The changing world (part 2)
Check out the video at All Things Digital of a discussion with Peter Chernin, former President of News Corp. While he talks mainly about TV, its pursuit of change which is worth hearing about.
The changing world
The reports overnight about the first feature film to be shot entirely on a smartphone show how rapidly our world is changing and how powerful these phones in our hands have become. Check out the YouTube footage showing how it was done.
Marie Claire focuses on female depression
It is terrific to see that the latest issue of Marie Claire focuses on the issue of mental health among women.
The Shine a Light initiative by Pacific Magazines is timely and demonstrates a commitment to social responsibility. Newsagents can tap into this by promoting the current issue of Marie Claire. I’d urge newsagents to click on the Shine a Light link to read more about the campaign – it could help in promoting the magazine as well as understanding the issue.
Click here for a copy of the announcement from Seven West Media.
The special feature and the Shine a Light campaign gives us a good reason for promoting this issue … giving it a high profile in our businesses.
Rugby League Week tribute to Artie Beetson
ACP has announced a special tribute to Artie Beetson following his passing earlier this week. The Rugby League Week produced tribute magazine (100 pages), ARTHUR BEETSON: THE GREAT MAN REMEMBERED, will honour this legend of rugby league. It will be on sale Monday in NSW.
Here is more information from ACP:
League legend, inspiration to indigenous Australians, all-round great bloke.
Rugby League Week celebrates the life and times of an icon with a beautifully produced 100-page tribute magazine.
On sale a matter of days after his passing, this must-have title will be highly sought after by fans of this legendary personality as well as League followers everywhere.
Utilising the extensive archives of Rugby League Week, ARTHUR BEETSON: THE GREAT MAN REMEMBERED is a quality publication that takes readers from Arthur as a young man to his times at Balmain, Eastern Suburbs, Parramatta and, unforgettably, as captain of the Queensland Maroons in the inaugural State of Origin match.
Written by people who knew him intimately this special one shot priced at a competitive $7.95 is poised to be a keepsake item.
This is a title to place next to newspapers as well as at the counter – especially in NSW and QLD. On sale dates are as follows:
- NSW – Mon 5th Dec
- QLD – Wed 7th Dec
- VIC, SA – Fri 9th Dec
- WA – Mon 12th Dec
Newsagents can respond better to this opportunity than other magazine retailers.
EMG adjusts magazine distribution changes
EMG has written to newsagents today with an update on recently implemented magazine distribution changes. The update explains why they have had to adjust their changes, in response to shopper and newsagent behaviour.
The biggest change is that EMG bi-monthly and one-shot titles will have a maximum on sale period of 8 weeks. No title will be on sale for longer than 8 weeks and we will still, where possible, schedule on sale dates for the first two weeks of the month.
In talking with EMG prior to finalising these adjustments, I felt they had no choice.
It is disappointing that the EMG experiment of increased margin, tops only returns and shorter on-sale period has not, yet, led to newsagents reducing sales-damaging early returns.
Click here for a copy of the EMG announcement to newsagents.
Should the newspaper industry receive government subsidies?
AdNews approached me a couple of weeks to contribute to their Mouth Off section, responding to the question Should the newspaper industry receive government subsidies? You can access part of the report online here.
Here is the full text of my contribution:
The newspaper industry should live or die by commercial performance. It’s business after all. If you protect them with a subsidy then what about retailers who sell newspapers, would you protect them selling a low margin product? I suspect not – and I’d agree with that.
I doubt that paying newspapers a subsidy would result in better journalism. It is the journalism profession which needs support and not one of the mediums through which journalists publish their work.
What is it we really want? For me it is fearless honest professional reporting. I see that more from mediums outside print and away from sites and Apps connected with newspapers.
With all their freebies, promotions and beat up front page stories, too many newspapers today are less news. There is no sense is subsidising a medium so its proprietor can run a political agenda. One only has to look at the poor quality work in Victoria recently leading to the resignation of the Commissioner of Police to wonder about journalism.
I am against government subsidies across the board as they cloud business decisions and make for an uncompetitive playing field. Just look at the government handout to the TV networks – unwarranted.
Christmas delivery plans from Network Services
Network Services is advising newsagents of delivery changes due to Christmas falling on a Sunday. Everywhere except far north Queensland, NT, TAS, the usual Monday deliveries will be made on Friday December 23. They are to be put out on Monday. Queensland, NT, TAS will receive deliveries on Wednesday 28. Click here for the notice.
Promoting Christmas to shoppers as they leave
Here is the rear of the Christmas display facing into the mall. As much care was taken with this back of the display as the front … so that we can promote to shoppers as they leave. Too often retailers forget to promote to shoppers as they leave. I have seen a good display work a treat, getting shoppers to stop, browse and purchase instead of just leaving the business.
I’d note that this shop is small by newsagency standards, under 140 sq metres. This means we have little room for big displays. Instead, we focus on these practical, product based, displays. Our sales numbers are good so the choice is working for us.
