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Donna Hay kids magazine looks set for great sales

donna-hay-kids.JPGBased on the questions from customers yesterday, the latest issue of Donna Hay kids magzine (on sale yesterday) looks set to be a huge success. We are pushing the title hard with a great display out the front of the store, facing into the mall. We will run this display for a week. We also have Donna Hay kids magazine displayed in our food section as well as in one pocket in the column of food titles in with our weeklies

I made the decision to run the front of store display as well as our in-store co-location strategy on the basis of the attractive cover and the strong Donna Hay brand. We know from past experience that sales will reward the effort.

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magazines

Promoting the Spiderman partwork

spiderman-partwork.JPGWe have the new Spiderman partwork, Spiderman Heroes & Villians, out the front of the store facing the mall and hopefully attracting traffic. Our team placed it next to some school holiday supplies – a clever move. We also have limited stock in our partworks section. As usually happens with launch issues, most copies will sell from the front of the store.  This is terrific impulse opportunity for the few  remaining days of the current school holidays.

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magazines

Promoting Marie Claire magazine

marie-claire-jul2010.JPGWe are promoting the latest issue of Marie Claire with an in-location display. We plan to supplement this with a two pocket co-location with weeklies over this coming weekend. Out of the women’s monthlies, Marie Claire is performing ahead of the pack – hence our preparedness to give it a push with extra space and activity.

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magazines

Q2 2010 Newsagent Sales Benchmark Study Announced

I am preparing to undertake a newsagent retail sales benchmark study comparing sales for April – June 2010 against April – June 2009.

Tower Newsagents can 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 April 1, 2010 to June 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’ll publish the benchmark results here and elsewhere so all newsagents can benefit.

NOTE: If you are running our latest software, you can click on the BENCHMARK icon on your desktop, enter the April through June date range and have the software do the rest.  If you have not used our direct email facilities – to email customer accounts or to email Gordon and Gotch supply changes, the software will ask for some email details from you.  This takes a few seconds to setup.

Non Tower newsagents can participate by emailing me for a copy of a spreadsheet template I have prepared.

As with past benchmarks, I expect to get data from between 100 and 120 newsagencies in the next week.  The results will provide an indication of sales performance year on year and give newsagents something with which to compare their businesses.

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Newsagency management

Slow Cooker sell out again!

slow-cooker-acp.JPGJust five days after receiving fresh stock of the Women’s Weekly Slow Cooker cookbook we are close to selling out.  There appears to be no end in sight to the success for this title.  I know of one newsagency which sold fifty copies this past weekend.  The key is to be tactical in the placement of the title.  No one is coming in planning to buy the cookbook, every purchase is on impulse.  Now that’s basket building for you!

Thankfully, we should have more Slow Cooker stock in the next week or so.

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magazines

Promoting issue #3 of master chef magazine

masterchef-july10.JPGWe are promoting issue #3 of the master chef magazine next to our main newspaper stand, in with our weeklies as well as in our usual food titles section.  If Issue #2 is anything to go off we expect to see another lift in sales. That’s right, issue #2 sold out and achieved a great increase on the launch issue.

The key to success is tactical placement in high traffic areas – hence our placement next to the main newspaper stand.  Next week, we will run the title at the counter for a few days.  Constant movement is essential in chasing impulse business for a title like master chef.

The over the counter feedback on the title is very strong.  People who have purchased the magazine comment positively about it.  This is where master chef is a stand out from title launches in recent years.  I cannot recall such unsolicited and positive comment for a new title.

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magazines

Diabetic Living doing amazing business

We have thankfully accessed additional stock of Diabetic Living.  The last issue is selling very well.  Again, our success is being driven by tactical placement in-store.  The title performs well in high traffic locations: with the weekly magazines, with health titles and a stint at the counter.

If you have Diabetic Living in only one location you are probably missing out on sales.

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magazines

Promoting Famous and the $100 Wish gift voucher

famous-july510.JPGWe are promoting Famous magazine at the counter this week thanks to the offer is a $100 WISH card which could be won with a purchase of this or any of a range of titles from Pacific Magazines.

Given the decay curve for Famous we are likely to leave this display up for most of the week – it performs quite differently wo Woman’s Day and New Idea.

The other important reason for having Famous at the counter this week is the text message and email marketing campaigns running in support of the $100 WISH card promotion.

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magazines

Repeating the dump bin strategy for discounted magazines

wd-nw-july10.JPGWe are promoting the Woman’s Day / NW double pack in a dump bin on the shop floor.  Since this is a discounted deal I did not want to place it in the usual location for the titles.  I am chasing impulse business rather than educating our regulars to switch to the discount pack.

This dump bin approach worked for the last discount package from ACP – it sold out.

We have the dump bin in a high traffic location on the dance floor.

