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

Newspaper home delivery trials

I understand that there are at least two new newspaper home delivery trials underway (or about to get underway) in Australia where flat pack delivery is being (or to be) trialled. Outside of the physical challenges of delivering newspapers flat is the challenge about who owns the bag.  The bag in which the paper is delivered is valuable in the hands of a smart business person.

Five years ago, the ownership of the bag, regardless of who paid for it, was non negotiable.  The newspaper publishers made it clear that they controlled the bag, what was printed on it and what was delivered inside the bag with the newspaper.

For entrepreneurial newsagents to make the most of the home delivery opportunity, they need to have mechanisms through which they can add value.  A flat pack bag is one such mechanism – the OH&S and time challenges of flat delivery notwithstanding.

0 likes
Newsagency challenges

Loving Freddo

fhn_freddo.JPGFor years our only confectionery offer has been Darrell Lea because we felt it offered a crucial point of difference.  Also, we had outlets nearby which offered the traditional impulse confectionery and gum products.

Several months ago we extended into gum and products from the Natural Confectionery Company.  While they have done well, the introduction of Cadbury impulse lines – Freddo and Caramello Koala – has been considerably more successful.  We currently have these located on the corner of our counter, near our busiest lottery terminal.  We know we will need to move these around so that our customers notice them.

Experts in the confectionery area tell me that the market for these bite-sized items is strong in businesses like newsagencies where the shop is located near a car park (as we are). Shoppers are more likely to buy something to snack on as they walk to their car when leaving a centre than when walking into a centre.

We still promote Darrell Lea on the stands and at our counters.  The range continues to drive destination business as well as impulse business.

0 likes
confectionary

Playstation World closes in the UK

Future Publishing just closed Playstation World magazine in the UK due to falling sales according to Magazine Death Pool.

There is no doubt that some magazine segments are challenged and that others are buoyant.  This is why we need to continuously reallocate space and focus in our newsagencies, in response to sales.   We see trends ahead of publishers if we take careful interest in our own sales data.

0 likes
magazines

Embedding video in a magazine

An upcoming issue of Entertainment Weekly in the US is to include a video advertisement in the magazine.  While an move bound to bring a lot of attention to the title and the print medium, it is not game changing.  Game changing will come in the form of a device for print which consumers embrace like they did the iPhone for music and audio content.

0 likes
Media disruption

Supermarket promotion of US magazines

Magazine Publishers of America and supermarket groups Weis, Wegmans, Darrenkamps and Mattsons will participate in a magazine promotion that will give customers a $2 store discount on their next purchase when they buy 2 or more magazines in a single trip.  Read details of this promotion here.

This is an interesting move but maybe not as relevant here given the strength of the newsagency channel – magazine publishers have nothing like us in the US.

0 likes
magazines

Promoting Diabetic Living

fhn_diabetic_sep09.JPGWe are promoting the latest issue of Diabetic Living magazine as the anchor product to a display at the front of our newsagency for this and other health related titles. Diabetic Living performs well for us – hence the use of the title out the front of the newsagency to draw in shoppers in the mall. We will leave this display up until at least Monday -longer is the sales warrant.

0 likes
magazines

Darrell Lea Dad’s Bags herald Father’s Day

fhn_dadsbags.JPGFather’s Day preparations kicked up a notch for us at newsXpress Forest Hill this week with the arrival of our supply of Dad’s Bags from Darrell Lea. Even though the majority of Dad’s Bags are sold in the last week of the Father’s Day season, we like to get them out as early as possible to signpost the Father’s Day gift area. The bags are featuring in plenty of media outlets – making them well known. See the Austereo website fand the Baby News website for two examples of this.

For those who have not seen the Dad’s Bags, they have a selection popular Darrell Lea items. In our store we have two price points – $20 and $30. They are a very easy gift.

0 likes
confectionary

Magazine management training popular

The magazine management online training workshop offered by my software company, Tower Systems, continues to be the most popular training we offer.  Run every two weeks, these free sessions continue to be booked out well in advance.  The next session, Tuesday August 25 at 2pm filled up today.  Another session is scheduled for September 1 at 11am.

