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

Poor packaging mars Vogue promotion

vogue-bag-aug10.JPGThe bag with this month’s Vogue magazine is a good cut through promotion.  It stands out on the shelves.  The problem is the plastic bag the magazine and the free bag gift and packaged in.  It is thin.  More than a third of our stock was damaged.  Some of the gift bags were damaged or dirtied as a result.  Size is also a problem – This requires a double width pocket and you can only fit one magazine in the double width.  While we have half a waterfall of stock displayed this way, we have more stock displayed in the dump bin in the photo on the dance floor.

Attention to execution is key for a successful premium promotion.  This latest promotion damages the Vogue brand in my eyes – I say that after having to try and repair packaging for many of the units we received yesterday morning.

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magazines

Take care with some XchangeIT advice

My newsagency software company is getting calls from newsagents encountering issues following changing some system settings under the direction of XchangeIT.  While the XchangeIT support people have the best intentions at heart, some changes are best left to the people who know more about specific system settings.

Newsagents who are advised to change settings on their computer system by XchangeIT ought to check first that the advice is approved by their software company.

This situation is quite recent and I am hopeful that it will be addressed quickly.

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newsagent software

Why the magazine distribution model should concern politicians

returns-august112010.JPGPoliticians concerned about the climate change and the environment ought to take a look at the Australian magazine distribution model.

Every week we remove several trolley loads of unsold magazines from our shelves and either dump them for recycling or create more carbon emissions by returning unsold stock to the supplier warehouse.  I am sure that this process is repeated in newsagencies across the country.

Beyond the labour, real-estate and opportunity cost to newsagents of magazines which fail to sell, there is a significant cost to the environment of the current magazine distribution model:

  • The carbon footprint of overseas magazine titles being freighted to Australia is significant when compared to locally printed titles.  Do we really need an overseas title competing with a locally produced title?
  • The carbon footprint of a returns system which requires around half of unsold stock to be returned to the magazine distributor – presumably to be sent somewhere else for a second crack at a sale – is for dubious economic value.
  • The wastage of unsold stock which is left to be trashed locally.  Not all unsold magazines are recycled.  There is also the carbon cost of sending this underperforming stock in the first place to be considered.

If you take the top 200 magazines out of the mix you soon see a serious level of paper and carbon waste in the magazine distribution model.  There are titles which consistently sell under 50% of what are sent to many newsagencies.  While complaints always bring out excuses, there is no excuse which justifies such waste and damage to the environment.

There is no penalty on magazine distributors for supplying more magazines than they know will sell.  Some publishers operate under a model where underperforming titles do not harm their bottom line.  This lack of a penalty could be a factor in the environmental laziness of the model.

I would welcome politicians (the Greens with the balance of power in the Senate from next year?) to look at the magazine model from the perspective of its impact on the environment for this would bring issues of concern to newsagents into focus.

There ought to be an acceptable return percentage agreed and a penalty imposed, to be paid to newsagents, for titles which do not meet this minimum  standard.  Further, such titles ought to be able to be recycled locally rather than returned as full copy returns.

This is good an avenue of investigation for newsagents – pursuing the magazine model as an environmental issue rather than purely a newsagent economics issue.

I raised this with Bob Brown’s office during the election and plan to raise it again once the current dust storm settles.

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magazine distribution

Major changes at Fairfax?

An article in the Australian Financial Review on Monday foreshadowed major changes at Fairfax, especially for The Age and the The Sydney Morning Herald.  While the next announcements are expected to be more about editorial than distribution, it has been suggested to me that a distribution review could lead to a shake up in the model.

The issue, as always, is about cost.  The cost of landing a newspaper on a subscriber’s lawn is considerable.  It is natural that publishers are looking for ways to cut distribution costs.

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newspaper home delivery

Blackhawk gift card marketing collateral coming soon

blackhawk_1.jpgTower Systems is in the process of getting final artwork approval on two posters for newsagents selling Blackhawk gift cards.  Developed in-house by the Tower marketing team for exclusive use by the Tower Newsagent network, the posters are designed to encourage sales of gift cards along with greeting cards in newsagencies offering the Blackhawk range. Once Blackhawk approval is obtained, the artwork will be made available.

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Gifts

The Australia Post c-store?

I have heard from a couple of people that government owned Australia Post outlets, as opposed to privately owned Licenced Post Offices, are introducing selected confectionery and convenience lines to their business.  If these reports are true, I would ask on what basis can Australia Post further move into areaswell served by private enterprise, newsagents especailly.

Paragraphs 14 through 16 of Division 1 or Part 2 of the Australian Postal Corporation Act 1989 document the functions of The Australian Postal Corporation, better known as Australia Post:

14 Functions – the principal function
The principal function of Australia Post is to supply postal services
within Australia and between Australia and places outside Australia.

15 Functions – subsidiary function
A subsidiary function of Australia Post is to carry on, outside Australia, any business or activity relating to postal services.

