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

Early returning the Mad magazine mega pack

I am early returning the MAD SUPA DUPA MEGA PACK because the copies I have left are, in my view, unmerchantable. While there is a nice cover sheet, the titles in each pack has old price stickers from other newsagencies.  This is not good enough.  Publishers who want to send products for a second go around by repackaging them ought to at least tidy the product so as to make it more presentable. Having a price label from another newsagency visible on product in my store is not something I am happy with.

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magazines

New Idea crossword title sells well

We achieved a 60% sell through of New Idea Jumbo Puzzler from Pacific Magazines in the first ten days of on-sale. While some of the sales have come from the crossword section, most have come from the placement in the photo – in with our women’s weeklies titles. This is where we sell plenty of our Lovatts crossword titles as well.

It is tactical placement like this which helps newsagencies drive impulse purchases and strengthens the overall performance of magazines in the business.

We have ordered more stock of New Idea Jumbo Puzzler since we think we can achieve sales beyond the initial allocation.

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magazines

That’s Life Reader’s Recipes selling well

We have sold more than half our allocation on the latest issue of That’s Life Reader’s Recipes from Pacific Magazines in less than a week thanks to their aisle end display at the entrance to our women’s magazine aisle as well as prime placement in with food titles.

While this is an easy title for shoppers to purchase with the $5.50 price point, I think that the real appeal is that the recipes are from everyday people. I’ve certainly had one customer comment with a smile that they can cook the recipes.

We have ordered more stock as we are set to sell out of our current stock.

 

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magazines

The 10,000th blog post

While I’m not a big milestone person I couldn’t let this 10,000th blog post pass without comment.

What started on January 27, 2005 with a tentative first post has evolved considerably over seven years, 10,000 blog posts and 27,180 comments.

I didn’t really have a plan when I started the blog other than to write occasionally about life in my newsagency.  Within the first few months that changed as I realised I could use the blog to write about issues beyond my own business,  issues affecting the newsagency channel more widely.

I have learnt plenty along the way – from the practical of writing for public consumption to learning to be more accepting of alternative views to mine.

I think that my voice has changed as a result of blogging. I think that my other writing, away from this place, has improved.

I am proud of the blog being a record of some of the challenges (and opportunities embedded in these challenges) faced by newsagents, those who work in our businesses and those who work with our businesses.

I am pleased to have been able to use the blog to document appalling treatment by some of newsagents.

For what it’s worth, I think the most important issues I have written about are:

  1. Australia Post and the economic harm the government owned post offices continue to wreak against newsagents. Both sides of politics are to blame for this.
  2. The failure of successive governments, the ACCC and suppliers to be fair in their treatment of newsagents through deregulation. Today’s print media distribution model disadvantages newsagents while giving commercial advantages to our competitors.
  3. The failure of magazine distributors to provide a model which is fair. They hold us accountable for the financial liability yet do not provide reasonable business levers with which to manage that liability.
  4. The disruption of print media and the impact this will have on the traditional newsagency business model … and the opportunity for financially rewarding change.
  5. The failure of many newsagents to manage their businesses for day to day profit. Too many newsagents expect their pay day when they sell and do not realise that their pay day is today, tomorrow and next week … and that this determines what they will receive when they sell.
  6. The failure of the leadership of the newsagency channel: in 1999 to lead through deregulation; and,  in the mid 2000s to put the needs of newsagents ahead of their own ego and interests.
  7. The day to day … sometimes mundane stuff about hiring and firing people, customer theft, employee theft, how we did things, why we did things.  These narrow focus topics often led to some wonderful comments which added tremendous value to what I wrote.

I smile when a supplier contacts me saying that they rarely read the blog but have been told about a post relating to them … yeah. I know that posts and comments are being noticed when people complain about the blog or me in an ill-informed or derogatory manner.

This is a place of conversation. Everyone is welcome to join in. If I am wrong, tell me.  If you want to apologise, do so.

In terms of actual achievements, that is for others to judge.

We go into 2012 with some good progress having been made in 2011.   Morrison Media, Universal Magazines, Express Media Group (EMG) and Pacific Magazines are closer to newsagents in part as a result of engagement here, showing that publishers follow posts and comments and respond in pursuit of a more valuable relationship.

I don’t have a plan for the future of the blog, never have. I’ll write about that which I want to write about … to reflect the newsagency narrative and to help and represent newsagents.

I care passionately about the channel and its place in Australian society. What we have is unique, important and valuable. It is also vulnerable. We all in this channel need to work hard to combat our vulnerabilities and to play to our strengths.

To the visitors, 1,100+ every day, and to the commenters, responsible for 27,000+ published comments, thank you for being part of this thing.

Let the blogging continue…

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About us

I wish magazine distributors would not make me pay for their optimism

I am disappointed with receiving five copies of Australian Geographic Outdoor magazine late last year. This is the first time we have received this title and three copies would have been enough, two even.

I’d prefer a magazine supply model where my shop is not used as a warehouse.  For a first time allocation, go low and let me order more stock as needed. If a distributor or publisher is bullish about how a magazine will perform they should take more of the risk rather than transferring that to newsagents.

