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

The next stop for newsagents on Darrell Lea

Newsagents who would be prepared to invest in a consortium to bid for Darrell Lea need to register now.  To get a seat at the table to consider being part of an acquisition we need to know how serious newsagents are.

So, without obligating you to anything, please email me at mark@towersystems.com.au with your contact details and the amount you would invest if the opportunity met your requirements.

I appreciate it’s a long-shot query. However, given the independent structure of the channel I need to get something more solid than voted on a poll before engaging a lawyer to seek to get a seat at the table.

This is the moment for newsagents to put up or shut up on Darrell Lea.

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Newsagency opportunities

What I think about the future of newspaper home delivery for newsagents

I was talking to a newsagent the other day who said oh that’s right, you think newspaper home delivery is dead.  I don’t think it’s dead, actually.

While I don’t see much upside in newspaper home delivery as a stand-alone operation or a smaller scale operation as it has been in the past, I work with newsagents who are building larger and successful home delivery businesses.

Indeed, I have signed off on considerable investment by my newsagency software company in a new suite of enhancements in the newspaper distribution facilities in our software.  I would not be spending into six figures enhancing newspaper distribution software if I did not consider there was upside for my newsagent colleagues and my software company.

So, my actions answer for me.

Yes, there will be mass consolidation of newspaper distribution businesses over the next two years. The reality is this has been going on, quietly, for the last few years. I know newsagents running warehouse operations that have grown through acquisition. These are good businesses.

The wash up is that newsagents running loss making distribution businesses as well as retail businesses can concentrate on what they do well.  I am hopeful that a result from this will be better retail newsagents.

While there is no obvious upside in the future of print newspapers, there could be considerable upside in a professional locally based distribution business.  It’s this opportunity that gets me investing my own money in better newsagency software.

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Newsagency management

Fairfax to migrate to compact size sooner?

AdNews is reporting that Fairfax hopes to migrate The Sydney Morning Herald and The Age to compact format ahead of the target date of March 2013. I’d like to see this. The fanfare of switching to the new format would provide an excellent opportunity to shin a light on the titles and hopefully drive some over the counter engagement.

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Newspapers

Promoting AWW Puzzle Book 15

We are promoting AWW Puzzle Book 15 next to AWW as well as in our crossword section. But it’s this placement with AWW from where we will sell most copies.  This is because of our space commitment. It’s worth it to get good early sales … I’d say that most purchases are on impulse.

Newsagents should check where they have the puzzle book. Next to AWW is best in my view.

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crosswords

Chasing weekend magazine sales

This past Friday, Saturday and Sunday we have had Better Homes and Gardens and Australian iPhone placed between newspapers.  The BHG placement is easy – we do this every weekend and love the reward of sales from this location. I decided to place Australian iPhone here because of the free iPhone case with the magazine. It’s a freebie ideal to the target shopper.

Now that it’s Monday we will switch the titles here as we see a different shopper through the week. What we place here depends on a mid morning review of the new titles in and their covers.

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magazines

Did Adam Scott win?

The front page of The Age newspaper today has a stuck on ad for Motorpass covering promotion of its coverage of Adam Scott’s tilt at winning the British Open. Taking the sticker off it turns out the headline was a promotion for finding out the results online or on the iPad.

Yeah, I still don’t like these stickers.

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newspaper masthead desecration

Sunday newsagency marketing tip: get serious about being local

Ryman stationery in London offers delivery of ink and toner in selected London boroughs within 90 minutes. That’s pretty cool since businesses ordering ink and toner have probably run out or are just about to run out. This is the next big push of online businesses – same day delivery … giving online shoppers a timing experience almost equal to in-store shopping.

Here’s the tip – if you consider your newsagency to be local and committed to local service, why not offer same day delivery of ink and toner?  I bet if you offered this you could wrest business away from online stores and bigger businesses nearby.

But you would need to promote it widely and regularly: on your car, shop window, flyers … all over town and through personal contact with businesses.

Yes, there would be challenges around your stock holding. Work through this. get to know your customers. Stock to their need.

