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

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

A unique Christmas range

pudding-lady.JPGWe are enjoying good success with this range of delicious Christmas treats from The Pudding Lady in Newcastle.

We have Christmas cake, shortbread, Christmas pudding with Brandy sauce and White Christmas.  We also have some nice salad dressing packs and marinating packs.

The range is very different to what customers see in a newsagency. While priced at the high side, the product gives off a feeling of quality – worth the reasonably high (for a newsagency) price point.

I first discovered the range at the Reed Gift Fair in Sydney a few months ago.

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Gifts

How to stop getting books from Gotch

I have received plenty of calls from newsagents asking how to stop Gordon and Gotch sending books with their magazine deliveries. I’d suggest the following:

  1. Write to Gotch on letterhead listing your account number asking that they do not supply you with any books without your express permission.
  2. Explain that you do not have the fixtures or space to support their books in yoour store.
  3. Note that since these are books, and not magazines, you cannot be held responsible for this unexpected and non-standard product and therefore accept no responsibility.
  4. Note that should they ignore your wishes you will have no choice but to return unsold product at their cost.
  5. Consider sending the letter by Express Post -so you have a record of delivery.  Fax yould be equally as good.

Of course, if you are happy getting these books then do nothing.  I am sure they will continue to come.

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Book retailing

ACP kills two Disney titles

Disney Girl and Disney Adventures have been killed off by ACP.  A new magazine, Disney Magazine will launch later this month – from a different publisher.  The children’s magazine segment is in all sorts of bother based on newsagent sales data I see.  It’s loss making for many newsagents once you account for retail space and labour.

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magazines

Promoting Christmas bags

christmasbags.JPGWe are promoting Christmas bags on the side of one of the columns in one of my shops with success.

This is the best way to display gift bags in my view.  The display shows off the bags without customers having to go looking for them or lean down as some displays I have seen recently require.

Kids are drawn to the range from this display and kids attract parents.

Near the bags we have tissue paper which can be used to better package gifts placed in the bag.

We switch the side of the column use to promote bags every few weeks.

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giftwrap

Beware the iTunes turf war

giftcards-xmas.JPGePay is apparently delivering iTunes cards to newsagents unannounced.  I have received calls from several newsagents who claim this has happened to them.  They have been confused by the unexpected delivery.  Newsagents can sell these iTunes cards but they will need a magnetic card reader for activation based on what I have been told.  The alternative, which I recommend, is that newsagents sign with Blackhawk gift cards.  Blackhawk (delivered through Touch) provides a nice stand and a range of national brand gift cards including iTunes gift cards.  You don’t need a magnetic swipe reader to sell these cards.  Indeed, you most newsagents will be able to use their existing system.

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Newsagency challenges

Small business opportunity for new Victorian Government

Successive state Labor governments around the country have presided over deep cuts to the margin made by newsagents and other small businesses on the sale of transport (Myki) tickets.  This started in 2004 in New South Wales.

In Victoria, the Labor State Government presided over what I would label as preferential treatment given to 7-Eleven to lower their operating costs in selling and recharging transport tickets.  What they facilitated for 7-Eleven they denied for newsagents.

The election of a Liberal National Party coalition government in Victoria is an opportunity them to demonstrate their often claimed support for small business.  They could do this by ensuring that small business newsagents receive fair compensation for the sale of transport tickets.  By fair compensation I mean an increase in real terms to the retailer margin on the sale of transport tickets instead of the decrease presided over by the Labor government.

While there are many other moves the new Coalition government in Victoria could make in support of newsagents, ensuring fair compensation for the sale and recharge of transport tickets would be a good start.

For what it is worth, fair compensation is my mind is 7% of ticket price.

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Newsagency challenges

Promoting on the floor

new-idea-floor.jpegIn our cramped temporary location, finding space for displays is most challenging.  So, we have decided to use the floor to promote the excellent Pictionary giveaway with this week’s New Idea.  We have taped around the edges to protect against scuffing. I’m very happy with the result – it certainly draws attention to the offer and the overall women’s weekly magazine section. Yeah, well pleased with this.

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marketing

Sex slave book from Gotch

sex-slave.JPGGordon and Gotch sent out this book, Sex Slave, to some newsagents with their magazines.  I bet magazine publishers would not be happy with it being treated like a magazine.  Newsagents are certainly not happy – a book at magazine margin, an odd size for newsagency fixturing and delivered late in the month putting newsagents out of pocket for at least a month.

While I am no lawyer, I consider the supply of books to newsagents without giving us the opportunity to say no is an abuse of the magazine distribution model.

I didn’t receive this title so I cannot protest.  If I did, I would certainly protest to Gotch and use any other low cost regulatory avenue available.

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Book retailing

Promoting Quarterly Essay

qe-dec10.JPGWe are promoting the latest issue of Quarterly Essay in a prominent location near our newspapers – to leverage the good media coverage for this issue which went on sale last week.

We have found that Quarterly Essay responds well to media coverage so it makes sense to be tactical about placement.

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magazines

Using (abusing) newsagents to sell books

supersize-book.jpgSome newsagents received this book with their magazines this morning.  Did you?

Magazine distributors should not be sending this type of product through the magazine distribution channel without gaining permission from newsagents first.  Beyond the margin problem there is also the issue of where and how to display the product.  Sure newsagents could put it with other books but they are often remainder books.

As with the John Tickell book last year, supply of this book through newsagents is ridiculous.  It sucks out cash on the last day of the month.  It is an abuse of newsagents.

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Book retailing

Putaway supply: inept management by magazine distributors or a conspiracy?

partworks-ugh.JPGMagazine distributors receive information about pre-sales, putaways.  They know from this data, which is provided as part of the IT standards they established, what a newsagent needs to satisfy putaway requirements.  Why, therefore, do they ignore this and undersupply many newsagents when it comes to putaways?  Are they inept or is there a conspiracy here?  It has to be one or the other since they know the supply requirements of newsagents in advance. Ottherwise, why make it part of the IT standards years ago?

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magazine distribution
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