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

Promoting Diabetic Living

fhn_diabetic_jul09.JPGWe had to re-think our weekend counter strategy yesterday with Who selling out from our counter display by lunchtime.  In its place we put Diabetic Living.

Diabetic Living is a successful title for us and while it does not come with a free gift (something we prefer for this premium location) we know it will sell well from here over the rest of the weekend.

We will not leave a display empty.  If it’s been successful and sold out, we are ready with a plan B right away – especially in a counter location.  We are anal in managing this part of our newsagency.

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magazines

Managing lottery syndicates

sat_synd.JPGIn response to queries here and privately, here is a quick overview of how we do Syndicates.  The photo (click for a larger version) shows the syndicate wall for tonight’s $20 million draw.  It is deliberately not too slick.  My view is that if it is too slick it loses the value of being fresh or immediate – a key factor in syndicates for our customers at least as we have people who watch our syndicate wall daily.

We start syndicates for superdraws two weeks out – we used to start them earlier but found two weeks works better for us.  We offer a range of prices from $10 through to $100.  We have tried higher values but they did not work so well.

The A4 sheets promoting each syndicate list the numbers – we found this to be very important.  The sheets are white for Saturday, blue for Thursday, Green for Tuesday and pink for Monday / Wednesday.

We played with naming the syndicates but found that our customers like a straightforward offer.  We number each and this is how customers ask for them.

We track sales in folders at the counter – customers provide their details on a master sheet for each syndicate.  Staff selling a share sign on the sale.  Customers sign for winnings when they collect.

We got into syndicates around seven years ago.  Significant growth came once one of our syndicates won $11 million two years ago.

There are others who are far more professional and sophisticated at syndicates than we are.  The key is to start slow, be careful and talk to your customers about what they would like.

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Lotteries

Are lottery jackpots good for business?

oz50m.jpgI was talking to a colleague about the OzLotto $50 million jackpto earlier this week who said that his experience was that in weeks with major lottery jackpots, sales were significantly down in other departments of newspapers, magazines, stationery and cards. This has not been my my experience.  I see growth in key departments as a result of the additional traffic.  I had not considered that jackpots may have a negative effect.

Through the course of the week I asked other newsagents.  Some see growth in other departments as a result of jackpot traffic while others do not.

I’d be interest to hear the experiences of others.  I’d like to see if there is a pattern around those newsagencies which experience growth in other departments as a result of a lottery jackpot and those which do not.

I’d also welcome speculation as to a reason for the difference.

For what its worth, in my own newsagency we work hard at driving lottery sales as an add-on to other departments.  We are equally focused on driving add-on sales of magazines, newspapers, confectionery and other items on a lottery sale.  We d this through product placement, traffic management and across the counter pitch.

I am not saying that our experience is solely due to our effort.  I am not that arrogant.  I think that demographic plays a role as does store location.  Demographic because of the discretionary funds available.  Location because of traffic – our traffic is quite steady through the day.  I can see that if we were in a better location we would have lines snaking out the door and that would put people off.

What are your experiences?

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Lotteries

Men’s Health launches iPhone app

Men’s Health magazine in the US has launched an Apple iPhone app to guide work outs.  This is a new way for a magazine to engage with readers.  While some will want to read about how to workout, others will like that the more engaged partnership this app brings.  The AdAge report says Apple says this app is a first for a magazine.

This is a smart move.  It reflects the kind of thinking we need to bring to our businesses.

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magazines

Reader’s Digest cuts issues

Reader’s Digest announced in the US overnight that it will cut issues from next year and only publish 12 issues of the print publication while expanding its digital products.  By digital they could mean online, Kindle, iPhone, digital magazines and other platform opportunities outside of print.  MediaPost has a good report covering the moves including this quote from Eva Dillon, president of the Reader’s Digest Community:

“As one of the world’s largest producers of original content, we will continue our transformation into an innovative multimedia brand by delivering content to users whenever and by whatever means they want, through expanded digital and print investments and the development of new mobile, video, and multimedia applications…”

There it is, the one issue newsagents need to research, debate and develop a strategy to cope with.  We face no other issue which will impact like this. What we think today are other issues from suppliers are usually framed by this issue.

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Media disruption

Promoting ACP cookbooks

fhn_acp_cook.JPGWe are promoting the new range of ACP cookbooks along with a couple of older titles at the entry to our busiest magazine aisle.  Nothing too special about the display – it is premium space and that people approaching our main sales counter from our newpaper stand will tent to see this display.

Food titles are having a tough year based on the sales data I see from a range of newsagencies.  We’re happy to take steps like providing premium space to try and help lift sales.  Our experience is that the ACP cookbook titles respond well to this.

