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

Topical book sale opportunity

egyptearthquakq.JPGOur latest Book Sale, which started last week, is presenting several topical promotion opportunities.  We have selected two books for promotion at the sales counter – to leverage their connection with current topics of wide interest.

Earth Moves is about earthquakes and volcanoes – topics much in the news in recent weeks.  TUTANKHAMUN is in the news here in Victoria because of the exhibition currently on at the State Museum.

Both titles should perform well at the counter.  Once they move, we have more in the book sale ready for this premium co-location treatment.  This current book sale is only a few days old and it is already working a treat – driving traffic as well as extending the average basket size.

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Book retailing

Reusing the I Love Magazines stand

bdaycakebook.JPGWe are reusing the I Love Magazines stand from ACP to promote the classic Children’s Birthday Cake Cookbook out the front of one of my newsagencies, facing into the shopping mall.

Space in the store is at a premium thanks to Easter, Mother’s Day a book sale and various other activities.  So, our display space for this good selling cookbook was needed for other products.

The I Love Magazines stand is strong and we will get use from it for several months yet. We will choose ACP titles which will deliver good impulse business and thereby justify the premium location of the stand.

No sooner had we set this display up yesterday and there were two groups of customers browsing the title – they had approached the stand from outside the store.  It is this traffic pulling which I am looking for from the stand and the titles I select for it.

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magazines

Alternative gift?

alt-gift.JPGCheck out the sticker on the bag containing Cardmaking and Papercraft.  This was stuck on all copies we received.  I am curious about what Alternative Gift means.  I take it to mean – hey, consider buying this magazine as a gift.  If that is the case then the sticker is poor quality for the purpose.

If anyone else has ideas as to what the text on the sticker could mean I appreciate hearing them.

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magazines

Check out The Conversation, a new news site

Newsagents should check out The Conversation, a new news and analysis site headed by Andrew Jaspan, the former editor of The Age newspaper.  For people interested in analysis of news and who want fact bases reporting and analysis (as opposed to dog whistle and shrill ‘reporting’), it is well worth a look.  Check out the story about RED Group (Borders and Angus and Robertson).  Oh, and check out their report on new media versus old media – there are messages in the store for newsagents.

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Media disruption

Not a smart promotion Gold Coast Bulletin

goldcoastbulletin.jpgThe Gold Coast Bulletin is running a subscription campaign which offers a free six month magazine subscription to new home delivery subscribers.  Newsagents will see this as a double hit, taking newspaper and magazine buyers out of their retail stores.  With retail infrastructure being so expensive, newsagents want to attract traffic, not push it away.

I wish newspaper publishers would invest as much effort in promoting retail sales in newsagencies as they do in chasing loss leading home delivery business.

Related … the challenge for newsagents with home delivery is that they cannot control their prices and have very limited control over costs.  Subscription deals can be expensive to fulfill.

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Newsagency challenges

Trying another magazine counter offer

mag-propinvest.JPGWe are promoting the Australian Property Investor at the counter to attract impulse purchases.  We chose the title because of a cover with good visual cut through and an appealing headline: HOW TO INVEST ON A LOW INCOME.  We figured that by placing this near newspapers at the counter we could expect to attract buyers who would not usually purchase this title.  This is the same location we used successfully recently to promote The Monthly.

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magazines

Retail inquiry opportunity for newsagents

The Productivity Commission inquiry into the Economic Structure and Performance of the Australian Retail Industry is under way.  This will look into:

  • current structure, performance and efficiency of the retail sector
  • drivers of structural change in the retail industry
  • broader issues contributing to the increase in online purchasing by Australian consumers
  • sustainability and appropriateness of current indirect tax arrangements and the extent to which technology could reduce the administrative costs of tax collection
  • other regulatory or policy issues which impact on the structural change in the sector.

Newsagents or any interested party can lodge submissions until May 20, 2011.  Given the broad terms of reference I would expect the interests of newsagents to be well represented in submissions.

