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Newsagents to mount a legal challenge on overweight newspapers?

Further to my post on Saturday about the response by News Limited to the problem of overweight newspapers, I have been sent several copies of letters received by newsagents. On state based letterhead, News has effectively sent the same letter to all recipients. In the letter, three and a half years after newsagents raised serious concerns about overweight newspapers and the prospect of implications for OH&S, News says that newsagents are responsible for OH&S issues stemming from newspaper delivery.  This has some newsagents seething.  It’s been put to me that newsagents could form a legal fund to challenge the position of News Limited.

As I noted on the weekend, I think newsagents should consider…

  1. Re-engage David Nery for a response.
  2. Talk with Worksafe and other state government OH&S bodies for an opinion.
  3. Talk with insurance companies to determine liability on the insured should an injury claim be made relating to this issue.
  4. Assemble a team of experts to research and guide a whole of industry response.  The team would include an appropriately skilled lawyer, OH&S expert, medical expert, a newspaper deliverer and a newsagent.
  5. Discuss with the federal government funding opportunities to help newsagents pay for the necessary research and advice in navigating such a complex issue.
  6. Set a timeline for progress on this.
  7. Seek agreement from News Limited to engage nationally given that they are dealing with it internally nationally.
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Newsagency challenges

Pitching Weight Watcher’s Cook Fast

fhn-weight-watchers-fast.JPGWith nothing in the magazines which went on sale yesterday worthy, in my view, of our prime counter impulse position, I decided to give Weight Watchers Cook Fast a go.  It has three days.  If we get results then it can stay the week.  Last week, we sold more copies of Real Living magazine from this counter position than we usually sell in a whole month.  No every title works in this location.  Some are successful beyond expectations while others bomb.  The key is to keep changing this offer and keep good data of what wworks and what does not.  Adding a magazine to the shopping basket on impulse is good business for us and magazine publisher.

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magazines

Cookbooks for Mother’s Day

fhn_cook-apr2010.JPGWe, and I am sure many newsagents across the country, are promoting four new ACP cookbooks as gifts for Mother’s Day.  In our case, we have positioned the display at the entrance to our main magazine aisle.  We plan to transition the display to our main Mother’s Day display (cards, gifts and Darrell Lea chocolates) in the last week of the Mother’s Day season (when most gifts sell).  ACP pomotes cookbooks every Mother’s Day and it works well for us.

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magazines

Selling the Roberta Willaims cover story

new-idea-roberta-wiams.JPGWe are pitching New Idea next to our newspaper stand as well as with our weekly magazines this week.  With the death of Carl Williams still big news in Melbourne, the Roberta Williams cover story should drive New Idea sales – even though at least one radio shock jock in Melbourne has called for readers to boycott the magazine.  Boycott shmoycott … we will leave this display in place until Wednesday.  I hope it sells well.

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magazines

Promoting Zoo with newspapers

fhn-zoo-apr262010.JPGWe are promoting Zoo next to our newspaper stand this week. The $1.95 price point for this week’s issue is what got us to make this move. While we have stock of Zoo in its usual location, we expect the newspaper stand position to work best for us.

Our sales for Zoo are usually quite small but when they do the half price offer, our sales double.  IO want to see how far we can push that.

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magazines

Riding Justin Bieber-mania

justin-beiber-calendar.jpgWe are offering the 2011 Justin Bieber calender for pre-sale.  Since he is in Australia right now, driving Sydney crazy and getting plenty of press coverage it makes sense.  We did the same thing last year with the Michael Jackson calendar and sold plenty – before we had stock.  We have the pre-sale form at the counter and with teen magazines.

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Newsagency opportunities

Hallmark sound cards on Neighbours

neighbours-hallmark-sound-cards.jpgHallmark Mother’s Day sound cards will appear on Neighbours TV show on Network Ten from tonight until Mother’s Day.  It’s good product placement given that all newsagents with Hallmark cards would have the same stand featuring the Mother’s Day sound cards.  Viewers of the TV show will recognise the stand in our newsagencies.

We are especially happy with the Hallmark / Neighbours promotion since we have some neighbours cast members who shop with us at Forest Hiill.  The show is recorded in studios nearby.

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Greeting Cards

Remembering Anzac Day on in-store radio

Yesterday, it was terrific hearing Anzac Day recognised and those who have fought for Australian recognised in information broadcast in our in-store radio. While newsagencies playing any commercial radio station would have heard similar packages, what made ours special what that it was connected back to us since it was on newsXpress Radio and therefore provided a personal connection to Anzac Day coverage. This connection between our brand and the broadcast personalises the connection.

In-store radio is not widely used in newsagency channels yet our major competitors use it very well.

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newsagency marketing

Promoting Wheels magazine

fhn_wheels1.JPGWe are promoting the latest issue of Wheels magazine close to its usual location with the display shown in the photo. Using a single poster like this draws attention to the title. It promotes the new issue and reinforces this as the location for Wheels each month.

Our theory is that since guys tend to be more destination shoppers and browsers in a newsagency, a display in the men’s magazine aisle is more likely to work for Wheels than if we did it in a more public fearure area.  We made the space for the display and at this stage plan on keeping it up for two weeks.

