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

Promoting mobile recharge drives sales

dsc06250.JPGThese generic posters we made to promote mobile recharge are helping to drive sales in our shops.  They take less space than branded posters.  Placed appropriately, they remind customers and you can see them add a recharge to a sale.  If you would like some of these A3 posters, drop me an email. I will arrange for them to be posted to you.  You can also download them.  I am happy for anyone to use these posters.

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phone recharge

Are we having trouble choosing a digital camera?

what_camera.JPGJudging by the number of magazines being sent to newsagents with advice on choosing digital cameras, it seems Australians don’t know how to choose the right digital camera for their needs.  The four magazines in the photo is not representative of the full range many newsagents receive.  Magazine distributors are overfeeding newsagents not only with digital camera magazines but in most categories.  I suspect it will be too late for the health of the channel when (if) distributors realise the damage their poor management has caused.

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magazine distribution

Sydney Gift Fair good value

The Reed Gift Fair in Sydney is well worth a visit by any newsagent considering playing in the gift space.  It runs until Wednesday this week.

Judging by the number of newsagents there yesterday, many are now playing in this space.  It is terrific to see newsagents expanding beyond the traditional.  Some were looking at homewares, others at traditional gifts and even one newsagent looking at garden furniture – now that’s really outside the traditional.

Every newsagent I spoke with was excited about expanding with new products.

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Gifts

Another Bill Express screen

bx_screendead.JPGLack of compliance and consistency across the retail newsagency channel is our biggest challenge.  In Sydney yesterday, I saw another newsagency with the Bill Express light box still up and working.  It is situations like this which invite suppliers to look outside our channel for a more consistent and disciplined network of retailers.

UPDATE (23/02):  I was in a JB HiFi store today which had a DialTime light box on display.  On the side was a note: Not working. I take back what I said about newsagentx and compliance.

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Bill Express

Newsagency ombudsman, a good association role

There are many issues and disputes which newsagents encounter where the supplier is prosecutor, judge and jury. While some newsagents capably stand up for themselves, many do not. There are forums in some states available to small business, including newsagents, yet they are rarely used due to ignorance and lack of knowledge about the operation off the newsagency channel.

Associations have an opportunity here to create an ombudsman role. This could be funded from member fees as well as a supplier levy.

The newsagency channel ombudsman could hear disputes and adjudicate in line with a charter of operation agreed by newsagents and suppliers.

Such an office could provide a neutral ground place where account, supply and other disputes could be heard and mediated quickly – before things get out of hand.
What I have in mind is something more comprehensive than advice.  I see it as more structured than the ad-hoc defence run by some of the more proactive associations and marketing groups today. There could be rules and case management to ensure that the process is fair on all parties. Most of all, this would be an opportunity to diffuse issues before they get out of control.

I’d like to think that suppliers would welcome an ombudsman role as it might help issues get resolved in a more valuable way and before they take action.

It is this level of practical help where associations can make a difference.

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Newsagency challenges

Cross media deal in South Australia

Advertiser Newspapers (part of News Corp) and Channel 7 Adelaide yesterday announced a cross media deal to deliver a new multi media news and current affairs service.  I’d expect to see more of this is the type of cross media platform partnership as the disruption of traditional media, which we have seen in the US and Europe in recent years, picks up pace here.

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Media disruption

Hiding the copier with art

artcopier.JPGClick on the thumbnail for a larger copy of the photo showing how we are hiding the back side of our photocopier with an art display.  By itself this display would not work but when seen with the display capping the next aisle it presents a good retail story.  We continue to move art around as we have found that this helps find new customers.

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art supplies

Buffy the Vampire Slayer partwork out now in newsagencies

frank_buffy.JPGIt is great to see Buffy the Vampire Slayer partwork series launch in newsagencies.  The popular TV show targets a demographic we like.  Early indications are that sales will be good.  We certainly have people requesting future copies be put away – this is part of the unique service newsagents offer.  Our putaway service is a reason we have partworks and other retailers don’t.  Overseas, partworks are sold in supermarkets.  Australian newsagents are fortunate to have the opportunity.

