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

EMG magazine putaway offer

Check out the newsagent putaway promotion with EMG has been including in their magazines.  This is another example of better new3sagent support from publishers as they become more informed about newsagents and steps they can take to improve our businesses and our connection with publishers.

EMG started promoting in-store putaways late last year as a result of engagement with newsagents through this blog and other places.

For many years most publishers relied on magazine distributors to manage the newsagent relationship.  Hopefully we newsagents show the publishers now engaging directly with and for us that we appreciate this direct contact and support.

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magazine distribution

Embracing supplier competitions

We always embrace supplier competition opportunities like the latest one for Chupa Chups.

The competition collateral alone helps to freshen up a product offer, getting shippers who may have been blind to the product to take another look.  This can lift sales, indeed it usually does. It also shows our business as being current and relevant, compared to retailers who ignore competitions and therefore leave products looking tired and old.

So, we seek out competition opportunities from our suppliers and make sure to promote them to our customers. Our business certainly benefits as a result.

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Competition

Promoting RUSSH magazine

We are giving the latest issue of RUSSH high profile treatment with this prime position display among fashion titles.

We have ensured that the full cover of RUSSH can be seen as this is key in getting shoppers to browse a title like this.  Our goal is to maintain this half waterfall support for at least the next week.

Based on recent sales of RUSSH I have no doubt that is a sales growth opportunity for us and probably plenty of other newsagents. … how are you promoting the title.

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magazines

Promoting Weight Watchers magazine

We are promoting the latest issue of Weight Watchers magazine from Pacific magazines with this aisle end display at the cap of our women’s magazine aisle.

We also have a pocket of the title with our women’s weeklies titles as well as the usual location with women’s health related titles.

All this activity for the first week of the on sale pays off every time … sales of the title are growing above average for us.

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magazines

Promoting Motor magazine

We are promoting the latest issue of Motor magazine from ACP magazines with this aisle end display which points into our men’s magazine space … this is a space where guys have room to browse titles likely to interest them without interruption or jostling.

The aisle end displays here work a treat for us, delivering excellent sales – based on the inventory counting we do off the display. I mention this because the display is at the rear of the store and is often regarded by others as second class space. Given that this it is the guys space it is premium for the target customer.

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magazines

The Australian and Mark Day are wrong about newsagents

Buried in Mark Day’s piece in The Australian on Monday speculating that Lachlan Murdoch may take over from his dad as Chairman of News Limited is this when he is writing about new News Limited boss Kim Williams:

He sees a need to reinvent the way newspapers are delivered and sold, which means a new approach to relationships with the newsagency business – protected from competition for more than half a century.

Seriously Mark?  I am shocked that you would have the audacity to write that. It is grossly inaccurate I am disappointed that News Limited would bless the publishing of such a misleading statement, unless they have done so because it serves another purpose for the organisation.

Newsagents are not protected.

News Limited ushered in a new relationship with newsagents in 1999 when the Howard conservative government ushered in deregulation of the distribution of newspapers and magazines, stripping newsagents of the protection of the monopoly system created by the publishers decades earlier.

Mark Day would know this so why would he write what he did?

News Limited started changing its relationship further with newsagents around three years ago.  Some changes have been implemented and the newsagency channel waits for more changes due in the coming months.

News Limited has financially punished newsagents by not increasing cover price in line with CPI and refusing permission for newsagents to pass on reasonable fuel and other cost rises in delivery fees. The end result is that newsagents in the home delivery business have become the working poor, often making less than minimum wage … and sometimes delivering newspapers which do not meet occupational health and safety requirements. So, not only is the pay for some below what could be paid an employee, the work is sometimes unsafe.

The cover price of the Daily Telegraph has not changed in fourteen years. How is this protection?

Yet Mark Day prefers to make out that newsagents are protected.

Over recent years, News Limited has entered into agreements with non newsagents to take over business won and nurtured by newsagents. I have written here before about News taking delivery business from hotels, business newsagents won from their own hard work.  How is this protection?

Newsagents are not protected and have not been for thirteen years.

I am disappointed that Mark Day has written  and The Australian published such a false and ignorant statement.  Maybe that they did speaks to how they see newsagents in the future.

Will The Australian publish a retraction? I doubt it. Will newsagents complain? I doubt it. We will be too scared that they may take more business from us.

I have read and re-read the Day article and the contentious passage several times. He seems to be inferring that new News Limited CEO is the person to break our “protection” and thereby reinvent the distribution of newspapers. If I am wrong maybe Day or someone at News can comment here and explain how. They won’t – but I leave the opportunity there for them.

News has to understand that thousands of families of newsagents and their employees are on tenterhooks about the future of newspaper distribution. This statement by Day and published in The Australian serves to heighten their anxiety and disrespects decades of service which has benefited the bottom line of the company enormously.

