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

Tabcorp pushing online purchase of lottery tickets during lockdown

I received these two text messages Friday morning from Tabcorp. While they do mention in-store purchase in the text message, the link, of course, if for online purchase.

Tabcorp people know what they are doing here – leveraging uncertainty over lockdown to drive online purchases. And, yes, I checked, the link in the text message does take you to their site for online purchase.

I think the mention of in-store is only so they have a defence in case retailers complain. This text message is all about online purchase, which reinforces my view that there is little to no upside in over the counter lottery sales in retail.

What could Tabcorp have done? They could have setup a page on their website listing all their retailers permitted to be open, and promoted that.

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Lotteries

An update on using the new Facebook jobs platform

Okay, so last week I posted a job on the new Facebook jobs platform, for one of my shops. The result was 30+ applicants is a couple of days, only 3 of whom had a set of skills close to what I was looking for. While this is okay, the platform is cumbersome, and slow, at weeding this out, saying no thanks and managing. But, hey, it’s free and in a couple of days I got to 3 good candidates worth speaking with.

Yesterday, I posted a second ad and this has gone better, although the process remains cumbersome and lacking some of the features of other jobs boards.

Would I use Facebook again to advertise a job? Maybe, probably, I guess. I do prefer some of the other platforms like Jora and Indeed, and have found them to be easier to use and more successful.

What Facebook has going for it is the local community connections. I think if the platform is refined it could be a good tool for finding local employees.

overall, even though I have complained about it, I say it’s worth a try. Hey, it’s free.

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Newsagency management

Join us on a walk …

It’s a trend on social media in lockdown situations to bring the shop to people who otherwise may not get to see it, by using video. Here is a video I shot at my Southland business Tuesday last week using my iPhone and a bit of software to add music and text.

With shopper traffic down, creating video content is a good use of your time, from walkthrough videos to product videos. You can collect content for release over the next couple of months.

Now, if you think this is too hard to do … seriously, I spent less than 10 minutes on this whole thing. I’ll pitch it 2 or 3 times of social media. It’s content unique to the shop, which matters with so much same same content out there.

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newsagency marketing

What a terrific story: Carrara village news: boutique newsagency

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Newsagency management

Fundraising for RU OK? with Father’s Day cards

The decision by Henderson Greetings to partner with RU OK? for Father’s Day cards provides another differentiator for the business. In addition to being Australian made, which is a big plus, the charity connection makes the purchase more valuable in the minds of plenty of shoppers.

RU OK? is a respected organisation with plenty of corporate and community backing. Offering cards that raise money for the charity connects the purchase to all of the other good work and understanding out there.

We have had the range in-store for a month and shopper reaction has been terrific. People have commented about RU OK? as well as the Australian made note on the back of the cards. It is terrific when shoppers notice these differentiating points.

We are leveraging the RU OK? charity connection through social media posts and in other ways. I think with Covid impacting people and business the way it is, it is timely to make the RU OK? charity and Father’s Day connection for people.

With so much of Australia in lockdown, Father’s Day 2021 will be odd for card retailers. I suspect that it gives supermarkets an advantage. This is why newsagents need to leverage social media and other platforms for promoting easy and safe shopping for Father’s Day. It is also why the bonus of the RU OK? connection as well as the Australian made connection are important.

The easy win moves for sure are:

  • Placement of Father’s Day at front of store.
  • Secondary placement at the counter.
  • Cards placed with easy to purchase gifts.
  • Speaking to caption range on social media.
  • Asking customers if they have their Father’s Day card yet.
  • Connecting purchase to a loyalty reward.

Right now is the peak opportunity, especially because of the lockdown situation – people will be posting cards and gifts.

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Greeting Cards

Advice for small business retailers on making their own Covid support package

I am tired of the news reports about businesses doing it tough through Covid and calls for government support. I get that asking someone else to give you cash feels like an easy answer, but it’s not the answer.

Covid has been with us long enough for us to be able to deal better with it and the associated challenges ourselves, long enough for us to have our own plan. It will be here long into the future, too. We knew a pandemic was coming, just like we know that extraordinary disruption from climate change is coming, hell, it’s already here for too many.

