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

How others handle newspaper distribution contracts

Newsagents need to cast a wide net when looking at how to respond to the new newspaper distribution contracts sent out last week.  The contracts are too complex and the ramifications too considerable (personally and network-wide) for newsagents to make a decision without thorough research and discussion.

While others are looking at the contracts from a legal and strategy perspective, I have been hunting around online to find out how newspaper distribution contracts are handled elsewhere and have found some interesting US recent history: here, here, here and here.

Not directly related but interesting nevertheless.  The question about what makes someone an employee versus a contractor is interesting in the US context of newspaper carriers.  This made me think about the level of control Australian newsagents have to operate a newspaper distribution business.  That’s a blog post for another day.

By the way, in my searching, I also came across a Fairfax Q&A from June 1999.

0 likes
newspaper home delivery

Is this Dirt Action magazine

dirt_action_nov09.JPGThe masthead of the latest issue of Dirt Action is covered by the printing on the plastic bag inside of which the magazine is sealed.  No wonder these bags get ripped open by browsers.  While the publisher could argue that regulars would identify the magazine through the bag, this is no good if they want to grow their readership.

0 likes
magazines

Double standards from News Corp. on paid content battle?

In one world, News Corp. is waging a fierce battle with Google and others about paid content.  In the Australian newsagency world, News Limited refuses to charge a cover price which fairly represents the cost of manufacturing, distributing and retailing the product (and thereby inhibits a fair return the sale of said product in newsagencies) and refuses to permit newsagents to charge a home delivery fee which at least matches the cost of providing the service – condemning many to lose money on the service.

It would be good if the media reporting the News Corp. battle with Google would pick up on what appears to be double standards.  I’d welcome a debate about fairness and business practices.  Just as News deserves to extract a fair price for its endeavours, Australian newsagents deserve fair compensation for their efforts.

0 likes
Newsagency challenges

Promoting Famous and Gossip Girl

fhn_famous_nov0609.JPGWe are promoting Famous magazine on and around our main newspaper stand this week.  I would have preferred an alternative location but space is very tight with Christmas, Diaries, Calendars and many magazine promotions demanding attention.  We have been trying Famous with newspapers for the last few weeks and it is working well. The free Gossip Girl DVD with the magazine should appeal.

0 likes
magazines

Promoting Good Food magazine

fhn_good_food_nov0909.JPGWe are fortunate to have a terrific sample bag with the latest issue of Good Food magazine out today.  We have placed two boxes of the sample bags at the counter to make a stronger impact than just having a few bags on the counter as we would usually do in this situation.

With space at such a premium this time of the year, we are keen to sell through space-hungry stock as soon as possible.

Good Food continues to do well for us – we are achieving a sell-through of 90% and higher.  I put this down to it being a good title, our co-location approach and regular promotion.

0 likes
magazines

Why some newsagencies are more successful

mf_nxconf.JPGI spoke at the recent newsXpress conference in Melbourne on why some newsagencies are more successful than others.  I drew on sales benchmark and basket data, an assessment of industry trends, disruptive external factors and a review of margin versus costs.

Click here to see the presentation.

While aimed at the conference attendees, the presentation is a challenge to all newsagents as it explores the importance of a unique selling proposition, something which, as a channel, we have been slowly losing over the last twenty years.

0 likes
Newsagency challenges

Little interest in Tiger Woods poster

The poster of Tiger Woods which was free with the Herald Sun on Saturday failed to attract interest in my newsagencies and others I have heard from.  We offered it to customers and more than 90% of the time the offer was declined.  Meanwhile, I am told that the NEW MOON poster with the Sunday Telegraph in Sydney did very well.

0 likes
Newspapers

Wellbeing hides magazine re-launch

wellbeing_relaunch.JPGWellbeing magazine is re-launching with the new issue on-sale this past week.  They are hiding the re-launch issue in a sealed plastic bag – so much for encouraging browsing.  They are including in this bag an old issue – why do that? To compare the new with the old?  In some of the bags I received the old issue is only from two issues ago.  Hey, I paid to send these unsold copies back to Universal Magazines, the publisher.  Now I am paying to give them space to try and sell this old stock again.  The bag is too big to fit multiple copies per pocket.  This forces Wellbeing onto the already full flat-stack area.  Maybe the publisher is smarter than I think.