UPDATE: (5:45PM) The ANF has issued a statement this afternoon about this.  Click here to see a copy.

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newspaper home delivery

Newspaper publisher yanks newspaper home delivery from newsagents

Imagine how a newsagent feels when they discover that they will lose their distribution of The Canberra Times at a little more than a week’s notice?  This is what happened to one newsagent this week.  The newsagent quit their Fairfax relationship six months ago as it was loss-making. Now, without notice, the folks at The Canberra Times are taking their business away.

While there has been no formal contract, the newsagent and publisher have operated for enough years on consistent terms to imply a contract.

While there is no doubt that newspaper home delivery is in significant play, some publishers could approach the structural changes with more respect than is currently on show.

Remember, newsagents have been long and faithful servants of newspaper publishers, putting up with a decline in real income for many years with the promise of change which never eventuated. Now that publishers need to drive consultation, some are doing so in a disrespectful and hearth reaching way.

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newspaper home delivery

Melbourne Wedding & Bride sells with Valentine’s Day cards

Check out the placement of Melbourne Wedding & Bride which has worked so well for us that we had to get more stock in – the third delivery of stock of this title.

This placement of Melbourne Wedding & Bride along side our Valentine’s Day cards is working a treat … this makes sense really when you think about it.

I’m so thankful that we were able to get more stock as this is enabling us to see what we can really achieve for the title.

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magazines

Promoting Cosmopolitan magazine

The latest issue of Cosmopolitan magazine features on this display facing shoppers as they head toward our sales counter.  While we have the title featuring in among our fashion magazines, this display provides a second look at Cosmo to shoppers either leaving or heading to the counter with their purchase. This display will run for a week as demand on the space is high.

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magazines

There go the sales of the Herald Sun interstate

I was surprised to hear from a newsagent in Queensland yesterday that the Herald and Weekly Times is moving away from a sale and return model for the supply of the Herald Sun newspaper to interstate newsagents.  This is a significant move which will, I think, reduce sales.

Actually I am not surprised. This is another change where a publisher pushes a cost and or risk down to the retailer. We’ll see more of it … because they can.

Maybe it was the only option available to H&WT.  Maybe the returns percentage was either too high or fluctuated too much.

At the same time of telling newsagents that the sale or return approach was out the window, they increased the freight charge.  This is interesting in that newspaper companies have a track record of not allowing newsagents to pass on all freight and other operational cost increases on in their newspaper home delivery businesses.  Here is the text of their notice to newsagents:

The Herald & Weekly Times has reviewed the distribution of the Herald Sun and Sunday Herald Sun into the Queensland market.

The review considered the economics of distributing our newspapers to your state particularly in light of the increased airfreight charges out of Melbourne over recent years.

The review revealed that unless we are able to find a way to recoup the increased costs we will be forced to withdraw the Herald Sun from your market.  To avoid the latter option we have made two decisions;

  1. As a first step  the freight component of the cover price was increased effective from January 2nd, 2012.
  2. As a second step your newsagency will be supplied with the Herald Sun and Sunday Herald Sun on a “no returns” basis i.e. no credit can be claimed for unsold copies.  This will be effective from May 1, 2012.

Under this new arrangement you will still be selling the Herald Sun and Sunday Herald Sun under your existing agency agreement with Queensland Newspapers, however whether you wish to stock these newspapers in your newsagency post April 2nd under the terms outlined in this letter is entirely your decision.  You can of course adjust your supply quantities through Queensland Newspapers via Connect, phone or fax.

I would like to thank your newsagency for your support over the past years and hope that you continue to sell our newspapers in your newsagency.  If you have any questions about any of the above please do not hesitate to contact the circulation department at Queensland Newspapers.

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newspaper home delivery

Promoting Cooper, the interactive bear

I am thrilled with the display created by the team at my Knox store to promote the large Cooper plush bear from Hallmark.  Using a swing to hang Cooper above the display is genius.  It makes the display more noticeable from across the mall and therefore gets more shoppers looking at our Valentine’s Day products display.

The display also draws attention to the smaller version of Cooper – the interactive bear who responds as the accompanying book is read.

Thanks to Hallmark TV ads, the interactive plush items like Cooper are understood and a hit. This makes our job easy … all we need to do is ensure that people see that we have the product available.  Hence the prime location, traffic generating, display.

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Gifts

Promoting Prevention magazine

We are promoting the latest issue of Prevention magazine from Pacific Magazines at the entrance to our women’s magazine aisle, the busiest magazine aisle we have.

This display and the strong in-location display are certain to deliver excellent sales.  We are backing ourselves by ordering extra stock now so we don’t sell out early in the on-sale. we don’t usually make this call so early but this issue looks particularly appealing.