Refreshed Christmas display
The team has refreshed the Christmas display at one of my newsagencies with this display now facing into the shopping mall. The goal here is to connect with the catalogue flyer which has bee distributed and to tap into the TV campaign. We had some expert visual merchandising help with this display … guiding us on product adjacencies as well as presenting key brands in a bold and attractive way.
As I have mentioned here already, Christmas is in full swing from what I can see. I hope it is working in newsagencies right across the country.
Employee theft caught early in our newsagency
Thanks to the efforts of a team leader in one of my newsagency businesses this week we uncovered an employee theft situation early, before it cost us too much. The employee had only been with us for a few weeks. We were lucky to have security camera footage and accompanying newsagency software data to prove the theft.
Any newsagents in Victoria who are approached by someone with newsagency experience looking for work is welcome to call me on 0418 321 338 for a reference check.
I wish we could operate a do not hire register … It would save our channel thousands of dollars a month.
Catching the theft in this instance was assisted by secret tracking tools we use.
Newsagents who do not take care in balancing cash daily, who are lazy with their use of their newsagency software, who do not have a theft policy or who do not act on suspicious invite theft and the consequences which it wreaks on their business.
Getting out of Christina Re products
We have sold Christina Re products in one or more of my newsagencies for a few years. I have decided to bring this association to an end for several reasons – they have become less flexible, they are now in Officeworks and there are better value products for the newsagency shopper.
Suppliers who want to grow sales in the newsagency channel need to understand the typical newsagency shopper and the needs of the newsagency business. They also need to support us and drive traffic to our businesses. Suppliers who do this thrive. Those who don’t fail to reach their potential.
Placing products in the newsagency channel and expecting to leverage traffic generated by other products is not helpful or respectful to our businesses.
Our businesses generate considerable traffic based on four key factors:
- Greeting card range.
- Magazine range.
- Lottery products.
- Newspapers.
Smart suppliers understand the shoppers who enter our businesses for these four key product categories. They provide products which appeal to these shoppers. The provide newsagents with margins which compliment the margins of the four key product categories.
I am not suggesting that Christina Re failed on these fronts. My sense is that they never really understood the needs and opportunities of the newsagency channel. That said, I am sure that others will disagree as I know of newsagents who enjoy terrific success from their products.
Ah, cats, dogs and cupcakes
We are promoting our selection of cat, dog, cupcake and retro desk calendars with this display display facing out into the mall. It will work. Anything with a cute cat or dog works a treat, as does anything featuring a tasty looking cupcake. We are giving the retro desk calendar a shot in this location too because retro products have done so well in 2011.
Our calendar sales are up more than 100% on the same period last year. This is despite some tough competition in our shopping centre. Range and location in-store are the keys to our sales success with calendars.
Promoting Top Gear and the free calendar
We are promoting the latest Top Gear magazine and the free calendar which comes with it with this aisle end display.
It’s been a tough year for Top Gear and car magazines generally. I expect sales of this issue to be good with plenty of shoppers purchasing it as a stocking stuffer for dad or a son or as a gift for a friend. It’s what we saw for Father’s Day for this and other car magazines.
We are also supporting the title with excellent positioning in among our motoring magazine titles.
Monocle features magazines, media and newsagents
The latest issue of Monocle magazine to hit Australian shelves features a bunch of stories on media which regulars here are sure to find interesting.
There is a timely story about a newsagent in Denmark who responded to falling magazine sales by increasing range. I say timely because many Australian newsagents are heading in the other direction, cutting range – or at least trying to given the constraints of our magazine distribution model.
Newsagents need to be careful in reducing magazine range for it is our magazine range which gives many of us the only point of difference we have. It could be that an ill-considered or too large a reduction in magazine range results in a slide in sales – driving a self-fulfilling prophecy.
One of the reasons I am seeing a 44% increase in magazine sales year on year in one of my newsagencies is the increase in range. This has been done slowly and carefully – by interest. It then fed into our overall magazine relay which boosted sales.
Newsagents who try and manage magazine range by early returning without carefully checking sales history also feed a self-fulfilling prophecy and push sales down.
If we are to leverage the point of difference we have in magazine range we need to be professional in how we nurture and manage the range. This means making fact based decisions. Yes, I understand that magazine distributors challenge this approach. We just have to work with the levers available to us at this time.
If you have the October issue of Monocle magazine on your shelves, check it out. It will interest the thinking newsagent.
As the photo shows, we have placed Monocle in a good locations with the full cover is on show.
Gossipy supplier reps should shut up
The newsagent supplier representatives who spread gossip as they go from newsagency to newsagency discredit their employers, those they gossip about and newsagents more broadly.
I heard of gossip last week that was not based in fact and was spread for the purpose of personal profit, with no regard to the reputations of those who were the topic of the gossip.
While I am sure that suppliers tell their field force to not gossip, it goes on and damage is done.
