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

Promoting The Australian Women’s Weekly

aww-inlocation.JPGWe are promoting the Christmas edition of The Australian Women’s Weekly with the in-location display in the photo plus a flat stack between the Herald Sun and The Age as well as a four pocket full face display facing customers as they enter the store.

It is a busy issue with the Christmas theme, a cookbook stuck on the cover and a royal engagement souvenir stuck on the back. There’s a lot going on with this issue, maybe too much.  Time will tell.

This issue is too thick to fit two copies in our slim pockets.  So it is one copy per pocket.  We’ll live with that and top up several times a day.  We are contemplating a promotion showing off one or two things from the free cookbook. Retail theatre always works well.

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magazines

Update on banking margin dollars

pizza.jpgFurther to my post on the weekend about the importance of banking margin dollars compared to margin percentage.  We have now sold over $1,000 worth of Junior MasterChef product in less then a week.

The new customers this display has attracted will be valuable beyond the sale as some will come back.  Many bought more than the Junior MasterChef product once they got into the store. We have learnt plenty about attracting shoppers from the mall into the store.

The big lesson is the reinforcement of the importance of margin dollars banked.  You cannot bank a percentage.  Too many newsagents chase percentage without focussing on the alternative of faster movement of more competitively priced product.

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Newsagency opportunities

Customers love different Christmas crackers

crackers.JPGThe different range of Christmas crackers we have sourced this year are loved by our customers.  We have had several comments that they are different to what they are seeing elsewhere.  We’re seeing no push back on price which is a bonus as these are not your cheap and nasty crackers.  Having a point of difference in a shopping centre is a good feeling.

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Newsagency opportunities

Swamped by resumes

School is almost out for another year and we are almost drowning in resumes from high school students looking for Christmas work.  Twenty five resumes in the last week.

Since we are hiring we look at each carefully.  If it’s a no we email, call or write with this news.  I figure that we owe them a response even though their application was unsolicited.

We have a standard email we send to people who get to the next step, asking a few questions.  Their response determines if they get an interview.  We’re hard core.  Having an email address and a mobile phone is essential. Being able to answer questions in an email is an indication of communication skills – the questions are designed to weed out candidates we would not want to hire.

While the hiring process is about us finding a good candidate, it is also our opportunity to provide helpful feedback to candidates along the way – it’s business after all.

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Newsagency management

Victorian Government ignores newsagents

The Victorian State Government has shafted this newsagent one too many times.  They can shove Myki …

When Myki was first announced we signed up and were told that we would be the outlet in our shopping centre.  We have watched the tortured roll out of Myki expecting the hear soon about our machine for selling and topping up these transport tickets.

Finally, we are told they are just about ready – this is AFTER they have installed a Myki machine in the shopping mall.

So stuff them.  This is yet another Myki balls up.

So much for the State Government caring about small business.  No, they’d rather pay hundreds of millions for a flawed ticketing system than support small business.

They have not kept their word with me.  I have no interest in playing thier game and making scraps from topping up Myki accounts.

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Newsagency challenges

Newsagents being talked about

Media experts see a sad future for newsagents. A future with no news. In a world of instant online news, RSS feeds and smartphone news apps, the newspaper as we know it is simply on its last legs and with the advent of E-newspapers, the good old paper tabloid gets another nail in its coffin.

This is the opening paragraph of an article published at GAJ-IT about the new digital only newspaper from News Corporation.

GAJ-IT is not alone in publicly speculating about the long term future of the channel.  Good newsagents will thrive amid all of the disruption we see around us.

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Media disruption

Junior MasterChef mook promotion

nc-mook.JPGWe are promoting the Junior MasterChef mook (magazine / book) with our Junior MasterChef merchandise, creating a perfect tie-in.  We know the interest in our area given the extellent sales (close to $1,000) in Junior MasterChef merchadise in the last week.  My only beef is that we received only two copies of the mook, the rest is due next Monday.  Not having sufficient stock to create an eyecatching display will hurt sales this week.