If being local is a point of difference for you, live it! This is just one example.

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marketing tip

How much time do you spend on staff training?

we newsagents like to think that we provide better customer service than bigger retailers selling the same products we sell. We say that our people have better product knowledge, are more friendly and more helpful than our competitors.

I wonder if this is the case.

When was the last time you provided training to your employees – professional product-based training?  This should be at least monthly and based around key brands you sell. You’ll find some suppliers keen to work with you on this.

Product training for our teams could provide an excellent sales boost.

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Newsagency management

InStyle magazine is hot!

InStyle magazine is hot, selling very well. In fact, we have ordered more sock to ensure we can satisfy our customers. The magazine looks terrific and the free gift of a Biore skincare product makes it even more appealing.

Our sales have been helped by an aisle end display on our busiest aisle end – facing shoppers as they enter.  Until we ran low we featured the magazine in a full face display in the usual location for InStyle.

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magazines

The Guardian editorialises about the future of UK newsagents

The Guardian newspaper in the UK yesterday published an editorial about the future of the local newsagent in the UK.  Here’s the start:

How did you last buy a newspaper? Scanned through the self-checkout at the supermarket? Added to the £20 of unleaded from the local petrol station? Our own circulation research suggests that only about half of readers will have bought Saturday’s Guardian from a newsagent (it’s more Monday to Friday).

Be sure to read the rest.

Newspaper publishers here and in the UK have played a role in newspapers being accessed in all these other outlets. They preferred mass access because they did not think people would seek out their product. In my view, publishers did not trust their own product.

Next, they played with the product, made the purchase be about DVDs, collector cards and the like.

But they are not to blame for the demise of the local newsagent in high street Britain. No, each retailer is responsible. We are accountable for our own situation. We have seen change coming for years and we have talked about it. Too many have wanted others to fix it for them. Some have denied – like the climate change deniers.

Our future is up to us now more than ever before.

Read the editorial in The Guardian.

My Newsagency of the Future sessions earlier this year were about these topics. The new sessions I ran last week expanded on the theme.

We are in the fight of our life. Before us we have wonderful opportunities which could lead to wonderful growth of our businesses.

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Media disruption

New comms platform from Network streamlines newsagent communication

Network Services has streamlined its communications with newsagents and they are keen for feedback from newsagents. The new comms, Network News, takes a fresh approach at sharing information.  Here’s what they have to say about Network News:

Network have been doing a lot of research to try to improve their communications and one of the outcomes is their new Weekly Newsletter “Network News”.

Network News was designed by Newsagents for Newsagents. Over 600 Newsagents and influential industry partners have contributed to refining this promotional communication.

1. The main findings/changes in their research led to the below changes:

  • Reducing the number of emails (consolidating the majority of promotional emails into this single weekly form – reducing promotional emails by more than 40%)
  • Reducing the size of emails (changing formats and restricting image sizes – reducing size by almost 60%)
  • Making communications newsagent relevant (avoiding talking to the end consumer)
  • What is it?
  • Where should it sit?
  • What is special about the issue?
  • How is traffic being driven to newsagents?

Network have also included NETonline helpful hints that may benefit many agents.  Branded “Delayed Billing” products to ensure agents are aware which products aren’t charged straight away. Direct click-thru to more information or required page of NETonline.

What do you think?

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magazine distribution

EMG responds on Action + Adventure

Following a comment on this blog about Action + Adventure from EMG being bagged with other titles from the publisher I contacted EMG for feedback yesterday.  They responded in detail and I publish there response here for all to see and consider:

In the past newsagents commented about EMG using returns for value add. As you know EMG has stopped collecting returns since last year. Every value added magazine which goes with every new title is mint.

In the case of Action + Adventure that magazine is bagged with 4WD Action, 4WD Custom Guide, Camper Trailer Touring, 4WD Camping Guide, Modern Fishing, Modern Boating, Overlander, Saltwater Fishing and Fishing Tips. The print run for that magazine is some 190,000 copies with 20,000 distributed separately. The trial of 3 issues was to determine if there were buyers of just Action + Adventure but who did not wish to purchase any of our regular titles – as that title contains 4WD driving, camping, fishing, boating and trail biking.

