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

News gives Vic. newsagents a small newspaper home delivery increase

News Limited has given Victorian newsagents a welcome yet paltry increase in newspaper home delivery fees. Newsagents continue to be paid less in real terms today than they were paid ten years ago. But News does’t care.

I am confident that there are some in News who are ashamed at the increase.

The company also disrespected those who help newsagents by announcing the fee increase on July 2 for an increase which took effect from the same day. There was a time when the company would have respected service providers like software companies and provided a week or two of notice so that appropriate advice could be repaired in advance.

See my comments about the small increase for NSW newsagents last week. The comments apply here too.

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Newsagency management

New newsagency sales benchmark study under way

Newsagents have been invited to submit April – June sales data to me for inclusion in the latest newsagency sales benchmark study.  In just 24 hours I have received data from more than 50 newsagencies.  By early next week I hope to have data from three times this many.

I will publish the results here for all to see.  The results will give newsagents a set of numbers with which to compare their own businesses. That said, our best competitor is our own business from the same period a year earlier.

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Newsagency management

Who out early with TomKat special

Who magazine is out tomorrow, three days early on the Eastern Seaboard, with special coverage on the impending divorce form a range of perspectives:

WHO delivers a 15-page special report into the sudden divorce between Hollywood power couple Katie Holmes and Tom Cruise, revealing how the actress secretly plotted her escape after tiring of her superstar husband’s controlling ways and amid growing fears for the future of their daughter, Suri.

We will be promoting this issue in prime position.

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magazines

Book now for Newsagency of the future: START HERE

I am hosting NEWSAGENCY OF THE FUTURE: START HERE, a completely new workshop for newsagents only (no suppliers) with new content specifically targeting options for newsagents who want to restructure their businesses for the future (and today).

The workshop will run for two hours with plenty of Q&A time. It will cover specific traffic generating and basket building ideas for newsagents in shopping centre, high street and rural situations. I’ll look at strategy and tactics.

The dates so far are:

  • Sydney – July 17 @10am venue TBA
  • Brisbane – July 18 @10am venue TBA
  • Adelaide – July 19 @10am venue TBA
  • Melbourne – July 20 @10am venue TBA

Book online by clicking here.

Our future is up to us. No supplier is going to deliver a future for us. We have to back ourselves, in our own businesses. This starts with us being aware of an accountable for our situation.

This is not a sales session. All newsagents are welcome. Attendance is free. One of the workshops will be video taped and an edited version made available for download.

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newsagency of the future

48% of Australians not that concerned about the fate of newspapers

Essential Research yesterday published results of recent research into what Australians think, among other things, about journalism and the challenges facing newspapers. On the question of concern about newspapers closing…

48% were very or somewhat concerned about the possibility of most daily newspapers closing in the next few years and 48% were only a little or not at all concerned. 78% of those who read daily were very/somewhat concerned – and 52% were very concerned.

Those most concerned were women (53% very/somewhat), aged 55+ (59%) and Victorians (59%).

I encourage newsagents to read the Essential report. I am surprised at the weak support in the community for journalism and newspapers. I am also surprised at the low engagement with news websites.

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Newspapers

Promoting new gifts behind the counter

We are promoting the new range of gifts we have sourced with which to expand our gift range behind the sales counter with the display shown in the photo. The visual theme has been carried through the store – connecting a series of displays with the same look so that shoppers know that what they are seeing is all connected.

The behind the counter display is designed to draw attention to the fact that there is new stock, a considerable range of new stock.

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Gifts

Ink campaign generates new traffic

We have ended our latest ink campaign that saw us send flyers promoting great brand-name ink deals to 15,000 homes around one of my newsagencies. As happens every time we run an ink campaign, we find new shoppers coming in discovering our ink deals and purchasing other items in the visit.

Ink is the perfect product with which to combat the consumer misconception that newsagencies are expensive.  By targeting well-known products from well-known brands we are able to show that we are competitive. Getting shoppers to believe this for ink is a good step to them believing it form other products we sell.

This ink campaign kicked off our autumn / winter promotions which will see us through to Father’s Day.

