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

Officeworks does not have the lowest prices every day

You’ve heard the Officeworks ads, they run on high rotation on TV, they are in the newspapers regularly, then there are the flyers in the letterbox and, of course, billboards.  The all proclaim that Officeworks offers LOWEST PRICES EVERYDAY.

Officeworks does not have the lowest prices every day.  Not the way I see it at least.  They get away with this claim by publishing a price guarantee, that they will better the price of any item by 5%.  Their website says that their price checkers guarantee that they bring you the lowest prices possible every day.  Hmmm, their price checkers cannot be all that good.  The Officeworks price for a pack of four check tickets is $4.53.  These checkers employed by Officeworks would know that the vast majority of newsagents easily beat this price by 47%.  Check the responses from newsagents on what they charge for check tickets when I asked the question this past weekend.

Newsagents don’t just beat the Officeworks price on check tickets, we beat them on a range of items every day.  It is us who should be proclaiming the lowest prices every day.  Instead, we would rather complain about Officeworks and them get away with it.  Instead of complaining maybe we should fight.

It’s a bit like the carbon tax debate or the poker machine pre-commitment changes.  If you make enough noise with your spin, regardless of how distant from the facts it is, you soon get it into people’s heads that what you are saying is accurate, regardless of whether it is accurate.  Spin wins.

Officeworks does not offer the lowest prices every day.  What they do offer is to beat any price by 5%.  The shopper has to find the better price and provide it to Officeworks.  Officeworks does not pursue delivering the lowest price as a matter of course.

I clicked on the social responsibility link on the Officeworks website as I figured it would have something to say about their commitment.  It didn’t offer much of substance.  Sure it was nice words, but nothing relevant to what I would call social responsibility  Then clicked on the ethics link – expecting that would speak to their commitment to honesty and integrity.  It, too, lacked substance in my view.  The stand out paragraph on the ethics page for me is:

Maintaining a culture of integrity ensures that our team members always act in the best interest of our business and our shareholders.

There it is.  Shareholders come first.  As a public company this is as it must be.

I suspect that Officeworks knows that it does not offer the lowest prices every day.  If they don’t, they should know this.  I suspect that Officeworks does not regularly price check against outlets like newsagencies.  If they do they need to lift their game.

The out for them on Check Ticket prices is that we do not offer a four pack.  I’d reject that saying that we would sell four packs for, usually, $2.40.  Even though they are sold individually, it is reasonable to compare the price of four individual packs with a single four pack and they have it displayed.

I’d like to see the Consumer’s Association or some other body challenge the Officeworks LOWEST PRICES EVERYDAY claim.  They spend a ton of money on the claim so they ought to be prepared to be investigated to ensure that it is accurate wherever and whenever it is made.

In asking the price of check tickets I intended to write a blog post about the need for newsagents to proclaim that they have the LOWEST PRICES EVERYDAY. Based on prices I checked of everyday stationery lines, such a claim would be accurate.  I wanted to write that we should be proud of our price position and that as an entire channel we should make noise about this to combat what I consider to be misleading advertising by Officeworks.

But my attention was diverted by what I found at the Officeworks website and the realisation that truth does not matter for it is perception which sways shoppers. Officeworks has the money, marketing and advertising experts necessary to drive perception.

Australian newsagencies are not as expensive as shoppers think.  We need to find ways to push back on that perception.

0 likes
Ethics

Connecting with the AFL tribes

Newsagents in Victoria are making the most of this AFL week opportunity, especially given that we have two Victorian teams in the AFL Grand Final this Saturday.

At one of my newsagencies the team is using streamers on the display to connect with team colours in their promotion of the AFL Football Record.  This display is on a column facing out into the mall … it’s been working a treat, luring shoppers into the business.

What with the Grand Final days away, the Royal Melbourne Show on and school holidays under way, it’s like a carnival in some newsagencies here in Victoria this week.

0 likes
magazines

Terrific Time magazine cover

I love the cover of the latest issue of Time magazine.  It captures the challenges of the debt crisis which is challenging Germany, gripping Europe and, indeed, all financial markets globally.  It’s the kind of cover which needs to be seen in its entirety to be picked up by shoppers.  This is what we have done with our placement in our magazine display units.

0 likes
magazines

May be some disruption to blog posts

We have upgrading the technology which underpins this blog and this may disrupt posts and the look and feel of the blog over the next few days.  The software upgrade will provide enhanced blogging facilities which will make finding posts through Google and the like easier.  Thanks for your patience if things go awry for a day or two.

0 likes
About us

Publishers need to revisit newsagent communication

Magazine publishers often complain that newsagents don’t read the material they send out.  While this may be true, instead of complaining about lack of engagement publishers should explore other ways of getting the attention of newsagents.