In the short time Action + Adventure has been published it has been popular with readers and advertisers. We know many advertisers have achieved a good response as they have increased their advertising expenditure and this would not have happened if buyers were not reading it. I can see Brendan’s point that maybe it should not have been sold separately if it was being given away free. Then again how would we determine whether Action + Adventure has a following in its own right.

The strategy for Performance Garage is very similar and it goes with Street Commodores, Street Fords, Hot 4’s, Fast Fours, Performance Imports, Zoom, Extreme Performance and some motoring specials. Again, it is only a trial for three issues.

Thanks for bringing this to our attention and if you wish to do so you may post all or part of the above.

This is a good response, a direct explanation from the publisher about their strategy. I’m glad they are open to sharing this here and for the opportunity for newsagents to comment.

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magazines

Promoting Bieber and the skater skirt with Dolly magazine

The display created by the team promoting the latest issue of Dolly magazine shows off the free skater skirt bagged with this issue. It also shows off the Justin Bieber feature with the magazine.

By displaying the front of the magazine folded out and there back page we are covering all marketing bases for this issue.

We have this display in-store, near the counter. It can be seen by shoppers team Ticketek. This is important as the target demographic for the magazine buys plenty of concert tickets.

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magazines

Promoting Cleo magazine

I love the display created by the team at one of my newsagencies for promoting the latest issue of Cleo magazine. It connects with the tone of this issue and brings to the fore the free gift which comes with the magazine. I especially like the work they have done to feature the gift.

Click on the image to get the detail of their work.

This display faces shoppers as they need to the magazine aisle.

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magazines

Good Zoo sales

Sales of Zoo magazine have been stronger than usual this week and I put this down to the different look – the different colours in the cover design make it more noticeable – and the news stories and commentary around the cover shot of Olympian Lauryn Mark posing with a gun. I’d be interested to hear if others have experienced an uplift in sales. I hope so. I like people purchasing a title they don’t purchase regularly.

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magazines

Video of Newsagency of the Future

We recorded the Newsagency of the Future START HERE workshop today.  This will be edited to something manageable in size over the next couple of weeks. Once this is done I’ll either load it somewhere people can access it or make copies available for mailing.

The four sessions this past week have enabled me to settle in fresh content and ideas to help newsagents transition their businesses.

Based on the feedback there are some terrific innovators out there – some newsagents embracing serious change.

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newsagency of the future

Is Network Services considering launching a new partwork series in Coles and newsagents?

I’m told that the ACP Magazines subsidiary Network Services is considering launching Cake Decorating, a new partwork title, through Coles and newsagents.

This would break the exclusivity newsagents have had over partworks titles. It would mean the TVC promotes one national brand – Coles – and newsagents.

If my information is right and Network Services does launch Cake Decorating from UK Publisher DiAGOSTINI through newsagents and Coles it would damage the newsagency channel. It would reinforce Coles as a go to retailer for magazines even though Coles would probably not offer the full service put away service offered by newsagents.

Magazine publishers using Network Services and magazine publishers more widely should be concerned by the possible impact of this move.

The only reason I could see Coles wanting to do this would be for the traffic boost from the TVC promotion issue 1. The publisher and their Australian representatives would want the back end subscription business.

Network may say that they have been forced into the move because fewer newsagents are engaging with artworks. I’d want to see evidence of this. Too often suppliers make claims about newsagents and then baulk at proving their claims.

If I am wrong and Cake Decorating will be exclusive to newsagents then I will be thrilled and apologise for shouting off here. If I am write and it will also launch in Coles – shame on you Network and ACP  – your support for the channel you say is important to you is noted.

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magazine distribution

Newsagents can more than double Optus margin

Kudos to Jenlist for landing an Optus recharge margin opportunity for all newsagents.  This deal gives newsagents an opportunity to grow margin from 5% for Optus recharge to 7% and even 10%.

While it sounds like I am promoting this … I am – but not for commercial reasons. I heard about it and thought it’s something all newsagents should know about. Since we see more than 1,000 visitors a day here more newsagents will be aware of the opportunity.