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magazines

Promoting AFL Record 2012 season opener

We are promoting the just released season opening 2012 AFL Record with this aisle end display facing onto the dance floor and toward the front of the newsagency.  We also have a stack with newspapers.

I think we have around 10 days to maximise the opportunity with the AFL Record – hence our two high-traffic location placements.

Our goal is to increase sales on last year by more than 10%.  I think it is important for us to set sales targets for special titles such as this … it gives us all something to word toward.

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magazines

Hey Bill Shorten, why not call Australian small business owners instead of a Japanese car marker?

I was surprised to read that Workplace Relations Minister Bill Shorten called the President of Toyota Australia after he complained about sick days following the Australia Day public holiday?

Plenty of Australian business owners, including small business owners, have complained about the sickies epidemic previously.

Bill Shorten calling the boss of Toyota is typical of a politician out of touch with his constituency. Both sides of politics pander to foreign companies and the big end of town. It sucks.

Small business is more important economically to Australia yet we don’t get called. Politicians of both sides d’n;t ask for our opinion. It’s seems all too hard to them, they’d rather make on call and get a bit of publicity for that.

A smart Bill Shorten would call Australian small business owners and find out what they think about the industrial relations system. My number is 0418 321 338.

I did not like Workchoices and I am not a fan of what replaced it.  If we want a competitive and fit economy we, all of us, need changes.

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Newsagency management

The challenge for small card companies

I have been speaking with the owners of a couple of small card companies over the last week about the difficulty they are experiencing in breaking into the newsagency channel.  They are coming up against the issues of all card space on the wall (or the wood as some call it) being under contract, the dislike of spinners and spin from some card company reps that the product from these small companies does not perform.

Too often newsagents allow themselves to be locked into a space allocation deal so that they can access working capital for the business.  This is not a good reason to choose a card company. The better deal is one which offers an amount of flexibility over range, so that the business can express itself through its card range.

I like having a major card company as the anchor supplier for my card departments and have Hallmark as this in my newsagencies.  I also have capacity for other product and have chosen to do this in a couple of my businesses.

To the small card companies finding breaking in tough I say keep trying.  Product is the key. Have product which turns better than other suppliers and your success will drive more newsagents supporting your range.

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Greeting Cards

Is this the sexiest business magazine cover ever?

Check out the cover of the latest issue of Bloomberg Businessweek magazine.  Talk about sexing up business. The designers behind the cover ought to be congratulated.  They have created a cover which is sure to drive incremental business as it makes a big business store more accessible.

One way magazine publishers are responding to tough conditions is by taking a fresh approach to their covers. This is why newsagents need to look at fixturing which enables the full display of magazine covers, or at lease more full face covers than the current (out of date) tier filtering provides for.

For more on the story behind this cover and the importance of magazine covers, check out The Atlantic Wire.

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magazines

Smart marketing by The Miami Herald

Check out the masthead of  the Sunday edition of The Miami Herald. On the far right is the value of the coupons in this issue of the newspaper. I have noticed this each day I have been here. They also promote it in their TV commercials. Last night’s commercial had the $594 figure.

The value of total savings changes each day of course. It denominates the value of buying the newspaper beyond the news itself. In this value-conscious world savings of this magnitude could easily drive sales of the newspaper.

The challenge for this type of marketing back in Australia is that we are yet to fully embrace coupons. I think that the barrier to that is retailers, the supermarkets primarily. But that does not stops in small business more aggressively pursuing the opportunity.

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Newspapers

Retirees in Miami love mobile devices for reading

I am unexpectedly in Miami Florida for a couple of days on business and have taken the opportunity to check out some retail trends while I am here.  Miami is known for its population of retirees, helped in part by the TV series The Golden Girls.

What is interesting to me is the number of people using devices.  From what I can see, age is no barrier.  While reading books appeals to be the main use at the beach and by the pool, there are plenty of people using Apps on their iPhone.  There was one chap who I’d guess is in his nineties engrossed in a book on an iPad.

I mention this because often it’s said that mobile devices are more used by younger people. That’s not the case here in Florida from what I am seeing.

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Media disruption

Publishers who use discount sites make newsagents look expensive

Check out the latest online publisher deal – a offer at Spreets for New Scientist. They are seeing a subscription at 60% off the retail price.  Indeed, price is the key to their pitch. If they loved their product enough and trusted their product enough they would not have to make this about price.

Publishers send us their titles not only to sell but to also promote so they have a recognised brand to sell elsewhere.  The more they make us out to be expensive the more people will access their products online.  This will lead to a reduction in magazine retail space.

I think that deals like this Spreets offer for New Scientist are false economy.

