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

Growing awesome newsagencies and awesome newsagents

Is that possible? Can we grow an awesome newsagency? I wonder some times with people being so quick to talk newsagency businesses down – Jeff Kennett, Bill Shorten … even those representing newsagents. Everyone says how tough retail is and how tough some of the issues facing newsagents are. And they leave it at that.

I say it’s tough sometimes. But retail has always been tough.

In the middle of the changes and challenges lies opportunity, opportunity which allows us to become awesome. It’s a pity that those who say it’s tough don’t offer something in response to their observation.

Yes, I really do mean awesome.  I am so lucky that I get to talk to some awesome newsagents every day. On Monday, for example, I was talking with a newsagent who has had a corker of a trading quarter, banking the results of 10% sales growth over the same quarter last year. He did it through hard work and backing his judgement.

Last week I spoke to a regional newsagent who has created an exclusive service which makes their newsagency the place people will travel an hour ow two to visit.

Just yesterday I was standing in front of a tired run down newsagency which was crying out for an awesome make-over. Without spending any money and investing just a few days and retraining team members this business could be on the way to being awesome.

I reckon too many newsagents get lost in our past of being a servant to a few suppliers who themselves are still locked in the past in some areas of their businesses.  The newsagents doing great are those walking to the beat of their own drum, newsagents who are taking a good look around and choosing this path which they want for their business.  While some newsagents and suppliers talk us down and shake their heads worrying about tough times, these awesome newsagents are craning to look beyond the horizon because that’s where they want to be – ahead of the curve. It’s where there is fun, excitement and profit.

Yes, I bang on about suppliers who frustrate me and some of the bad stuff which happens to newsagents. But I also write plenty about the success of playing with the model, experimenting with new product categories and pursuing change.  There are suppliers who are doing good things with and for newsagents. Some long-term suppliers and some new suppliers.

What irks me is those in the channel who talk it down, going on about tough conditions. For some it’s like they have to do this to match their own achievements. I care less about these people.

I want to see more awesome newsagents and more awesome newsagency businesses out there. More success stories. Now networking about positive things happening in our businesses. Success breeds success, no doubt about that. We have to talk more about this. And if we aren’t enjoying success, we need to make the tough decisions to move which is in the way of us enjoying success.

Our biggest asset is our independence. Our biggest liability is our independence.

We need more awesome newsagents and awesome newsagencies, these businesses are our future. Making them ought to be mission critical.

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Newsagency opportunities

Magazines I don’t see (part 2)

Check out the magazine I saw in Sarina (just out of Mackay in Queensland) last weekend. It’s not so much the title but the cover story.

Hunting in Iran? It’s the cover story so must sell magazines, I guess.

I feel really out of touch.

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magazines

Happy Mother’s Day prizewinners

The winner of the Breville food processor we gave away as part of our Mother’s Day promotion collected the prize on the weekend and was happy to pose for a photo.  It’s terrific when customers collect a prize and are so thrilled to have won. We love to see their happiness and to see another campaign have come to a successful conclusion – for the winner, our partner supplier – Hallmark and for us in terms of sales growth.

Competitions where one of your customers wins works a treat as it connects us locally with the prize. While this is not possible with a massive prize, it works with this type of prize.

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Newsagency management

Promoting MasterChef magazine

The giveaway with the latest issue of MasterChef magazine is stunning, it’s the $14.95 Junior MasterChef cookbook from last year bagged with the magazine. Like most newsagents we are promoting the deal in good locations with food titles as well as a second location – newspapers or the counter.

While my views of bagged magazines have softened over the last year, I remain unconvinced in the food space. Browsers like to see the dishes to determine if they would like to make these. This is why we sometimes open a copy for browsers.

The free gift with this issue of MasterChef is one many MasterChef fans would have.

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magazines

Getting in early with the stocktake

We completed a stocktake yesterday in one of my newsagencies. This is the second store we have done this for in a few weeks.  By doing this we eliminate the need for a stocktaker to come in at the end of the financial year.

