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

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

If schools want their kids to have jobs when they leave they should start supporting Australian businesses

More and more Back to School business is being won by overseas owned businesses.  This sees more profits shipped out of Australia, to overseas shareholders.

Schools which care about jobs for their students when they leave will award business to and encourage business for Australian owned businesses, like the local newsagency. This is a pitch I’d like to see newsagents make to schools in their area … support us and we support your kids and their families with jobs.

This is a campaign newsagents could run … demonstrating the importance of purchasing stationery from businesses which employ locally and from which profits are kept locally.

If we don’t make a stand on this more and more Back to School business will be shifted overseas and more local jobs will be lost.

For their part, newsagents need to look at the source of stationery they sell.  It could be that a made in Australia education campaign fits with our needs and the interests of a school – not only around the issue of local jobs but also in terms of carbon footprint.

As Staples asserts more control over what we used to Know as Corporate Express we will see more pressure in the Back to School space.  Newsagents urgently need a strategy to combat them and other overseas businesses pursuing business from schools and students.

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Stationery

New Idea bumper edition pays off

Checking our sales of the last two issues of New Idea and comparing it with other weeklies I’d say that the decision to publish an issue which was on sale for two weeks paid off.  Our sales across the two weeks were on target. This could be because we’re in a shopping centre and therefore see people this time of the year who are not regulars.

I figured it’s worth noting – for others to comment on their experiences and to record that here is an example of a bumper edition by a publisher which did work.

Newspaper publishers could learn something about delivering value for bumper editions from Pacific Magazines.

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magazines

How the Occupy movement can really make a difference

If the Occupy movement really wants to make progress on economic inequality and social injustice then they should move out of Wall Street, and its equivalent, and engage locally. Shopping locally owned businesses, like your local newsagency, green grocer, butcher, baker and chemist will deliver more of a message here in Australia especially … where Coles and Woolworths control somewhere between 55% and 75% of grocery relates sales. Watch this video from the Hungry Beast team.

Newsagents should seize every opportunity possible to propose a shop local message.

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Ethics

New model Work Health & Safety (WHS) laws commence today, Jan. 1, 2012

Happy New Year newsagents.  New national OH&S regulations come into effect from today. They impose on newsagents, and indeed all businesses, tough requirements which will be time consuming and present to us considerable risks for lack of compliance.

Thanks to the assistance of the ANF, here is what you need to know.  This is a summary of information provided by the ANF to newsagents already:

Newsagents need to be aware that new model Work Health & Safety (WHS) laws commence on the 1st of January 2012 in most States and Territories. (Victoria, South Australia and Western Australia are still to confirm exact dates) Under these new model laws all newsagents have a positive obligation to undertake due diligence to ensure that their organisations are compliant.

The introduction of a new concept of “Person Conducting the Business or Undertaking” (PCBU), and the expansion of the definition of “worker”, has together greatly increased traditional employer obligations.

Employers (now PCBU’s) must ensure that, so far as is “reasonably practicable”, their workers are not exposed to health & safety risks.

The concept of “reasonably practicable” requires each employer to effectively implement a formalised risk management program, through which it identifies workplace hazards, assesses them and takes action to either eliminate or control them. Newsagents are required to have a goodworking knowledge of WHS matters and how they apply in practice to their organisation.

Newsagents are also required to ensure that their organisations have appropriate resources and processes in place to manage WHS and, critically, to verify that these processes actually work in practice. This requires a system that provides both transparency and visibility.

It only takes one worker (it could even be a work experience student), to request that a Health & Safety Representative (HSR) be appointed and an organisation must comply with this request.

HSR’s have expanded powers and can issue directions to cease work, which must be complied with.

The new laws come with significant fines and penalties of up to $3 million per breach for a corporation, and$600,000 perbreach for Newsagents.

Newsagents (and potentially, workers) face prison terms of up to 5 years.

