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

Lads mags in the news

The weekend edition of The Australian Financial Review (page 4) had a report on the state of health of lad magazines.  It was comparing the decline in sales of Ralph (now closed – sort of) and Zoo Weekly (steep decline) with Men’s Health (tiny increase).  The article closes with the conclusion that intelligent content is king.

While the report was interesting, I think is missed the opportunity to look at sales of other categories and growth titles including motor vehicle titles like Top Gear and even MasterChef which we have found to be popular among men.

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magazines

Strong sales for Junior MasterChef mook

jmc-sales.JPGFive days after moving the Junior MasterChef mook stand near to the entrance to the store we have sold more than 50% of our stock.  My feeling is that we will sell out by the end of this week.  This is an excellent outcome.  It is also a lesson to some of the newsagents who said it would not sell.  I say some because in some country towns I can understand that the traffic is not there for volume.  However, we cannot underestimate the appeal of the MasterChef brand and the Junior MasterChef sub brand.  This was always a product to put in a high traffic location, preferably with other Junior MasterChef branded product.

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magazines

Ashes mini bat collection too late?

ashes-cards.JPGI was surprised that we did not receive this Ashes mini-bat and player card collection until Friday last week.  We are already into the second test!

Based on sales of Ashes related magazines I would have thought that the best time to get this product to newsagents was at least four weeks ago.  The other issue is the lack of marketing collateral.  The only way to make this product work, without decent collateral, is to place it at the counter.  It’s Christmas so counter space is more in demand than ever.

I would not be surprised if newsagents decide to return the stock unopened.

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magazine distribution

Hoops and YoYo a hit!

hoops-yoyo.JPGWe moved this display of the Hoops and YoYo gift lines to the front of the store on Friday for the weekend and the impact was immediate.

Not only was the product selling, it was attracting shoppers as they walked past us in the mall.  Kids are women are particularly attracted to this range based on what I observed – they love that these products are interactive.  I love the new traffic the range is drawing.

While we cannot give everything we sell time at the front of the store facing into the mall, we have enough well known and popular brands with which to attract passers-by.

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Gifts

Kudos for a paperboy

rob-mcgregor.JPGIt was terrific to see paperboy Rob McGregor featured in the Herald Sun on Friday as well as online.  Robbie (as I knew him) has worked for seven owners of newsXpress Pakenham – one of the early owners was the Bishop family.  I worked for the Bishops in 1970 and 1971 after school.    Back then, as I am sure is the case today, Robbie was your ideal paperboy – on time, accurate and cheerful.

Rob has delivered newspapers to homes on the same route in Pakenham for more than fifty years.  Last year, he was featured in Century of Faces, a special report in the Pakenham-Berwick Gazette to commemorate the centenary of this wonderful local newspaper.

The newsagency channel has plenty of stories like Robbie’s.  We ought to share more of them.  They are also an important record of traditions and the connection of our newsagencies with local communities.

Click on the image for a larger version.

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newspaper home delivery

Michael Buble sells out The Age

age-cd.JPGWe sold out of The Age newspaper before 11am yeaterday and could not get extra stock.  Every retailer around us sold out too.  Based on customer requests, we could have sold double the quantity supplied.  The folks at Fairfax underestimated the popularity of the Michael Buble Christmas CD.  This is a surprise given the TV advertising they ran during the week.  The CD was so popular that we had customers begging us to sell them the CD for the cost of the paper even though we had run out of newspapers. I would have loved to have been able to sell more newspapers.

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Newspapers

Note to newsagency suppliers: actions speak louder than words

There are some newsagency suppliers who regularly tell newsagents and those who represent newsagents how much they value newsagents and how important the newsagency channel is.  They say that newsagents are important to their business.  They sometimes throw out figures to support their argument.

My mum would say to us kids that actions speak louder than words.  This is so true.

Suppliers who find themselves often telling newsagents how important we are and how much they value us could consider how they reflect their words in their actions. If we are the most important channel: show, don’t tell.

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Newsagent suppliers

Newspaper publisher: digital must be first

Check out the report at GIGAOM about a speech by John Paton, CEO of the Journal Register group of newspapers in the US.  Paton says that the time for debate about digital versus print is over and that digital is the game.   He goes into extraordinary detail to make his case.  Click here to read the full speech.