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Newsagency opportunities

Small retailers blocked from returning unsold milk thanks to Coles and Woolworths

As a consequence of the milk price war between Coles and Woolworths, I have heard of independent retailers no longer permitted to return unsold milk according to a friend who stocks milk in his business.

So, in effect, independent retailers are carrying the costs of hefty discounts to Coles and Woolworths, along with the farmers.

Australian consumers need to remember that small businesses in this country employee more people than big businesses.  They can only do this as long as they are supported by consumers.

The milk and bread price wars being run by Coles and Woolworths are not socially responsible.

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Ethics

Borders calls time on gift cards

After April 3 Borders and Angus and Robertson shoppers will not be able to redeem their gift cards according to the announcement two days ago. This could present an opportunity for newsagents in that we could offer some redemption for unused cards. Newsagents could run a sale offering, say, a special discount for Borders gift card customers. It could be a way of getting customers looking at our book and magazine offer. It all depends on the range of product and whether you are missing people who shopped at Borders and Angus and Robertson.

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Newsagency opportunities

Hallmark sound cards continue to drive sales

hallmark-soundcards.JPGThe innovation of Hallmark in introducing their original artists sound cards a couple of years continues to reap rewards for newsagents. You only have to watch shopper interaction to understand the value of these cards in retail – driving browsing and sales. People of all ages enjoy opening the cards and listening. The emotion they feel to certain songs can help reflect the emotion they want to share in the giving of a card. This is one reason I am happy to give over considerable retail space to the Hallmark sound card range.

I also like that the range has evolved as well as the technology with more recordable cards.

Any newsagencies I build now have the card department at the front of the shop, facing shoppers as they walk past. Cards pull people, especially the sound cards. Browsing leads to sales. There is no doubt about that.

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Greeting Cards

New Partwork: Fighter Aircraft Collection

mag-fighter.JPGWe are promoting the Fighter Aircraft Collection with this display at the counter. We also have copies located with our aircraft magazines in the magazine department. This way we capture the impulse opportunity as well as the purchases from enthusiasts. I’m not s

I am not sure how this title will go nationally as it caters to a two special interest niches – aircraft and military.  However, promoted well this could be a hit in newsagencies with strong magazine sales in these areas.  I know that the Tractors partwork series a year or two back was quite popular in some unexpected newsagencies.

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magazines

On Mediaweek TV program today

I’ll be on the Mediaweek TV program on the Sky Business Channel today at 2:30pm talking about magazines and some of the challenges and opportunities newsagents face.  The program will repeat several times over the following days.

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magazines

ATO publishes inaccurate benchmarks for newsagency businesses

The performance benchmarks for newsagents published by the Australian Taxation Office are, in my view, inaccurate.  I was alerted to this by an accountant who has several Victorian newsagents as clients.  He expressed concern at the inaccuracy of the benchmark numbers.  I checked the numbers and agree with him.

Check out the benchmark numbers against which they are comparing our businesses – remember, they use these numbers to decide who to audit!

ato-benchmark.jpg

None of these figures look right to me. But the ATO being what they will expect you to operate within the benchmarks – otherwise they will audit you.  This happened to me.  They wanted to know why my rent was more than 6% and why my cost of goods sold was less than 70%.  Many weeks and man-hours later they moved on saying that maybe their benchmark numbers were not appropriate for everyone.  For no one is more like it.

The audit was a waste of time. It was only undertaken because our rations were different to what they expected.  I know that I am not alone in having gone through such a fruitless exercise.

It frustrates me that the flawed benchmarks are widely accessible.  A landlord I spoke with recently cited them to counter an argument I was making.

Has anyone else encountered an audit as a result of the ATO benchmark data?

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Newsagency challenges

Promoting the Just range of magazines

mags-justmar11.JPGOur team created this terrific in-location display promoting the Just titles: Just Cars, Just Bikes and Just Parts.  The display stands out in the men’s magazines aisle – it is the only display, easily drawing attention.  I love the initiative of promoting the three titles in this way.