The other challenge is finding space. Since we have not had this title previously we have to take a pocket from another title. Ah for a magazine distribution model which understand this and respects newsagents and what they have to do to manage a finite allocation of retail display space.

It’s my money at risk here – magazine distributors should be more respectful of that.

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magazine distribution

OMG! … A Kardashian only magazine? We’re saved!

Just when we thought there could be no expansion of the intrusion on life by a Kardashian, there is a report out of the US of the possibility of a Kardashian magazine. The last thing magazines need is gimmicks and fluff content. People passionate about the magazine medium love good content, something worthy of picking up, reading and putting down … and repeating the process many times over with an issue.  All I’d was to do with a Kardashian magazine is to use it to line the bird cage or the pet litter box.  OMG says it all.

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magazines

Promoting Better Homes and Gardens

We have been promoting the latest issue of Better Homes and Gardens magazine with this aisle end display.  I love the summer feel created by our in-store VM expert … perfect for this time of the year.

We are chasing extra stock as we’re certain to sell out of our initial supply.

We will leave this aisle end display up for a week and then migrate to an in-location display.  We are also promoting this issue of Better Homes and Gardens at the sales counter.

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magazines

Only four US newspapers to be left in five years?

A report by the University of Southern California Annenberg School for Communication & Journalism speculates that within five years only four US daily newspapers will in print.  While there are plenty who disagree with the prediction, the report which is about the US being at a digital turning point is most fascination and challenging.  Included in the report is this prediction about retail:

8. The Internet will continue to create shifts in buying habits, at the expense of traditional brick-and-mortar retail.

The most current Digital Future Study found that 68 percent of Americans buy online, and 70 percent of online buyers said their online purchasing reduces their buying in traditional retail stores.

“We are seeing only the beginning of the shift in American purchasing habits brought by the Internet,” Cole said. “Five years from now, the traditional retail landscape will be completely different than it is today.”

Makes one wonder about long leases with restrictive permitted use clauses.

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Media disruption

Is the Drive section about to be cut from The Saturday Age?

I have heard that home delivery copies of The Saturday Age in some parts of Victoria will soon not have the Drive section in the newspaper.  Home delivery customers who ask about this, I am told, will be pointed to the drive.com.au website. Retail copies of the newspaper will continue to have the Drive section.

None of this sounds right. Why would a newspaper cut out such an important section of the newspaper? Many people used to purchase The Saturday Age for the car advertisements in the Drive section. Maybe more are going to the website and the print version has become redundant. If that is the case why eliminate it from home delivery copies and not retail copies?

Maybe this is just another rumour about newspapers which is not true at all, too early or only has some hints of truth.

Maybe there are some out there who can enlighten us.

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Newspapers

Why the oversupply of Owner Builder magazine?

Click on the image to see the supply and return data for Owner Builder magazine over the last twelve issues for one newsagent who contacted me earlier this week.

With a sell-through rate of 26%, 33%, 8% and 47% for the last four issues, I can’t see why Gordon & Gotch continues to supply at such a rate.  I wonder if the publisher of Owner Builder magazine is aware of this oversupply and the financial cost it is having on the newsagency involved.

Look at the data from November 2010 and look at the supply increases from then. I can’t see any reason in the sales data for Gotch increasing supply as they have done.

Think about the cost to the newsagency channel if such oversupply played out across the channel or even, say, 25% of the channel. Beyond the cash, labour and real estate cost faced by newsagents, there is the wastage of paper.

I am confident that the publisher of Owner Builder magazine will say that it is not in there interests to oversupply.  I’d accept that if there was a reasonable explanation for the supply as being experienced by the newsagency which provided me with this data.

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Magazine oversupply

Why the increase in supply of Luxury Travel magazine?

Our average sale of the imported Luxury Travel magazine is one copy.  I can’t understand, therefore, why Gordon and Gotch would increase our supply from two copies to five.  Is it a publisher decision or a distributor decision? Either way, we have considerably more stock than we could reasonably expect to sell.

Click on the image to see our sales history and the unwarranted supply increase.

Australian Traveller is our hero travel magazine. It gets premium space and extra pockets. It responds with sales. It’s easier for me to support a title with a good track record than invest in space and inventory for a title with such low sales.

I understand that publishers are doing it tough.  They choose to be in the business. Don’t make me your business partner and financier by supplying extra stock when not justified by the sales data.

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Magazine oversupply

Do I really want to sell Scoop Travel magazine?

I was surprised to see Scoop Traveller magazine turn up in-store. We have not had this title previously and we have no spare space for more travel titles. Has Network Services asked if they could send us another treble title we would have said no thanks, there’s no room at the inn. Sadly, it does’t work that way. Network sends the title, bills us and expects us to find space. It’s a poor system which requires newsagents to accept full responsibility but which provides us with no reasonable control over our obligations.

Scoop Traveller is about travel in Western Australia. I don’t think it will sell that well. Based a conversation with our local flight centre we are more likely to sell travel magazines relating to Queensland, Europe and the US – not WA.