Sadly, Australian enwspaper publishers will publicly ignore or ridicule Paton’s speech if asked.   Privately, our major publlishers are doing what he outlines.

The challenges his company faced in making its transition are similar to what newsagents face.  Those of us focussed on reengineering our businesses for the new economy are already seeing rewards in sales.

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Newsagency challenges

Improving the crossword title display

crosswords-beacon.JPGIn line with our recent work reducing range so that we can have more magazines displayed full face, we have reconfigured three columns in our crossword department. We now have three popular Lovatts crossword titles receiving more prominent display. We will give this space to Puzzler titles when their next issues arrive. If you look at the cover of Clue Words you can see the value of this move. In regular magazine fixturing, customers cannot see the feature personality. In our display, they can see that it is Bono. Bono has been in the news this week because of his concerts and his upcoming appearance on Oprah’s show when she is here next week. Showing the cover provides an opportunity to appeal to his fans whereas the regular display appeals only to Clue Words fans.

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crosswords

Damaged Health Smart magazine

healthsmart-damage.JPGCheck out the damage to the free cookbook stuck on the front cover of the latest Health Smart magazine.  Someone has browsed the title and shoved it back into the magazine fixture and bent the cookbook out of shape.  We will only be able to sell this copy if it is the last one left.  This is a problem for many magazine titles, not just Health Smart.

Right now publishers are addicted to these small stuck on bonus publications – cookbooks, garden guides, fashion guides, health guides.  They are designed to give off the impression that the customer is getting more than they paid for, bonus content.  The problem is that the stuck on gift is often damaged when shoved back into traditional newsagency magazine fixturing.

To this non publisher, the answer appears to be investing in better content between the covers.  Look at the stand out magazine this year in terms of sales growth.  Frankie does not use devices such as this.  The publisher’s focus is on the best possible magazine for its demographic.  Each issue is a sell out because of the content of the magazine itself.  Now that’s the kind of magazine I love.

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magazines

The marie claire travel edition

mc-pursepack.JPGLike many newsagents, we received the marie claire travel edition this week.  While we are giving this ‘new’ product a shot (next to newspapers), I don’t think this size will appeal to our customers.  I can see it working better in a transit or nearby location.  My scepticism aside, we are giving it a go in a high traffic location as I noted.  I chose the newspaper location because I see this version of the magazine as appealing to those not currently purchasing marie claire from us.

I don’t see the travel edition of marie claire as a cash grab.  The cost of producing and distributing this edition is too great to be that. What I would like is the opportunity to opt in or out with opportunities like this.  While that may see too many newsagents say no and miss out on something which works, there is the issue of cost of real-estate, labour, returns freight and theft.  These are considerable costs newsagents have to bear.

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magazine distribution

ACP partners with Coles on magazine subscriptions

Magshop, the ACP Magazines online subscription operation, has exclusively partnered with Coles to sell Magshop magazine subscription giftcards.  Here is the press release issued this morning:

Magshop Launches Magazine Subscription Gift Card Exclusively at Coles

The exclusive partnership of Magshop and Coles affords consumers the opportunity to buy $30, $50 and $100 magazine gift cards at checkout redeemable with a few clicks of the mouse for a selection of over 600 premier titles.

A magazine subscription is the ideal Christmas gift for everybody on anyone’s list. Just in time for holiday shopping, Magshop announces the availability of magazine magazine subscription gift cards exclusively at all Coles Supermarkets nationwide.

This special teaming of one-stop website and Australian supermarket institution provides the flexibility and convenience of gift card giving. Magshop magazine subscription gift cards can be found at all Coles checkout stations amongst the most popular and favourite Australian magazines.

As Australia’s premier online magazine subscription store, Magshop understands the stress of buying the right gift for the right person in a timely fashion can take all the cheer out of yuletide giving. Whether a Kris Kringle gift, Secret Santa surprise or proper present, it can be a challenge to keep a Christmas list current and chase down those last-minute additions.

Freedom of Choice
During the always-hectic holiday season, how easy is it to end up in the checkout line, burdened with purchases, only to remember Aunt Betty, or Uncle Bruce, or the guy in accounting who expedited that travel reimbursement in July?

