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

Pink cover on Shape magazine should drive sales

shape-pink.JPGWe are promoting the latest issue of Shape magazine in our women’s health section as well as with newspapers for the next few days. We will then move it to the counter. We’re chasing impulse purchases. With Pink being on the cover, the magazine demands being promoted in high-traffic areas. Pink’s tour of Australia was one of the most successful ever so leveraging that into impulse magazine sales makes sense to me.

When we see opportunities to promote titles outside their usual location based on the cover story and its connection with our customers we act.  From what I see, not enough newsagents do this. I take it as my responsibility to look for these opportunities.

This is another reason putting out new magazines in the morning is specialist work and not something to be treated as menial.

If you carry Shape magazine, I’d encourage you to get the latest issue into a high traffic area.

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magazines

Smart pack of boxed cards from Henderson Greetings

boxed-henderson-cards.JPGHenderson Greetings has released several ranges of boxed greeting cards. These Simon Elvin designed cards look sharp. They are a value offer – six cards for $9.95 – without looking cheap. We have had them out on the shop floor, on a gift table next to our card department, for just over a week and they are moving well.

Here in Australia we tend to do boxed cards only at Christmas time. I am hopeful that these and other boxed cards from Henderson show that they can work year round.

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Greeting Cards

New Lancaster Bomber partwork series

lancaster-bomber.JPGWe were surprised to receive the Build Your Own Lancaster Bomber partwork series yesterday morning. All we received was stock – unannounced.  No marketing collateral, no support at all. We are used to being given an opportunity to set our own quantities for partworks. This enables us to help them achieve maximum sell-through. The lack of support for this partwork is odd. Maybe they do really only want us to sell the first couple of issues to get subscriptions rolling. I hope not.

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partworks

Discounting MasterChef magazine too soon?

masterchef-mag.JPGI was disappointed to see the full page ad promoting MasterChef magazine subscriptions in the MasterChef branded giveaway with the Herald Sun on the weekend. Don’t miss out on Issue 1 – Pre-order now! 6 ISSUES FOR ONLY $20. The ad said. A better approach would have been to promote newsagency putaways in the magazine. This would help garner newsagent support and let people warm to the magazine. Instead, the publisher is using a steep discount to get people to make a six-month commitment – these are people who won’t buy the magazine in a newsagency for the next six months.

While I accept that subscriptions are essential in the mix for magazine publishers, to go out prior to launch and not offering a similar newsagent-focused customer acquisition campaign is disappointing and frustrating.

The publisher can turn this around with a campaign designed to drive newsagency customers for MasterChef.  A smart campaign will use the pages of the magazine to encourage in-store putaway.

These days, I am looking for publishers to do more than provide posters or offer a prize for the most attractive display.  I want publishers to engage commercially in true partnership.  I want them to show how much newsagents mean to them and to encourage a framework through which newsagents can show how much they like working with engaged publishers.

Publishers need to remember that we only make money out of what we sell.

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Magazine subscriptions

Increasing Real Living sales

fhn-real-living-apr2010.JPGWe are promoting Real Living magazine in prime position at the counter for the next few days – even though it is not part the ACP Connections marketing program this. I decided to create the prime location display yesterday morning because Real Living sales are growing nicely for us. The last two issues have sold out and we have secured additional stock for this issue. I’d like to see how far we can push the title – hence the prime counter position.

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magazines

Pitching Men’s Health and Women’s Health

mens-health-womens-health-arp10.JPGWe are promoting Women’s Health and Men’s Health together at the front of our newsagency. The majority of our lottery customers past this busy location.  It is also seen by people leaving the shopping centre.   We plan to leave both titles on display for a week. It’s a good move by Pacific Magazines to bring both titles out on the same day – they sit well next to each other in a feature display.

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magazines

Promoting Cleo

fhn-cleo-apr2010.JPGWe are promoting Cleo and the free Bec & Bridge tote bag which comes with the magazine at the entrance to our women’s magazine aisle this week. We also have a considerable display of Cleo deeper in the aisle where the magazine is usually located. We have left our Good Food display on the rear of this stand as our view is that this is more likely to generate sales from this location than Cleo. We will leave the Cleo display up for a week at this stage.