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magazines

Promoting Madison and the free scarf

madison-july10.JPGWe are promoting Madison and the free gift at the entrance to our women’s magazine aisle.  We also have the title in its usual location taking up double pockets – thanks to the free scarf which comes with the magazine this month.

I wonder if magazine customers are feeling tip-on fatigue like newsagents.  Finding space for these fold out double spacing packages is a challenge.  While we could leave it folded and taking one spacing, the value of the gift is then hidden.

Looking down the women’s magazine aisle and it feels as if all the major monthly titles have a gift or one sort or another.  There will be a point at which the gifts have no perceived value.

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magazines

How to avoid being fined by Network Services

Magazine distributor Network Services operates as victim, prosecutor, judge and jury in the handling of disputes arising from magazine returns.  While they will say that statement is unfair, it is how it is.  It is how newsagents who have experienced a dispute often feel.

While I have seen Network act fairly in some situations, I have also seen them act unfairly in others.  The frustration felt toward their handling of disputes is magnified since they relate to products over which newsagents have very little control thanks to the push model of magazine distribution in Australia.

Here are my suggestions for newsagents to be better able to deal with a magazine returns credit dispute:

  1. Make sure that you understand and carefully follow the current Network process for packaging and shipping returns and returns forms.  Do not ask another newsagent what the current process is, ask only Network. Get it in writing.
  2. Keep a copy of all forms, emails and other documents relating to returns in a separate date-sequenced file for Network.
  3. Create a log of returns shipping activity noting the date you sent returns, the courier used, number of packages and the name or the person who completed the returns at your end.
  4. Photograph each Network returns package – clearly showing the label.
  5. Get a receipt from the courier you use to deliver your returns to Network.
  6. If you deliver the returns yourself, take a photo of your packages before you leave the distribution depot.
  7. Make notes about any phone call relating to returns.  Include the full name of the person you spoke with plus the date and time.

The better you are able to prove what you did and when in the event of a dispute the faster the dispute will be resolved.

The process outlined above will also show some newsagents mistakes which led to credits being denied.

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magazine distribution

Promoting The Monthly with Bob Brown on the cover

monthly-july2010.JPGWe are promoting The Monthly magazine with an in location display.  The Bob Brown cover is certain to attract sales if the significant rise in opinion polls for the Greens is anything to go by.

This display can be easily seen by people heading from the newspaper stand to our main counter.  It also faces everyone entering our men’s and special interest magazine aisle.

You can see in the photo that we are also promoting viewpoint under The Monthly – again because of the Bob Brown cover.

We plan to leave this display in place for at least a week.

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magazines

Driving impulse sales with weekly magazines

bliss-victoria.JPGFurther to my post yesterday, here is how I am choosing to use this premium space at the moment.

Bliss Victoria is a title which responds to placement away from its usual location.

Our Real Living sales are up thanks to placement here above the weeklies.

We start each week with a seven pocket waterfall for weeklies – leaving the top two pockets for other titles.  As the week progresses we shrink the waterfall and bring other titles in, titles we choose.

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magazines

Is it time to block visual merchandisers from our stores?

mindfood-ugh.JPGSometime between Wednesday morning and Friday morning last week, a visual merchandiser entered my newsXpress Forest Hill store and created a half waterfall display for Mindfood magazine above our weeklies.  This is despite our placement of a half waterfall display in the usual location for Mindfood – which they left in place.

To create this display they took down the titles I had personally and tactically placed in this premium location.  They did this without seeking permission and without offering compensation for the use of the space.

Mindfood is loss making for us.  Network Services does not supply based on sales data.  If they did, we would have received far less than what was sent for the latest issue.

I can hear a possible explanation – that we were supplied extra stock because the Mindfood publisher was spending money on in-store promotion.   If this is true and if the extra promotion was a co-location strategy along the lines of what they did in my store then they should have negotiated a fee with me to access the premium space.

I took the display down Friday morning.  I am returning half the Mindfood stock on Monday – we still won’t sell out.

Am I angry?  Yes!  This action violates my business. I am sick of it.  I am sick of magazine distributors pushing product without offering fair and reasonable control and then demanding that I carry the financial risk of their supply decision.

Which other retailer would let a supplier come in and take control of their business in this way for a product for which you make only 25% margin?

I intend to use Mindfood as one of the examples in a complaint to the ACCC on the magazine supply model.

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magazine distribution

Newspaper shows no value in masthead promotion

age_july4.JPGThe Sunday Age today promotes TWO GREAT MAGAZINES on the front page of the newspaper.  The promotion is wasted, however, by the ad for wotif which has been stuck over the word magazines.  Why promote two great magazines when you know it is going to be covered up?  The ad people will say that the ad is removable.  Maybe so, but not by somone browsing.  It is the browsers  the promotion of TWO GREAT MAGAZINES is aimed at.