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magazines

Oprah calls the iPad her #1 favourite thing ever

An endorsement from Oprah’s Book Club sends publishers printing an extra 500,000 copies of an anointed book.  For years, the Oprah phenomenon has proved to be valuable to publishers and other businesses.  Why else would Tourism Australia and Tourism NSW invest more than $3 Million bringing Oprah and her show to Sydney?

On Monday in the US, the second part of Oprah’s Favourtie Things show aired and she named the iPad the greatest invention of the century so far and her favourite thing ever.

This endorsement ensures mass market appeal for the iPad and similar devices.   Cnet has more.

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Media disruption

Newsagency opportunities as Staples starts making moves in Australia

The Australian yesterday published a story about moves US stationery giant Staples is making in Australia.  Having completed their takeover of the Australian marketplace and completed research on opportunities, they have decided to start with a new online presence.

Staples has launched a local Staples website, initially targeting small to medium businesses in NSW and ACT.

This website is the first step for the Staples brand in Australia.  While the Officeworks spokesperson is putting on a brave face in the article in The Australian, they would have to be concerned.  Staples is a successful organisation in internationally.  Their stores set the benchmark.  They carry an excellent range, price competitively and – here is the kicker – they engage with small businesses in a practical and helpful way which drives loyalty.  Do one of their small business workshops, once they start here, and see for yourself.

Newsagents need to develop a strategy for dealing with the opening of Staples here in Australia.  I think that the channel needs a National Stationery Plan.  I would see such a plan covering:

  • Consistent minimum ranging.
  • Consistent minimum in-store display standards.
  • National pricing on key lines.
  • Online training opportunities for newsagency employees.
  • National advertising that Newsagents are Back In Business – a campaign which leverages our local credentials.

I know that some of these ideas will be a challenge.  If newsagents don’t tackle the stationery threat / opportunity head on, we will be looking back in a few years wondering if we should have.

Outside of marketing groups and associations, newsagents need together and support a national plan to shore up current, win back old and attract new stationery business.  A concerted and consistent campaign should drive double digit growth for newsagents.

The question is whether newsagents want this enough to make it happen.

At my recent Newsagency of the Future workshops around the counter I identified stationery as a renaissance category full of opportunity for newsagents. I am confident that with a strong national approach, newsagents can expect 2011 to be a great year of growth across the business by leveraging stationery as our point of difference.

Footnote.  The ANF Board was close to deciding to enter into an agreement with Corporate Express (now Staples) late last year.  I ran a campaign at this blog against the move.  I thought any commercial relationship would be wrong because CE would use the newsagent information to compete.  Time has shown that the decision to not proceed was a good one for newsagents.

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Newsagency opportunities

The News / Apple newspaper venture

The Guardian on Sunday published a report about the new digital newspaper coming from News Corporation which I have written about here previously.  This is the project which Rupert Murdoch is on the record as saying is his most exciting project at the moment.  The report offers more analysis of an apparent News / Apple tie-up to lainch the new digital only newspaper.

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Media disruption

Books hot for Christmas

christmasbooks.JPGSales of Christmas themed books have been terrific over the last week to ten days.  Excellent numbers in my stores, most of it impulse business which makes it even more valuable.  We started with our books on display between the entrance to the store and our newspaper display.  Now, they have been moved to another, equally high traffic,  dance floor location.  Regular moves helps us maintain excellent sales while we have the stock.

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Book retailing

Promoting the AFL season 2011 Fixture

afl-season2011.JPGWe placed the AFL Official Fixture 2011 in the only logical location yesterday, between The Age and the Herald Sun.  With many times more eyeballs seeing this location than our sporting titles location, this was the place for the fixture if we wanted to achieve the best possible sales.  We are thoughtful in deciding what to place between the two newspapers, usually cycling through two to three titles in a week.  I know that some newspaper publisher representatives do not like magazines in ‘their’ space, they need to realise that impulse purchases help strengthen the business and publishers need stronger newsagencies.