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magazines

How will the Apple iPad impact Australian newsagents

With both News and Fairfax announcing plans to apps for the new Apple iPad, maybe now newsagents will start to take notice of the emerging digital channel.

For years most newsagents have remained silent, even ignorant, of the new channel for news and information. As servants of publishers, magazine and newspaper, many Australian newsagents act as if their suppliers, those who created the channel in Victoria in the 1800s, would provide a future path.

The writing has been on the wall about news and information distribution for a long time. Back in 2005 the risk to our print centric channel became obvious:

“Within our lifetimes, the distribution of news and information is going to shift to broadband,” Sulzberger says. “We must enter the broadband world having mastered the three key skill sets — print, Internet, and video — because that’s what’s going to ensure the future of this news organization in the years ahead.” Arthur Sulzberger, Publisher, New York Times. Business Week, Jan. 17, 2005

This was the first time a major publisher has spoken so openly about the digital future. Rupert Murdoch joined in…

“So, media becomes like fast food – people will consume it on the go, watching news, sport and film clips as they travel to and from work on mobiles or handheld wireless devices..” Rupert Murdoch speaking at Worshipful Company of Stationers And Newspaper Makers, March 2006.

Fast forward to today and the message is clearer, more specific:

“If you have less newspapers and more of these [iPads] … it may well be the saving of the newspaper industry.” Rupert Murdoch, April 2010

Last week, The Australian announced the imminent launch of an iPad app. Today, The Australian reports that Fairfax has announced their iPad app plans.

Newspaper publishers are chasing this new channel. They say they are doing it while remaining focused on print. Revenue will determine how long they focus on print and digital for delivering the newspaper. Paper and distribution costs are high.

Once publishers can achieve the return they want from a digital platform the costs of the print model will come into focus.

While I am not predicting the end of print newspapers, I am suggesting that newsagents need to develop reflect the latest moves in their business plans.

The launch version of the iPad is not a newspaper killer. Maybe it will take several versions to get close to that experience. Maybe it won’t be the iPad at all. There are many devices being developed around the world in this digital news and information delivery channel space. The size of the competition is a testament to the scope of the challenge us print-centric newsagents face.

This is why we have to wean ourselves off print. We need to lead our own life away from our parent as it is possible they may leave the nest. They will deny this is an option as they should. However, we need to plan as if this will happen.

What would a newsagency look like without newspapers? Once you get over laughing at what you probably think is a ridiculous question, think about it.

Some newsagents would see a newsagency without newspapers as a business which is finally free. Others would see it as a business which is dying.

Of course, it won’t happen all at once. The importance of newspapers to newsagencies will face with time. Indeed, we have been seeing this for the last five years even though publishers and many newsagents would deny this.

The iPad is our call to action. It ought to be the topic newsagents and their associations ought to discuss. Its imminent launch here in Australia is the most significant challenge to the print distribution channel, the Australian newsagency channel, since we began.

In the 1800s the publisher of The Bulletin created Australia’s first newsagents because of the need to distribute product. Today, publishers are embracing the iPad because it looks like it may more efficienctly solve their distribution challenge in today’s world.

Unlike the 1800s, our future will come from within.  These are exciting times.

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Media disruption

Ink sales spike on promotion

hotink-14.JPGWe are promoting our latest ink offer through a two-page catalogue in thousands of letterboxes as well as in the shopping centre and some other external marketing initiatives.  The result is a terrific sales spike.

You know you have a catalogue which works when customers bring it in with the items they want circled. In-store we connect with the promotion with flyers as well as shelf compelling price labels – as shown in the photo.  This whole of business approach to a category pays off as we are seeing at the moment.

Too often, newsagents will engage in one tactic – an external ad or a flyer or a display in-store – without using this as one of several tactics to form a campaign. As we are seeing with ink right now, we can convert shoppers visiting for something else into an ink customer while at the same time attracting new customers because of our external marketing.  Operating on multiple levels and attracting business from different customers makes it an efficient campaign.

Ink responds very well to marketing investment. There is plenty of market research around to indicate that consumers think newsagencies are expensive. We use it to promote that our newsagency is not expensive in this competitive category.  Once we win a new customer on price they are highly likely to stay with us.

