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

Making room for another Bride magazine

melbourne-bride.JPGWe received a truckload of Complete Wedding Melbourne from Network Services and published by Universal Magazines yesterday.  We had no spare space in our wedding section so we decided to take Melbourne Bride off the shelf and early return this.  I chose this title because we had sold one copy in six weeks and because it was distributed by Network Services – the same distributor wanting more space in this section.

On Melbourne Bride, I need to sell a copy a week to cover my costs.  As it is it will cost me close to $10 to return the unsold stock.

No wonder some in magazine publishing and distribution circles say we have the best magazine distribution system in the world.  That’s because newsagents are the bank and we fund half the freight.

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magazine distribution

Drowning in Puzzler Collection

puzzler-collection.JPGA few issues back Network Services increased our supply of Puzzler Collection by around 50% without justification in our sales data.  Since the increase we have continued to sell around the same volume.  We have supported the title with co-location – crosswords and in with our women’s weeklies titles.  Network’s response will be that we can early return and use Netonline to adjust supply.  That would be a lame and ignorant answer.  A fair and efficient magazine distribution system would not have created the problem in the first place.  The extra copies sent have sucked just that little bit of extra cash from us and how many other newsagency businesses?

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magazine distribution

Using downtime between major retail displays

cosmobride-aug2010.JPGWe found ourselves with nothing to feature on the back of the ACP Magazines stand – yes, we use the back and the front – so we decided to place Cosmopolitan Bride in the location for a few days.  Everyone leaving our women’s magazine aisle passes this display as they leave.  While this is not a display which will win a visual merchandising award, it is a tactical display which will drive browsing.

Sometimes publishers are too busy rewarding pretty displays while ignoring lessattractive displays which, well, sell magazines.

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magazines

Promoting The Monthly with Julia Gillard

monthly-aug2010.JPGThe latest issue of The Monthly, out today, has Julia Gillard on the cover.  I was surprised that we did not receive any marketing collateral with which to promote the title in-store.  So, we created our own to build the in-location display in the photo.

The Gillard cover story will be popular regardless of voting intentions if promoted in good impulse purchase locations.  Hence my disappointment about lack of marketing collateral.

We have placed The Week in two pockets directly below The Monthly to try and attract sales for its Gillard cover story.

We also have The Monthly in a pocket above The Age in our newspaper stand.

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magazines

Promoting Symply Too Good To Be True 6

symply-too-good-aug2010.JPGWe are promoting the launch today of Annette’ Sym’s new cook, Symply Too Good To be True 6, with a strong display capping our two busiest magazine aisles at newsXpress Forest Hill.

While the price point is high, it is reasonable considering the content in the publication – this is not a magazine or cookbook, it’s a 28 day weight loss master class from Annette.

We are also taking the opportunity to refresh interest in Annette’s other five successful cookbooks.

The Symply Too Good To be True 6 display create by Jane will remain up for at least a week.

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magazines

Talking about the future of magazines

Wither magazines? is an excellent blog post by the respected Jeff Jarvis writing at his BuzzMachine blog.  Publishers, newsagents and distributors ought to read his its points of advice for magazine publishers.

While it may be seen as stupid to link to a post which contemplates life after print, it is vitally important that we understand trends and opportunities overseas so that we can better plan for our businesses here.

There is an extraordinary difference between magazine publishing, distribution and retail in the US compared to Australia.  But that difference plays out only in terms of a time line. As I commented at Jeff’s blog:

As a specialist retailer of magazines in Australia I, sadly, agree with your points. Publishers ought to engage on these for their future.

In Australia, we have 4,000 newsagents, specialist retailers of magazines. Each selling between 1,000 and 2,000 different magazine titles. Our channel was created by publishers in the 1880s and today they continue to exert considerable control.

While the publishers pursue (at varying degrees of speed) their future, newsagents are somewhat contractually stuck in a model which binds them to a print model.

Our asset is our community connection. Our Achilles heel is that we have 4,000 CEOs who cannot agree on working together to find our future in a world where print fades as a delivery mechanism for news and information.

A terrific opportunity for newsagents today is with publishers who engage directly with us and who publish content which is relevant to our communities: geographically local communities, special subject interest communities and economically and socially connected communities.

Newsagents can play a role here.  Look at the tremendous success of SA Life, Tasmanian Life and similar local publications. At the high volume end as well as at the low volume end, we can work with proactive publishers for mutual success.

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magazine distribution

Fairfax contemplating online migration?

News Ltd is running the story about an analyst suggesting that competitor Fairfax would be better off shutting off the presses and moving to an online model.  Margaret Simons writing at Crikey provides a more balanced assessment of the story.