Here is what we know, and have known for well over a year.

How people shop, when people shop and where people shop has changed fundamentally. Online has grown and continues to grow. People shop more with purpose now. There is less browsing. More people work from home permanently. What interests people has changed. People think more about the future now. People are less physically connected now, and more connected as a result. Australian made is more interesting to shoppers now. Shopping local counts for more than it used to. Tech barriers from before have been overcome: think QR codes, click and collect and the number of people shopping online for the first time.

These are some of the changes Covid has brought our way and in each of these is opportunity. While some business owners ask governments for cash to deal with today, it’s tomorrow that will really challenge as what Covid has kicked off and pushed forward will not u-turn.

We need to make our own Covid support package as it is this package that will be more useful to us in the future.

  • Expand sources of revenue. Carry products and services that attract people who have not shopped with you before. Expanding your shopper reach insulates your business.
  • Smooth the peaks. Look at your key business data points: sales by product category, sales by supplier, sales by staff member. Look at the peaks in these and if they are considerably higher than average, lift others so you are less reliant on the peaks.
  • Expand your sales points. Having only the in-store sales counter as a sale point is a risk. Make sure you are online through your own website, on eBay and on social media so people can purchase where they want. Selling to people you will never see is key.
  • Nurture loyalty. Run an easily understood loyalty program that differentiates your business.
  • Chase efficiency. Efficient shopper visits have more items in the basket. Develop a strategy for driving this. It starts with understanding your current position.
  • Entrench in the community. Supporting the community groups that support you is good for business. Doing this in a consistent and mutually understood way delivers benefits that can insulate the business when rocky roads present.
  • Be frugal. Covid has taught us the value of having money in the bank. The trimmed roster, reduced inventory in the back room, lower overheads, early settlement discount taken … they all free cash that can be banked for when you will need it.
  • Reduce debt. Every additional dollar you pay off business debt is a saving greater than the dollar itself.
  • Look for the pivot. Keep asking yourself what if this or what if that. Think about pivot opportunities in those situations. Always have a pivot move or two and, if it makes sense, pivot early, ahead of the need.
  • And, have your shop reflect how people shop now: make it easier, safer, serving quick shopping, packaging bundles, offer browsing without touching.

By being actively engaged in these and allied areas in your business you can create your own insulation against the challenges of Covid or similar. These suggestions and others they trigger make up  your own made Covid support package.

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Management tip

Isubscribe has record July for magazine subscriptions

I picked this news up from a LinkedIn post:

isubscribe.com.au just cracked a $1,000,000 in new subscriptions revenue for the month of July, record July sales figures since inception. Launched this fantastic business in 2000 and so proud that in our 21st year we keep breaking sales records. In recognition and appreciation to our valued clients that continue to produce thousands of the worlds best magazines every month… All credit to Hunter Drinan and our dedicated team.

That’s an extraordinary result, something on which newsagents may wish to reflect. Meanwhile, here is the pitch from their website:

Australia’s original and largest subscription marketplace
isubscribe has the largest range of print and digital magazine subscriptions in Australia, and a fantastic, growing number of subscription boxes. Since 2000, we’ve sold over 4 million subscriptions across our Australian, UK and NZ websites to happy customers all over the world.

There are big discounts and great offers on the site every day. With free Australia-wide delivery, you’ll find some of the best prices on the most popular subscription product at isubscribe.

Treat yourself to some me-time or give the gift that keeps giving. We’ve got over 3,000 different subscriptions on offer from Australia and overseas. Every interest is covered, from Food to Fashion, Homewares to Hardware – and everything in between. Subscriptions make great gifts for loved ones and friends. Think Christmas, birthdays, anniversaries and ‘just because’ occasions.

And, here is one way the do it. I searched them online yesterday and was subsequently pushed ads for magazine subscriptions from them. Ads that were of no interest to me, but, hey, I clicked on some anyway.