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Stationery

Terrific promotion of Harper’s Bazaar

I love the display created by the team of one of my newsagencies to promote the latest issue of Harper’s Bazaar.

The display is situated on a column at the front of the newsagency, facing into the shopping mall. It’s being used to attract shoppers to the business.

The design of the display reflects a quality of the title … if that makes sense. I like the way posters have been used to effectively underline, and thereby highlight, the title.

People ask why we do displays like this. The question surprises me. They are a vital part of keeping the business fresh and relevant.

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magazines

Woman’s Day Tom / Katie special issue out Wednesday

ACP has announced that a special issue of Woman’s Day will be out Wednesday this week for newsagents on the Eastern Seaboard excluding Far North Queensland. This issue will have eight pages of pictures and editorial covering the divorce proceedings plus a new cover. It will have the same barcode as the current issue.

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magazines

Tax break could help newsagents

From yesterday, the small business instant asset write-off threshold increased to $6,500 from $1,000. This means that assets you purchase for your business up to $6,500 can be written off this financial year. This could help with small shop fit changes, new signage, new newsagency computer system and other capital investments in your business. There is also a change to depreciation for motor vehicles which may benefit newsagents changing vehicles.

Here is an example direct from the ATO website:

During the 2012-13 income year, Kylie’s Flowers buys a new refrigeration unit for $3,000. As the refrigeration unit is a depreciating asset and costs less than $6,500, the business can claim an immediate $3,000 deduction for the 2012-13 income year.

These depreciation initiatives specifically for small businesses have not received the coverage they should have given the mass coverage on the carbon tax. Some media outlets are very selective in what they report.

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Newsagency management

Comparing suppliers helps newsagents focus management attention

As part of our end of month assessment of business performance we compare the performance of suppliers in certain departments. This works particularly well in gifts, magazines and cards if you have multiple suppliers in these departments. Pitting suppliers of like products can be instructive about the business as well as about supplier performance. It can bette inform business decisions.

My focus yesterday was to look at the difference in performance in the women’s weeklies segment of magazines given that this accounts for 21% of our magazine sales. The difference between the two distributors is considerable – well into double digits – one up and one down. It’s a significant result, a result which will drive two actions from us – researching why the 14% YOY decline for one and doing more of the same for the titles driving growth. What is odd is that titles from both distributors receive equal treatment.

When it comes to magazines we need growth across the whole department and not just one publisher or one distributor. Balanced growth it vital to our future.

I’d encourage newsagents to see if their software offers supplier comparison across trading periods. Check it out … you could be surprised with the results.

NOTE: In most newsagencies women’s weeklies: Woman’s Day, New Idea, That’s Life, Take 5, Famous, NW, Who and OK! account for more than 30% of sales. We are at 21% because of our focus on special interest and other areas of our magazine department. My view is that special interest and other shoppers will be more loyal than shippers purchasing weeklies.

I have only included a blurred report as the data for my store is not what this post is about.

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magazines

Promoting health related titles to women

We have three high-profile health titles next to each other in prime positioning in our women’s health section – all working well!

Weight Watchers, Women’s Health and Runners World are all selling well. The have had to order extra stock of the latter two.

Women’s Health is a strong title for us. This issue is doing especially well thanks to the wonderful gifts which come with the title.

Weight Watchers magazine does well here as well as placement with weekly magazines.

Runners World may seem like an odd title in this mix. Well, we placed it here because of the half marathon feature and it’s half marathon time here in Melbourne. We sold out of our initial allocation and thankfully received this much again – we will sell out of that too. We also figured some man candy in the women’s section might attract attention.

We think carefully about title adjacencies, always trying to build a story and to drive shoppers to purchase more than one title.

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magazines

Promoting the refreshed Burke’s Backyard

We are promoting the refreshed Burke’s Backyard magazine at the entrance to our main magazine aisle. The new look for the magazine is an excellent opportunity to bring the title out into the spotlight and this is what we are doing.

Here is some information about the new look from the publisher to help newsagents understand the opportunity of the new look Burke’s Backyard:

The popular lifestyle/gardening magazine Burke’s Backyard has had a makeover.

