We have both Time magazine and the re-issue of Rolling Stone with Steve Jobs on the cover at the counter, above our newspapers, this weekend.
This tactical placement is in addition to promotion elsewhere in the newsagency. There is no doubt we see a different mix of customers on the weekend, like in most shopping centres. This mix of shoppers is more likely to purchase these magazines because of their Steve Jobs coverage.
We are promoting the Christmas issue of Better Homes and Gardens with this in-location display in one of my newsagencies.
In addition to this terrific display, we also have the magazine in a stand facing into the mall and with newspapers – making the most of the launch week interest and leveraging the TV show from Friday night.
All the activity is working a treat, sales of BHG are excellent.
Check out the call John Emmery from Riverstone News has put out to newsagents re one way for newsagents to approach the issue of over supply:
We’ve tried all sorts of strategies over the years to incentivise distributers to reduce over-supply of mags.
Here’s a (serious) idea. Please let me know what you think…
Send me your best example of over-supply for the month with the history. Here’s mine for example…
Business for Sale ( code 25020 – NET)
V11#66 20/5/09 rec’d 18, returned 9
V11#67 28/10/09 recd’d 19 returned 11
V11#68 28/4/10 rec’d 20 returned 12
V11 #69 15/10/10 rec’d 26 returned 21
V11 #70 29/4/11 rec’d 26 returned 22
V11#71 14/10/11 rec’d 27
I will select the best example of over-supply, publish on this address, then send it by post with a lemon to the General Manager of the PUBLISHER.
What do you think?
The only stipulation is that is must be a magazine you’re received in the current month – no ancient history, please.
John Emmery. Riverstone News. 0423 529 041
p.s. You might say that poor Network took over the above title from NDD and that some of the over supply was NDD’s fault. True, but they obviously took over the supply history too, otherwise my supply would have changed radically. So why did they ignore the returns data?
The magazine supply model is complex, way more complex than it ought to be. There is no doubt that for many titles we are not supplied solely based on sales history. Other factors can come into play including publisher action and distributor / publisher contracts.
The most success I have seen recently, as I have blogged here, has been as a result of direct contact with publishers.
With newspaper publishers taking on more direct home delivery services as a result of these being given up by newsagents, publishers are getting a better understanding of the economics of operating a home delivery service.
I wonder what the accountants in their organisations tell them about providing the service for the direct overprice and delivery fee revenue involved.
We are promoting the latest issue of Dolly magazine with this in-location display. Emma Stone is in a movie which recently came out recently, The Help, so her placement on the cover is perfectly timed. It’s a cover which could / should drive incremental business for us – hence the high profile placement.
It’s important for us to understand cover subjects and why they may help drive incremental business for us. Time is a challenge of course. This is where we can engage our team members. Younger employees will know Emma Stone and why having her on the cover is good.
Check out the retail theatre created for Halloween at one of my newsagencies. It’s shocking, in a nice way, and driving excellent sales. Thanks to such a brilliant display we are competing with the cheap shops nearby who claim to sell on price but actually charge more for their products. This display makes shopping with us for Halloween products more appealing. This counters concerns over price – not that there should be any based on our price comparisons.
I love that the display is unlike what you would expect to see at the front of a newsagency.
I will be speaking at the Publisher’s Australia conference next month and have planned the following topic.
The future of the Australian newsagency channel
A health check on the newsagency channel and tips on how publishers can more successfully engage with newsagents to sell more magazines and drive the value of this channel for your Australian titles.
This is a good time to be engaging with Australian publishers and I hope to show more how they can engage with us as a genuine value proposition compared to other retailers.
I feel for a newsagent who supplies newspapers to a local supermarket as a sub agent only to have them give them away to shoppers who spend $5.00 or more in what is not a long-term marketing campaign.
The campaign has reduced the number of shoppers visiting the newsagency for their morning newspaper. There is a knock-on effect on sales in other categories.
The newsagent is powerless to refuse to supply to their sub agent, competition laws being what they are.
It is hard to see a cost-effective campaign the newsagent could offer to compete given the limited range of day to day basic needs a typical newsagency sells.
As some newsagents have recently discovered, getting what is offered in the pre-sales process in writing is essential. The amazing deal turned out to not be so amazing when they discovered that they had to pay a compulsory annual fee just to use the software and maintain access to their own business data.
Sales people who are reluctant to document what they offer should be treated as you would an employee who does not want you to put in a security system or who does not want to use employee codes when transacting a sale.
There is one deal I heard of recently offering a complete system for less than the cost price of hardware and manpower offered. The only upside a software company can leverage from such an arrangement is to charge more in the future for support or access to the software. This often makes the great deal more expensive than other offers when considered over several years.
Check out the display created for promoting the Christmas issue of Better Homes and Gardens at one of my newsagencies. I love what the team has done with the collateral from Pacific Magazines, connecting with the Christmas theme for this display in a high traffic location – and making it easy for shoppers to browse and purchase the magazine title.