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magazines

The opportunity to grow newsagency card sales in this pandemic impacted economy

Here is a video of a meeting last week between newsXpress and Henderson Greetings card experts in which the data-driven process that is at the core of excellent card sales growth is outlined.

The data-driven process outlined is newsXpress intellectual property. It leverages data collected and curated buy the Tower software, layers over this in-store evidence and then brings to life card company data.

The result is excellent year on year card sales revenue growth.

I hope the video encourages newsagents to actively engage with cards, to take control in pursuit of revenue growth.

And, yes, there is a subtle newsXpress marketing pitch here. newsXpress brings excellent experience to this, in rural, regional and high street suburban newsagencies. To find out more: help@newsxpress.com.au.

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Greeting Cards

News Corp continues to interfere

From the Herald Sun and the Daily Telegraph, two different narratives. It’s pathetic, but on brand for News.

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Ethics

The important thank you card in online selling

Including a thank you card with items you ship to customers is critical in how you pitch your business to shoppers are are unlikely to ever meet. Big retailers include a card as they know it is a simple yet effective point of customer service.

In my own online businesses we have tried several options over the years. They keys are to have a professionally designed and printed base from which to work with,. This means a professionally designed and printed post card or similar in size.

Depending of your volume and the types of shoppers you deal with, a pre-printed message or personal note could work best. It comes down to individual choice, based on the types of shoppers you serve.

Here are tow recent examples from two my businesses.

The first, from my POS software company, offers a thank you for business to business sales of items shipped from the office. The design is refreshed every six months.

The second, produced and provided free to newsXpress members, offers space for a personal note of appreciation. This is more suited when shipping to individuals. This design, too, is refreshed every six months.

The thank you note is one of several key elements in providing an appreciated unboxing experience for the recipient. When selling to individuals especially, leveraging each element – outer packaging, internal packaging, unexpected treats, product protection, thank you note – is key to their future engagement with the business.

A professionally designed thank you note, printed on quality stock, positions even the smallest of businesses as professional and customer-caring … keys to success online.

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Newsagency management

Powerball jackpot a blow to east coast lottery retailers

While newsagent lottery outlets are able to be open in lockdown areas, foot traffic is down by between 50% and 75%. This will impact the role they get to play in the $80M Powerball jackpot.

The jackpot itself presents an opportunity for Tabcorp to move more in-store shoppers to online. Once you have purchased online for the first time, I think you are less likely to purchase in-store again based on the ease of the experience.

Tabcorp could recalibrate its advertising for the jackpot to pitch in-store. But that does not play well for the Covid messaging. They could reconsider compensation for lottery retailers as it is their faithful service of customers that has been key to Tabcorp having a customer pool to migrate online.

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Lotteries

Free Facebook job board a good way to find retail staff

With newspapers dead for employment ads and Seek pricing itself out of the market, the Facebook job board option is worth considering if you are looking for staff.

I have used it with success. Local jobs are easily found by people in your area, looking for work.

The tech from Facebook behind a simple listing use useful, far better than a notice in the shop window.

If you are hiring, give it a shot, and don’t take the boost option – save your money.

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Newsagency management

Dealing with anti-maskers in small business retail

The latest lockdowns in New South Wales and Queensland have seen small business retailers confronted by anti-maskers out to make a point for their nutty views.

I’ve heard of situations where abuse has been hurled across the counter by customers refusing to wear a mask. In one situation the customer spat on the acrylic shield at the retail counter.

Anti-maskers in-store present a serious challenge for employers as their presence and active engagement make for a possibly unsafe workplace, and it’s our obligation as employers to provide a safe workplace.