New Managing Editor Chris Burke and the publication’s design team are responsible for the revamp which spans editorial content and appearance.

From the July 2012 issue, home renovation and style content has been boosted, addressing both indoors and outdoors.

“We are focussing on the latest garden and home fashions with much more to offer young people who have become increasingly aware of the need to ensure maximum value is added to a home when any improvements or renovations are done,” says Don Burke, editor-in-chief.

The changes not only bring a breath of fresh air but take the magazine back in line with the original, award-winning TV show, encompassing the essence of the Australian lifestyle and giving sound, credible advice.

“The mag was overdue for a makeover. It’s now more modern, more stylish and more fun to read,” continued Don.  “As a result, it now features modern renovating to increase the value of both the home and garden for readers.”

Cherie Barber, the Renovating for Profit expert, is now writing for Burke’s Backyard magazine.

Landscape designer Jim Fogarty, who has recently won world-wide garden design competitions, has expanded his contributions to include a more comprehensive look at what can be done with all shapes and sizes of back and front yards.

Dr Chris Brown continues to write in the now expanded pet section, which remains the largest pet editorial offering of any lifestyle magazine.

In case newsagents missed it, the latest issue of Burke’s Backyard provided first look at the gardens for The Block.

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magazines

Sunday marketing tip for retail newsagents: host events

One of the things I notices in the US last week was that independent retailers hosted plenty of events in-store – often one a month, sometimes more. These events ranged from small product launches (drinks after close) through to full on training events – like learning a hobby form a master … a bobby related to the business.

So, my question for retail newsagents is what events could you run in your shop to drive traffic?

The keys to me seem to be:

  1. Create an in-store events calendar and stick to it.
  2. Promote your events calendar in-store and externally.
  3. Make the events genuinely appealing and valuable.
  4. Fill a need.
  5. Don’t go too big – the event needs to match your business scale and focus.
  6. Show off your point of difference, your USP.
  7. Have fun.
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marketing tip

Anti bacterial cleaner for the OCD consumer

Here is another of the funky products we have got in store for the holidays and beyond as an extension to our gift range.

This is Anti Bacterial Hand Sanitiser for people with OCD. Well, not really … this is a fun product and one of a series of Anti Bacterial Hand Sanitiser products we have brought in as part of a range with which to tell a visual merchandising story.

Early sales of the new products are good. Customers are laughing.

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Gifts

Rupert Murdoch clear on the future of newspapers – it’s digital

As more reports are published about the changes planned for News Corp. we are getting to see more quotes from News CEO Rupert Murdoch including this published by The New York Times Friday US time:

When asked by analysts about his papers’ future, Mr. Murdoch replied: “The answer is one word: digital.” He said the new company would double down on its digital efforts and that news was “the most valuable commodity in the world” even if “people are buying fewer papers printed on crushed wood.”

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Media disruption

Shocking customer service hurts all newsagents

I received a call yesterday from a newsagency shopper in regional Victoria wanting to complain about service from their local newsagent. The shopper called me thinking I was someone else connected with the brand the business trades under. I have no connection with the business at all.  But the customer and I talked.

The newsagents, a husband and wife team, provide poor customer service according to the caller – swearing at customers, refusing to hold a newspaper for collection later in the day and opening at different times in the day.

My caller, a long term newsagency shopper in their eighties, wanted to know what could be done. I explained that this was a locally owned independent business. Don’t you care about how they make you look I was asked. Of course I said. So call them and tell them to improve their service. I though this was a fair enough response but declined. It’s not my place to call a newsagent I have never spoken with and have no connection with to ask them to lift their game.

I gave the called the details of the people behind the brand so they could at least get the service complaint to someone commercially connected with the business.

Talking with the caller some more it turns out that they want the problems fixed so they don’t have to our newspapers, magazines and cards from the local supermarket – one of the big two. I was please to hear this yet sad to hear of such poor service from a newsagent.

While I appreciate that there are often two sides to a story, my caller sounded genuine.

We all in this channel have an obligation to each other.

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Customer Service

Preparing for some fun this school holidays

Yesterday, just in time for the start of the winter school holidays, we received boxes of new stock … funky toys and novelty items, like these dog grenades.  They are soft and chewy for dogs … they squeak when chewed.