The magazine management training session covers not only the latest XchangeIT related training but also magazine distributor specific training on electronic returns as well as operational improvement opportunities for the back office processes around magazines.  The session is run by a former newsagent with excellent IT skills.

We newsagents complain a lot about amgazines.  The latest IT changes give is more opportunities to drive change than ever before.  This training aims to help newsagents make good progress on this.

Any newsagent, regardless of the software they use, is welcome to participate in the magazine management workshop.

It is great to see newsagents embracing magazine management training and even better to see them embrace online learning.  We will run over 300 free online workshops this year – that is a tremendous amount of free education.

0 likes
magazines

Promoting Better Homes and Gardens

fhn_bhg_sep09.JPGWe are pitching Better Homes and Gardens at the counter over the weekend with the display we put up this morning.  BHG always works well for us on weekends in this location as an impulse purchase.

It’s an easy display to do – we used a poster, four sheets of black card for backing and six colour copies of the cover.  The display was completed in less than five minutes.

0 likes
magazines

Chasing the Twilight consumer

fhn_sfx_vampires.JPGWe have opportunistically placed the SFX special edition on vampires next to this week’s OK magazine this morning.  The covers of both appeal to the same customer.  Hopefully we can move some copies of the SFX title given the high cover price.

0 likes
magazines

The plight of UK newsagents

birmingham.jpgClick here to listen to the edition of You and Yours, a program on BBC Radio 4, which covered the challenges facing newsagents in the UK – where ten stores reportedly close each week.

While the plight of UK newsagents makes for sobering listening, it left me wondering how much you can blame external factors on your current situation.  If we look at some of the external issues raised: new tobacco sales laws will not go away – all retailers are affected, supermarkets and other retailers will continue to change shopper habits and lure people from local shops and print media competition will reduce rather than increase – this helps competitors of newsagents.

The National Federation of Retail Newsagents covers their perspective of the program on their website.

We will not find a strong future through regulatory changes.  Governments do not have the appetite for this, despite their professed support for small businesses.

No amount of local connection will not save many small CTNs, as they call them in the UK.  Shoppers have shown that they want a more compelling reason to visit a small local shop other than that it is local.  This is the world in which we exist.

UK newsagents which survive and grow will do so because of the what they do inside their businesses and not because of a right.  What they do in the form of diversification, customer service and marketing is what will draw customers to their business.  To try and save the channel by reversing regulatory changes  will not work.  Newsagents need to fix themselves first.

And before anyone questions what I have written here compared to my views on Australia Post …  My issue with Australia Post is with the 865 government owned Post Shops which have diversified away from being post offices and converted into quasi-newsagencies over the last ten years.  The government has no business taking card, book, stationery and other sales from independent newsagents.

ABOUT THE PHOTO: I took this in Birmingham a in 2006.  Sandhu News is what we would call here in Australia a convenience store.  Magazines, newspapers, food and cheap greeting cards.  It is not what we would call a newsagency.  However, my understanding is that this type of business accounts are the bulk of UK newsagencies.  It was a good business, clean.  It had, to my eye, mixed messages for the consumer and the feeling of cheap product.

0 likes
Newsagency challenges

Moving the newspaper display stand

newspaper_stand.JPGEven though the old newspaper stand at our Forest Hill store is on castors, it has been in the same location for more than a year.  The team moved it earlier this week, just a few degrees.  The visual difference is considerable as papers more or less face customers as they enter the shop.  The move also opens up space behind the stand and strengthens our pitch in a couple of product categories.

This is not rocket science.  It is retail 101, ensuring that that our offer is fresh and pursues outcomes from customers.

The value of the move shows the importance of newspaper stands which can be moved easily – the old boat-anchor type stands don’t have a place in newsagencies any more.