These in-location displays are all about the browsers.  We have solid evidence that they do drive incremental sales – often more successfully than the billboard type displays that publishers offer cash prizes to newsagents for creating.

As the photos which I run here show, successful displays are more about choosing the right title and the right location than an over the top display.

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magazines

Promoting the GOGO partworks

mag-gogos.JPGWe are promoting the first issue of the GOGO partworks collection with a terrific display behind the counter.  With threee new partworks in store at the same time and with space demands high because of Easter and other promotions, it is a challenge to give a launch like this enough time in the spotlight to achieve what it can.  This behind the counter space is premium so the best we can offer is a week before we go all out for Easter.

We are busy promoting our putaway service to customers and hoping that the distribution system works and we get the stock we need. I estimate that in more than 50% of cases after issue 6, newsagents do not receive the partworks stock they require.

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magazine distribution

Promoting Girlfriend magazine

mag-giirlfriendmar11.JPGWe are promoting the latest issue of Girlfriend magazine on the dance floor facing into the mall as well as down in the usual location for the title – with teen girls magazines.  The location choice at the front of the shop by our team is excellent given the age of shoppers we see. The Girlfriend display will stay up for a week in this prime location.

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magazines

Big W ignores the margin opportunity on Birthday Cake cookbook

bigw-birthday.jpgBig W is selling the classic Birthday Cake Cookbook for $10.  Our price is $14.95.  While I am disappointed that they are selling this for less than I can purchase the title, I am more frustrated that they are running a one week promotion on a title which will easily sell for the $14.95 RRP as we are seeing in our own newsagencies.  We have plenty of big retailers in Australia at the moment who are so bereft of good retail skills that they think discounting is their only option.  Pathetic and nuts.

I’d love to know from ACP how Big W is able to sell this cookbook for less than our buy price when newsagents account for 50% of all magazine sales in Australia and we pay our accounts on time – otherwise they cut us off.  I bet that Big W has better terms than us.

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magazine distribution

Well done Fosters on fighting for independent retailers

Fairfax newspapers are today reporting that Fosters intervened to stop delivery of a range of their beers to Coles and Woolworths once the heard of plans for major discounting by the supermarket giants.

I am concerned that it may only be a matter of time before the supermarkets target magazines in an effort to attract shoppers.  Can you imaging how shoppers would ready to Woman’s Day and New Idea priced at, say, $2.95?  I hope that magazine publishers and distributors support their independent retail channel as Fosters did it its blocking action.

While loss leader pricing has been around for decades and is an important part of any retail business strategy, the current price drop craziness is designed to take business from independent retailers and this is where Australian consumers risk suffering.

Coles and Woolworths are not committed to low prices every day unless they squeeze product manufacturers, supply chain partners, employees and others to carry the financial cost so that their profits are not affected.  This is where there is a considerable community cost in their much hyped discounting campaigns.  I feel for the farmers and others who are carrying the cost of the milk campaign being run by Colesd and Woolworths.

These giants are trying to fundamentally change price perception forever as they know this is a game they can win – they have retail sewn up in this country.  Their negotiating power is extraordinary.

The community as well as independent retailers need more suppliers like Fosters who are prepared to step in and protect local jobs.

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magazine distribution

ANF supports newsagents in EFTPOS fee fight

The ANF yesterday issued a media release publicly joining the fight against the EFTPOS fee changes.  Click here to see a copy of the release. Thee release includes this quote from ANF CEO Alf Maccioni which goes to the heart of the matter:

This completely removes the previous level playing field for Australia’s thousands of small businesses including our community newsagents.  Consumers and small business are the ones who will pay for this, the big banks will get increased profits and Coles and Woolworths will continue to receive a rebate and get a further leg up to increase their market advantage over struggling small businesses many of whom are still recovering from recent natural disasters.