I expect that News, Fairfax and indeed all newspaper publishers are assessing the costs and benefits of moving to digital only delivery.  They cannot ignore the obligation to consider the alternative.

News and Fairfax have had time to experiment in recent years with their various plays in Adelaide, Peth and Brisbane.  They have also been able to assess how the transition has worked for the Seattle Post Intelligencier in the US.

The discussion about moving a newspaper online is often had in the context of what we know a newspaper to be today.  Smart publishers are re-envisioning what can be behind their masthead in an online offer.

Look at Monkey magazine in the UK.  Dennis Publishing created a new online only brand and quickly built a large and loyal following.  While creating a start up lad’s mag is different to creating a respected news source, the opportunities are the same.

News, for example, could repurpose content from The Australian and elsewhere and offer an online competitor to the Australian Financial Review, enticing people to migrate from print to a digital offering.  Given how AFR readers consume their news I would have thought that they were a logical low hanging fruit opportunity.

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Media disruption

Excellent Better Homes & Gardens sales

bhg-july2010.JPGOur counter display for Better Homes & Gardens continues to drive excellent sales for us – well into the on-sale period.  There are few magazines we could promote the same issue at the counter for two weeks and be happy with the sales the display achieves for us.  What makes the result even more amazing is that the impulse purchases are achieved without any free gifts.  It’s the magazine, that’s what sells Better Homes & Gardens.

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magazines

Promoting the cook’s garden from ACP

cooksgarden.JPGWe have placed the new cookbook from ACP, the cook’s garden, with our high volume weeklies to drive impulse business.  This is a very different cookbook from ACP.  I expect it to work well as an impulse item – hence the premium placement.  We also have stock in the ACP impulse unit at the counter as well as in our regular cookbook section.

I like the inclusion of apack of tomato seeds on the cover.  I also like that this cookbook is more of a garden to the table book than your usual cookbook.  The timing is good with Spring not far away.

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magazines

ACP announces Growth Rewards program

ACP magazines has this morning announced a new program for newsagents which offers additional margin for growth achievment.

The Growth Rewards program will be available to members of the ACP Connections program.  Bonus margin kicks in at 5% year on year growth with two steps in the program offering significantly more margin than provided today.

The ACP announcement breaks the 25% margin barrier for magazines.  It makes growth the core focus for newsagents.

For years in this place and elsewhere I have called on magazine and newspaper publishers to treat newsagents as business people.  This announcement from ACP does just that.

I was briefed on the program last week and was impressed with the work that ACP had put into it and the supporting materials to be provided to newsagents.  My understanding is that all Connections members will receive details off the program over the next couple of days.

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magazines

Newsagents need to act on magazine terms

Further to my blog post yesterday about supermarkets getting access to Cosmopolitan Health and other magazines on better trading terms than newsagents, this is an issue industry associations could consider engaging in – using collective bargaining rights.

Equally, now that we have proof of it happening, we could try and bargain for ourselves although I don’t hold out much hope.

I plan to put the question to several publishers.  I am keen to hear their response.

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magazine distribution

Dirt Action magazine sales fall due to bagging?

dirt-action.JPGSales of Dirt Action magazine fell with the latest issue and I wonder if this is because it was bagged with an old magazine and promoted as a premium product.  It could equally be sue to the magazine not being browser friendly.  Or, it could be a natural dip in the sales cycle.

Publishers often tell me that magazine sales increase when they bag the current issue with an old issue.  I struggle to believe this.  My observations of shoppers indicates that bagging magazines is a barrier to browsing and this must impact sales.

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magazines

Promoting marie claire 15th anniversary issue

marieclaire-aug2010.JPGWe are promoting the 15th anniversary issue of marie claire with this in-location double waterfall as well as a billboard display at the end of this aisle.  The premium free gift and the anniversary itself should drive good sales.

Kudos to Pacific Magazines for the way they packaged the gift with the magazine – not a single copy damaged.  The gift actually looks valuable and the magazine itself looks stunning.

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magazines

Promoting PC User magazine

pcuser-aug2010.JPGWe are promoting the latest issue of PC User magazine with an in-location display seen by everyone entering our men’s magazines aisle.  Regulars here will notice that we regularly flip this high traffic location between The Monthly, Money, APC and PC User.

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magazines

Supermarkets treated differently for magazines

I have just seen different treatment for supermarkets versus newsagents by ACP Magazines for their recent Cosmopolitan Health publication.  A newsagent was sent supermarket and newsagent stock.  While the publication is the same, the supermarket stock was provided with a 30 day shelf life and the newsagent stock had a 90 day shelf life.