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magazines

Great product, wrong location

Nici pencil cases did not sell at our newsagencies like we thought they would.  After almost a year in stock and few sales we moved them to one of our gift shops in the heart of Melbourne.  They started selling immediately.  It turns out that we had a good product in the wrong location.  The same thing can happen in-store.  Sometimes we have to chase customers.

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Gifts

Promoting Who and the free root booster

fhn_who_jun19.JPGWe are promoting Who magazine at the counter this weekend thanks to the free hair product gift and the coverage of the Rove McManus wedding.  The photo shows how our counter display sits in context with the rest of the counter – our busiest non-lottery counter is to the right and our two lottery counters to the left.  We’d expect Who to sell very well from here – it is an easy impulse purchase.

You learn something every day – who knew that there was a category of product called root booster.  It gave us a laugh this morning.

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magazines

DVD hire a hit at Bingara newsagency

Bingara Newsagency is enjoying tremendous success with DVD hire.  I saw this recently when reviewing business performance numbers for Rod king, the owner of Bingara Newsagency.

The sales data shows DVD hire as one of the most efficient product categories in the newsagency.  More DVD hire customers are likely to purchase another product, in addition to a DVD hire, than purchases of products from any other category.

Product efficiency is a challenge for newsagencies.  Around 60% of newspapers are sold alone, for cards the number is 49% and for lotteries the number is 65%.  These single item sales are inefficient.

The DVD numbers at Bingara are at the other end of the scale – less than 10% of the time they are sold (or rented) alone.  Great for efficiency and great for driving other categories in-store.

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Newsagency opportunities

Poster to promote crosswords in newsagencies

puzzle.jpgThis is a first draft of a poster to promote crossword magazines which we are developing in-house at Tower Systems to provide to newsagents through this blog without cost.  I’d apprecaite feedback either here or direct by email.  Ignore the actual titles – we will drop in current titles representing several publishers before we are done.

In developing the brief, I wanted to pick up on the health benefits of crosswords without being too in-your-face – we miss this opportunity too often

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crosswords

Picture packs present a challenge

fhn_picture_packages.JPGIn addition to Picture magazine we have a couple of Picture ‘packs’ on the shelves at the moment.  Space is limited and expensive – especially given that we do not want to put more than one title per pocket.  Recycled content, like these packs, are a challenge for us – especially as we adjust the space we allocate to magazines.  Adult titles account for less than 2% of our magazine sales.  I don’t see a reason to expand the space allocated.

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magazines

Newspaper covers page 1 editorial with ad

afr_june18.JPGThe front page of today’s Australian Financial Review in Sydney has an ad for Citibank stuck over a story about goings on in the Telstra boardroom.  Click on the image for a larger version of what this looks like.  Journalists, editors and those who respect newspapers have evry right to be angry at this treatment of news.  I’d note that the AFR in Melbourne carried no such ad.

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newspaper masthead desecration

Monetising digital content

In an article published at Business Spectator yesterday, Alan Kolher sees the handling of micropayments as key to newspaper and magazine publishers monetising content online.  His comments fit with those of Rupert Murdoch over the last couple of weeks.  They also fit with the announcement at the Apple developers conference last week where they announced easier handling on micropayments from within an application on the iPhone.

Once publishers see how easy it will become to monetise content online they will rush the new distribution channel.

I come across like a cracked record on this stuff.  I get it.  I get that our world, the purpose for which our channel was created, is being turned upside down.  I am frustrated that few other newsagents get it.  Those facilitating this ignorance will have a lot to answer for one day.

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Media disruption

Promoting the OzLotto $50 million jackpot

fhn_oz_1.JPGLike many newsagents we are promoting the OzLotto $50 million jackpot in-store at every opportunity.  From the front of the shop into our Tattersalls area we have gone all out.  At our counters, too, we pitch the offer in writing and through our service.  In addition to the lottery marketing ideas I published yesterday, we have taken care to promote the jackpot inside our newsagency, at high non-lottery traffic points.  For example, our main newspaper stand – as shown in the photo to the left.

In addition to pitching the $50 million prize, we are also listing popular tickets – so our customers can have an amount they would like to spend in mind.

fhn_oz_2.JPGAt the back of the newspaper stand, with our foreign language newspapers, we are promoting the $50 million jackpot.  This is a good lottery market for us and while the pitch is not as strong as at the front, I am confident it will work well for us with these shoppers.

fhn_oz_4.JPGAt our photocopier, another busy location within our newsagency, our customers see the offer right in front of them as they use the copier and on capping on the next aisle.  They have time to dream while they copy.  We don’t want to miss any opportunity.

fhn_oz_3.JPGFinally, as customers leave our busiest magazine aisle and, hopefully, head to the counter, we have the pitch again in the aisle and across from it – to the right.  Hanging above them in the magazine aisle is an array of posters promoting the jackpot.