This issue of BHG is a top seller, getting out bold for this first weekend is vital. I’d urge newsagents to go and check their placement of the title. Make sure you have it in at least one more high traffic location in addition to the usual location for the title. The first seven days are when you can drive easier impulse business.
I am surprised by how many companies are offering screen based advertising solutions to newsagents. I have looked at some and decided for the moment that this medium is not for me.
My preference is to have control and certainty over everything promoted in my newsagency.
I am also not keen on taking on an advertising platform which takes me and my team away from the core business of retail.
The operating system and other changes from Apple this week have made purchasing magazines from the Apple store in the US easier reports PaidContent. These software changes accompanies by continuous hardware changes facilitate the growth of the digital distribution channel.
I am grateful to Hank Spier for chasing the following notes with me on the issue of the EFTPOS fee increase engineered y ePAL, the body controlled by the major banks plus Coles and Woolworths.
In February 2011 EPAL announced a new multilateral interchange fee regime to replace the existing bilateral arrangements. EPAL is made up of the banks and Coles and Woolworths. EPAL’s reasons for the changes is to get additional moneys for technology upgrade of the Eftpos network.
For those members of EPAL which opt into the new multilateral interchange fee model, the following fees will apply to the banks involved in an Eftpos transaction,
- for all purchases of less than $15 (where no cash is withdrawn) there will be no interchange fee.
- for all purchases of $15 and over, there is a fee of $0.05;
- for each cash withdrawal (whether combined with a purchase or not) there will be a fee of $0.15.
The effect of the new regime is where there is a purchase of $15 or more, combined with a cash withdrawal there will be a fee of 10 cents. To add to the cost impact fees of 4-5 cents rebate previously paid to the merchant’s bank has been abolished.
Normally such agreement between competitors will be subject to ACCC scrutiny but in this case the ACCC has not jurisdiction as the Reserve Bank has the regulatory role. The RBA has been generally supportive of the fee changes. The Federal Government has refused to get involved despite requests from small business.
There was much opposition to the changes from small business especially from the AHA and newsagents associations. ALDI took EPAL to the Federal Court alleging misleading conduct, namely that EPAL had been saying that it is unlikely that consumers would pay any more. The emerging facts were very different. ALDI won on 29 September. EPAL will have to place corrective advertisements in the national press. The AHA and newsagents associations assisted in the ALDI action.
The new fee regime came into effect on 1 October. It is up to individual banks what they do in relation to passing on costs to retailers. As a result of the opposition and the ALDI case two banks have backed off, the CBA has promised not to pass on the increased costs to retailers and NAB will limit the costs to be passed onto small businesses. St George has said that it will pass on increased costs.
Where banks do charge it is up to business to assess whether or not they pass on the costs to consumers, if they can.
Where the banks do pass on costs I suggest that,
- business approach their bank to see if something can be done about the increase,
- Trade associations look at collectively bargaining with those banks on behalf of businesses affected.
The individual fee increase involved is not high but will add up in high transaction volume businesses
While some banks have said that they will not increase fees, I don’t see this as their long term position. They are banks after all.
I’d encourage newsagents to take Hank’s advice.
At Page One at Hong Kong airports a couple of days ago I noticed this display of magazines. The stack is so high and each magazine bulging because of the free gift included between the pages of the magazine.
Each magazine was wrapped separately to facilitate easy stacking – essential in a high volume business like this where each title has its defined space and cannot go beyond it and where their will not tolerate having to clean up junk which falls out of titles.
Of course, in high traffic transit locations shoppers don’t spend the time browsing titles that we would experience in newsagencies back in Australia. While I complain from time to time abut the space magazines with free gifts can take to display, being able to show off the gift can deliver a far better sales outcome for us.
This counter unit display of bean bags is proving to be a winner leading into Halloween. It’s a low cost nice impulse purchase opportunity. I like it because it connects the sales counter with the bigger Halloween offer elsewhere in store. On weekend especially when parents are accompanied by kids these things move nicely.
We track the efficiency of our counter space, leveraging every opportunity possible to deepen the basket and deliver the best commercial outcome for us.
Just as the iPod released the single song from the album, so is the iPhone, Kindle, Nook, iPad and other devices releasing the single article or topic from the magazine. Check out the report published yesterday at PaidContent on E-Singles at magazine publisher Hearst in the US.
When I first wrote at this blog about tablets years ago, back when some in the newsagency channel said that they would not affect print, I said that the single article or single topic item for purchase will revolutionise the purchasing of content. Now, thanks to Hearst and others, we get to see if this is the case.
Until now E-Singles have primarily been the domain of book and similar content publishers. The Hearst move drives legitimacy for the format. I’m told the some newspaper publishers are playing in this space too.
What does this mean for newsagents? Simple, it means we have to work harder to attract and keep our shoppers. It also means that we need other products and services to attract shoppers to our businesses. This latest E-Singles move intensifies the challenges (I’d call them opportunities) we face.