There is a sameness to communications … often boring.  They tend to not respect that newsagents are time poor.  They are often unclear in their call to action.

What I want publishers to tell me is:

What is special about this issue? Tell me what I need to know to make more money.  If there is a newsagent only free gift, tell me.  If there is placement which will drive sales, tell me.  If there is a story which will be controversial, tell me.

Where should the magazine be situated? remind me of this in every communication.

Who are you targeting? Tell me.  I might look at the magazine and make a wrong assumption.  Be specific and don’t leave it to chance that I get it.Your information could drive engagement aimed at connecting with your target buyer.

How are you driving traffic to my newsagency? Let me know what you are doing to drive people to my shop looking for your title.  This will encourage me to engage with your marketing spend.

I am more likely take notice of material which helps me reflect my point of difference, as a magazine specialist, and helps me drive sales.  I urge magazine publishers to think about this when they are next preparing communication for newsagents.

In supermarkets publishers don’t have the luxury of this communication.   The best they can hope for is that a magazine is put into the pocket for which the publisher pays.  In newsagencies we have a more valuable and cost effective model for publishers – where local engagement can be encouraged through better communication.

The next time a magazine publisher representative complains that newsagents have not engaged, they ought to wonder if this was because of poor communication.

0 likes
magazine distribution

Vodka promotion brings Usher to GQ magazine

AdNews has reported that the next issue of GQ magazine will play a tune from Usher as readers turn the pages.  The magazine will come with headphones and a miniature stereo to play the song … all in pursuit of promoting a the limited edition Belvedere RED super premium vodka. now, if only there was a sampler of the Belvedere product with the magazine – that would be sublime.

The lack of vodka aside, this sounds like a terrific promotion.

0 likes
magazines

Offering the AFL Football Record doubles sales

mags-aflrec-2011.JPGWe have already doubled last year’s sales of the AFL Football Record – grand final edition.  In just one day, yesterday, we have doubled what we sold in five days last year.  We did this by offering it to customers across the counter, by promoting it with the display in the photo and with tactical placement next to the newspapers.  The excellent sales result is a testament to the wonderful support of our team in asking shoppers if they would like a copy – who said newsagents can’t get their team members engaging with shoppers abut products?!

The terrific result goes to show what we can achieve by leveraging the shopper traffic in our businesses.  The McDonald’s approach of would you like fries with that works when you run it with the right offer and the right time.yesterday, with two Victorian teams in the AFL grand final, the timing was perfect.

What makes the result even better is that we have made the sales and will bank the results close to four weeks ahead of when we have to pay for the stock.  I mention this to go on the record as indicating that there are times when the magazine distribution model works in our favour.

0 likes
magazines

Maxim cover up for supermarkets

mags-maximsuper.JPGIt may be that the cover of Maxim magazine was a bit much for supermarkets.  The photo shows a copy I saw at a Woolworths supermarket yesterday.  In addition to the issue being bagged to hold a razor, there is a paper sleeve wrapped around the cover to hide the semi-nakedness of Ruby Rose.  Click here to see the cover of the newsagent copy as I blogged yesterday.  I’d note that Maxim is not the only magazine supermarkets appear to like covered or bagged.

0 likes
magazines

Promoting Top Gear magazine

mags-topgearoct11.JPGWe are promoting the latest issue of Top Gear with this aisle end promotion facing the men’s area we have just created in-store.

This display is in addition to a half waterfall giving the full front cover of the magazine prominence in our magazine fixturing.

While the magazine is in a sealed package, there is enough information on the display to demonstrate the value.  We certainly offer to open a package for any shopper who wants to see for themselves what is inside.

0 likes
magazines

Does the Maxim cover go too far?

mags-maximcover.JPGA customer complained to me yesterday that the cover of Maxim magazine was pornographic and that we should not have it on open display.  He held his young son, probably around 8 years old, so he could not see the cover as he shared his feelings.

This is an example of there our magazine fixtures work against us.  In old wooden magazine fixtures two thirds of the cover would have been, well, covered.  Certainly the bit of the cover shot which offended my customer the most would have been out of sight.

I understand the concern expressed to me.  However, newsagencies are public spaces offering access to a diverse range of material.  We follow the law in terms of what we display.  I am not about to go beyond the law and unreasonably censor placement.

I;d be interested in what others here think – does the cover of Maxim go too far?

0 likes
Ethics

News Magazines trims back on MasterChef supply

mags-mc-oct11.JPGI am pleased that News Magazines has trimmed the supply of MasterChef magazine.  On our current supply we should hit a sell through of 75%.  For previous issues we were lucky to git a 20% sell through.  The cost of space and handling the returns made me look darkly on the magazine.  With the cut in supply I can focus more on building sales.