We do our own stocktake every couple of years, relying on accurate supply, return and sales data in the meantime.  The Tax Office accepts the data and we save money.

The data result is terrific getting a handle on shopper theft, space allocation performance and other metrics accurate stock data facilitates.

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Newsagency management

Magazine publisher tells readers to ignore newsagents

Check out the full page ad which appears in the current issue of The Groundsman magazine. Click on the image for a larger version. The publisher is clear with their message – stop buying The Groundsman magazine from your local newsagent. This is a disappointing message form a publisher who relies on the goodwill of newsagents to carry and promote the title.  Indeed, it’s beyond disappointing, it is disrespectful.

I accept that publishers need subscriptions in their supply model and that they need to promote subscriptions in their magazines.  However, publishers need to respect their retail partners.

I would’t be surprised in newsagents acted to stop carrying The Groundsman abased on reactions in the past to similar disrespect from publishers when promoting subscriptions.

All the publisher needs to do to make their subscriptions ad reasonable is to change the first two lines.

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magazine subscriptions

Newsagents to feature in A Companion to the Australian Media

I was approached last year to write about newsagents for A Companion to the Australian Media being curated by Professor Bridget Griffen-Foley Director, Centre for Media History, Faculty of Arts, Macquarie University. It is to be published in 2013. I am thrilled that newsagents are to be represented in this word tome ands to have been invited as one of 200 or so contributors.

My submission has been lodged . I have tried to represent the history, challenges, opportunities and unique qualities of the Australian newsagent.

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Newsagency management

New magazine opportunity for newsagents

Newsagents have until Friday to order SHAFT magazine, a new title from Morrison Media, the people behind Frankie and Smith Journal. the title targets men and women working in or connected with mining aged 18 – 40.

Allocations have been done to newsagencies serving mining communities and businesses.  If you want to order the new title, contact Gotch and quote the code 12661. I mention here today as newsagents may want to carry SHAFT but may not have been allocated stock. You have until Friday this week to order the title.

Here’s how Morrison describes their distribution:

DISTRIBUTION STRATEGY: Our distribution strategy focuses on servicing regions that have consistent mining interest and are frequented by the Fly-in Fly-Out (FIFO) mining segment. This ensures targeted and relevant supply, a reduction in oversupplying your outlet and high sales efficiencies. There will be a strong focus throughout Western Australia and Queensland to capitalise on the influx of mining activity within these states to capture the burgeoning mining market. SHAFT magazine will be distributed by Gordon and Gotch, and published by Morrison Media (Surfing Life, Freerider MX, Riptide Bodyboarding, Slam Skateboarding, White Horses, Frankie Magazine and Smith Journal).

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magazines

Smart collateral from ACP for Slow Cooker 2

I like the flag style collateral from ACP for promoting the new Slow Cooker 2 cookbook. It’s different and enables newsagents to use it in a variety of clever ways to promote what should be a top-selling title.

Since newsagents have the title a month or so before any other retailer I’d suggest newsagents make sure they are leveraging the opportunity with the collateral.

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marketing

The Australian Financial Review launches iPad App

The new iPad App for The Australian Financial Review launches today with a wraparound for the newspaper.  I don’t mind the wrap around as it presents the page one story of the day as it appears in the iPad edition today. Very smart.

I know some newsagents are upset that Fairfax is promoting the iPad App using the print product. I understand the frustration. The thing is – how else could / should they promote the new platform? It makes sense even though it is an invitation to migrate from print.

The pricing is appealing for people to get the print and digital editions so newsagents should be happy to see this.

I have been sent a promotional video for the AFR iPad App.

We need to understand that the digital platform will not go away. Consumers have embraced it and publishers need to get there if they are to have a future. The end game for some newspapers will be a complete migration. Given the penetration of iPads in Australia, I’d expect the AFR to be a strong candidate for complete migration from print to digital at some stage. That’s certainly a goal I would have if I were Fairfax.