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Newspapers

Curling problem for Woman’s Day

wd-curl.JPGWithin ten minutes of being unpacked and put on the shelf this morning, the cover of Woman’s Day started to curl.  Twenty minutes later, thirty minutes on the shelf, it was curled over as shown in the photo.  I thought it was the air  conditioning at my shopping centre as other titles curl from time to time.  Then I heard from several other newsagents experiencing the same problem.  The stock and the printing process for this cover appears to be different.  I say that as someone knowing nothing about the printing process.  I can see the result however, an obscuring of an excellent cover.

This could be a serious problem for Woman’s Day sales.

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magazines

Thinking about the future of print

Editor of The Guardian newspaper, Alan Rusbridger, presented the 2010 Andrew Olle Media Lecture for 702 ABC Sydney on Friday.  Click here to read a transcript or hear the lecture.  It is most compelling for anyone involved in print media, including newsagents.

I especially like the parallel he draws between the challenge of Gutenberg centuries ago to the production of books and today’s digital innovation on the production of all things print.

There are many in the channel saying that some of us obsess too much about disruptive technologies such as the iPad.  Alan Rusbridger eloquently and professionally opens our eyes to the challenges of disruptive technologies. His is a voice worth listening to.

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magazines

Attracting male shoppers

guy-mags.JPGPromoting magazines to male shoppers.  The team at one of my stores cleverly created this display facing out into the mall to attract guys to the shop to look at our cricket, car and fashion magazines.

This is a clever move since it is mainly women’s magazines promoted in this way.  I like that it’s near cards – we often get couples shopping for cards.  This display keeps guys occupied.

I saw first hand the value of the display on the weekend with one guy who was walking past stopped and browsed two titles on the stand in the brief time I was at the store.

The display will be changed when 7 days is up.

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magazines

Promoting the Coronation Street connection

coronation-street.JPGWe are promoting three British magazines with Coronation Street themed covers next to each other to drive more efficient sales.  Our British magazines sell well so we are the ideal market for a bit of promotion around the popular TV series – especially given that it hits 50 years in TV this year.  Promoting titles with related cover stories encourages enough shoppers to buy more than they intended to make finding the space worthwhile.

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magazines

Newsagents beat supermarkets for magazines

royalengagement.JPGMagazine publishers only need to look at how newsagents have supported the royal engagement issues over the last few days to see the value of the newsagency channel compared to supermarkets, petrol, convenience and others.  Newsagencies have promoted OK!, Who and the early edition of Woman’s Day with clever placement in-store, good displays and training of employees.  I have visited Coles and Woolworths supermarkets on the weekend and they have done nothing.  I asked at a Coles whether they had the special issue of Woman’s Day and could not get past a shrug of the shoulders.

So why is it that magazine publishers give supermarkets more favourable terms than newsagents?  We work harder for them, we support initiatives like the royal engagement issues yet we are treated as the poor cousins to the supermarkets.

A smart magazine publisher would go back to basics in their relationship with newsagents, realise that we are the magazine specialists, respect the attention and support we bring to the table and pull back from their supermarket and other relationships.

Yes, we make money from the sales.  That is the argument put by publishers when I discuss this with them.  However, we are penalised with more time consuming returns and range management work than supermarkets.  We are also burdened with products which fail and this dilutes the value of the top sellers to our businesses.

The photo shows the smart work from the team at one of my stores.  They re-purposed this small footprint stand to enable us to get the engagement issues on display and facing into the mall.  It worked a treat!  No supermarket would be smart or interested enough to do this.

I wish that magazine publishers would show newsagents respect for the extraordinary work we do.

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Newsagency challenges

Selling out the front page of the newspaper

heraldsun-nov21.JPGThe front page of the Sunday Herald Sun today is an ad for the iPad app just launched for the newspaper.  Here we have the dinosaur paper product promoting the new kid on the block digital edition.  This promotion is regarded as more important than the news of the day except for one headline.