The Maggie Beer cover in the current issue is sure to help sales.  Maggie is widely loved and respected.  Any magazine with her on the cover sees a boost in sales.  I am planning on putting this issue at the counter later this week.

I do wonder if all recent giveaways and deep discount subscription offers have impacted the MasterChef sales.  All of these deals run the risk of devaluing the product in the minds of shoppers, especially when they have so many food titles from which to choose.

0 likes
magazines

Lindt chocolate does the trick for Delicious

mags-deliciouschoc.JPGWe have placed the latest issue of Delicious magazine so that the free block of Lindt chocolate which comes with the magazine can be easily seen.  This is the only way to handle such a valuable gift.  Newsagents and others who give this issue just one pocket because that ‘s what they always do are set to lose sales as a result.  This is a premium issue and it needs to be treated as such.  If we have stock left later this week we are planning on giving Delicious come counter time.

0 likes
magazines

Promoting value packed Girlfriend magazine

mags-gfoct11.JPGWe are promoting the latest issue of Girlfriend magazine with a high-profile in-location display as it comes with a quality free gift on the cover.  The display has only been up a few days and already it is working, sales have been good.  I expect we will sell out of this issue.  the key is placement so that the gift can be easily seen by browsers.  This is where the more modern magazine fixturing gives newsagents better merchandising options compared too the our of date wooden magazine fixtures.

0 likes
magazines

Featuring Gardening Australia

mags-gaoct11.JPGOur customers love Gardening Australia magazine so we make sure that it is easy to find when a new isssue comes out.  We give it space at the front of the gardening title section – so that the full cover can be seen.

I work on the principle that buyers of many monthly magazines rarely purchase every copy and that we as retailers have to help monthly titles.  We are able to display the full cover of 33% of all of our magazines.  We work hard to put titles in the spotlight which respond to this attention.  This means placement such that the full cover is easily seen – as is the case with the latest issue of Gardening Australia.  The photo shows exactly how the title looks in-store.

0 likes
magazines

Due diligence tips if you are buying a newsagency

My work with my newsagency software company, Tower Systems, sees me get involved in many change of newsagency ownership situations. Often, the involvement is sought to help get to the bottom of a dispute. If the purchaser undertook reasonable due diligence many of the disputes I see could have been avoided.

Here is my incomplete due diligence list. I say incomplete as it is what I suggest you do which is so often forgotten:

  • Use an accountant who is knowledgeable about newsagencies to audit the figures provided by the vendor.
  • Do not use the vendor’s solicitor or accountant.
  • Request sales reports direct from the software being used in the business – for comparison against the sales numbers in the P&L.
  • Request a list of customer accounts in a spreadsheet with customer name and purchases in the last year. Look for related party transactions and large customers and ensure that their value is secured.
  • Review roster sheets with claimed hours worked.
  • Request a full list of inventory sorted by when the item last sold. Pay attention to items which have not sold in the last year.
  • Consider having the stock take on settlement done using the computer system in the business – this is far better and more accurate than having a stock take done externally. It also leaves you with a valuable asset – accurate stock on hand data.
  • Request a list of all forward orders placed in the name of the business. This is especially important leading up to major seasons such as Christmas.

This list is by no means complete. I have listed items which tend to be overlooked.

There will be some newsagents who are not happy with me publishing this list. If you have nothing to hide then why worry? Transparency around a good business can only add value.

2 likes
buying a newsagency

If this is the experience of all classified advertisers

I was helping a friend manage their classified ads with a regional newspaper this week and wanted to search for one of their ads by content.  No, this was not possible.  I would have preferred to place the ad online, controlling the content myself.  No, this was not possible.   So, while the rest of the world embraces search and gets how important this is in business, this newspaper had to use some other, more arcane, method to find the ad.  The experience overall was awful, a real turn off for anyone wanting to advertise on the classified pages of this newspaper.

0 likes
Media disruption

UK newsagents set to act on Guardian margin cut

The Guardian newspaper in the UK this week increased the price of its weekday edition from £1 to £1.20 and cut its retailer margin at the same time from 25 per cent to 24 per cent.  This has resulted in understandable anger among newsagents as reported by the Press Gazette.  This is not the first newspaper margin cut in the UK this year.  Maybe it’s a (bad) sign of the times.

0 likes
Newsagency challenges

Excellent visual merchandising of 2012 diaries

diaries-2012.JPGClick on the image to see an excellent visual merchandising display of 2012 diaries created by the team at one of my newsagencies.  This display is different to our usual diary display.  Most newsagents prefer to stack diaries on the shelves.  This display embraces the colour and shapes of the products.  The result is a boost in browsing and this, of course, drives sales.  It’s an excellent display in my view and will help us drive better diary sales than last year.

