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

Time to overhaul penalty rates

Penalty rates were introduced in Australia back when the weekend was, well, a weekend, when the majority of the population did work Monday to Friday.  Now, with so many businesses open seven days a week, it is time to look at the penalty rate structure.

Overtime should be for people who work beyond the usual, or what is expected in their situation. A casual employee, a university student, working Sunday because it suits their schedule, should not get a 100% hourly rate bonus. They are not doing anything extra. retail businesses, like newsagencies, can’t charge extra to cover for the significantly higher cost on a Sunday. Indeed, the sunday penalty payment makes retail businesses worth less for these trading days.

I am watching the campaign by the banks on this issue closely. I am sure other newsagents are too.

This is not about trying to rip employees off. No, it’s a matter of making use that everyone is treated fairly. As it stands today, most newsagencies operating under management would lose money on Sundays.

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Newsagency management

Tasty Men’s Fitness Eat Fit display

Check out the display created for the new Men’s Fitness Eat Fit display at my Knox store on Monday.

I love what they have done with the before and after shots and the slab of meat in between. Very effective and fun.  I love that the team used the collateral and then punched up with something they found for themselves.

This type of display separates us from other retailers.

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magazines

ANZ reports sales growth for small business retailers

Click here for a copy of the report released by the ANZ reporting 5% year on year growth for small business retailers in the twelve months to february. This same store retail sales data comparison is based on data harvested by the ANZ through a range of their transactional services.

Non retail businesses tracked 11.3% growth for the same person.

The retail figure of 5% is interesting since this is what ANZ will compare newsagents against. For years this didn’t happen because we were looked at as being protected.  Now we are just like any retailers.  This is  good thing.

Newsagents need to know their year on year performance data. If it’s below 5% for the year to february 2012 you have to look at what you have and haven;t done to create your result and set about making changes immediately. This goes to the core of what I am discussing in the Newsagency of the Future series.

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Newsagency management

Australian Traveller TVC promotes newsagents

I’ve seen the TV commercial being run promoting the latest issue of Australian Traveller magazine – out today.  It’s a good commercial and directly names newsagents as a go to place for the title. the commercial is airing from today to the 12th nationally, mainly on the nine network.  This is a good reason for us to promote the title – place it with your weekly women’s magazines as well as with newspapers are my tips.

I would urge newsagents to NOT early return this title which is out today.

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magazines

Dates set for meetings with small and independent magazine publishers

Following discussions with a range of magazine publishers in Melbourne and Sydney, I have set dates for newsagent / publisher meetings.  My goal here is to provide a forum where small and independent publishers can talk with several newsagents around issues of mutual interest:

  • Supply
  • Early returns
  • Marketing
  • Magazine distribution
  • Ranging

There will be opportunity for other topics to be covered.  Here are the dates: Melbourne: Friday May 4 @ 10am. Tower Head Office. 3A Lynch Street Hawthorn. Sydney: Monday May 7 @ 10am. City location TBA.

Small and independent publishers wanting to participate should email me at mark@towersystems.com.au.

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magazine distribution

Testing a new magazine feature display

We are experimenting with a new feature magazine display in our men’s magazine area.

Our men’s magazine space is located to the rear of the store and has resulted in double digit growth in men’s magazine sales since we set this up in September last year … a terrific success story based on our magazine relay.

For some time I have wanted to leverage the traffic in this space and see if we can drive impulse purchases of titles not usually displayed here. So, using a free-standing display unit, we are giving the My Kitchen Rules cookbook 2 a shot in our men’s magazine area.

As the photo shows we are taking a simple approach – placing the title in the middle of the floor space, kind like a speed hump. We are supporting this with little collateral. So, it really is abot interrupting the flow and hoping that this is enough for guys and those shopping with guys to take a look at the off-location offer.

We will track sales based on pocket counting.  Our plan is to try a series of titles over the next month to see if the placement of this unit on the shop floor works for us.

Click on the image for a larger version.

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magazines

New Newsagency benchmark study under way

I have started harvesting sales data from newsagents for the January – March 2012 newsagency sales benchmark study. Plenty of newsagents have already sent their data in.  I plan to have the results published by the middle of next week.

This study pulls data from the community of 1,780+ newsagents who have partnered with Tower Systems for their newsagency software.

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Newsagency benchmark

Promoting Cosmopolitan and Model Co.

We are promoting the latest issue of Cosmopolitan magazine with this display at the front of the newsagency. We also have the title on show in its usual location in-store … so we’re giving it plenty of support.