The cash flow impact of the 90 day shelf life on newsagency businesses is significant, it disadvantages newsagents compared to supermarkets.

While there may be an argument around sales cycles in newsagencies compared to supermarkets, I don’t accept that. A title supplied to supermarkets with a 30 day shelf life should be supplied to newsagents under the same terms.

It is unfair on small business newsagents that they have a higher carrying cost for this or any title.

Magazine publishers ought to be transparent with newsagents about the terms they offer our competitors since we have less control over what we are supplied.  We are constantly told how important we are to publishers, transparency on the difference in terms would show if that is the case.

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magazines

Disappointment with iPad book offer

Every day which passes intensifies my disappointment with the book situation on the iPad in Australia.  The lack of an agreement between Apple and Australian publishers means that we miss out.  This is the dark side of the device, where it controls by geographic borders what we have access to.  The internet, the FREE internet, is far more useful and valuable in this regard.  Apple, publishers and others controlling who can access what and when are diluting the positive impact of the iPad and similar devices.

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Media disruption

Building the magazine cash flow story

I am looking to add to the pool of newsagents I am working with on researching the cash flow implications of the magazine supply model.  While I have good data from my benchmark participants, I want to extend the reach to ensure the best possible representation.  This next round of magazine performance data will be the most comprehensive ever gathered for newsagencies.  I plan to make good use of it on behalf of newsagents.

If you would like to participate, please email me privately at mark@towersystems…

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magazine distribution

First business buyers grant

State and federal governments have used first home owners grants to stimulate the building industry.  I am surprised they have not established first business buyers grants to encourage first time business buyers to enter the marketplace.  This could be the stimulus needed to increase the sale of businesses.

Newsagencies are excellent businesses for anyone buying their first business.  Talk to just about any broker around the country and you will discover that there are plenty of newsagencies for sale and not too many moving.  A first business buyers grant could be the encouragement prospective buyers need to get into the market.

I’d like to hear what the politicians seeking our votes think of this idea.

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Newsagency challenges

How many sudoku titles is a reasonable range?

sudoku-titles.JPGAt one of my newsagencies yesterday morning I counted thirteen different sudoku titles.  Thirteen! Obviously, the magazine distributors think that is not too many.  If I complained, I am sure they would claim to have sales data showing that this level of supply is justified.  In my view, this level of range of sudoku titles it is not justified in my newsagency.  If I carried half the range I bet my total sudoku title sales would not change.

Distributors say we can early return product.  Sure we can, but we pay the freight.  They say that we can control supply through their website and other processes.  Nonsense.

Australian magazine publishers often complain that newsagents don’t engage with their titles and miss opportunities to grow their businesses.  That is because we are drowning in junk, like some of the sudoku titles in this photo.  We need these Australian publishers to help us to get distributors from abusing newsagents.  If they can help reduce the overseas junk for a start we will have a publishing and retail businesses.

We also need to take firm action ourselves to exert more control over our assets.  We pay the rent and wages bills after all.  I hold no hope at all that newsagents will do this though.

Sure we complain.  But we don’t organise ourselves.  Too many industry leaders are seduced by a nice lunch, sponsorship for an event, a trip or some simple ego stroking to deliver the strong leadership newsagents need on this issue and to push back against this appalling behaviour.

In today’s marketplace, with magazine sales falling, newsagents must act on inefficient supply.  Too many newsagents are losing too much money for the current situation to continue.

We compete with supermarkets, convenience stores, petrol outlets and others for magazine sales and while the newsagency channel accounts for 50% of all magazines sold in Australia, I suspect we have the least control over supply.  That is how it feels at least.

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magazine distribution

Driving impulse sales for Prevention magazine

prevention-tactical.JPGWe are have tactically placed the latest issue of Prevention magazine (out yesterday) between New Idea and Australian Women’s Weekly for the next week to drive impulse purchases.  We also have Prevention in its usual area with women’s health related titles as well as on the dance floor of the store. Our obsession with basket size is working with growth achieved in July 2010 compared to July 2009.

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magazines

The other Zoo Weekly display

fhn-zoo-aug2010.JPGThis is the other Zoo Weekly display we have created in our newsagency at Forest Hill – the main display being at our newspaper stand.  This is on the back of the ACP basket builder stand and is seen by shoppers as they leave our (mainly) men’s magazine aisle.  As they walk past this display they can easily see the stand by our newspaper stand – that’s the plan at least.

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magazines