The challenge for newsagents is to go beyond the usual in displaying products like diaries and being creative.  If you’re not sure what to do, ask someone – there are plenty of visual merchandising experts who can help.  The photo itself offers excellent ideas.

0 likes
Diaries

Promoting Wheels and car magazines

mags-wheelsoct11.JPGThe team at on of my stores is cleverly promoting our car magazine sections with this front of store Wheels magazine display.

While the display itself is terrific, it is their specially made sign at the bottom off the sign letting our shoppers know that we have more car magazines at the back off the store which I see as a really smart move.

We have to grab every opportunity available to us.

0 likes
magazines

The newsagent position re magazines is stronger

mags-overallsmall.jpgRecent (welcome) moves by Express Publications offering greater commission for all newsagents plus other commercial moves by some publishers reflect a shift in the newsagent / magazine publisher relationship. Publishers are demonstrating that they get the importance of our channel and are prepared to negotiate terms which reflect this.

While we have a way to go to achieve what supermarkets achieve with their various methods of compensation, the recent moves show that we are in a period of change, welcome change.

The newsagents best positioned to leverage the commercial benefits which could be available to us are those who manage their magazine department professionally and with great care from the top of the business down.

While I have noted here previously the challenges for magazine sales, they remain one of the most in not the most important product category in our stores.

Newsagents who leave managing magazines to a junior or unengaged employee do so at their own peril.

I obsess about magazines because I know that a good magazine department drives traffic and sales basket efficiency.

Publishers will treat newsagents differently. Those who engage are set to make more money than those who do not.

0 likes
magazines

Free newspapers causing difficulties for newsagents

I have heard stories from four newsagents this week where customers have complained that the newsagent wanted to charge for a newspaper which was free elsewhere. It is bound to happen given the growth in outlets where newspapers are given away: airports, gyms, coffee shops, supermarkets. All of these free newspapers are educating shoppers and newsagents are having to deal with this.

My view is that any supplier respecting their product would not give it away as freely as newspaper publishers appear to be prepared to do right now, especially not when they have retailers who rely on newspaper sales for their businesses and who support newspapers and newspaper promotions.

If publishers do not address this and respect retail newsagents there will be a clash.

The best solutions is that publishers stop giving away their product.

0 likes
Newsagency challenges

Promoting Cleo magazine

mags-cleosep2011.JPGClick on the image for a larger version of another stunning visual merchandising display by Renee.  This time it’s her selection of backing colours which have helped make this display promoting Cleo stand out at the front of our newsagency.  Good displays need to get people to turn their heads, stop and engage with the product on offer.  This display does that thanks more to how Renee is supporting thee collateral provided by ACP Magazines as well as the magazine itself.  Be sure to click on the image.

0 likes
magazines

Fun gift products help make shopping more enjoyable

gift-hypo.JPGAs I blogged recently, we have been having some fun with a range of ‘pills’ like this one.  While it looks like a pill, it is actually a 10cm long foam stress ball – for the hypochondriac.  Shoppers laugh when they get what the product is.  Some then proceed to list who it would be ideal for.

Sales have been good – from a very simple hang sell display on a gift table facing into the shopping mall.

I like this type of product because it offers an unexpectedly enjoyable experience to most who notice it.  It is bound to help drive good word of mouth for our business too.  Plus, it broadens our range of gifts.

Gifts can mean so many things from the high end item for the home through to this simple and inexpensive stress ball.

0 likes
Gifts

Express Publications reacts to tough magazine conditions

The continuing decline in overall magazine sales has led to another publisher responding in an effort to get the attention of newsagents. Express Publications last week announced better margin and a reduced on-sale period for their titles in newsagencies. The move will see newsagents achieve 30% margin for some Express titles and 32.5% for other titles. This is a significant move from the usual 25% margin for magazines.

While I welcome the move, Express has not addressed the issue of bagged magazines (and the high retail space cost they represent), the expense of full copy returns or the desire among newsagents for a fair sell through target.

I would like Express to reduce their reliance on bagged product, eliminate full copy returns and set a minimum target sell through rate of 60% with a payment to newsagents if a title does not achieve the target.

Express could reasonably respond that they cannot afford to make these extra moves. The challenge is that newsagents cannot continue to carry the cost of full copy returns or a sell through rate of less than 60%.

Express also announced the new position of Director of Circulation. They devalued this good news by hiding contact behind a generic email address. Any company serious about customer service makes access to a real and named person easy by publishing direct contact numbers and a direct contact email address.  This could be easily fixed.

If Express made contact easier and more personal and addressed the other points I have noted they would win wild applause and support newsagents. They could expect their titles to receive special treatment and greater sales as a result.

0 likes
magazine subscriptions
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011