Starting with its January issue, the full version of Esquire magazine will be available for the iPhone and iPod Touch. The US$2.99 app will give digital readers a what they are calling a “reimagined” version of the print magazine. here is a video showing off the iPhone version of Esquire:
I heard from a couple of people yesterday that their local Franklins was giving away a copy of the Sydney Morning Herald to every customer.
When ordering calendars this year we sought our brand extension opportunities. This Top Gear 2010 pocket diary is a good example. We have this, the calendar as well as the magazine itself – a perfect gift package for a Top Gear fan. We have a good selection of pocket diaries and calendars which are brand extensions of popular brands – beyond what the magazine publishers provide. Diary sales are showing double digit growth on last year.
We have sold more copies of the Women’s Weekly Cupcakes & Cookies mini cook book from our Christmas area than in the usual location. Placing this with our cupcake and cooking making sets and Christmas themed books has worked well. We will sell out in the next day or so. It’s important we don’t pigeon-hole products. Not all magazines should be with magazines for example.
Kudos for the folks at the Herald Sun for giving us enough Carols by Candlelight programs to give away with the newspaper yesterday. We had enough for our needs as well as thoss who purchased newspapers elsewhere. Unlike the DVD and CD promotions recently, stock was not an issue and we were not abused by irate customers. If only they could get supply right like this for all promotions.
More than 170 newsagents met in Adelaide yesterday to discuss the new contracts from News Limited. Over the course of three hours a many views were shared. These ranged from information on problems with the News Ltd migration project (were News takes control of the newspaper customer from the newsagent) to the threat of total loss of newspaper sales should a newsagent refuse to sign the contracts.
The meeting was attended and addressed by three politicians: John Darley – Independent Member Upper House SA; Steve Georganas MP Federal Member for Hindmarsh; Robert Brokenshire MLC – Family First Member Upper House SA. They committed to helping newsagents achieve an equitable outcome and expressed their support for small business – not just lip service but practical support. Nick Xenophon, while not in attendance, had a representative there to indicate his personal interest in this matter.
The most significant contribution at the meeting came from Professor Frank Zumbo from the University of NSW. Frank outlined several go forward options for newsagents based on his reading of the proposed contracts. He also provided useful commentary on legal avenues as well as an understanding of the challenges of various options open to newsagents. Frank’s options were discussed by the meeting and plans made to make progress on these.
News Ltd sought to take some sting out of the meeting by announcing a deal late Thursday which they had brokered with the ANF. This deal offered SA country newsagents an increase in delivery fees if they met certain stringent conditions. Unfortunately, the deal could see some newsagents worse off if their customers move from a two day a week delivery to a heavily discounted seven day a week delivery. The mood of the room was one of cynicism and disappointment with the deal and that newsagents had not been robustly represented in the eleventh hour talks.
Three larger postal boxes in the corner of the room showed what newsagents can do – they contained proof that customers did not want their details handed over to News Ltd.
Kudos to the two newsagents who independently organised the meeting. This shows what newsagents can do when they work together.
I am grateful for the opportunity to participate in the meeting. It highlighted to me the extent of the negative impact of the new contracts and migration on the family businesses represented. It also demonstrated that newsagents are prepared to unify around this issue.
I am not reporting here in any detail on the meeting as this would provide News Ltd visibility of the options under consideration.
With the loss of News Magazines titles from April next year (see Sally Jackson’s story in The Australian yesterday), a question must hang over the value remaining in the business. While some connected with NDD will say there is plenty of value left in the business, I am not so sure. Magazine distribution is an expensive business and profit relies on volume. With the loss of significant volume, NDD has some challenges ahead.
Check out this video showing off Mag+, a concept for the future of magazines developed by Bonnier, publisher of Popular Science in the UK, and BERG, a London design studio.
All Borders bookshops in the UK will close next week. The BBC has the story. The group went into administration earlier this month. While under different ownership than the Australian operation, this can’t help their brand here.
The Women’s Weekly mini cookbook bundle has been a stand out success for us this Christmas. We have sold out of one pack and are doing very well with the second. While the right product is crucial to any success, a key factor in our success with this title was our dump bin strategy – this was placed in an easily accessible high traffic area between our main newspaper stand and our counter. I expect that had we treated this as a regular magazine title sales would not have been as good.
We are promoting the Best & Worst for 2009 double issue of Who at the counter this weekend. The Michael Jackson photo alone will help drive sales. We also have the issue on display at our Tattersalls counter as well as its usual location. While Diabetic Living did well at the counter, earlier this week we feel we will get more impulse business from Who this weekend.
According to a report at the Guardian, dozens of newsagents in London are paying 2 pence a copy to distribute the now free London Evening Standard from their shops. Two months ago the Standard went from a paid model (50p) to free at the same time as changing its distribution model. Newsagents wanting the traffic are demonstrating a preparedness to pay for this.
Will we do this here?