16 Functions – incidental businesses and activities
(1) The functions of Australia Post include the carrying on, within or
outside Australia, of any business or activity that is incidental to:
(a) the supplying of postal services under section 14; or
(b) the carrying on of any business or activity under section 15.
(2) Without limiting subsection (1), the functions of Australia Post
include the carrying on, within or outside Australia, of any
business or activity that is capable of being conveniently carried
on:
(a) by the use of resources that are not immediately required in
carrying out Australia Post’s principal or subsidiary function;
or
(b) in the course of:
(i) supplying postal services under section 14; or
(ii) carrying on any business or activity under section 15.

I am curious how the possible move into confectionery and Australia Post’s aggressive move into the retailing of office products, greeting cards, telco recharge, Western Union money transfer and bill payment fits into the functions provided for under the Act. The only means I can see is if they are using resources “not immediately required in carrying out Australia Post’s principal or subsidiary function”.

This is a Corporation created by the Government to regulate the manufacture, distribution and retail of postal services. Around 80% of what is on the shop fllor of a government owned Australia Post soft is not incidental to the provision of postal services.

I would like to see politicians look at the revenue Australia Post is taking from family run businesses like newsagencies as a policy issue.

In writing about Australia Post I run the risk of alienating the many newsagents who operate Licenced Post Offices. I have no quarrel with them since they run broader businesses of which their Post Office counter is part. No, my quarrel is with the politicians who have turned a blind eye to the expansion of products and services offered through the Australia Post corporate stores.

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Australia Post

Pleased to see the latest MasterChef out

masterchef-august10.JPGIt is good to see the latest issue of MasterChef magazine out.  We are following what has worked well for us – placement in three locations.  Besides placement in with food titles, we have a pocket with our weeklies and the display in the photo next to the ACP impulse stand at our main counter.

We have been locating the tall orange stand next to our newspaper stand and felt that a change for this month was warranted – more for the sake of change than anything else.  Of course, if we notice any drop off in sales we will go back to the newspaper stand.

With ads on TV already for the Junior MasterChef TV show, the brand is not fading from interest consumer interest any time soon.

MasterChef magazine is number 11 in top selling magazines based on unit sales.  Newsagents need to tap into its extraordinary growth by doing more than only placing it with food titles as I saw in a couple of locations with the last issue.  This title is being bought by people who do not browse food titles.

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magazines

Having a double crack at promoting Top Gear

top-gear.JPGLook at the photo carefully and you can see that we have having a double crack at promoting the latest issue of Top Gear magazine.  There is the in location display (which is now a regular feature of our Top Gear strategy) and a metre or so away a display which is stuck on the back of a couple of impulse units at the main sales counter.  guys shopping this aisle will find it hard to miss this month’s Top Gear.

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magazines

When will the last daily newspaper publish in Australia?

NEWSPAPERS as we know them will be irrelevant within 12 years, according to futurist Ross Dawson, who said journalism would be largely ‘crowdsourced’.  The Australian, Monday August 24.

I participated in a newspaper study recently and was asked the same question.  University students researching the newsagency channel often ask the same question. I wonder if this is something newsagents think about.  If not, we should.

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Media disruption

News Limited mocks PANPA awards

Not winning any major awards at this year PANPA (Pacific Area Newspaper Association) Awards, News Limited has taken to deriding them in The Australian today.  I seem to recall a different approach when a News Limited newspaper won a major award.

Personally, I think the PANPA awards are irrelevant.  All that matters in today’s marketplace is genuinely paid for sales.

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Newspapers

Australian Property Investor selling well

Australian Property Investor magazine responded well to our weekend promotion.  The tactical placement with newspapers did especially well, adding copies of the title to newspaper sales as he hoped it would.  I understand that there will be more media support for this issue this week so it is not too late for newsagents to promote the title in high traffic lcoations.

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magazines

Promoting Australia Muscle Car magazine

muscle-car.JPGWe promoted Australian Muscle Car over the weekend with an in-location display.

With our men’s magazine aisle the most browsed on weekends, we wanted to take an opportunity to draw attention to this popular title.

Given the results achieved by the display, we now plan to leave it up until the end of this week.

I have been contacted by publishers asking how to get this featured treatment across the channel.  That is a challenge since I firmly believe that newsagents need to have the capacity to promote titles which work best in their local situation.  We only make money off selling magazines after all.

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magazines

Sun Herald newspaper masthead coverup

sunnerald-aug29.JPGThe masthead of the Sydney Sun Herald newspaper today is partially obscured by another of the stuck on ads which you need to peel off if you want to see the editorial content underneath.  At the Sydney newsstand where I purchased my copy this afternoon I saw four ads littering the floor. The same stuck on ad is running on the front cover The Sunday Age today.

