I was disappointed to see this fax sent to hairdresser recently, offering current issues of some Australian magazines free of charge on a trial basis. After the free trial, hair salons are offered the titles at what appears to be a 90% discount. Click on the image to see the detail of an offer sent to one hair salon last week. The offer is being made by International Publishing Group.
For years in my own newsagencies, hair salons have been valued and valuable customers. Not sub agents, but full price customers which we service with our Magazine Club Card, in-store accounts and other benefits. In one of my newsagencies, one hair salon accounts for at least $400 in magazine sales a month. Add to that around $600 in other business (stationery, lotteries etc) and you can see the sales at risk.
I can’t compete with this 90% discount. If one of my salons was offered this I am certain they would take it. This could cut their visits to my newsagency. Magazines are vital glue, our range and the account are a real point of difference. Without magazines they could purchase their other items elsewhere.
I was shocked to discover this promotion and that it is being offered without in-advance discussion with newsagents. I plan to discretely inquire as to if this offer has been made to salons I deal with and if so I will try and ensure that the offer is not available to them.
Newsagencies are finely balanced businesses made up of many parts which rely on each other to make the whole successful. Even a small move like this could have considerable implications. We need to resist every move which chips away at our business.
This magazine move, on top of recent newspaper moves which compete with our over the counter sales, challenge how consumers view and interact with our businesses. We need to fight for our position.