James Simadas, Managing Director of Jenlist, has provided some details:

This is a fabulous offer that took quite some time to get over the line with Optus… the pay-off being it is across all Newsagents as one group.

A great win for the industry!

Newsagents are able to increase their Optus, Boost Mobile and Virgin Mobile Electronic margin from 4% to 7% by simply taking the SIM Stand offer 1, which is absolutely FREE to the newsagent. ($120 retail value)

If they choose offer 2, they will be able to go to 10% margin by simply purchasing the Offer 2 pack ($500 stock) which offers $157 profit for the purchased stock plus the sale of the SIM Pack included. The Offer 2 pack includes  the Offer 1 SIMS stand as well.

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phone recharge

Newsagents – get Your Investment Property in the spotlight

Newsagents need to get the latest issue of Your Investment Property magazine into the spotlight. The cover of this issue is visually stunning, delivering excellent visual cut through in the colourful magazine displays.  It’s also a number issue featuring the top 100 suburbs.

We have it in the best location with property titles. We also have it above newspapers from now to the end of the weekend when we will assess what we do next to promote this issue.

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magazines

Chasing sales of Better Homes and Gardens magazine

We are promoting the latest issue of Better Homes and Gardens magazine with a column display facing shoppers as they enter the business. The display is not cluttered not is there much nearby competing for eyeballs.

This display is in addition to prominent placement in the usual location for the title and an over the weekend placement between our two top selling newspapers.

This promotional activity is usual for us in the first and second week of the on sale. Usual because it works a treat … driving excellent results.

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magazines

Slim increase in book sales in the US

BookStats has reported a half a percent increase in book sales in the US last year while e-books sales increased almost three fold in the same period. PaidContent has more on this.

Book sales in Australia are still resettling following the collapse of Red Group – Borders and Angus and Robertson.  In the newsagency space, the remainder book market is challenged as the latest benchmark study shows.

Newsagents who want to be in books need to do it through a significant point of difference.

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Book retailing

All eyes on magazines in the wake of newspaper changes

Magazine distributors and newsagents supplying sub agents with magazines are assessing the potential impact to their distribution model as a result of the newspaper distribution changes being introduced on the Eastern Seaboard.

The changes being driven by News and to be followed by Fairfax will see the number of distribution newsagents fall considerably.   The new ‘super territories’ may not be an appropriate model for magazines.

The best newsagent / subagent relationships for magazines are those involving high engagement between the businesses, sometimes more than once a day.  The labour cost of managing this from a distribution warehouse compared to a more local and close distribution newsagent situation, as is the case today, could be a challenge.

I’d expect magazine distributions and newsagents to be thinking carefully about how they handle subagent arrangements in a new model. I suspect distributors will want fewer direct accounts rather than more.

Do they maintain current sub agent arrangements? Would a newsagent who is no longer handling the distribution of newspapers want to do this?

What happens with magazine distribution in areas currently managed by a newsagent in the future is just one of several knock-on effects of the newspaper changes yet to be considered to a conclusion by the various stakeholders.

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magazine distribution

Here’s what I love about Beanie Kids

Beanie Kids works a treat with collectors. The range also works well for people looking for a gift. Both good things to like about the range. But what I really love is the unexpected sales, the bonus sales. Like the customer who wants an Australiana item. There it is … in the Beanie Kids range.

Products which serve multiple purchase purposes are treasured in retail, especially if they can add to an existing basket and therefore drive shopper efficiency.

Smart newsagents with Beanie Kids know the range so they can say yes more often to shopper queries.

This is not a paid ad. It’s an unrequested endorsement from a happy retailer.

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Gifts

Promoting Men’s Health and Women’s Health

We are promoting both Men’s Health and Women’s Health with our newspapers at one of my newsagencies with this simple display.

Sometimes all you need to do is get a product in front of people for it to be purchased on impulse. That’s the objective of this display.

We could have gone with something leveraging excellent VM skills. The display may have got in the way of the practical (and successful) placement.

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magazines