It is difficult for newsagents to deal with long-term suppliers apparently turning their backs on our channel. The reality is that such moves should not come as a surprise. We can complain or we can embrace the changes we see. Some newsagents are doing this in their businesses with wonderful success.

What we have seen happen with the AFR today is exactly the same News in doing with The Australian and the Herald Sun. Newspaper publishers are doing what they need to do. We should do the same.

DISCLOSURE

On Monday night I received an email from Fairfax about the iPad App.  It started off:

Dear Mark,

The Financial Review app for iPad® is now available from the Apple app store. Click here to install your copy now.

We’re keen watchers of the digital space, and are familiar with your work on newsagencyblog.com.au. Our new app for iPad has an array of features developed for a wide market – but certainly, it will provide a valuable tool for small business owners looking for the edge needed in the current, often tricky, economic climate.

So, when choosing 20 bloggers who we think are leaders in the blogosphere for subject matters and audiences relevant to the launch of this revolutionary app, we thought of you. We’re pleased to provide you with a 12 month complimentary digital subscription featuring complete access to afr.com and the new Financial Review app for iPad (valued at $680), and a giveaway of two 12 month digital subscriptions for your valued readers (valued at $1,360).

I was not a subscriber to the App and will certainly engage with it and get first-hand experience.

The email also offered a couple of subscriptions to give away:

To give your readers the chance to win their own digital subscription for the app, please see the attached file, “FINANCIAL REVIEW APP for iPad – EXCLUSIVE GIVEAWAY.pdf”. This has all the steps you need to know in order to run the competition from your website and social media pages.

I am not sure about running the competition here to give away two digital subscriptions. I’d appreciate feedback on this.

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Media disruption

A merged Saturday and Sunday SMH newspaper?

In Queensland on the weekend I saw an undated weekend edition of The Sydney Morning Herald newspaper and wondered if this is a move Fairfax would make in Sydney.

There are newspaper publishers in the US who have switched from daily editions seven days a week to publishing less days. That said, it would be odd for the SMH to merge their two top-selling days.

SMH Saturday sales are down 13.8% to 293,324 and the Sun-Herald sales are down 10.8% to 383,607.

With newspaper sales falling it’s only a matter of time before we see movement away from the traditional publishing schedule here in Australia. If they can cut costs without cutting as much revenue than it will be appealing.

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Media disruption

Last week of the WIN A CAR promotion

In this last week of the WIN A CAR promotion being run by Pacific Magazines the team at one of my newsagencies has gone all out with this terrific behind the counter promotion. It’s visually striking and singular in its message. It promotes some of the titles connected with the promotion without getting in the way of the promotion of the prize.

Click on the image for a bigger version.

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magazines

Promoting Famous magazine at the counter

Following my blog post on the weekend we are promoting the latest issue of Famous magazine at the sales counter with this simple display facing all shoppers. Our goal is to pick up incremental purchases and to reinforce to those not purchasing this week the title that we do carry it. We are planning a series of single title promotions at the counter.

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magazines

When a newsagent underpays employees

An employee of a newsagent called me last week to ask about the $15 cash in hand they receive from their newsagent boss for their Sunday shift. They knew they were being underpaid and wanted to strike out at the newsagent. I told them to go to the authorities.

Besides underpaying this employee, and reportedly others, the newsagent was skipping on workers compensation, superannuation, possibly payroll tax and not maintaining accurate accounting records for when the business is sold.

While I am not thrilled to be paying an adult employee in my newsagency around $40 an hour for Sunday, it’s the law.

Newsagents not paying the award deserve what they get.

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Ethics

Promoting royal-themed Mindfood

We are promoting the royal-themed issue of Mindfood magazine with good placement with our women’s and British magazines. I love the cover, the colours and the regal look. We’re hoping that this will help the title will sell well from what is for us not the usual location for the magazine.

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magazines

Promoting Men’s Health magazine

We are promoting the latest issue of Men’s Health magazine with this column-based display facing shoppers as they leave our men’s magazine aisle and our newspaper location.