If Newsagents fail to discharge their duty, they can be prosecuted, even if the PCBU is not prosecuted, or the PCBU is found not guilty.In some jurisdictions (including New South Wales and Queensland) criminal proceedings arising from WHS events are being moved from the Industrial Courts to the mainstream court system, where prison terms are handed down on a daily basis. This means that prison sentences for Newsagents are more likely to be applied.

The simple message is that newsagents should act NOW to ensure compliance and avoid fines and penalties.

The following is a summary of the key changes due to commence on the 1st of January 2012.

Move Away From Employer Definition:
From 1 January 2012, the primary duty of care for workplace safetywill sit, not with the employer but rather, with the “Person Conducting the Business or Undertaking” (PCBU). A PCBU may be a corporation, partnership, unincorporated association, a self-employed person, or a sole trader.

Expansion of Duty of Care:
The PCBU concept is much broader than the employer definition it replaces. In simple terms, the introduction of the PCBU definition is designed to break down barriers of responsibility so that there can be more than oneparty primarily responsible for the health and safety of workers.

Expanded Definition of Worker:
The definition of “worker” has also been expanded to include contractors, subcontractors (or their employees), employees of a labour hire company, volunteers and work experience students, to name but a few. This expanded definition is designed to better reflect the nature of the modern workplace and the types of relationships that now exist within it.

Expanded Obligation to Consult:
The obligation to consult has been significantly expanded to include a requirement for each PCBU to consult downstream, upstream and cross-stream, depending on the nature of the workplace and the other PCBUs it interacts with.

Additional Powers for Representatives:
The role of the Health and Safety Representative (HSR) has been expanded to include the power to stop work or demand remedial action. From 1 January 2012, it will only take one worker to request the appointment of an HSR and an employer must do so.

Officers Required to Exercise Due Diligence:
Officers (adopting the broad Corporations Act definition of an “Officer”), are required to exercise ongoing ‘due diligence’ to ensure that a PCBU meets its WHS obligations. The definition of due diligence requires each and every officer to take positive steps to inform themselves of their organisation’s workplace safety obligations and to ensure that they have adequate systems and procedures in place to comply with these obligations.

New Model Codes of Practice:
In conjunction with the introduction of the Model Law, new Model Codes of Practice have been developed. These provide guidance as to how to comply with certain aspects of the new legislation. Courts can reference the Codes to identify what is “reasonably practicable”.

Increased Penalties:
Maximum penalties have increased significantly.

  • Up to $3 million per breach for a corporation.
  • Up to $600,000 per breach, or 5 years’ imprisonment, or both, for a director or officer
  • Up to $300,000 or 5 years’ imprisonment for a worker.

Change in Criminal Jurisdiction:
Whilst in the past directors often referred to the possibility of “going to jail” for workplace safety breaches, the reality was that in the Industrial Court system, offenders were rarely sentenced to a prison term. This may be about to change, with some States now passing jurisdiction for serious offences arising from WHS breaches to the criminal courts. Here, judges are used to imposing prison sentences on a daily basis.

The ANF along with all State Newsagent Associations have recently been communicating with newsagents about this issue and have launched a newsagent specific Smart WH&S online workplace safety system to proactively assist newsagents manage this significant risk in their businesses. With changing obligations under WH&S harmonisation newsagents should not ignore this risk.

The ANF will be providing further communication about this issue to members to help them understand its significance. New additional costs associated with compliance hurt and the ANF has made representations about this issue during consultation. However, faced with requiring a solution for newsagents that is easy for them to use and that will proactively prompt them to remain compliant where a simple manual is unlikely to achieve this, an online solution has been deployed. It is a very comprehensive online system that is easy to use and that has been customised for newsagents.

The ANF would love this to be free to members, but this is unfortunately not possible. We have negotiated a dramatic discount for members of all Newsagent Associations with Smart OH&S who have developed the system. If you would like more information please contact your ANF or State Newsagent Association or you can download a flyer HERE.