Not all gifts are created the same, which is why Magshop gift cards are available in $30, $50 and $100 denominations to fit snugly in any gifting budget. Stock up while checking out at Coles to save both time and footsteps—both of which are at a premium during the pre-holiday rush. The recipient simply logs on to magshop.com.au to redeem the available credit on their gift card.

Best of all, the Magshop gift card allows that special recipient the flexibility to choose the magazine or magazines they want. With over 600 titles to choose from, the savvy giver can rest assured Aunt Betty will get her Australian Women’s Weekly fix, Uncle Bruce can enable his inner revhead with Top Gear and the guy in accounting… Well, he’s bound to find a magazine devoted to whatever it is he likes. From the Australian Yoga Journal to ProPhoto Magazine, selection won’t be a problem.

Peace of Mind
Magshop is the home of Australia’s leading publisher ACP Magazines, as well as a host of other publishers. At magshop.com.au you will find some of the most popular and successful magazines in the country, including Woman’s Day, Dolly, Cosmopolitan,

Madison, Money, Australian House & Garden, FHM and Wheels. With such a huge selection, there’s a magazine to suit all tastes, hobbies and interests.

Since George Coles opened his first variety store in 1914, the supermarket that still bears his name has been a highly regarded cherished part of Australian life. Today Coles is a leader in Australian food retailing, with more than 100,000 employees and 11 million transactions a week in over 700 stores nationwide.

Together, Magshop and Coles Supermarkets have devised an unbeatable solution to the dilemma of convenient last-minute holiday shopping guaranteed to please those special someones.

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magazine subscriptions

Which Darrell Lea liquorice is original?

dl-liquorice.JPGDarrell Lea liquorice in our store used to have the word original on the packaging.  The bag was striped.  This changed a month or so ago with their packaging overhaul. The changes never made sense to me because Darrell Lea liquorice customers are regulars for this product.

I was in Woolworths yesterday and purchased the Darrell Lea liquorice pack in the photo.  It is labelled original.   I have a few questions about this:

  1. How can this Woolworths products be the original product when it is not original?
  2. Is the Woolworths Darrell Lea liquorice the same as what I have in my store?  I suspect not because my shelf life is much shorter than the one year shelf life for the Woolworths product.  A check of the package details indicates that the products are different.  Theh taste different.
  3. Why does the packaging of the Woolworths product look similar to what we used to have?
  4. Is there a breach of the Trade Practices Act with Darrell Lea having different product with different shelf lives called essentially the same thing?
  5. Why is the new Woolworths product original and our original product no longer called this?

Maybe I am jumping at shadows.  Maybe not.  The two liquorice products from Darrell Lea certainly look, feel, smell and taste different.

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confectionary

Promoting the Hallmark recordable storybook in the mall

stoorybook-mall.JPGWe are promoting the Hallmark The Night Before Christmas recordable storybook at one end of out mall outpost at Forest Hill.  The oversized display book is drawing good attention and generating sales.  Shoppers recognise this because of the considerable TV coverage from advertising and program coverage in the last week.  This innovative product from Hallmark creates a whole new product category which is easy for us to leverage thanks to the considerable advertising and PR support from Hallmark.  It’s nice when a customer spends $29.95 on impulse in addition to their destination purchases.

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Gifts

Great New Idea newsagent only promotion

newidea-pictionary.JPGWe have been making the most of the newsagent only promotion for New Idea this week with the magazine and the free Pictionary pack placed in prime position at the counter.  In one of my stores, this promotion led to a sell out by yesterday morning.  In others, sales have been strong.  Newsagents often complain that supermarkets and others get promotions when we do not.  This time around, newsagents are the beneficiaries of a channel exclusive promotion.  Kudos to Pacific Magazines for supporting newsagents with this promotion.

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magazines

Promoting the Junior MasterChef mook

jmc-stand.JPGWe have been promoting the Junior MasterChef mook at the entrance to our store this past week with immediate results.

Every customer entering and leaving the store walks past this display.

For the sake of change and to combat regular customer blindness we flip the stands around.