I’d prefer the publisher of New Scientist to engage with newsagents to try and drive over the counter sales. We’ll ask for margin. They will say they can’t afford it. They will then offer 60% off for a subscription which I reckon would cost more to fulfil.

This is most frustrating.  yes I understand that subscriptions play a role. But 60% off?  And indirectly whacking retailers to boot? Publishers print the retail price on their covers. Am I alone in seeing the irony here?

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magazine distribution

Driving impulse purchases of Better Homes and Gardens magazine

We are promoting Better Homes and Gardens with this display at the counter at the front of one of my newsagencies.

The magazine owns the space with this display at one of our busy counter positions. I love what the team has created. It stands out well not just here but it is easily seen from out the front of the shop.

We are also featuring Better Homes and Gardens elsewhere to make the most of this first week or two of on-sale … with newspapers, in the home and garden section and in a new space we have created above our weeklies.

It is easier increasing sales of an already very popular magazine.

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magazines

Leveraging Sandra Bullock for Mindfood magazine

With Sandra Bullock’s star on the rise since her Oscar win she is an ideal cover story subject for Mindfood. Hopefully shoppers are and respond to our ideal location placement in support of the title.  We’re not doing much – just ensuring that the full cover is on show and that the title is ideally located in the women’s interests section.

The above positive notes aside – I don’t like the card sticking up out of the title as it encroaches on space from the title above – as shown in the photo.

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magazines

Connecting the brands to maximise sales

We take care with the add-on titles which come in under a popular brand to locate the product near the parent brand. Check ut what we did last week for the puzzle titles associated with Woman’s Day and New Idea.  we have these placements as well as the puzzle titles in their regular position with all of our other puzzle and crossword titles.

It is this placement up with Woman’s Day and New Idea where we sell good quantities.  From what I can see they are primarily impulse purchases.  we will not leave the puzzle titles here right through their sell-through as they would not pay their way. We usually leave them here a week or two.

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magazines

Sunday newsagency marketing tip: everyday stationery at the counter

Take a look at your counter from the customer’s side and see what purchase opportunities they are presented with which stand out from the traditional counter. Consider de-cluttering the counter and placing a small stack of a single everyday stationery item. Paperclips, staples, small staplers, bulldog clips, thumb tacks, adhesive tape, pens … all of these items could work. The key is to make them accessible and enticing.  Maybe a three for two deal or buy 2 and get 25% off.

The key here is to add to the basket at the counter by selling products which wouldd otherwise not have been purchased by the customer at the time.

Stationery sales are challenged in newsagencies. This is partly our fault by not treating stationery with respect and failing to support everyday items to more who enter our businesses.

Here are some tips for stationery at the counter:

  1. Only promote one product at a time.
  2. Make the offer compelling.
  3. Choose everyday products which everyone would use.
  4. Train your staff to offer the up-sell.
  5. Track sales.
  6. Change the offer every week.
  7. Run the campaign for four weeks before assessing the results.
  8. Make sure the counter is free of clutter … your offer must be easily seen and understood.
  9. Don’t buy items in for this – one benefit of the promotion is to show off what you usually sell.

There’s nothing to lose and plenty to gain from a few minutes work setting this up.

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Stationery

Ballsy move by Vintage Caravan magazine

The publisher of Vintage Caravan has has enough of a broken magazine distribution model which is unfair to newsagents and to small independent publishers. They have written to newsagents to offer a direct supply deal.  The cover price is $8 and newsagent margin $2. This is an excellent move.  Ballsy.

Newsagents can request stock of this popular special interest title by emailing the publisher editor@vintagecaravanmagazine.com.au.

If you are not sure about the title, go to their website. You will soon get a feel for this quality niche title. I urge newsagents to order stock – it reinforces your position as a magazine specialist.

While I doubt that Gordon & Gotch will worry too much about losing this title, more could follow as publishers look for more direct and better managed relationships with newsagents and newsagents look for more commercial terms and greater control over their exposure.

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magazine distribution

PMP profit downgrade to hurt Gotch?

PMP, the parent company of magazine distributor Gordon & Gotch, issued a profit downgrade on Thursday.  The margin in the printing and distribution business is slim even in good times so the tough last quarter of 2011 has taken its toll.

The challenge for newsagents is that the Gotch part of PMP makes most of its money handling magazines – what they supply to us and what we return.  yes, as I understand it there are often fees for product going out and coming in.

Gotch is currently in a purple patch when it comes to distribution. Oversupply is up and customer service is down.  If they cut costs in the Gotch operation I’d expect both to get worse and newsagent support to decline further. This will ultimately affect the publishers Gotch can attract to their stable.

As someone in a magazine distribution business and familiar with their financial model commented to me recently – who’d be a magazine distributor?

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magazine distribution
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