Kudos to ACP Magazines for turning around a tribute to Steve Jobs in a reprint of Rolling Stone magazine to go on sale this Friday. Promoted properly, this issue should sell out, especially in newsagencies where we are positioned to treat this as the special edition that it is.
Click here to see the Rolling Stone Steve Jobs Consumer Flyer from ACP. I love the place left for the newsagency stamp. Smart newsagents will have this on their counter already.
I was at the newly opened (just this past week) Apple store in Hong Kong at the weekend and was surprised to see the make-shift shrine created by Apple fans in honour of Steve Jobs. Click on the photo to see what I saw in detail. What the photo does not show is the constant stream of 40 or 50 people standing in silence, some taking photos.
I passed the new Apple store at the IFC Centre several times over two days on the weekend and every time it was busy in front of this wall of messages.
Apple users and non Apple users are fascinated with Steve Jobs. This issue of Rolling Stone will become a collectors item for these people. I’m already chasing extra stock.
On the back of excellent sales for the first issue of Smith Journal, thanks in part to good support from some newsagents, Smith Journal from Morrison Media is to go quarterly from next year. Check out the announcement from Morrison Media on this.
Our sales for this title have been excellent. Even at this early stage it looks like another frankie and our magazine sales can sure use that.
We have been promoting the latest issue of Home Beautiful magazine with this terrific feature display at one of our aisle ends – leading into the aisle with the title on display. We also have the title in an excellent location in the aisle, giving shoppers in this space at least two views of the title while in the store.
It’s good to see the long form poster … anything to break from the usual when it comes to magazine collateral.
The ad I noticed on yesterday’s copy of The Asian Wall Street Journal was done in a way which is okay. While it did cover editorial, it was not stuck on. On the side it was stuck but no adhesive on editorial content. The ad was easily flipped across.
Also, there was a perforation at the glue line making removing the ad a dream. The other aspect of this ad placement was that it did not interfere with the masthead.
While I remain unhappy with ads which block access to headlines, what I saw on The Asian Wall Street Journal better than what I see in Australia.
Magazine publishers are engaging with newsagents this year more so than ever before. Positive changes at Universal Magazines early this year and changes at Express over the last few weeks are two examples of publisher engagement which is benefiting newsagents.
Morrison Media, United Media and some other smaller publishing companies are also engaging in a more proactive and commercial way with newsagents.
It is terrific to see these changes.
The challenge is where publishers do not engage directly and they leave it up to the distributors to completely manage the relationship. This usually does not work for newsagents. Overseas titles is an area of particular concern.
Once Australian publishers settle into their new level of engagement with newsagents, it would be in their interests and ours for them to work on the issue of overseas titles from distributors. We continue to receive too much junk, titles with sell through rates consistently at 50% or less. Anything less than 60% and many of us are losing money.
Tighter newsagent / publisher relationships can be leveraged to fix other parts of the distribution problem.
We are promoting the latest issue of Feast magazine with this feature display on a column facing onto the dance floor of the newsagency.
Feast continues to perform well for us … it’s a welcome addition to the food segment of magazines even though it is not a traditional food title.
We are also supporting the title with promotion at the front of the newsagency facing into the mall as well as placement in the food section.
I love the poster they have provided for promoting this title, it’s different (or at least feels different) to what you usually see for a magazine … less noisy and an effective call to action with the on sale now tab.
We are promoting the latest issue of Men’s Health magazine with this aisle end display. This is one of the titles to benefit from our magazine relay, lifting sales now that it is in a better and more logical location for the Men’s Health shopper.
This aisle end is seen by most shoppers entering the store. It sits between magazines and stationery and will be seen by guys as they walk to our new men;s department and by girls who are equally likely to buy the title for their guy.
Fashion magazines are going through the roof following our recent relay. We are giving the latest issue of In Style magazine terrific treatment with this in location display. It’s the only magazine being promoted this way in the women’s magazine aisle at the moment so it is highly visible to all who enter the space.
Titles we have promoted this way in this aisle since the relay have sold out or come very close to selling our. I’d expect this issue of In Style to do the same for us.
If you are tenant, in a shopping centre or not, it is vital that you keep your landlord appraised on what you re doing as a retailer which adds value to their centre.
Shopping Centre landlords are especially selfish and only care about the value of their property. This is why it is essential that you share every good story you have. Here are some suggestions for landlord communication, there are items newsagents ought to send to Centre Management:
The more you communicate with your landlord about what you are doing in your newsagency the more valuable a body of evidence they will have should they be approached by another party to open a newsagency or take over your tenancy in the centre.
Banging your own drum to your landlord is a smart and vital move for any newsagent.
Some newsagents I have discussed these and related ideas with have expressed concern that they should not have to go after their landlord in this way. The reality is that you do, it is vital to achieving better positioning when it comes time to discuss a new lease. A proactive retailer is more valuable to a landlord. Some landlords will not for themselves how proactive a retailer is.
We are accountable for the perception our landlords have of us.