The release also makes these clear and excellent points:

The ANF opposes these new charges that EPAL state are to support investment in the EFTPOS network and disputes any claim that retailers just need to negotiate with their bank to absorb these new fees. “The investment will end up being on the retailer side in necessary upgrades to point of sale equipment to integrate the changes, adding further cost. The banks are on either side of the deal so they will not absorb any of the new fees and newsagents do not have the bargaining power of the major retailers to demand it.” Maccioni said.

The highlighted section gets to the heart of the matter and the excuses being made by the banks that retailers will not suffer.

It would be good if newsagents could use their contacts with local newspapers to get coverage for this release.  It is important for local retailers – a constituency which is important to local newspapers.

To see more covered on this blog about the EFTPOS fee issue, please click on the EFTPOS fees category on the right hand side.

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EFTPOS fees

Old magazines never die

whitedwarfbag.JPGOld copies of White Dwarf magazine which failed to sell when sent out the first time have been gathered up, bagged with three to a bag and sent to newsagents as a Value Pack prices at $10.00.  In the bag I checked were White Dwarf issues from October 2009, November 2009 and December 2009.  Maybe I am wrong and these old titles will sell.  If so, great.  If not, then I will be wondering why we have been lumped with old product like this.  At least fans can actually see what they would be purchasing.

So, old magazine never die, they live on on the endless loop between newsagencies and magazine distribution centres … emitting carbon along the way, soaking up our cash and taking space from a title which may have a better chance of selling.

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magazine distribution

Promoting Gardening Australia

mag-gardenaust.JPGWe are promoting the latest issue of Gardening Australia magazine and the free gardening gloves bagged with the issue with this aisle end display capping two busy magazine aisles.  The extra effort in selecting background colours for the display to compliment the cover of the magazine certainly pays off.

We are planning an additional display at the weekend at the counter – with the newspapers and showing off the free gardening gloves.

This is one example where bagging the magazine is necessary – it is the only way to deal efficiently with the gardening gloves.

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magazines

Puerile Today Tonight report on Retail Customer Service

Today Tonight on the Seven Network tonight ran a puerile report on customer service in retail.  It was like they wanted to show the customer service in retail is bad and only showed such experiences.

The report did not provide any information about how many stores they visited to get their examples. Also, they only showed the money shot in each instance – the poor service.  A fair report would have provided context.

These are important points since they said that poor customer service is the reason retail is in trouble in Australia – without providing any evidence to backup their claim.

Sure, customer service can improve in many retail businesses.  There are also many stores offering exceptional service.  I guess that does not make good television.

While Today Tonight is not known for running balanced reporting, it is frustrating when they bag customer service in retail and ignore one of the largest independent retail channels in the country, newsagents.  There are many newsagencies serving up quality customer service experiences every day. The people at Seven should know because they own Pacific Magazines and Pacific has an excellent relationship with newsagents.

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Customer Service

When a landlord competes with a tenant

Shopping centre property giant Westfield is to compete with small business newsagents by opening Ticketek ticketing agencies at customer service desks in its shopping centres, in competition with many small business newsagents offering Ticketek in these sames centres.

Despite being open for longer hours than centre management customer service desks, Westfield prevailed upon Ticketek to permit the opening of these new businesses in competition with incumbent newsagents.

I wonder if Westfield is paying the usual fee for each new sales location which newsagents have to pay?

Landlords hold the permitted use clause in a tenancy lease to control what we can offer in our newsagencies.  You either buckle to their interpretation of what you can sell or face a raft of penalties to your business.  They say the permitted use clause is there to protect your business as they will fight for you if someone tries to compete with our when their lease does not permit it.

What do you do when the landlord is the competitor, as is to be the case in many of the 37 Westfield shopping centres?

I feel for the newsagents affected.  I especially feel for those who are part of a marketing group which is inactive on this issue.

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Ethics
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