0 likes
Newspapers

Stunning Better Homes display

picture-080.jpgWarrick Hosking from newsXpress Gympie sent through this photo of a very simple yet stunning display for Better Homes and Gardens.  I like it because of the visual impact. It looks like a flower.  It reminded be that sometimes the best, mose valuable, displays are the simplest.  I’m certain this display will drive sales and that is what matters most.

0 likes
magazines

Making the imposing column work

mag_column.JPGColumns are a challenge in shopping centre newsagencies. For a while at our Frankston newsagency we embraced the column at the front of the shop with magazine displays.  We changed this last week to the column in the middle of the store.  We moved gift bags to the front column.

These moves put the magazine displays in the magazine department and bags close to the counter where people can purchase them on impulse with a card and or a gift.  None of the changes are permanent.

It will be interesting to see the impact of the move on magazines.  Each side of the column features a different title and include a display unit from which the magazine can be purchased.  These are not billboard displays, we want an outcome.

0 likes
retail

When you sell your newsagency: the handover checklist

I have been working with several new newsagents in recent weeks to help resolve issues arising from poor handover from previous owners. In each case, the main issues could have been resolved with the outgoing newsagent providing a document at settlement which details information crucial to the running of the business.

Instead of a gracious and open hand over, I have seen situations recently where the outgoing newsagent actively sought to make life difficult to the incoming newsagent. People who have never owned or operated a newsagency before are particularly challenged in this situation.

One handover document I saw last week was appalling – from someone who ought to have known better.

A poor handover damages the reputation of the outgoing newsagent and the newsagency channel overall. It is in our interests to structure this process. I’d like to see a common handover document adopted. This could cover:

  • Suppliers. A list including for each supplier: business name, products purchased from them, contact name, contact number, contact email address, website address, current account number, website login details including password and new account application form.
  • Email. A list of each email address used by the business and associated passwords.
  • Merchandisers. The names of merchandisers who visit the store and their contact details.
  • Processes. Details of all daily, weekly and monthly processes including details of website logins and passwords necessary for this work plus copies of blank forms necessary for completing this work.
  • Staff. Details for all staff members: Name, contact phone number, contact email address, superannuation details and details of current responsibilities in the business.
  • Customers. A list of all current customers for the business including customer name, address, phone number and email address. (I was in a business recently where the outgoing newsagent did not provide anything more than a given name and address for a customer – no proper account details.)
  • Computer details. Details of the location of original CDs containing software sold with the business. Passwords for all computers. Passwords used for any software on the computers. Passwords used for the in-house network.
  • Operational details. This general list should include the combination to all safes in the business, the security code for any alarm system, the security code for any external monitoring service.

I am sure there is more which could be added to this list. This is something I would like to see Associations work on. It would be a valuable resource they provide to incoming newsagents and practically demonstrate the value of association membership.

If the new newsagents I have been working with recently were provided the information I have listed, their past few weeks would have been a more enjoyable introduction to the newsagency channel.

0 likes
buying a newsagency

Changing the newsagency newsletter

instore_offers.jpgWe have revamped our in-store customer newsletter following a review of how customers engage with the publication. Our new style newsletter focuses more on value propositions and encourages engagement. Hence the name: INSTORE OFFERS.

You can see that we are pitching a mix of impulse and traffic generating offers.  The phonecard pitch is about educating customers about the popular cards we offer.  The Clint Eastwood DVD partwork series pitch is about connecting us with the offer on TV.

We place the newsletter in a stand at the front of the shop and send it out with customer accounts.

Click here for a copy of the new style newsletter.

We are fortunate to have access to our own in-house design and marketing team. Newsagents can easily create their own newsletter using Microsoft Word or Microsoft Publisher – both offer templates which make this process easy.

0 likes
newsagency marketing

Pink is the magazine cover choice

pink_magazines.JPGCheck out these four magazines and their pink covers.   Donna Hay for kids was the first title of this bunch from this similar looking group.  It stood out on the shelves.  Now, with four titles in the food segment with pink covers, the visual cut through is not as strong.  Indeed if we placed them next to each other, I suspeect that shoppers would not notice the different titles.    I am not sure that it is a deliberate move to pull focus from another title – it is curious that it happens in waves, not just with food titles but also with other segments.