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newsagency marketing

Sundays not what they used to be

Sundays used to be a power day in the retail week.  No longer it seems – not just based on data from my newsagencies but many I speak with, data from the last three months.  Sunday trade is down this year while other days are up (Thursday and Friday).

The problem with the drop in Sunday day trade is that it’s the most expensive day of the week to be open.  This is why most newsagents who have a choice, those not in major shopping centres, choose to not open.

We use the day to get work done which would otherwise be done during the week and make labour savings there.  We need to do more though to make the day work.  We’re contemplating Sunday offers and other tactics to make the day work better for us.  They will focus on the higher margin products as it’s these which will pay the high operating costs.

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Newsagency challenges

NSW State Government cares less about newsagents

SMH.COM.AU is reporting that some newsagents are refusing to sell the new MyZone transport tickets due to the poor commission.

State governments around Australia have presided over a considerable decline in commission paid to retailers selling tickets on their behalf over the last five years.

While the governments hide behind plenty of excuses, the reality is that they control the strategy which has seen retailers, many of whom are newsagents, lose considerable revenue.

I remember discussing the expected impact of transport ticket moves with the then NSW Minister for Small Business in 2004 and I walked away feeling that he didn’t get it.  He saw that the need for the State Government to cut costs awas more important than newsagents making a living wage.  He also said that his government supported small business.  Well, on this issue, no.

Newsagents are well placed to support transport tickets because of location and operating hours.  It is unreasonable to cut out commission while allowing private operators and other stakeholders to increase their earnings.  Our operating costs have gone up too.

Other newsagent suppliers need to take on board issues like this when considering their position. Over the last five years, newsagent margins have been trimmed across a variety of categories and while each trim may be relatively small, they add to a considerable impact in these small businesses.

We don’t have a track record of fighting back and this is why those who have trimmed margins know they can get away with it.

If I were in NSW, I’d be leveraging the traffic in my newsagency and publishing information on how the MyZone pricing hurts my business, my employees and the community nearby. I’d make a pitch for fairness from the state government in the hope that the local member notices and engages in something more than hot air.

I’d connect with other newsagents and take a stand to draw attention to the knock-on impact of the margin cut. It is important to show the comminity-wide effect of changes like this.  It is not just about how much money we make in our businesses.

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Newsagency challenges

Free MasterChef magazine

masterchef-magazine.JPGIt will be interesting to see the interest in the free MasterChef giveaway with the Sunday Herald Sun today.  While not the magazine with is due to launch shortly, it is a teaser for the magazine and thereby an indicator for the appetite for the new title.  I am curious because I fear we are close to saturation for regular food titles – from gourmet food down to every day food.  This new title will need a unique angle for it to work.  Today’s MasterChef  giveaway is heavy on the TV show connection.  I’ll be curious to see how this connection plays out in the magazine.

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magazines

Move to weekly magazine returns by NDD welcome

I am pleased that magazine distributor NDD moves to weekly magazine returns next week.  Besides the cash-flow benefits, there is the opportunity to better manage floor stock.  Some newsagents will take the opportunity to increase the range and try more titles.  I am looking at this for one of my newsagencies where I see an opportunity in several special interest areas.

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magazine distribution

Top Gear magazine sells with newspapers

top-gear-apr2010.JPGWe are leveraging the synergy between the Top Gear magazine and the refreshed TV show by placing Top Gear magazines with newspapers for the weekend. This Friday through Sunday placement connects with our weekend shoppers – many of whom come in for a newspaper and leave having bought some other items. These are people we only see on weekends – hence the importance of driving efficiency as much as possible.

Top Gear is a great impulse purchase opportunity – newsagents should co-locate this title and fine the second location which works.

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magazines

Pitching Total Fanzine at the counter

fanzine-apr20101.JPGWe’re trying Total Fanzine at the counter this weekend. This is a change for us but I wanted to see if it (and fan magazines in general) works in a counter location. It’s a simple an inexpensive test. It’s important we know what titles we can push in this impulse location for future reference.  Sales efficiency is a critical metric for newsagencies and all these small moves – titles at the counter, with newspapers etc are all about small steps to a more efficient basket.