These are all high traffic areas deep within our newsagency and some distance from the lottery counter.  We have found this level of promotion of very special events – like the $50 million jackpot – works well and helps support our over the counter pitch.

In developing the in-store strategy yesterday morning, we sought to use our store as much as possible to promote the offer. There are some who will instantly get this and others who will only connect when we make an offer across the counter during a sale.  we have tried to cover all bases and leverage non-lottery traffic as much as possible.

Our card, gift, stationery, art and ink departments are untouched by this promotion.

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Lotteries

Beanies the gift of the month

fhn_beanies.JPGBeanies are popular premiums for magazines this month.  The current issues of Street Machine, Mountain Bike and Ralph have beanies as the free gift.  It is funny how these things run in cycles.  I wonder, however, if it dilutes the value having them on three titles at the same time – even if the target audiences differ.  On a side note – these are all blokes magazines.  Blokes like to browse.  Fewer will browse a sealed magazine.

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magazines

Out of space for Luxury Kitchen & Bathrooms magazine

fhn_kitbath_jul09.JPGUniversal Magazines is not showing signs of learning from the frustration expressed by newsagents about over-supply, long shelf life and heavy returns costs last year.  Take Luxury Kitchens and Bathrooms released yesterday – UM already has significant space allocated (for a long on-sale period) in this low volume category.  Now, we have to find room for this title.  Another long on-sale.  What happens when we have no room?  Early return is the answer from the distributor.  The challenges with early returning are the freight cost and the delay in accessing the refund.  They, universal and NDD, bank on newsagents keeping the title until it is due for return.

Once again, newsagents become the bank, funding UM and the titles they decide to publish.

I am disappointed that promises made last year by Universal Magazines about how they will work with newsagents have not been acted on.

yes, I know Universal will be upset at what I have written.  I doubt they will go to the lawyers like the did last year.  Fix it people, treat newsagents as business partnersd.  Treat us with respect.  We have a finite amount of space and cash with which to fund your business model.

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magazine distribution

Digital Britain, the new distribution channel

Newsagents will be interested to read Digital Britain, a 245 page report from the UK Department for Business Innovation & Skills which lays out plans for Britain to take a leadership position as a digital knowledge economy. At the heart of the plan is a distribution channel which imagines less paper based communication.

This report is further evidence of why we, at the end of the paper based media distribution channel, need flexible shopfits, flexible leases and flexible business plans which permit us to evolve our newsagencies.

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Media disruption

Quadrant editor responds

I have been thinking about Quadrant Editor, Keith Windschuttle’s comment published here last night since I saw it come through at 9:30pm.

Dear Mark,

Thank you for drawing attention to your concerns about the wording of the subscription form in the current Quadrant Magazine. I can understand why you and your colleagues are upset about it.

It was a clumsy attempt to draw attention to our appeal for subscriptions, which I now regret publishing. I have told our printers to withdraw it from all future editions. It will not appear again.

Yours sincerely
Keith Windschuttle

While I appreciate Keith responding here, he does not demonstrate that he understands the issue.  This is about more than wording.  Somewhere in their office a decision was made to target newsagents, the hand that feeds them.  They decided to print an insert into the latest issue in the magazine, on a colour paper to draw attention to the offer.  They chose words which put down their network of retailers.

Labelling this clumsy does not do the process justice – unless they have no process for considering such inserts.

I would have preferred Keith to say something along the lines of:

Newsagents,

Sorry.  I am my team here at Quadrant are sorry for disrespecting you as we have in the latest issue. We failed to consider your investment in Quadrant.  We failed to recognise that you have played and continue to play an important role in distributing and selling our magazine.

We intend to make this right.  here is our plan:

  1. Every issue from now on will promote newsagents putaways alongside any subscription offer.
  2. We will develop a one year putaway product with you so that customers prepaying you for a year can access the same benefits of those subscriptions we post.
  3. We will list your outlets on our website – under a find a Quadrant retailer facility.
  4. We will research a story about the role of newsagencies in Australian society and run this – if it meets our editorial criteria.

We cannot undo what has been published in the latest issue.  I hope that the steps outlined above show we have learned from the mistake and want to work with you mutual benefit.

Please continue to stock Quadrant.

It’s not too late Keith.

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magazine distribution

Cruzin magazine sucks cash

fhn_cruzin_jul09.JPGOur supply of the latest issue of Cruzin magazine, out today, is up by 33%.  There is no justification for this in our sales data.  The only explanation can be that NDD, the distributor, has been sent stock by the publisher and has to get it out of their warehouse.  I checked the magazine out to see if there is a reason for the increase.  I could not find anything.  Also, no posters – so no means of promoting sales growth.  We are returning several copies early but the distribution model with NDD being what it is, we will be out of pocket for this unjustified increased supply for at least a month.