Magazine publishers in this space need to break out of the traditional when it comes to gifts. Model Co. gifts have been common, or at least feel that way. I’d love to see something completely different to drive better shopper engagement.

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magazines

News Limited asks newsagents about ads stuck on the front page of the newspaper

I was interested to hear that Advertiser Newspapers (News Limited) has asked South Australian newsagents to comment on a stuck on ad being run on the newspaper last week for SA Lotteries.

Their survey was about placement and the quality of the ad. I wish they had asked about customer feedback and the opinion of the newsagent.

As someone who loves a good newspaper I don’t like these ads, regulars here would know that.  The stuck-on ads intrude on the front page reading experience, lead to trash and even damage the product – sometimes ripping the front page.

Click here to see the survey.  When I read I wondered if SA Lotteries had received some complaints about this type of advertising or had heard elsewhere that the medium was not all it was cracked up by News.

The photo shows yesterday’s Sunday Herald Sun. [insert groan here] They had a house ad promoting their digital subscription stick over the headline for a story. I bet some newsagents removed the ad.

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newspaper masthead desecration

Promoting That’s Life Reader Recipes #8

We are promoting the latest That’s Life Reader Recipes with this aisle-end display which faces shoppers as they head to the magazine department. This display makes us look unique as no other magazine retailer around us is promoting the title in any special way.

We have enjoyed good sales of the That’s Life Reader Recipes series by giving it time in the spotlight, like with a display like this. It’s a personal favourite as it connects with the reality genre – but real reality and not the confected reality we get served in TV in such volume.

The display is pretty basic. I did it myself.  I made the collateral by blowing the cover up to A3 and running off some a4 copies as well.

I like displaying magazines which others are not featuring the same way. It demonstrates a point of difference for us which is valuable. It helps position us as local too – by not always being corporate.

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magazines

She loves me…

A young girl was in the shop yesterday asking if she could buy one of the posters we had promoting the TV Week One Direction competition. I let her take it for free – it cost us nothing and the new issue is out tomorrow.  As she went to re move the poster she called out I love you! I am guessing that the poster was a pretty good get for her. I appreciated her response.

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Customer Service

Tapping into One Direction and Justin Bieber fans

We are promoting the Total Girl Star Awards Poster Book with a double half-waterfall facing in our teen and tween magazine section. The target age group has money to spend on products like this – you only have to see the magazines the buy and the shows they purchase tickets too. The key is getting the title in front of them.

Too often we look at a title like this as nothing special, probably because we don;t understand its appeal to the target audience. Get it in the first place for young firms to see and it’s sure to sell. It’s also a good product to mention to parents and grandparents who may be looking for gift ideas.

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magazines

Promoting Homespun for Easter

The latest issue of Homespun magazine is the Easter issue. We are tapping into this seasonal connection by promoting Homespun in the best location in with our quilting and craft titles.

Being aware of seasonal opportunities like is another way of driving sales growth of magazines.  I refuse to do nothing to grow magazine sales. Our current year on year numbers show that the obsession is commercially valuable.

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magazines

Sunday marketing tip: making money from watching customers

I love watching customers because I can learn plenty. Watching how they enter and exit the business, where they want in the shop – observations can inform better business decisions.

One of the reasons we changed the location of our crafts titles was the observation that 70% of people purchasing from our women’s weeklies display turned left as they exited the women’s aisle. This revealed to us the importance of what they saw on their left side. We moved craft titles to this position and have enjoyed extraordinary year on year sales growth as a result.

So, we have made good money from watching customers.  You can too. It’s easy.

Take time to stand still and observe. No, you can’t do something else while you do this. It’s important. Watch your shoppers and how they move around the store.  Look for patterns.  Use your observations to determine what you place where.

Remember, selling to shoppers as they go to the counter and then leave the newsagency is as important as selling to them as they enter.

Yes, watching customers can be commercially valuable.

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marketing tip

Supermarkets take on newsagencies in the high street

Australia’s two major supermarket chains are reportedly set to open more than five hundred high-street based convenience shops which will offer the 200 top selling magazines, 200 top selling stationery items, 200 top selling greeting cards, transport tickets and ready to eat food items.

These small format convenience stores will also offer lotto products sold direct from their Point of Sale registers. Each store is to employ only local staff and will operate from 5am to 10pm.

For more information click here.

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Fun

Newsagency of the Future workshop for Gold Coast

I have scheduled a Newsagency of the Future workshop for the Gold Coast for Monday April 16 at 11am at the Marriott.  This provides an opportunity for Gold Coast area newsagents to meet and discuss the many changes that are impacting on newsagency management and direction. Anyone is welcome, it’s free.