Usually, when I write about partworks, people comment publicly or privately to me about the unreliability of supply and other challenges associoated with them.  For some time I was a vocal critic of partworks. I took up an invitation to look behind the problems and develop something which works for my business.  Three years on it works a treat.  Supply is good.  In return I provide accurate sales data.  Occasionally there are bumps but these are fixed.

I will acknowledge that I am lucky to have access to the people who can fix problems and therefore don;t have to deal with call centres.  I have put it to stakeholders – publishers, importers and distributors – that a thorough review of the partworks supply model could drive excellent sales growth.  From a newsagent’s perspective, it all comes down to supply consistency through the entire series.  This can be easily fixed.

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Newsagency opportunities

Intralot network down in Victoria

The Intralot network is down in Victoria today due to an Optus network problem.  This is also affecting access to the Intralot help desk.  Optus people have been working on the problem all day.  I am posting this here as a service and not for commentary.

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Lotteries

E-ink display touted as newspaper replacement

PC Pro reported yesterday that NEC is preparing to launch a 19.5 inch e-ink display with better contrast than newsprint and a very fast refresh rate.  There is online talk that this screen gets closer to a newspaper experience. I know that newspaper publishers are certainly watching this and other technology which enables them to make their content more accessible.

If I were a newspaper publisher I would have money invested in products like this and other mobile devices as they are the replacement for the current newspaper distribution system.

Whether we (newsagents) like it or not, this paperless newspaper reading technology will evolve and, eventually, become ubiquitous.

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Media disruption

Women’s Weekly starts 2009 well

fhn_aww.JPGThe Australian Women’s Weekly has kicked off 2009 with a bang. Starting the year with the Obama family on the cover was a brilliant move and following up with Magda Szubanski and her weight loss story in the latest issue is proving to be as popular. My only minor complaint is the free cookbook on the cover – it covers Magda. That said, the word of mouth around this issue is very strong. Newsagents rely on the traffic and sales of AWW. Indeed, other publishers have relied on AWW to drive the health of the category.  Let’shope the strong start to the year continues.

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magazines

Finding readers for The Week

fhn_theweek.JPGA customer commented that they need to come up with a good news summary for the week because he didn’t have time to read the papers with all the news around. I mentioned The Week to him and he was surprised that a title matching his exact description existed. True story.

I believe in The Week. It is a good magazine, filling a need. That said, I am not sure that their marketing campaign has worked.

We are trying a different approach by promoting it more consistently with newspapers, at least to put it on the radar of newspaper buyers. For the next few weeks we will have it on the stand in front of newspapers and see if that helps with our customers.

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magazines

Delivering a good laugh with the newspapers

Robyn Ritchie from newsXpress Whittlesea this morning delivered the newspapers for the first time.  Their regular driver has relocated following the loss of his home in the bushfires.  Robyn and one of her girlfriends hit the road early and tried their hand at the whole newspaper throwing thing.  She said the only complaint they are likely to get is about the noise they made as they laughed their way through the round.

I bet lots of newsagents can recall the first time they threw a newspaper.  It’s a good thing to reminisce about.  Up at Whittlesea things are a bit different thanks to the considerable challenges brought about by the fires.  It is inspiring that Robyn and Neil are finding some laughter amid those challenges.

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newspaper home delivery

LAAV survey encourages a negative response on Intralot

I have several issues with the survey sent out by the Lottery Agents Association of Victoria about Intralot: It is poorly constructed – as if they have a specific outcome in mind; Some questions are push in nature; It has not been sent to all agents; and, the survey demonstrates the continued bias of the LAAV against Intralot.

I see little activity from the LAAV on the barriers imposed by Tattersalls against Intralot, barriers which deny Intralot fair and reasonable access in many retail situations. Take instant scratch tickets for example, they belong on the counter, next to online lottery products. Tattersalls successfully maneuvered it so that this could not be achieved.

I would hope that Tony Robinson, the Minister responsible, finds a way to achieve an equitable solution – for the sake of small business retailers, consumers and Intralot which paid good money for fair and reasonable access.