As we saw with our Money magazine display over the last couple of weeks this approach of creating a display within traditional magazine fixturing works very well.

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magazines

How Your Body Works part series out now

body-works.JPGWhile we did not get anywhere near enough stock for our needs, we have the How Your Body Works partworks on display at the front of our newsagency as well as in our partworks section toward the rear of the store.  In the first two days of on-sale it has performed very well – and the TV advertising has not even kicked in yet as far as I understand.

What is odd about the supply model is that I know of newsagents who will sell few who received plenty and and others (like mine) who could sell plenty but were undersupplied.

The publisher should be asking questions about the supply model because from where I sit opportunities appear to have been missed.

The supply frustrations aside, How Your Body Works should sell well – I suspect it could have done better.

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partworks

News Limited says newsagents are responsible for heavy newspapers

Three and a half years after the Nery report into the OH&S issues surrounding newspaper delivery was handed to News Limited by the ANF, News has written to newsagents rebutting key findings in the report.

As I blogged on November 20, 2006, the Nery report, commissioned by the ANF, found unsafe work practices which stem from the handling of heavy newspapers.  The ANF was upset that I publicly discussed the report and subsequently published it here.  The concern, as put to me, was that newsagents could have work place claims unless they changes practices to reflect the report’s recommendations.  The ANF and other associations wanted the report kept quiet out of fear of workplace OH&S claims.

David Nery, the respected author of the Nery report was clear:

The current situation, in my view, is unsafe and modifications to the weight, dimensions and volume of papers distributed per person need to be reduced to provide a safe system of work.

Yesterday, News Limited issued a rebuttal to newsagents, based on their own expert study.  Their report, or what has been published to newsagents at least, is years late and lacking in detail and professional scope compared with that of David Nery.   The News Limited rebuttal is in the from of a letter telling newsagents that they are responsible for OH&S issues relating to newspaper delivery.  They claim that Nery is wrong and that it is safe to deliver heavy newspapers.

News says that newsagents control the number of people doing newspaper home delivery.  While this is true, one could easily argue that News, through controlling delivery fees, customer acquisition and other factors in home delivery, determines the number of people employed.

News is wrong to have taken three and a half years to respond and wrong to lay responsibility at the feet of newsagents.

News Limited controls the weight and dimensions of the product being delivered.  They also control most of the economic terms relating to newspaper home delivery: delivery fees, cover price and requirements about obligations on newsagents to accept customers.  These economic terms determining whether newsagents can reasonably split a heavy product into two.

Newsagents need to revisit the Nery Report in the context of the communication from News Limited yesterday.  If I still had a home delivery business and were in a position to influence industry response I would:

  1. Re-engage David Nery for a response.
  2. Talk with Worksafe and other state government OH&S bodies for an opinion.
  3. Talk with insurance companies to determine liability on the insured should an injury claim be made relating to this issue.
  4. Assemble a team of experts to research and guide a whole of industry response.  The team would include an appropriately skilled lawyer, OH&S expert, medical expert, a newspaper deliverer and a newsagent.
  5. Discuss with the federal government funding opportunities to help newsagents pay for the necessary research and advice in navigating such a complex issue.
  6. Set a timeline for progress on this.
  7. Seek agreement from News Limited to engage nationally given that they are dealing with it internally nationally.

It may be that the process results in a negotiated middle ground position between News and newsagents.  If it doing nothing wrong, News should have nothing to hide and therefore be prepared to actively engage.

Time is an issue here.  The last thing any party wants is a legal case where repeated delivery of heavy newspapers is represented as a cause of workplace injury.

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Newspapers

Change to managing cookbook titles

ACP has announced a change to managing the return of cookbook titles.  The next round of returns, due May 31, newsagents need to return via NetOnline of a supplementary return from their computer system.  The list of titles up for return this round can be found by clicking here.  This is the last opportunity newsagents have to return these titles so checking the shelves is vitally important.

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magazines

Selling the Macaroons & Biscuits cookbook

acp-macaroons.JPGWe are pitching the new Macaroons & Biscuits Women’s Weekly cookbook next to the Australian Women’s Weekly as well as in our food section. I expect this title will do well for us – hence the high profile co-location decision. Co-location also helps us with a shortage of space for the now over-crowded food space. The attractive pastel cover stands out among the sea of brightly coloured magazines.  The new seques of ACP cookbooks is working very well.

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magazines

Chasing Who sales

carl-williams-who.JPGWe have opportunistically placed Who next to newspapers because of the Carl Williams cover story. This story is BIG in Melbourne so I’d expect Who to pick up some extra sales – based on the cover alone.  In addition to stock in a pocket above the Herald Sun, we’re using posters to draw attention to the title. We also have Who in its usual place as well as at one of our counter points.

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magazines

Newsagents should research the total cost of giving up the newspaper run

Despite the recent increases in newspaper home delivery fees, I have heard from newsagents contemplating giving up their newspaper distribution runs. In a couple of cases I have looked at this week, the new fees still do not get the run to a break-even point.