While we have the title well represented with sports and fitness titles, we wanted to get it into the front half of the newsagency to grab impulse purchases fro the front action of the shop and leave.

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Uncategorized

Promoting Women’s Health magazine

We have been promoting the latest issue of Women’s Health magazine with this column-based display created by our talented team in front of our main sales counter facing shoppers as they leave our women’s magazine aisle.

This is the second location promoting Women’s Health. We set it up leading into the weekend – a good time for us for sales of the title. It always responds well to this type of additional promotion at the front of the newsagency.

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magazines

Sunday management tip for newsagents: I dare you to use your computer system

Seriously. I dare newsagents to use their computer system, to the full.

I bet there is information you are not accessing today in your computer system that can help you make more money.

Newsagents spend good money on their computer systems and often only use them as glorified cash registers. If this is you, what a waste!

Do you buy a car with air conditioning and not use it?  No.

Do you buy a house with lights and not turn them on? No.

Do you buy and iPhone and only use it as a phone? No.

Your newsagency computer system, regardless of the system you have, can most likely probably give you information you do not currently know about your business … information which could save time, guide business decisions or increase sales.

I see this happen often.

It is a tragedy when newsagents do not use their system.

So here is the challenge: either look yourself for information you do not know or ask your software provider.

At Tower Systems we provide a free Business Health Check service.  We grab data from a newsagency and run a series of reports and come back to the newsagency with what we have found out.  The response is usually a checklist of steps the newsagent can take to improve the business and usually make more money.

Here is some of the most valuable information newsagents can get from their newsagency software:

  1. A list of items not sold in the last, say, six months.
  2. A comparison of supplier performance in a common department.
  3. Details of what sells with what – and therefore what is not selling efficiently.
  4. Magazine performance to international reporting standards.
  5. Greeting card performance to international reporting standards.
  6. A list of stock stolen.
  7. A list of possible employee theft incidents.
  8. Sales by employee.
  9. Sales by hour.
  10. Sales basket depth compared between trading periods.
  11. Stock turn by department, category and item.
  12. Orders by supplier.

I could go on.

Computer systems can help newsagencies more than many newsagents permit. Imagine how strong this channel could be if every newsagent used the system they has to its fullest potential. Wow! Amazing!

I’ll happy look at reports from any newsagency. All I ask in return inconsideration of the advice.

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Newsagency management

Buffet investment in newspapers surprises some

News came out yesterday that Warren Buffett’s Berkshire Hathaway had purchased the business of 63 newspapers from Media General.  Plenty of analysts and commentators are perplexed by the move. Some say it proves newspapers have a future while some say the move makes no sense.

Buffett’s explanation quotes in Forbes was simple:

“In towns and cities where there is a strong sense of community, there is no more important institution than the local paper,” Buffett said in a statement yesterday. “The many locales served by the newspapers we are acquiring fall firmly in this mold and we are delighted they have found a permanent home with Berkshire Hathaway.”

Niche smaller market newspapers certainly have a healthy medium term, maybe longer, future. Look at foreign language newspapers in Australia. Sales continue to grow. I don’t have numbers for regional, rural and local papers. I suspect that independently owned titles with a genuine local community focus and connection are doing well.

What can we take from the Buffett move about the future of capital city dailies? Nothing I suspect. However, I do see it as a reminder that we should pursue niche newspaper titles since no other retailer competing with you is likely to do this.

This is the opportunity from the Buffett announcement. To ensure that Australian newsagencies are the go to locations for a diverse selection of newspapers.

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Media disruption

Newsagents should sell more copies of Famous magazine

I was talking to a couple of supermarket people recently and realised that newsagents could make some moves which should help drive sales of Famous magazine. They were saying that it performs very well for them as a impulse title.  This could be because of the $3.95 price point. It could also be because of the cover and content.