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magazines

promoting Weight Watchers magazine

weight-watchers-apr2010.JPGWe have been promoting the latest issue of Weight Watchers magazine at the front counter since Wednesday. It is responding well to this prime position promotion. We use three locations to promote this title – the counter for a week, with newspapers for a week and with women’s health titles where it sits for the entire on-sale period. This co-location approach works well for the title.

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magazines

Preselling the lady GaGa calendar

We will be pre-selling the 2011 Lady GaGa calendar given the success of her recent tour and the popualrity of magazines featuring her.  We know from our Micahel Jackson calendar success last year that pre-selling is an excellent (and profitable!) opportunity.  We will have the flyer out in the next few days.

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Calendars

Great Top Gear support products

topgear.jpgI was in a store recently and saw this excellent range of Top Gear branded products.  This display, on a power end, is certain to drive excellent sales for the magazine as well as the range of items on the display.  It’s an excellent way to tap into the gift market for Top Gear fans. The feedback I have is that price is not much of an issue in most situations.

Now that the Top Gear TV show is on the nine network and attracting such a good audience, newsagents ought to consider tapping into the broader Top Gear opportunity.

While there is a risk with licenced product the run of a Top Gear season as well as Father’s Day later this year means we have good opportunities to move the product.

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magazines

Slow Cooker sells out again

Our Frankston store has just placed their fourth reorder for the ACP Slow Cooker cookbook title.  The success is due to tactical placement in-store by the thoughtful team.  This has to be one of the best cookbook successes in years.

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magazines

Stationery opportunity for newsagents

newsagent-stationery.jpgWith over the counter sales of magazines and newspapers expected to be flat for the foreseeable future (with some exceptions but overall flat), newsagents need to turn their attention to product categories which are a less challenged fit for in-store sales as opposed to online sales.

One category which is an excellent opportunity, with upside, for newsagents is stationery.  Now the business stationery which has been a bit of a holy grail for newsagents, but convenience stationery.

I am talking here about the items you will sell because your shop is conveniently located and hour hours are convenient to the need.  Items needed for school and university projects, resumes, business reports, special occasions (sports finals) and home office needs.  The product mix opportunities vary by newsagency based on their customer mix.  A careful review of stationery sold, especially a review of stock-turn, will show the opportunity for growth in stationery sales.

Someone looking for work will not go online to buy what they need to put together a resume pack.  A uni student will not go online to get folders and other materials necessary for uni classes.

Beyond understanding the needs of our customers, pricing our stationery range competitively and carrying brands people recognise, newsagents need to market the opportunity.  A good marketing campaign could educate their customers about how their stationery offer is convenient, local and competitive.

A well configured and competitive stationery department should be growing.

Yes, the sales I am suggesting we chase are small.  However, over a year, from a single customer (if we serve their needs) the sales can be considerable.  The key is how we build that loyalty.

The extent of our success with stationery comes down to us.  For me, I see it as having tremendous upside.

The stationery opportunity was part of my presentation at the QNF State Conference earlier this week and part of a longer workshop around the topic of Transforming your newsagency.

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Newsagency opportunities

Hallmark recordable sound cards set for Mother’s Day

hallmark-mothers-day-2010.JPGThe Hallmark recordable sound cards are set to go off this Mother’s Day. They are part of the popular Hallmark sound card range which was launched last year and continues to lead card sales around the country.

The Hallmark sound card launch is the most successful new greeting card line launch I have ever seen in Australia.

What is interesting about the success is that all retailers accepted a small reduction in margin to take on the range. We also gave up some retail space for promotional use. The space investment paid off as it promoted the point of difference well.

I expect the Mother’s Day cards to perform particularly well because of the TV commercial planned which will support the Hallmark brand and the point of difference offered in the sound card range.

We have our Hallmark Mother’s Day sound cards in a prime position at the front of our shops – the point of sale makes this position work well (already) for us.

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Greeting Cards

Winter Favourites continues to sell well

winterfav.jpegWe are continuing to achieve good results from our counter display of Winter Favourites from ACP. There is no doubt that this title works better for us at the counter than with food or with the Australian Women’s Weekly – the brand under which it is published. As I keep noting here, I am happy to keep a display up if the sales results are being achieved and I have stock. The display we have is quite small yet highly effective – this is due to its location at the counter. There is little clutter and the full cover can be easily seen.

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magazines