People at NDD complain about blog post like this.  They say I am unfair, that I pick on them.  The best way to get me to not draw attention to their failed magazine distribution model would be for them to get it right and to treat my newsagency and all newsagencies with respect.  They need to stop treating us as their bank.

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magazine distribution

Unjustified incrrease in Two Wheels supply

fhn_twowheels_jul09.JPGNDD increased our supply of Two Wheels by one copy to eight.  We sell two or three per issue.  There is no justification for the increase by 1 copy.  Why complain about one extra magazine you say?  Imagine the cash rake NDD achieves by increasing all newsagents by this quantity.  Then factor in the theft opportunity – newsagents pay for titles stolen from their businesses.

I am also frustrated that the latest issue of Two Wheels is bagged – don’t publishers of bike magazines know that shoppers prefer to browse these titlles.

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magazine distribution

Limelight supply suffers from a great cover

fhn_limelight_jul09.JPGI Like Limelight magazine, but not enough to forgive an unjustified increase in supply by magazine distributor NDD.  If anything, we should have had supply cut by 10% instead of the increase we found today of 27%.  Limelight sales fluctuate significantly in our newsagency based on the cover – this appears to not be allowed for in the allocation model.  A couple of issues ago we sold out but that was a one off.  I bet that NDD uses that as the justtification for today’s increase.  Research will show them that our sales are very bumpy.

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magazine distribution

Making the most of the OzLotto $50 million jackpot

With OzLotto jackpotting last night to $50 million, we have an excellent opportunity to leverage the bonus traffic.  Here are some initial thoughts:

  • Set a goal.  Decide now the growth you want on last week’s OzLotto sales.  Track this daily.  The growth target ought to be at least 50% up on last week.  Offer a reward for achievement.
  • Use the counter.  Make sure that you have compelling impulse opportunities at your lottery counter.  Set a goal for sales of impulse products and track this daily.  Too often, newsagency counters are cluttered and block impulse opportunities.
  • Engage your team.  Ensure that everyone has their upsell pitch – make sure that newspaper, magazine and card customers are offered a ticket in the $50 million.  Obsess about this at non-lottery counters.
  • Promote.  Pitch the jackpot at high-traffic points in-store such as at the newspaper stand, with weekly magazines and at your photocopies.  But make the pitch specific – promote syndicates or a particular ticket type.
  • Make the opportunity your own.  Give people a reason to buy from you.  Maybe a chance to win a lottery ticket hamper, or a special second chance draw.  Separate your OzLotto jackpot opportunity from others.

Smart suppliers should use the jackpot traffic to offer trials of their products.  For example, a booklet of crossword puzzles from Lovatts, a booklet of a popular review from Top Gear, a booklet of recipes from Gourmet Traveller or Delicious, a booklet of room make overs from Real Living. I have pitched this idea to publishers before and should get it that they don’t like it or cannot justify the cost.

Newsagencies will see a considerable traffic lift this week – this is an opportunity to introduce magazine titles to this one-shot traffic.  Smart suppliers will help us leverage this.

How we leverage the bonus traffic for this week and beyond is a test for our businesses.  We ought to share ideas and challenge each other.  This is a rare opportunity.

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Lotteries

Quadrant treatment of newsagents makes news

The treatment of Australian newsagents by the publisher of Quadrant magazine is gaining more coverage.  MediaWeek ran a piece Monday, Crikey ran a piece in their news yesterday and the Bangkok Bugle blog covered the issue yesterday.  On top of this, many newsagents have told me they have written to the publisher and to Gordon and Gotch, the distributor, to request that the title be no longer supplied.

Newsagents provide low cost access to retail real-estate to a broad range of magazines.  We tolerate publishers promoting subscriptions in their pages.  What we ought not tolerate is publishers disrespecting the value we add through our retail network.  This is what Quadrant has done.

Curiously, I had a customer ask me across the counter yesterday is we stocked Quadrant.  I said no and explained why.  He said wankers and took a couple of steps before turning and saying – them, not you. I stood at the counter wondering how many he will tell the Quadrant story to.

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magazines

Using the stocktake sale to clear stock

fhn_swobbles_jun09.JPGSwobbles get the star treatment as we launch our STOCKTAKE SALE.  We have a table of swobbles at half price right at the front of the shop.  In the one day they have been up sales have been good – they will not last long.  The stock was acquired in a way which enabled the half price deal to be economically viable for us.

We are using the newsXpress stocktake sale to quit several lines in advance of refreshing our offering.  We will roll the sale through various incarnations over the next six weeks – rather than putting everything out at once.

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Gifts
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