We deliberately sought out a range of fun products, different to the type of products shoppers see in a newsagency, products we can make a statement with and which should sell through school holidays and transition us nicely to Father’s Day.

A couple of us selected the items carefully, chasing a specific look for the business, chasing easy impulse purchases – especially from weekend shoppers, the most lucrative shoppers we see in our centre.

It has been fun looking over the new stock items and trying some out – we have some seriously funky items.

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Fun

Tour de France magazine sells out again

We are loving the sales we are achieving with the Official Guide to the Tour de France 2012.  It is selling exceptionally well, especially from high traffic front of store locations. I like that we have been able to get extra stock to help us see this title reach its full potential.

In each of my stores we have the magazine either at the counter or at the front of the business facing into the shopping mall. Yes, we have stock with sports titles but it’s at the front where this title really works.

It’s terrific seeing people come in for a card, some other magazine or a newspaper and add this guide to their basket – nice margin dollars.

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magazines

Promoting The Australian Women’s Weekly

We are promoting the latest issue of The Australian Women’s Weekly with this column placement adjacent to the counter – seen by every shopper in-store. We also have a pocket with the title placed with newspapers as well as placement in the usual location for AWW.

In our newsagency activity in the first week of the on-sale is crucial for AWW sales to our success so we go out hard and then pull back after the first week. So far, so good.

We will place copies next to knitting titles in the second week – to tap into the opportunity of the free knitting book which comes with this issue of The Australian Women’s Weekly.

 

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magazines

Australia in a odd position in News Corp changes

The logic for splitting entertainment from publishing in News Corp. into two corporate entities does not apply to Australia given their decision to house entertainment and publishing in Australia in the publishing entity.

This is an odd decision (if we are to believe the state logic of the moves internationally) which needs explanation for it to make sense.

While News CEO Rupert Murdoch robustly defended newspapers in the statement made in the US overnight, his communication with News employees spoke to the commitment to publishing on digital platforms:

Today there are 30 million tablets in use in the U.S. and 75 million worldwide. In five years’ time, there will be at least 75 million tablets in the U.S. and 375 million in the world. Smartphones will get far smarter and grow rapidly over the next five years, from 120 million active phones to 225 million in the U.S., and from 835 million to 1.7 billion in the world. These technologies will permeate all parts of life — including education — and it is my firm belief that these two companies will be best positioned to compete in this rapidly evolving global economy and distribute our premium content on these platforms.

There is no doubt that with the splitting of News, the restructuring of News in Australia and the restructuring of fairfax in Australia that we are only seeing the be inning of changes to what has been a core category of our businesses. These are exciting times, change delivers to us opportunities. While I’ll watch the News and Fairfax changes, I am more excited by other changes in my newsagency businesses.

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Media disruption

At what point does a magazine publisher damage their brand with subscription discounts?

delicious magazine is the latest magazine title to be promoted nationally using the livingsocial deals service. The price offered, $32 for a year of issues mailed, is 50.7% lower than the retail cover price.

While I will defend the right of any magazine publisher to offer and promote subscriptions as part of their marketing and supply mix, promoting such a steep discount and in a mass market way can only harm sales through the retail channel.

Maybe I am missing something.  Maybe the people behind this title inside News Limited have a plan which will result in more subscriptions for them and no impact on sales in newsagencies and other retail outlets. Ah, if only this were so.

Magazine publishers need to work harder at engaging with newsagents to drive incremental business. By engaging I mean being creative to today’s marketplace.  There are titles delivering growth by doing this. yes, it’s hard work and sometimes it does not pay off. But when it does you can bank on better margin dollars than a drop-your-pants subscription offer.

I am not going to retaliate against delicious. There is no point. If the actions of the publisher result in fewer retail sales this will ultimately hurt them.

Steep discounting at places such as livingsocial damage a brand in my view. They show the lengths a supplier will go to in order to shift stock. It says to me that the product manufacturer does not think the ticket price for an item is justified. Maybe my view is too narrow.  Time will tell how it plays out for companies using this type of service.

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magazine subscriptions