Newsagents should be able to sell more copies of Famous.  Here are my suggestions which we could try this week to see what we can achieve:

  • Promote Famous at the counter at your busiest traffic positions – even if this is a lottery counter. Clear space around the title so it is the hero product at the counter.
  • Place Famous next to or even between Woman’s Day and New Idea in your women’s weeklies section.
  • If you have a flat stack in your women’s weeklies section, make space for Famous there too so people who buy off the flat see the title.

Check sales after a week and see if you have achieved a lift. You could make one of these moves, if they are new, each week and check the results.  Based on sales in other channels newsagents ought to be able to achieve sales growth for the title. All it could take is some active engagement.

Why care? I care when I see a competitor retail channel doing better than newsagents with a magazine title. Whether we like it or not we are in a war with supermarkets, convenience stores and petrol outlets for magazine sales. We need to fight for market share of every title. Tactics will vary title by title. If we do nothing, our competitors will grab more sales from us.

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magazines

Poor quality stock from Network Services

The bagged copies of Jamie magazine we received on Friday were unmerchantable in our view. On full view from the front of the pack was an old copy of Jamie magazine with the old price label on it. This would confuse shoppers.  Some of the labels were of a poor quality and they detract from the professionalism of the product.  We made the decision to early return all stock. These products should not have got through QA at Network.

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magazines

One Direction still delivering traffic and sales

It is now almost seven weeks since the first One Direction one shot appeared on our shelves and sales relating to the boy band continue to be good enough to warrant prime position for One Direction products we have.

We have become known as the One Direction go to retailer in our region. This has been helped by our promotion that we will have the 2013 One Direction calendar in-store a month ahead of any other retailer nearby.

Right now while we have three one-shot titles in store it’s the Girlfriend One Direction Aussie Tour one-shot that is selling well. I put this down to excellent social media coverage by Pacific and by fans.

The new traffic being generated by One Direction interest is playing out across the business with parents who accompany their kids looking at other products we sell and the kids themselves occasionally purchasing other items.

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magazines

Tasty Delicious magazine

I look forward to the Lindt issue of Delicious magazine, when they bag the magazine with a block of Lindt chocolate. My only frustration is when it sells out a day or two after the on sale and we can’t get more stock. It’s happened with the latest issue.  We could have sold four times usual supply if there was stock. We’d promote it at the counter where it would work a treat.

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magazines

Jeff Kennett says newsagents are struggling. Huh?

Former Victorian Premier Jeff Kennett yesterday said on radio 3AW Neil Mitchell’s top rating program yesterday that newsagents are struggling in the face of media consumption moving from print to digital.

I didn’t hear the comment but it’s been confirmed that he said we are struggling. Hmm.  here are my questions for Jeff:

  1. What’s the factual basis for the comment?
  2. How many newsagencies have you been into in the last six months?
  3. Have you seen their financial records?
  4. How many newsagents have you spoken to?
  5. Why did you say this?
  6. When you have faced tough personal challenges how did you feel about people talking about you without the facts and without coming to you? How did it impact your mental health?

There is no doubt that we are seeing people shift their news andy information consumption from print to digital. This has been happening for years.

While some newsagents are standing still while the tsunami of change rolls in around and even over them, many newsagents are not.  Indeed, many newsagents saw the tsunami way off the coast and started changing their businesses for a new era.

We are in the middle of the most significant shifting what a Australian newsagency is. We don’t need Jeff Kennett tell us or make ill-considered and ignorant comments about this.

Jeff Kennett’s comments remind me of Bill Shorten’s equally puzzling and ignorant comment on Q&A in February which he has not has the guts to deal with since.

I’d like to meet Jeff Kennett and discuss his thoughts about newsagents and share with him some financial results which will challenge his perception.

The Australian newsagency is vital to country towns and city shopping strips. We provide a mix of products and services which are important to the community. We are price competitive and service competitive. We are not protected in any way. We are locally owned businesses serving local families, meeting local needs and helping local communities.

An important difference between small business newsagents and big retailers is that we don’t have their marketing budget, we rely on word of mouth. Thanks Jeff Kennett.

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Newsagency challenges
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