While I am no legal expert, I do suggest the following for any retail business owner:

  1. Provide your staff with appropriate personal and business equipment for their protection: screens at the counter, masks, hand sanitiser … all backed by appropriate Covid protection protocols. Keep this updated. For example, have an endless supply of masks available.
  2. Ensure customers know, from front of store signage and social media posts, that masks are required in-store. Use clear signage.
  3. Have masks available at the entrance to the shop for customers, for free.
  4. Demonstrate active understanding of situations where someone may not be able to wear a mask, for health reasons for example.
  5. Have a protocol for dealing with a vocal and / or threatening anti-masker and ensure that all staff know the protocol. This protocol should include a means by which a situation can be easily reported – a specific bell ring, for example.
  6. As the business owner, be engaged in dealing with anti-maskers.
  7. Meet with employees regularly to talk about the situation, to decompress. Make sure they understand and see that you support them.
  8. If the business is being targeted at all, position yourself at the front of the shop to run defence.
  9. The goal has to be to not directly engage with an anti-masker, to avoid making the situation worse, but to get them out of the shop as quickly and efficiently as possible.
  10. Ensure your CCTV is working, so you have evidence or any portable offence.
  11. Engage the police for any unsafe or threatening behaviour.
  12. Appreciate good customers in-store and on social media – celebrate their actions for making the shop safe.
  13. Put the health and safety of employees ahead of what a customer may think is their right to free speech. 

Dealing with anti-maskers in a retail business is all about leadership. The solution has to be set and led by business owners. leaving it to front line retail staff to deal with would be, in my view, an abrogation of responsibility. Show your employees how much you care about them by actively engaging on this issue.

Take the shop to the street. If you are in an area is heightened anti masker activity, take more of your business outside the business, to the footpath and elsewhere. taking business to your customers could make it easier for people stressed at wearing a mask as well as for employees.

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Newsagency management

New Dawn magazine pitches newsagents

It’s good to see magazine publishers promote the newsagency channel to their community on social media. It’s a pity larger publishers do not do this.

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magazines

SPECIAL EVENT: Growing card sales in the middle of a pandemic. Wednesday August 4 @ 2pm.

Join me this Wednesday as I talk with card data and sales experts from newsXpress, Henderson and Waterlyn about how newsagents have grown card sales during the pandemic, in some cases adding tens of thousands of dollars to their business profitability.

See newsagency data evidence of the growth and details of the steps involved.

Cards are the most gross profit valuable product in any newsagency. Manage them for success and your P&L will be rewarded, and your business will be worth more.

Let’s talk about how you can do this. Wednesday, August 4 @ 2pm. Here is the link:

https://zoom.us/j/91712938524?pwd=ZVRjQ3kzSHpRQ280bFR5Qzl0RllOUT09
Meeting ID: 917 1293 8524 Passcode: 367015

Anyone is welcome. Join us for practical advice you can use in your newsagency business. Discover intellectual property you can bank on.

If you have any questions, email help@newsxpress.com.au.

Footnote: I am a director of newsXpress.

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Newsagency management

Interesting use of tech in newspaper distribution in the UK

I am grateful to a UK newsagent for sharing these screen shots. On this screen we can see that they can set the required delivery time by day for newspapers.

In this image we can see the advice from the distributor as to when newspapers are likely to be available.

Newspaper publishers in Australia have failed newsagents on the technology front for years. Their disinterest in helping newsagents better serve customers is a factor in declining newspaper sales.

The screen shots from technology in the UK suggest access to a tech platform with useful tools that newsagents can use and rely on to provide better customer service.

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Newspaper distribution

Inviting shoppers to the newsagency

Here’s the front of one of my shops. The photo is from yesterday. It is deliberately open with products selected and placed to play against assumptions about newsagencies.

It’s working a treat.

Every day we make decisions in our shops about how we want our customers to see us, what they should expect from us. We do this through our product ranging, shop floor placement and social media pitches.

If we act traditionally, what we see through our register will be traditional. And, traditional is where plenty of newsagents are comfortable, which I respect. It’s not for me … hence the pitch you see in the photo.

Despite what we may think, we do have control over our businesses, what we carry, where it is displayed, how it is displayed, how it is priced and how we speak to it in-store. These are decisions we get to make, decisions that determine how shoppers see and interact with our businesses.

While we are part of a channel, the shops in the channel have become so diversified that there is no one model, no consistent pitch, except in an area under contractual control such as lotteries for those with that.

Now, on the displays … the tables you can see continuously evolve. There are major changes every two weeks and less major changes every few days. Oh, and in terms of the tables, we have eight positions like the in the photo inside the shop, each providing their own storytelling opportunity.