I am also working on dates for Launceston, Geelong, Newcastle and a couple of other locations.  These will not be until May.

Click here to download the flyer and booking form.

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newsagency of the future

Toys continuing to work well for newsagents

I am glad we got back into toys in our newsagency. It’s a small but good department to have in the business.  It’s ticking along for us, attracting some new shoppers and extending the basket when shoppers of other products purchase toys on impulse.

We find that we are selling three types of toys: the low cost impulse items (like in the photo), brand name products people know and love (like Play Doh) and fun products for kids (like water cannons).

We have a display table full of toys at the peak of an offer.

We give toys time in the spotlight and then move them back into the business. School holidays is when we usually punch the offer … for obvious reasons.

Since we are not a toy shop of a major discounter we know that people are not purchasing toys from us because of depth of range or price. We range and price knowing these points and this helps us achieve a good margin and focus only on top selling opportunities.

Toys are a good example of a product category newsagents use to own, lost and can win back.

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Newsagency management

Easter VM display

I have been contacted by several people looking for more examples of what Renee, the manager at my Watergardens store, has been able to do through her Visual Merchandising course. Here is the Easter display.

I love the serene look of the display yet the clear commercial focus.

Investing in professional visual merchandising training provides excellent results.

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visual merchandising

Smith Journal #2 selling well

We are still seeing good results from the second issue of Smith Journal. This is in part to our co-location strategy.  The photo shows the second location we have for the title – this with men’s health and fitness titles. Ad the photo shows we have gone for a symmetrical display that makes Smith the visual hero. It’s working a treat from this location.

I want to grab as much business for Smith Journal as I can because it sells to a demographic which is vitally important to us. The more younger shoppers, 20s and 30s, we can satisfy the better in my view. Smith is certainly in a niche on its own and for this alone deserves our active support.

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magazines

What are newsagents worried about?

I am surprised by the things newsagents worry about sometimes. Take the recent Fairfax announcement. I have been called by several newsagents who are concerned and want something done about the changes in remuneration by Fairfax.  They say the changes are good today but may not be so good over time depending on cover price changes. One wanted to know what I was going to do about it.

Okay so there could possibly be some concerns about the changes. But I don’t think so, not at a level that would concern me.

The bigger question is what are you doing about the parts of your newsagency over which you can exert control? Are you worrying more about what you can’t control and less about what you can? Is your performance with what you can control better than the performance of the parts of your business you can’t control?

I am concerned that newsagents spend their time on things outside their control to the detriment of other parts of their businesses. This concern has its foundations in the performance data I see for many newsagencies. Departments like stationery, confectionery, copying and gifts are a good indicator of whether the newsagent is a good retailers and positively influencing key and valuable parts of their business over which they have complete control.

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Newsagency challenges

Australian Traveller changes on sale based on newsagent feedback

Following newsagent feedback here the publishers of Australian Traveller magazine have adjusted their production of the magazine to the start of the month rather than the end of the month. This is a terrific move and one newsagents should applaud as it is proof of their opinions being listened to.

The next issue goes on sale on April 4. It’s their popular “100” issue. This time it’s 100 best views in Australia. Based on past “100” issues, it will sell very well. The publisher has increased supply so newsagents can leverage what is usually sell out success. They are supporting the special issue with TV as well as PR and in-store marketing collateral.

I’d urge newsagents now to make a note to NOT early return this title. Make the most of the opportunity of what is usually a sell out.

We will co-locate this title with a feature with travel titles and a feature with women’s weeklies titles. Women make most travel decisions and we know from our own sales history that Australian Traveller sells well with the weeklies.

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Uncategorized

My Kitchen Rules cookbook 2 selling well

I’m thrilled with the sales of the My Kitchen Rules cookbook 2 from Pacific Magazines. We will achieve an excellent sell through in advance of having to pay for the title. Sell through is the key here. While some newsagents complain about the 25% margin, the reality is the margin dollars you bank are what really count. This is all about quality products which shoppers want. The My Kitchen Rules cookbook 2 is one such title.

What makes this title even more successful for us is that shoppers are seeking it out thanks to the excellent promotion by Pacific and the Seven Network. It surprises me sometimes that newsagents don’t realise the efforts some suppliers go to in driving shoppers to our front doors.

The photo shows our second display for the title. This faces shoppers as they enter the newsagency. Our investment in high-profile displays of the title is helping to drive our success.

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magazines
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