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Newsagency challenges

New Year resolutions for newsagents and other retailers

While we all have to make our own New Year resolutions, here are some suggestions for newsagents looking for business-based New Year resolutions for 2012.

  1. Out with the old. Quit old stock, anything which has not sold in the last six months. Old stock turns customers off. Being a retailer of last resort is not a business plan.
  2. Stop relying on reps to do orders for you. Order stock based on what has sold. By stopping supplier reps doing orders for you will probably find that you cut your stock holding and increase your stock turn.
  3. Review your roster. Look at sales per hour and either work on building sales efficiency to justify the roster or trim the hours when sales per hour show you to be over staffed.
  4. Do a magazine relay. Rebuild your magazine offer from the ground up, based on your sales data and suggestions from team members. Take ownership of the performance of magazines in your business.
  5. Answer the questions: what do you stand for? Answer this in what you stock, how you merchandise it, the service you provide and how you promote your business. Just relying on a shingle – NEWSAGENCY – above your door to declare what you stand for are over. You need to own your unique selling proposition.
  6. Develop a marketing plan. Map out how you plan to market your business, outside your business, over the year. Include community engagement as well as more traditional catalogue and flyer based campaigns.
  7. Drive efficiency. What is it you are doing in your business today which does not add value to the business? Look for busy work which you can stop doing … and stop doing it.
  8. Cut debt. This is the most important of all. Debt is a high cost on any newsagency business. Every dollar of debt you eliminate is interest saved. Make 2012 about dramatically cutting your reliance on debt. If you plan to invest capital in 2012, spend on cost saving, business driving infrastructure.

If all newsagents did these things we would be a commercial force, a retail network, to be reckoned with.

I have put this starter list of New Year resolutions together considering the challenges of 2011, what we can reasonably expect economically from 2012 and the disruption to core newsagency lines which will continue as the year unfolds.

Please add more resolution suggestions through comments…

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Newsagency management

Why play US radio in Australian retail?

I was in a shop a couple of days ago which was playing a US radio station in-store. They thought it was pretty cool. Maybe so in terms of giving off a vibe. However, they were missing an opportunity to more intimately connect with their shoppers.  The between song announcements were not relevant at all.

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newsagency marketing

SA lotteries offers tickets online through Ozlotteries website

Jumbo Interactive yesterday announced a deal which will see SA Lotteries product sales available through the Ozlotteries website. South Australians will have direct access to the online sales through a direct link to Ozlotteries from the SA Lotteries website.

This move by SA Lotteries is unnecessary and disrespectful of the retail newsagent network which has been a strong supporter of over the counter sales.

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Lotteries

Killing Daily Telegraph newspaper sales

NSW newsagents are reporting severe cuts to supply of the Daily Telegraph newspaper this week and lack of assistance by News Limited in getting more stock. This has seen some newsagents sell out by mid morning and no stock for the rest of the day.

The situation has left some newsagents asking whether this is a move by News to kill print newspaper sales.

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Newspapers

Why does a magazine cover draw complaints and these coasters not?

Each time we promote Zoo or Maxim in a high traffic location we get several complaints from shoppers saying they are offended by the raunchiness of the covers.  Yet when we promoted these coasters and associated tea towels, oven mitts and fridge magnets in a high traffic location recently we did not receive a single complaint.

Humour can overcome prejudices and boundaries about what is acceptable and what is not acceptable … as our experience with the coasters shows. We had these on a column facing shoppers as they entered as well as on one of our gift tables through Christmas. No complaints.  In fact, plenty of laughs – especially from older customers.

The coasters are part of a range of retro themed items which sold very well for us through Christmas.

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retail

Magnation lauded as a hero retailer

Business Victoria has recognised the work of magazine retailer Magnation in their exhibition of small business heroes. Magnation started in New Zealand, establishing several locations before moving to Australia – first to Melbourne and then to Sydney.  It’s a terrific business to browse, especially if you love magazines.

Talk to anyone at Magnation and they will tell you that they are passionate about magazine. This shows through.

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magazines