Those most often guilty of gossiping are those who visit newsagencies in a regular cycle and thereby develop a deeper relationship with newsagents and their staff. Through their weekly cycle, gossip can spread like a virus.
For what it’s worth, the best response when a supplier representative says something about another supplier or a person is to ask them to prove it. Of course, this is often not done because people do enjoy a bit of gossip … unfortunately.
Amazing International Herald Tribune deal
For under $5 a week, people in selected Asian countries can have the International Herald Tribune home delivered for under $5 a week and get full digital access to the the IHT as well as full digital access to sister masthead The New York Times. In checking this out I went online and found an even better offer for travellers – full access to IHT and NYT for 99 cents for four weeks. Talk about migrating print customers online.
When I think about it, it’s what I would do if I were a publisher and thought I could achieve a more economic model from digital subscribers.
Tapping into media coverage for Gardening Australia
The Indira Naidoo cover story is the current issue of Gardening Australia has encouraged us to give the title more time in the spotlight. Indira has been on the radio promoting her new book and this has been indirectly promoting the magazine. Her passion for balcony gardening is the subject of the cover story – and the book.
I’d encourage newsagents to place Gardening Australia in a high-traffic position, to leverage the recent media coverage.
Leveraging Twilight interest for TV Week
We are promoting TV Week this week with this display on our highest profile magazine aisle end. The free Twilight calendar is out at the right time – timed with the release of the new movie. This helps us attract a younger shopper – given the target audience for all things Twilight.
We are also supporting TV Week with excellent placement in its usual location and placement in an impulse display unit.
Will magazine publishers declare when images are photoshopped?
The Daily Mail in the UK had a report about software which can detect if an image has been re-touched. I’d like to see something like this used for all images in newspapers and magazines. It’s time to build trust with readers in my view.
US publisher moves on e-singles
Newsagents should check out the report at Paid Content about a move on the e-single format by Hachette and Bloomberg Businessweek. As e-singles evolve we will see more and more content sold as single stories or small collections of stories. This is a move which disrupts print.
Too many copies of The Puzzle Wizard World of Crosswords
Further to my post yesterday documenting a case of magazine oversupply, here is another example – for The Puzzle Wizard World of Crosswords. As the data in the photo from my newsagency software shows, sales have been volatile. However, not sufficiently volatile to justify an increase from fourteen copies to seventeen as has just happened.
Click on the image for a much larger version.
I can’t see any justification in our net sales for the supply of three additional copies. Sure we sold out of 12 copies for the February issue but this was a once off. The two issues immediately prior sold six and nine copies respectively. The two issues after the sell out of twelve copies sold eight and nine copies respectively.
So, why the increase from fourteen copies to seventeen.
If the justification from Gordon and Gotch is that this is what their allocations system determined then they need a better system. If it is because they had to allocated the stock supplied by the publisher somewhere then their system is broken. If it is because an allocations staff member decided we could sell the stock then they need re-education.
It offends me that a company with no financial risk in my business can spend my money in this way.
Is what has happened here with The Puzzle Wizard World of Crosswords an example of oversupply of magazines? I think so. Take a close look at the data and see what you think.
The best way magazine distributors can respond to this type of blog post is to change their behaviour.
M2 magazine discounts by 71%
Speaking of Groupon (see previous post), the publishers of M2 magazine offered the title at 71% off cover price plus with a $100 grooming pack. The deal, at Spreets, closed last night.
This is the level of discount we usually see from a US magazine publisher. I hope we don’t see more publishers making moves like this in Australia even if they are only one off.
US Newspapers play Groupon at their own game
AdWeek in the US has a report about some newspaper publishers playing catch-up with Groupon and announcing a shopper discount site.
Eight publishing and media companies are launching the common digital shopping platform, called Find n Save. The eight are Advance Digital, A.H. Belo, Cox Media Group, Gannett, Hearst Corp., MediaNews Group, McClatchy, and The Washington Post Co.
The consortium, set to be announced today, is expected to roll out Find n Save’s online ad products across its members’ 200-plus newspapers, including The Dallas Morning News, Arizona Republic, and The Miami Herald.
With Groupon taking more advertising revenue from traditional media outlets it was only a matter of time before we saw media companies in a copy-cat move.
My concern about Groupon and all these other models promoting steep discounts on products and services is that it will ultimately kill businesses as shoppers leave to never pay full price.
Newsagents are somewhat lucky in that much of what we sell is ‘fixed’ price.
Promoting Christmas cooking magazines
We have put together a simple display promoting magazines which feature Christmas cooking recipes. Located right in the middle of the food magazine section of our magazine department, this display will be regularly adjusted to give each of the Australian titles time at the front – with the full face display.
By displaying magazines with a Christmas cooking theme next to each other we are guiding customers to purchase two or more at a time – that’s our goal at least.
Jingle – a hit product for Christmas
Check out the TVC from Hallmark for their interactive Jingle product. It shows how the book and the dog interact.
Grandparents especially love this product. The TVC started at the weekend on Seven and Nine.