I know my blogging about this will not change the Fairfax sell-out of their masthead.   It does, however, provide a record for those who are tracking how newspaper publishers are treating their brands in this disruptive print world.

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newspaper masthead desecration

Tattoo magazines now fashionable

angelina-jolie-mag-cover.JPGNo so long ago, tattoo magazines were tucked away in a corner in newsagencies, treated almost as an embarrassment in our range.  Today, thanks to the love of ink by celebrities such as Angelina Jolie and Harry Kewell and their featuring on covers, tattoo magazines are more mainstream than ever.

We are recognising the broader appeal by giving tattoo titles more time outside their traditional location, chasing impulse purchases.  Modern Ink with Angelina on the cover for example, has been given a run away from the tattoo titles – reflecting the more mainstream appeal of the magazine.

Newsagents have an opportunity with tattoo titles to grow sales when a star is on the cover.  This is what we are pursuing with some success.

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magazines

Distribution problems for The Age yesterday

The Age newspaper was five hours late getting to some newsagencies yesterday.  Many customers did not receive home delivery copies at all.  This made for some very angry customers – especially in retail only newsagencies.  In a couple of instances I have heard of, the limited stock which did ultimately arrive was sold out by 2pm.  Not a good situation all round.

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newspaper home delivery

Selling out Julia Gillard and Tony Abbott

julia-tony-soldout.JPGThere is irony in the SOLD OUT signs on the poster promoting our Julia Gillard and Tony Abbott Tattslotto syndicates. It was not lost on some of our customers either – one customer went and found her husband and brought him in for a shared laugh.

For the record, Tony Abbott sold out faster than Julia Gillard but only by a half an hour or so.  Just over half of our customers bought a share in each syndicate.

We plan to do more of these smaller basket building syndicates with news of the day themes as appropriate.

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Lotteries

The travelling newsagent conference

nx_conference.jpgnewsXpress has announced a one day travelling newsagent conference to be held in Melbourne, Sydney, Brisbane and Perth next month.  The conference is open to all newsagents regardless of marketing group affiliation.

Six expert speakers will present on topics of vital importance to newsagents.  Each session will share practical ideas which can be taken and used right away in any size newsagency without needing to spend money on changes.

The goal of the one day conference is provide genuine value advice and insight to help build stronger and more valuable newsagencies.

The one day conference starts at 10am and runs to 4pm.  There will be a trade show representing a small selection of suppliers with special deals for all newsagents.  Lunch and other refreshments will also be provided.  Participation costs just $50.00.

This one day conference format was created understanding that it was challenging for many newsagents to leave their businesses for more than a day at a time let alone travel interstate to a conference.

Click here for a one page brochure and registration form.  Click here to book online.

Disclosure: I am a Director of newsXpress.

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Newsagency opportunities

iPad user update

I have had my iPad for a while now and find myself making good use of it for business as well as for pleasure.  I have just finished reading my first novel on the device and am very happy with the experience.  I am also using the iPad for email and web access when on the road.

To the many sceptics about this and similar devices from earlier this year, I’d say that the iPad and similar devices can only get better with time.

I am not currently subscribing to any Australian newspapers.  The best newspaper app is that for the New Zealand Herald.  The best magazine app is that for Popular Mechanics.  My biggest complaint is the restrictions on books available through Apple for the Australian market.

The iPad is a game changer for print media, maybe not being felt today but certainly in the near medium term.  Newspaper publishers here are rushing new app offers as are magazine publishers – now that they have seen the economic value of the iPad app channel.

My understanding is that News is recasting the app for The Australian.  Someone told me this was due to the drop off of first time app subscriptions.

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Media disruption

Bagging Golf Magazine does not drive sales

bagged-golf-mag.JPGHere is another example where bagging a magazine with an old issue has not delivered the growth publishers talk of for bagged product.  The new issue of Golf Magazine went on sale yesterday so I checked sales for the old issue (pictured) which was bagged with a previous issue … no sales lift for us.  I doubt publisher claims that bagging a magazine with an old issue lifts sales – show me sales data and I may change my mind but in my store I am not seeing it.

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magazines

The prime minister lottery

gillard-abbott-syndicate.JPGWe have copied the brilliant election themed lottery syndicate pitch from newsXpress Riverlink and created two syndicates for tonight.  They have been on sale for a day and sales have been good.  We have priced these at five dollars a share with the view that existing syndicate and lottery customers will add these to their basket.

Just having the syndicate offer up is creating some good counter conversation.

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Lotteries

XchangeIT push on software updates

Newsagents are being urged by XchangeIT to ensure that they have the absolute latest software from the various newsagency software companies.  This is essential to ensure accurate data flow back to the magazine distributors and thereby protects newsagents from an XchangeIT fee penalty.  If you are not sure, check with your software company.

Having the latest software is vital for compliance today and to prepare you for the next round of enhancements to the EDI platform.

Tower Systems has the latest XchangeIT ready software update available from the website.

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newsagent software