The best way to re-launch a magazine is to make it accessible – easily browsed – and to promote it for the future, not by looking back at the past.

0 likes
magazines

Sunday tip: put tape with wrap

frank_wraptape2.JPGThe team at our Frankston store is driving more valuable wrap sales with a good display os wrapping tape displayed with Christmas wrap.  Talk to the experts at Scotch (3M) and they will tell you this works for the majors.  Every newsagent should copy this idea.  You can display whole panels as at Frankston or clip-strips of tape if you have less room.  We do this in our gifts shops too with good success.  This is an easy way to extend the basket and sell across product categories.

0 likes
marketing tip

Developing the new newspaper distribution model

For years now, newsagents have been waiting for new newspaper distribution contracts.  News Limited has finally delivered theirs this week.

Having refused to negotiate terms with newsagent associations, newsagents are having to make their own assessment.  I have received a bunch of contracts over the last 24 hours and will go through these in the next week.

Looking at a contract last night for the first time, it is clear that we are transitioning the newspaper distribution model.  It makes me ask what initiatives have newsagent associations taken to develop a new model?  I stand to be corrected but I suspect not much.

A smart association would have funded an international study on newspaper distribution, a study from all angles – publishers, wholesalers (in the UK), newsagents, delivery drivers (newspaper carriers in the US) and consumers – and had the various newspaper distribution systems professionally assessed.

The resulting report would have ensured that newsagents today would be better informed about the likely future of the model from a publisher perspective as well as the best model for newsagents themselves.  Newsagents could have contributed to the shape of the future as enshrined in the contracts – the quality of the research and analysis would have driven this.

Instead, associations have left publishers to take the lead and the best they can do now is respond – as newsagent associations have done, poorly, for decades.

It is not too late for newsagents to have a say in the future of newspaper distribution.  The new contracts provide a few years for newsagent funded and owned research on what the future of newspaper distribution looks like. Newsagents will only take this step and ownership of their future if they want a say in this.

In a practical newsagency sense, I am disconnected since I sold by distribution business three years ago.  However, my software company, Tower Systems serves 1,600 Australian newsagents and is committed to dhelping newsagents improve distribution efficiencyand returns.

0 likes
newspaper home delivery

Magazine awards for 2009 announced

Beter Homes and Gardens from Pacific Magazines was announced Magazine of the Year in independently judged awards given by AdNews yesterday. Mass Women’s Magazine of the Year award went to the Australian Women’s Weekly from ACP Magazines. delicious from News Magazines was announced Best Food and Entertainment Magazine.  I don’t have details on other award winners.

0 likes
magazines

NETT# magazine blocks competition

fhn_nett_scrimping.JPGOkay, now I know how NETT# magazine gets to be “Australia’s #1 Small Business Magazine” – they block the competition.

The photo shows how the header their merchandiser has placed behind their title this week covers up another Australian business title.  This is disrespectful of the other title and disrespectful of the retailer.

Publishers need to understand that a good magazine department works on respect and co-operation and not by trying to block a competitor.

0 likes
magazines

Taking space from other magazines

fhn_health_smart_gloves.JPGHealth Smart from Reader’s Digest is pinching space from other magazine titles with their flag-like promotion for the free shower gloves which come with the current issue.  While this works for their title, it blocks the next title along.

Health Smart is fortunate to have funds for a merchandiser to visit and grab this space – with little regard for other magazines on the shelf.

0 likes
magazines

Too much hair

fhn_hair_nov09.JPGCheck out how the magazine supply model can work for newsagents:  Here are supply and return numbers for hair magazine from April – Supplied 3 / returned 2; 3 / 2; 3 / 2; 3 / 3; 9 / 5; 9  / 9 and now the last issue: 9 / 8.  Network servicers has this data yet they continue to supply a crazy quantity.  While they will say I can go to their website and adjust the numbers, I should not have to do this for a push model.  A good push model will respect the retail network and not have pull-like services for adjustment as we see today.  Don’t tell me to control what you control from the getgo.