South Australian newsagents meet today to discuss the new News Limited contracts. This important newsagent organised meeting starts at 2pm at the Education Development Centre, Milner Street Hindmarsh. I’d encourage every newsagent in South Australia to attend. This is the best opportunity to discuss the new contracts and be better informed leading to making a decision about your next steps.
I’ve been invited to the meeting and will post an update here of what I am able.
We pulled our ad on Seek for new employees after seven days. We received a total of 358 applications – more than any ad we have run in the past. This tells me that in Victoria at least there is an enormous pool of people looking for work in retail. The calibre of applicants was good. We found five excellent candidates from the twelve we interviewed.
Crazy Bones were popular ten years ago. The first I knew they were back in was when we kept turning people away who were asking for them. Now we have stock and they’re selling like, well, crazy. We have them at the counter – they are an excellent impulse product, driving better margin sales. Now if only we had a heads up on the next fad. Better still, if only we could schedule these to fit with our overall marketing calendar. No matter, we are in on the Crazy Bones fad today and enjoying the sales ride.
The cross category opportunity is to have these displayed next to K-Zone and other magazines which would appeal to the Crazy Bones fan.
Even though only popular for a ‘season’ Crazy Bones fit our habit based product criteria – these are products people will return to purchase again and again through the duration of the season. Maintaining stock is important.
The advertising Intralot is running on the radio at the moment has strengthened interest in their scratch ticket games as Christmas gifts. Like other retailers, we have created gift trees – a $20 version and a $30 version. They’re on display behind the counter and selling well.
Powerball jackpotting to $12 million tonight is a welcome boost to Christmas trade. While I wish it had reached $15 million, the $12 million amount is enough to drive some extra business over the next seven days.
Newsagents are valuable to publishers for their newspaper home delivery service. This service is unique on a range of fronts which are worth newsagents contemplating as they discuss how to respond to the contracts proposed by News Limited. Here are some of the many unique points offered by newsagents:
Newspaper publishers who sell home delivery as a premium service ought to consider these and the many other points of the benefits of the newsagent home delivery model before taking further steps to break it up.
Magazine distributor NDD had hoped to have introduced a more immediate credit process for magazine returns processed by newsagents through XchangeIT. These changes are now not expected before March. This will disappoint many newsagents who committed to XchangeIT on the promise of faster returns processing.
The issue here is cash-flow. Every copy returned reflects cash owed the newsagents. The poorer performing the title the more cash owed.
A fairer financial model for magazines would be where we pay on scanned sales. As it stands, newsagents and publishers carry the risk and distributors nothing. They are paid for everything they do regardless. Every day we wait for a credit for stock which has failed is a cost to our business.
Check out this hang-sell approach to roll-wrap. It is a visual improvement on the bins (vertical and horizontal) which have been traditionally used newsagencies. This hang-sell approach is easier to shop. I think customers will like it. It will be interesting to see how it performs.
The Red group, the company behind Angus & Robertson, Supanews, Whitcoulls and Borders is launching an eBook service next year. Click here for details.
They will not be alone with more announcements due in the coming weeks.
We are promoting Diabetic Living from Pacific Magazines between our two busiest register points at the counter this week. We like to promote titles with freebies at this location – the free booklet with Diabetic Living makes it a compelling offer for this space. That and the fact that this title responds very well to in store promotion. Every time we bring it out from its usual location we see incremental business. It’s as if the title is not as much a destination purchase as other titles. We know promoting works for us, hence the prime space commitment. `We hope to leave this display up for a week – space is a challenge this time of year.
Either the publisher or distributor is to blame for today’s oversupply of Auto Salon magazine. Despite a poor sell through, some bright spark has decided we need more stock. Well, no we don’t unless someone wants our cash for a while. I am sure there will be an excuse, there always is yet the ‘gremlins’ which cause these ‘blips’ continue to have their way. Maybe it is the free CD they are giving away. I’d be surprised through – give the number of titles in the motoring section with freebies at the moment. We will not sell the extra stock unless the publisher changes approach and drives traffic to newsagencies looking for this title.
The Age newspaper has permitted half of today’s front page to be cobvered with another advertisement. This time from Mastercard. It looks ridiculous. You have no idea about the lead story of the day. The grey block looks like a print error. Indeed, that is what one customer thought. Isn’t the Age the Newspaper of the Year? Where is the news?
Check out the report in the Guardian about a visit made to a newsagent in London by News Corp. CEO Rupert Murdoch.
Newsagents in Australia, especially those with distribution and retaiol contracts, would be thrilled to an an opportunity to speak directly with Rupert Murdoch right now given the new contracts from News Ltd they must make a decision about.
Newsagents in Douth Australia have an opportunity to discuss the contracts at a meeting starting at 2PM this Friday. Click here for a copy of the flyer announcing the meeting and detailing concerns expressed by newsagents in relation to the contracts.