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newspaper masthead desecration

God question sells out Philisophy Now

is-god-dead.JPGBy yesterday morning we had sold out of Philosophy Now magazine.  Our usual sell through is between 25% and 50%.  Our tactical placement of the title with newspapers last Monday is what created the opportunity for the sell-out.  The brilliant cover is what drove the impulse purchases.

We have opportunities like this every day in our newsagencies. It is vitally important to our health that we work tactically on extending a shopping basket with just a newspaper to a newspaper and something else.

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magazines

Strong lottery superdraw syndicate sales

We are seeing stronger than usual sales for syndicates in the scheduled lottery superdraws with the July promotion.  Our feeling is that this is due to the recent OzLotto jackpots.  Oz brought new customers to the syndicate products and some have stuck.  It has been easy to offer a superdraw syndicate when they come in to check their Oz syndicate.

We currently do our syndicates offline – meaning that synidcate sales were not affected by the Tattersalls network outage last Tuesday.

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Lotteries

Three Newsagency of the Future workshops next week

The Newsagency of the Future workshops are starting to wind down.  I have three more this week and one to schedule in Townsville.  The content has evolved as more information has come and as conversations at the workshops have evolved.

Getting to engage with more than 300 newsagents about the future has been a privilege.  Hopefully, the conversations started lead to good outcomes for the newsagents involved and the channel more widely.

Here are the details for this week:

  • Geelong.  Tuesday 11am.  Mecure Hotel.
  • Gold Coast.  Thursday 10am.  Marriott Surfers Paradise.
  • Melbourne.  Friday 11am.  Geebung Polo Club Hawthorn.

Click here to book online.

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newsagency of the future

Winter book sale a hit

book-sale-jul2010.JPGOur Book Sale is generating excellent business – new traffic from customers who are responding to the flyers we have delivered to homes around the area and deeper baskets from customers who browse our Book Sale tables.  The sale has hit at the right time: school holidays, winter and in time for people already turning their mind to Christmas.  Most of our dance floor is dedicated to the sale, it will run for between four and six weeks.

We switched to a mid year book sale from the traditional mid year stationery sale a couple of years ago.  It drives better traffic and better margin than the stationery sale.

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Book retailing

Julia Gillard cover on Who set to drive sales

who-july2010.JPGThe Julia Gillard cover on Who magazine, out yesterday, encouraged us to create a display at the prime impulse location between our two busiest sales counters.

My assessment is that in the right impulse location, the cover is likely to achieve incremental business for us.  hence the use of prime space for the small display.

In terms of the display itself, we have followed our usual simple approach for these things: creating only a couple of layers, nothing too fancy and letting the product speak for itself.  The display is not bordered by other products – it has a clear spotlight.

This counter location is succesful for around 75% of our placements.  I am happy with that strike rate.

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magazines

Promoting The Week with newspapers

theweek-july2010.JPGWe are taking the opportunity to promote the latest issue of The Week magazine with Julia Gillard on the cover on our main newspaper stand for the next few days.  The cover is excellent and with the new PM in a honeymoon period it should achieve some extra business for us.  We have two perspex pockets on our newspaper stand, one above The Age and one above the Herald Sun, for tactical title placement.  Our goal is to turn newspaper sales into newspaper + magazine sales.  With the right title they work very well for us.

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magazines

Forget newspaper home delivery says US newspaper publisher

Sam Zell, Chairman of newspaper publisher Tribune was on CNBC yesterday talking about their bankruptcy proceedings.  In the same interview he commented about the future of newspaper home delivery. and “how the media and particularly the newspaper side of the business are going to change in the future.”

Zell said: “going forward, it’s going to require all kinds of different approaches, including probably most significant, the elimination of home delivery and the replacement of it by PDFs.”

Checkout the report at PaidContent.  Then watch the video.

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Media disruption

Will Tattersalls seek compensation from Telstra for loss of sales?

Given the conisderable economic losses many newsagents incurred as a result of the Telstra network outage earlier this week, it will be interesting to see if Tattersalls lodged a claim for compensation with the telco.

The Herald Sun quoted Telstra spokesman Craig Middleton on the issue of compensation resulting from the outage, noting that it was for:

For corporate customers that depend on their service level agreement with us.

Tattersalls outlets are not customers of Telstra even though we pay for the services of the telco.  Tattersalls is the customer of Telstra.

Given the value of loss of sales experienced by the Tattersalls retail network, we ought to be keenly interested in the prospect of compensation for Tuesday’s Telstra network outage. It would be reasonable to expect that any compensation would be shared with Tattersalls outlets.

Our losses would include lottery product sales as well as sales lost to some customers who did not make the usual impulse purchases with lottery products.

I was surprised to discover that Telstra has not made any formal announcement about the outage given the cost to its customers.

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Lotteries