Our plan is to leave this Junior MasterChef stand in place at the entrance for at least another week before we consider moving it to another good location in store.  Beinc Christmas, demand on prime space is high – hence the need to be creative with allocation.

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magazines

Promoting the Doggy Bank

forest-impulse-ch.JPGWe are promoting the Doggy Bank in a dump bin in one of my stores with good success.  While it had been selling we wanted to kick sales along so we went for this impulse approach.  It has worked a treat.  The high traffic location plus a sign telling our customers that this is an ideal Christmas gift is driving good sales.  Being in a dump bin, we can easily move this as needs for space through the week change.  The best location has been where customers line up for the counter.

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Gifts

Call for a paywall to stop browsing of newspapers in newsagencies

Check our this ‘story‘ fron NewsBiscuit:

Britain’s most prestigious publishers, including News International and Express Newspapers, are up in arms about shops which allow people to browse the content of their publications without paying for them, saying newsagents should protect their titles behind a pay-wall.

One complained that it’s worse than avoiding taxes. ‘That’s legitimate – unlike accessing our stories for free, which is morally wrong…although OK, technically legal.’

‘Unlike being a multi-millionaire who evades paying a tax contribution to a nation which has given him considerable wealth, the man who looks at newspaper headlines while shopping in WH Smith or Waitrose is breaking a social contract – trying to get something for nothing,’ argued the publishers.

‘Englishness is about fair play – every time someone sneaks a view of one of my papers without buying it, a little piece of England dies,’ said one tax haven-based billionaire.

Hilarious.

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Newspapers

WH Smith playing with self checkout

UK newsagent WH Smith – like Officeworks but with books, magazines, cards, stationery and other traditional newsagency lines – is playing with self checkout terminals.  My understanding is that they have self checkout terminals from NCR on trial in four stores.  One argument could be that they improve customer service.  Another argument could be that they eliminate customer service.  Given the increasing cost of labour it is not unexpected that national retailers are embracing self checkout more and more.

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Newsagency challenges

Harry Potter is late

potter-late.JPGWhoever is responsible for the Harry Potter cards and other products which newsagents received yesterday ought to check their diary.  The best time for this range, based on over the counter queries, was three weeks ago.  The movie has been out a while and fans are more satisfied today than they would have been three weeks ago. We will give the Harry Potter products a go but we are not expecting much given the poor timing.

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Newsagency challenges

Broken Choc Mint Balls

dl-damagestock.JPGHalf the Darrell Lea Choc Mint Balls we received in the last shipment arrived damaged.  I suspect there is a production problem with this product because quality is usually not an issue with Darrell Lea product.

We have had to remove the damaged product from the shelves as it looks bad for us and for the Darrell Lea brand.

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confectionary

Another fishing magazine?

tackle-ugh.JPGSeriously, we need another fishing magazine?!  A review of the sale of fishing titles will show that we are not coming close to selling out of the range we already recieve yet the allocations software has decided we need this title.  Tackle Junkie may interest some but not me.  I don’t have the space.  But this isn’t just about space.  It is about yet another title being funded by me without being asked if I would like to fund it. Supply decisions like this at the bottom end of the marketplace are killing newsagencies.

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magazine distribution

Why the supply increase for Money magazine?

money-dec2010.JPGACP increased our supply of Money magazine by close to 100% even though we have returned 20% or more of previous issues.  Even if this issue has content which will drive above average sales, I could not see any content warranting a 100% increase in supply.  I’d much prefer to see publishers supply a lower quantity and top this up if sales warrant.  It is better than I sell out than have stock available right through to the end of the month.

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magazine distribution

November sales benchmark study

I am undertaking a sales benchmark study comparing sales in newsagencies for November 2010 against November 2009.  This was announced to newsagency software customers of Tower Systems yesrerday. Newsagents participate by sending a Monthly Sales Comparison Report: tick the box to exclude home deliveries, and tick the box for a category breakdown. Set your first date range (on the left) to November 1, 2010 to November 30, 2010 and the date range of the right to one year earlier. Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au. I will publish the benchmark results here and elsewhere so all newsagents can benefit.

Tower Systems is committed to helping newsagents make better business decisions through access to accurate business data in a timely fashion.

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Newsagency management
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