by Pacific Magazines.  It’s innovative, easy to setup and easy to relocate. Yes, I know not everyone got one. I’d note, again, that the stand is just part of how we are promoting the new brand.

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magazines