If any newsagent was wondering how much News Limited wanted the iPad app to success, the front page of today’s newspaper shows the answer.

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Media disruption

Learning from Big W banking dollars and not percentage

mc-cook.JPGNewsagents selling the Junior MasterChef range have had a lesson this week in banking dollars and not margin thanks to the Big W pricing policy on this range.

Some newsagents are obsessed about the percentage they make on each item they sell.  Too often they lose sight of the margin dollars they can bank with a smaller mark-up and a higher volume of sales for a higher than newsagency average priced item.

The suggested retail price of some items in the Junior MasterChef range was $39.95.  Big W had these items at $21.95.  We made a decision to go with a smaller mark-up which got us to a price for these items of $24.95.  At this price they are selling at a good rate, certainly faster than if we went with the suggested retail price.  We are banking more dollars on the sale of one of these than on three greeting cards.

Further, shoppers do not come to us expecting to purchase a Junior MasterChef item so the dollars banked are impulse purchase margin dollars – the very best kind as they boost our sales efficiency.

So, what is better, a higher margin on products or more margin dollars banked through considerably higher sales?  The latter in my view.  I can bank dollars.  I cannot bank a percentage.

Our approach to pricing was taken on the basis of goal sell through.  We would like to have the space back within 30 days.  This would definitely not be achieved if we went with the suggested prices.  It should be comfortably achieved with our Big W style approach to pricing.

Big W is all about volume.  They pursue banking margin dollars rather than margin percentage.  When you think about it, newsagencies are too.  We have excellent traffic every day.  Considerably more traffic than many other retailers.

Too many newsagents obsess about margin percentage.  As I noted above:  I can bank dollars.  I cannot bank a percentage.

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Newsagency opportunities

Darrell Lea attracts Christmas shoppers

dl-christmas.JPGChristmas is an excellent season to have the Darrell Lea range as it brings in infrequent visitors looking to stock up on their Darrell Lea fix.  While we see good impulse business from regular shoppers, it is those who visit seeking out Darrell Lea product because they know we carry this brand who interest me.  Given that pretty much everything else we sell is available in other stores in a shopping centre, the Darrell Lea control of retail outlets is welcome – especially this time of the year.

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confectionary

News Limited iPad coverage everywhere

heraldsunipad.jpgFrom dominating the front page of the the Herald Sun and the Daily Telegraph to dominating the websites for the titles and getting feature coverage on the Sunrise TV program this morning, News Limited is pulling out all stops for the new iPad apps which go on sale today.  Newsagents who have been in denial about the digital channel have the new competitor staring them in the face every time they sell a newspaper.

The most common question newsagents who now realise the impact of tablet computers ask is how can we make money off of this new channel?

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Media disruption

Royal engagement fever!

fhn-royalwedding.JPGWe are promoting Who, OK! and the special edition of Woman’s Day with (almost) full face displays in with our weeklies as well as tactical co-location outside the magazine department – next to daily newspapers.  Since space in our temporary location is limited, I decided that this full face display was the best approach to grab attention.

The royal engagement has the potential to bring customers back to the weeklies who may have reduced their frequency of purchase or stopped altogether over the last two years.  There will be plenty of us watching to see if this happens.  I hhope it does – weekly magazines could use a long lasting stimulant.

Today’s Woman’s Day is restricted to Metro Vic, NSW and QLD due to logistics and timing constraints. There will be a commemorative issue on Monday for all newsagents.

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magazines

Rupert Murdoch’s most exciting project?

In an interview of News Corp.’s Fox Business Network on Tuesday, News Chariman Rupert Murdoch was asked what his :No. 1 most exciting project is right now.”

His answer: “Certainly the Daily…”  Yahoo has more on this story including a link to the video.  Click here.

The Daily is to be an iPad and similar tablet computer device national daily newspaper for the US.

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Media disruption