Scoop Traveller looks like an okay magazine. I just don’t think it has a place in my newsagency. I wish I was asked before they grabbed by time, real-estate and cash.

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Magazine oversupply

Promoting Melbourne Wedding & Bride

We are promoting the latest issue of Melbourne Wedding & Bride magazine from local publisher United Media with this aisle end display as well as a full waterfall in with our wedding related magazine titles.

Melbourne Wedding & Bride magazine is a good value title among wedding titles. Customers like it, they tell us and show us through purchases.  Hence our keenness to support the title with a feature display.  It is easier to display a title which responds well to time in the spotlight.

We will leave this display up for a week and then find another way to support the title.

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magazines

Promoting Good Health magazine

We are promoting the latest issue of Good Health magazine with this feature aisle end display.

We have the title in a double half waterfall in the regular location.  January is the perfect month for promoting health titles – following the traditional Christmas binge.

While not in our top three health related women’s health titles we are still supporting Good Health to try and achieve traction with our customers.

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magazines

QLD newsagents finding Golden Casket cash-flow negative this week

I feel for Queensland newsagents who have paid out more in Golden Casket prizes this week than they have  taken from sales. With a higher payout requirement now, some are considerably out of pocket in terms of cash flow.

The challenge is will Golden Casket support these newsagents when they struggle to pay other suppliers.  For example, if this is a magazine account payment week and a newsagent is $10,000 down in cash payouts over Golden Casket takings, will GC go into bat on behalf of the newsagent with Gotch and Network?  … not that the Gotch or Network accounts people would care.

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Lotteries

National Newsagency software user meeting tour

My newsagency software company last month announced details of a national newsagent user meeting tour to kick off on February 2, in Perth. Any newsagent is welcome to attend.  The agenda includes a business discussion as well as information on how to make the most from our industry standard newsagency software which has been selected by more than 1,750 newsagents. Click here for details.

Newsagents questioning their businesses and their future especially should come along. Prepare to be challenged about building stronger and more valuable newsagencies.

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newsagent software

Promoting MOJO magazine

We have been promoting the latest issue of MOJO magazine. This is a bit of a selfish move on my part – I am a fan of The Who, the featured group this issue. Personal taste aside, MOJO is a title which sells according to local interest in the featured group or artist – hence the value of time in the sunshine.

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magazines

Gross oversupply of Your Trading Edge magazine

Gordon & Gotch has doubled our supply of Your Trading Edge magazine despite us never selling out.  Indeed, a check of sales history – click on the image for detail – does not support any move from four copies per issue.  I have looked through the magazine and can’t see any excuse for us now being supplied eight copies. The most copies we have sold is four, our average is barely three. So, why eight copies?

I’d be interested in hearing from other newsagents about their supply of Your Trading Edge magazine. Is this a network-wide oversupply or selective?

Publishers who complain about early returns need to look at this story for it is this behaviour which causes newsagents to look at striking back against a system which hurts and disrespects them.

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Magazine oversupply

Frustration continues with supplies of Daily Telegraph newspaper

More NSW newsagents have complained over the last few days about being supplied insufficient quantities of the Daily Telegraph. Newsagents who have used the News Ltd processes to increase supply have usually found that the request is ignored.

One newsagent I spoke with yesterday explained that they were due to not even be able to service all home delivery customers based on supply cutback. When they finally got through to a News representative they were told that the matter would need to wait until their area manager returns from holidays next week.  I found someone in a different area of News who was able to follow up – they resolved the situation and ensured additional stock.

While I am grateful that News was able to ultimately resolve the situation yesterday, it is frustrating that the newsagent was unable to achieve resolution through their contacts and that was only when I asked questions that progress was made.

The question I posed last week remains – is News killing newspaper sales?  While I don’t think so, newsagents with insufficient supplied to meet even basic requirements would answer yes to that.

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Newspapers

Promoting tennis magazines

We have been maintaining a stronger than usual display of tennis related titles in our sports magazine section in the lead up to they Australian Open.

While sales have not been amazon, they have been enough to justing the additional attention and prime positioning in this section of our newsagency.

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magazines

Promoting Prevention magazine

We are promoting the latest issue of Prevention magazine, out yesterday, with tactical placement with newspapers. I figured that the free two week total body turnaround would be popular with women this side of Christmas / New Year celebrations. We have it here next to newspapers as well as the usual location for Prevention.

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magazines

Another newsagency in Port Macquarie closes

Port Macquarie News reports on a second newsagency closure in two weeks

For the second time in a fortnight a Port Macquarie newsagency has closed its doors.

Westport Newsagency, which moved to the Grower’s Market shopping complex recently, has shut its doors.

Port News management received notification of the owners’ intentions on Monday night.

Owners Scott and Gale Oxenford cited “ongoing family health problems” as the reason behind the closure.

“There are issues we need to work through – just the same as we tried to help our readers affected when Lighthouse Beach Newsagency shut last month,” Port News general manager Janine Buesnel said.

“The Port News will be available from newsagents in the CBD and also from our offices in Milton Circuit.”

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Newsagency management
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