0 likes
magazine distribution

Promoting marie claire

fhn_marie_claire_nov09.JPGWe are promoting the new issue of marie claire on an aisle end this week.  This display fronts our two main magazine aisles.  We were fortunate to receive some excellent collateral with which to promote the title.  This is the location we would have used for Australian Women’s Weekly had they promoted the title in the first two weeks of the on-sale.  I mention that because good collateral is key for the first week or two of any monthly.  Collateral arriving later than that is of little value.

0 likes
magazines

Newsagents lose out on Best Bets move

Some newsagents who have received 25% from the sale of Best Bets for decades had their return cut to 12.5% when the title moved from NDD to Fairfax.  The same has just happened with the move of National Trotguide and Greyhound Recorder.

Publishers need to more fully research the implications of moving from one distributor to another.  A cut in margin by 50% would make many titles loss making and leave newsagents to question the value of carrying the affected titles.

As one affected newsagent told me today:  the “distribution system” as it is called is sick and newsagents are suffering.

0 likes
magazine distribution

Moving the Dolly magazine promotion

fhn_dolly_nov09a.JPGTo make way for Family Circle at the counter, we moved our Dolly display to the entrance to our main women’s magazine aisle.  This stand from ACP makes it easy for displaying titles with free gifts – especially titles which appeal to women given the location.

It also puts the Twilight themed Dolly in front of shoppers who may not have vivited for a magazine purchase.

fhn_dollynov09b.JPGThis second photo shows the back of the stand.  You can see that we are also pitching Dolly to shoppers as they leave the magazine aisle.  Too often these merchandise display stands from ACP are only used on one side.  Use of both sides drives better sales.

While there is a bit of work involved in moving a display from one location to another, we find it worthwhile.  It freshens the offer and helps us balance titles we are promoting.  We make these decisions based on what we know about our customers and not because of demands from publishers.

0 likes
magazines

Promoting Family Circle

fhn_famcircle_nov09.JPGWe are promoting the Christmas special edition of Family Circle magazine at the busiest point on our counter this weekend.  I expect this to work well for us as an impulse purchase – it did last year from this same location.  We will leave Family Circle in this location until at least Monday with a view to bringing it back later in the on sale.

0 likes
magazines

Placing The Monthly with the Herald Sun

monthly_nov09.JPGWe are embracing irony by placing the latest issue of The Monthly – with the story about James Murdoch and the Battle for the Future of News – above the Herald Sun in our main newspaper stand.  The Monthly continues to produce xcellent covers with terrific visual cut-through.  Sales for The Monthly continue to be strong for us.

0 likes
magazines

Anyone got a News Limited contract?

I’d be interested in seeing more copies of News Limited contracts so I can assess for myself their offer to newsagents.  Fax: 03 9524 8099.  Email: mark@towersystems.com.au.  I’ll maintain confidentiality.

UPDATE (17:29 6/11): Thanks to everyone who has sent through contracts.  I have a good selection to look over.

0 likes
newspaper home delivery

Reducing magazine space in Frankston

frank_remove_magz.JPGWe have reduced magazine space by 30% at our Frankston newsagency with the removal of a unit which covered the area in the middle of the photo.  We have also removed our purpose built newspaper unit.  Thanks to a change in the way we display titles, this will see a reduction in magazine range by just under 20%.

The bare concrete will be carpeted Monday and we will then have a second dance floor in this business which can be easily reconfigured for key seasons and used for high margin gifts at other times of the year.

The new open space makes the shop brighter, easier to shop and easier to zone.  Zoning is crucial in retail yet a challenge in most newsagencies because of old purpose-built fixturing.

Given how we will configure the new space as well as magazines and newspapers, we will be drawing more customers deeper into the shop and thereby giving them more impulse purchase opportunities.

As part of the magazine and newspaper units coming out this week, every magazine was moved and many were moved a second time.  The result is a new layout with which we are very happy.  We have kept space for tactics we know work like a column of crosswords next to women’s weeklies, a column of food titles in with women’s weeklies, beacons branding and full waterfalls to denotes the start of some new segments.

0 likes
magazines
Trending Articles

Fairfax changes approach to TV Guide, disrespects newsagents

Published on April 20, 2011

What do you think of the Powerball changes?

Published on February 16, 2018

IPS releases new magazine contracts

Published on June 21, 2011