I have advised several newsagents recently consider not giving up their runs since in their particular circumstances they would most likely miss the customer traffic and revenue from their lucrative sub agent business.

While the home delivery side of a newspaper run may be loss-making, in-store traffic to pay accounts and otherwise engage in run related activity and or sub agent business can make the overall distribution business profitable or least break even.

The home delivery database can be used to drive traffic through email and print newsletters as some newsagents already do with tremendous success.

Five or six reasonable size sub agents, nurtured and cultivated, can provide an excellent return for the time invested.

It is important to carefully do the numbers before giving up the distribution business. Have them checked over to ensure that you have covered all bases in your analysis. It may be that keeping the run is better for the business. You’d want to find this out before you make the move.

I know I have written here before about the downside of newspaper home delivery. My point with this post is to reinforce that each newsagency is different and that care needs to be taken to assess all factors before you make the decision for your business.  As one newsagent has found out recently, a year after giving up the run, poor research can lead to a decision which hurts the business.

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Newsagency management

Last issue of Auto salon magazine out today

auto-salon-magazine.jpgThe last issue of Auto Salon goes on sale in newsagencies across Australia this morning.  The publishers have printed two different covers.  It’s a pity that newsagents will each receive only one version – some customers would have bought both as we often see with other titles with multiple covers.  No matter, we will give the title a push to help it go out with a bang in our newsagencies.

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magazines

Water cover story on National Geographic appeals

natgeo_water.JPGWith water the cover story on the latest issue of National Geographic, we placed it yesterday with our newspapers as well as in its usual location. The image will draw attention as much as the topic. We will maintain stock on the newspaper stand until Monday – longer if we’re getting a good sales result. National Geographic is one of those titles which can work on impulse with the right cover story.

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magazines

Selling InStyle with an umbrella

instyle-apr2010.JPGThe free umbrella with InStyle this month is proving to be a popular gift with our customers. We have given the magazine a power-end more to properly display the value gift with the title – regular magazine shelving does not do it justice. Sales have been good since the display went up Monday. In one of our shops the team opened the umbrella for the display – for a while at least until superstitious customers encouraged them to take it down.

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magazines

Welcome Powerball jackpot

Powerball did not go off tonight so we have a $30 million jackpot next week.  This is great news and will drive a nice kick in traffic and sales from tomorrow on.  We will make the most of the opportunity with more syndicates and a range in promotions.  We are also leveraging the Powerball traffic with considered impulse opportunities presenting as they enter and leave the business.

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Lotteries

AFL team cards soft?

Is it just me or has the gloss faded on AFL footy cards (all sets – the various stand alone packs as well as the packs tied to the Herald Sun)  this year? Sales are down not only in my stores but in several others I have spoken with. I’d be interested in knowing how they are performing elsewhere.  It could be that I am seeing a slower start to the card season.

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Newsagency challenges

Using the back of the ACP stand

magazine-stand-sideview.JPGI have been asked recently by several newsagents how we use the back of the ACP Magazines stand. The photo shows what we do – we are using the back of the stand to promote ACP’s Good Food title. We slip an acrylic easy-access shelf into one of the slots on the back of the unit – we have found the higher slot works better for us.

On the shelf we place the title being promoted on the posters and other collateral we stick on the back of the unit.

It is vitally important that shoppers can buy off of a display – otherwise the display is a billboard and the interest piqued by the display is lost.

We have been using the back of the ACP stand in this way for several years now. It gives us more display space which can be easily moved based on the title we are promoting. Changing the location of displays is also important to disrupt regular shopper’s expectations.

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magazines

Guys can’t browse bagged magazines

alpha-bagged-apr2010.JPGGuys spend more time browsing magazines in newsagencies than women. That’s my unscientific observation at least. Check out any newsagency on weekends, evenings and even weekdays and you are more likely to see guys browsing car magazines and sports magazines. So, I was surprised to see  the latest issue of Alpha bagged when it turned up yesterday. They will say that giving away an old copy will drive sales. Maybe so, I doubt it, but maybe so – the bag will block browsing and I would have thought that advertisers would not like that. If I had my way magazines for guys would not be bagged.

While there are newsagents who discourage browsing, I am not on their side.  Browsing is an important part of the newsagency shopping experience.

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magazines

Beating the Tiger Woods Vanity Fair cover

vanity-fair-apr2010.JPGI am seeing the latest issue of Vanity Fair perform better than the previous issue which has a pumped up Tiger Woods on the cover. We are already ahead on sales and it is still early days in the on-sale for this issue.  I am surprised as I expected the Tiger Woods issue to be a stand-out success … it just goes to show…

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magazines

Anzac Day Melbourne Observer edition

melbourne-observer.JPGThe Anzac Day cover on the Melbourne Observer this week will connect with our customers at Forest Hill so we have adjusted its position (with our main newspaper stand) to ensure that they see it.While the display itself is nothing special, the location is and that is what will make this work for us and the newspaper.

There is plenty of interest in Anzac Day yet not that much for people wanting to connect with the occasion until the newspapers on the day – except for the National War Memorial publication.

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Newspapers
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