We have a co-location strategy for food titles – a column mixed with our weeklies.  We are careful to only include one similar looking title in that premium space at any time.

0 likes
magazines

Promoting That’s Life and scratchies

fhn_thats_life_aug19.JPGWe are giving That’s Life a good push again this week.  The scratchie promotion is popular with our customers and promotion of this last week at our counter worked well for us.

We have placed That’s Life with our main newspaper stand (and its usual location).  It will stay here for three days.  We get 95% of our That’s Life sales between Wednesday and Friday.

The display recycles an old Alpha magazine stand and steals a newspaper poster unit – temporary moves which work for us.

0 likes
magazines

Not enough Handyman magazine stock

fhn_handyman_sep09.JPGOur supplies of Handyman magazine have been cut in half yet sales of the last two issues indicate that we could have supported an increase.  I don’t understand magazine allocations on some days.  If it is not over-supply it is under-supply.  I am sure the publisher of Handyman would want to ensure that suffficient stock is being sent to where they are certain of sales.

0 likes
magazine distribution

A fat 4WD Action magazine too big

4wd_action_magazine.JPGThe latest issue of 4WD Action magazine from Express Publications out today is fat.  We have to allocate an additional pocket (not justified), keep stock out the back (time consuming) or jam it into the available space as shown in the photo (not a good look).  Express Publications are the masters at sending bags stuffed which take up space and which often contain old issues which are perennially reissued to make the pack feel more valuable.

0 likes
magazines

A reason to not blog

A merchandiser handling one of my newsagencies was sent in by her boss, representing a magazine publisher, with an instruction that we need to take down one of the posters we have placed vertically when the it was designed for horizontal placement.  I am told that her boss also did not like that the poster was covering stock.

Here are the facts.  The display works.  The last four displays done in this way have generated good sales for us.   As for covering stock – yes, guilty.  However, the hidden stock is extra from what is on display in the appropriate location for the titles.

Any supplier taking issue with any display I publish here should contact me.  My number is 0418 321 338.  My email address is mark@towersystems….  Unless I note otherwise, the displays I publish here are done by me.  I am happy to be directly accountable and not have one of my staff cautioned by an intermediary.

I am a good retailer.  Leave me to do my job.  I want what all suppliers should want – the best sales possible.

0 likes
magazines

Video library competitors

I happened to stumble on trade display connected with a national video/dvd chain yesterday and discovered that one of their most popular product categories is mobile phone recharge.  They earn premium commission from the recharge sale by selling handsets – telcos reward retailers for this as it grows their customer base.

The next most popular after dvd rental and mobile phone recharge is confectionery.

Talking to a couple of attendees, I was impressed with the clarity and consistency of their pitch about turning the dvd rental into a considerably more valuable sale.  While some of us do this, too many newsagents take the newspaper sale and complain about the size of the transaction instead of making it count for more.

If we don;t watch out, these smart video library operators will show us what they can really do.

0 likes
Newsagency challenges

Reader’s Digest files for bankruptcy protection

Reader’s Digest in the US has filed for Chapter 11 bankruptcy protection.  The move has been taken as part of a plan agreed with lenders to try and reduce the debt burden – a burden which began back in 2006 when the company was purchased by a group of investors.  While this is a financial story, it gives oxygen to challenges for print. Stories like this can build momentum.

0 likes
magazines

Why we should shop at Costco

The opening of Australia’s first Costco store in Melbourne has been big news over the last few days.  It is the first time we have seen this US style of retailing here in Australia on this scale.

While our newsagencies are built on customer service and our local community connections, Costco is unashamedly about price.

For us to understand this new model in the context of what we try and do in our newsagencies we should make a field trip and see Costco for ourselves. This is essential if we claim that our prices are better than others in any major product category.

The arrival of Costco is good for retail in Australia.  It forces us to look at ourselves and to focus attention on our points of difference and ensure that consumers value these.  They certainly appear to value the Costco price pitch.

0 likes
Competition