This space is called the dance floor, because of the never ending dance of movement of inventory and display fixtures.

I am grateful to the team members who have brought this latest offer alive. They have done a wonderful job.

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Newsagency management

ACCO adds freight levy of 2.5% of all lines

Stationery wholesaler ACCO is adding a 2.5% freight levy to all items from August 1 this year. They are also deleting from that 2,100 SKUs from their inventory range. They are also focussing on a tight list of products they are targeting for competition with major stationery outlets.

Here is the letter from ACCO explains the freight decision and some of the challenges they have been dealing with around this.

ACCO are not alone in dealing with this challenge. I know of suppliers who have adjusted prices without an announcement while others have adjusted other fees, such as in-store freight.

The freight situation, for the reasons ACCO explain in their letter as well as others, is impacting everyone. There is no escaping it.

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Newsagency challenges

ACCC waves through Are media take over of Ovate Retail Distribution

Here’s what the ACCC has said:

Are Media Pty Limited – Ovato Retail Distribution Pty Ltd

Status:  Completed
Outcome:  Not opposed on 29 July 2021
Industry:  Magazines
Commenced:  24 June 2021
Total review days:  25 days

Acquirer(s)

  • Are Media Pty Limited

Target(s)

  • Ovato Retail Distribution Pty Ltd

Summary

Are Media Pty Limited (Are Media) proposes to acquire Ovato Retail Distribution Pty Ltd (ORD) from Ovato Limited (Ovato).

Are Media, formed following Bauer Media’s acquisition of Pacific Magazines, is the largest magazine publisher in Australia. Ovato is an integrated print, distribution and marketing company. ORD is a subsidiary of Ovato, and is Australia’s largest distributor of print magazines to retailers including newsagents and supermarkets.

Market definition

The ACCC considered the impact of the proposed acquisition in the market for the distribution of magazines to retailers (such as newsagents, supermarkets and convenience stores) in Australia.

For the purposes of this assessment, the ACCC did not need to reach a concluded view on the precise definition of this market, as it would not significantly alter the assessment.

Competition analysis

The ACCC concluded that the proposed acquisition is not likely to substantially lessen competition.

Foreclosure of rival publishers

The ACCC considered that for many magazine publishers, ORD is an important route for the national distribution of time-sensitive publications to retailers, and is the only viable option. This would give Are Media the ability to favour the distribution of its own magazines after acquiring ORD.

However the ACCC found that Are Media would have insufficient incentive to favour the distribution of its own magazines, instead having a strong incentive to maximise the volume and value of magazines distributed after it purchases ORD.

The ACCC analysed historical sales data that indicated that consumers who still buy magazines have a high level of loyalty to particular titles, meaning that very few consumers would switch to an Are Media publication if it favoured distribution of its own magazines over its rivals’ publications. The ACCC also noted that ORD faces high fixed costs in distributing magazines. These factors mean that if Are Media were to reduce circulation of rival publications and favour its own, it is likely to forego more revenue from reduced distribution volume than it would gain in additional sales of its own publications.

Given the significant continuing declines in magazine sales and the very limited consumer switching between magazine titles, the ACCC concluded that the proposed acquisition is not likely to result in a substantial lessening of competition from Are Media favouring its own publications.

In the context of ongoing closure of magazine titles and the general decline in magazine sales, with high fixed costs in operating a magazine distribution business, the ACCC noted that distribution costs faced by publishers are likely to increase with or without Are Media acquiring ORD.

The ACCC also noted that Are Media is heavily reliant on ORD to distribute its magazines to retailers, and that the proposed acquisition therefore secures its main route to market in an industry facing continuing decline.

Access to data of rival publishers

The ACCC also considered whether Are Media could use data about its rivals’ sales that is obtained by ORD, to benefit Are Media’s publications in a way that would substantially lessen competition. The ACCC concluded that any benefit from this data is unlikely to give Are Media a significant competitive advantage, primarily because similar market information is publicly available.

3 likes
magazines
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