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Lotteries

Promoting OK! at the counter

fhn_ok_feb20.JPGWe are promoting OK! at the counter at our Forest Hill and Frankston stores.  The free mascara qualifies it for this prime impulse purchase position.  The mascara itself looks more valuable than the usual free make-up with a magazine.

The additional benefit of setting up this display for the weekend is to remind our customers that OK! is now published on a Friday.  Changing habit can take a while.

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magazines

Using Magda to help Weight Watchers magazine

fhn_weight_watcher.JPGThanks to a comment here from Deb at Glenhuntly newsagency a few days ago, we have placed Weight Watchers magazine next to the latest issue of Australian Women’s Weekly with Magda Szubanski on the cover. Inside AWW is the story about Magda’s amazing weight loss since joining Jenny Craig.

Hopefully, the opportunistic placement will drive sales of Weight Watchers and AWW.

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magazines

Hot & sweaty magazines

hot_sweaty.JPGOur team at Frankston is having fun pitching two magazine categories – lad’s mags and men’s fitness and lifestyle mags. Under the heading Hot & Sweaty they are pitching a range of titles at the counter which would otherwise not get such a high traffic profile.

I love this type of marketing – bringing titles to a high traffic area and opening them to impulse purchase.  I especially like the fun in the Hot & sweaty tag – this pitches the magazines in a non-traditional way.  It is the kind of approach which gets new eyeballs looking.

The display will stay in place for a couple of weeks before being replaced.

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magazines

Profiting from the bushfires

A seller on ebay is offering the Bushfire edition of Who magazine for sale for $12.95 plus $2.90 postage.  They are charging close to three times the cover price.  There is no mention that they are doing this to raise funds for the Bushfire Appeal.

ebay_bushfire.jpg

While it could be said that newsagents profited from the sale of this magazine, there was no price gouging.  Further, many newsagents collected donations from customers and added to these from their own pockets.

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Social responsibility

Well done newsagents and suppliers!

It is terrific to see the level of support by newsagents and suppliers for Victorian bushfire relief appeals.  I know from conversations yesterday that this is of comfort to people on the front line – those personally affected and those supporting them.

From spare change collected at our counters to support for magazines raising funds from sales (New Idea, Woman’s Day, Take 5, That’s Life, OK! and Who) to collecting product for donation to practical help.  Those newsagents and newsagent suppliers who have supported fundraising and other efforts ought to be proud not only of their efforts but also of demonstrating how the newsagency channel sevres the heart of our nation.

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Social responsibility

What newspapers will not report about their handling of small business newsagents

This is a story you will not read in your newspaper.  It is about how some newpspaper publishers treat small family businesses.

Years ago, when a publisher ran a home delivery deal, they would pay newsagents what the margin would if the paper was sold at full price. As I wrote here last year, I know of newsagents getting less than half to deliver to customers who have accepted deep discount deals. To go from a slightly profitable customer relationship to one which is loss making because a supplier decides to discount is another reason more newsagents are walking away from home delivery.

So, what is the answer?

I’d like to think that if I were a newspaper publisher I would be investing in a key asset such as the newsagency channel rather than starving it.
Publishers can stop newsagents handing back runs by:

  • Providing fair rewards for what publishers say is the best newspaper delivery system in the world.
  • Provide newsagents with mechanisms which respect them as business people and not as process workers.
  • Taking total responsibility for subscription deals rather than forcing newsagents to share the cost.
  • Giving the service more visibility – help newsagents be proud of what the de for the publishers and newspaper subscribers.

Newspaper home delivery is unlikely to grow. That does not mean that those providing the service ought to be treated with the contempt I see in some states today.

When I left the Board at the end of 2004, the ANF had the data necessary to guide newsagents to make real progress on representation around the delivery fee matter.  It is clear that this opportunity was squandered.  While there has been some noise over the last week, for many it is too late.

My proposal in 2004 was that newsagents call for a Productivity Commission review of the home delivery model, as review of the 1999 deregulation if you like.  Such a post deregulation review is not unusual and would be good government in action.  Unfortunately, I was unable to muster support from newsagent repreentatives to push for such an inquiry.

The situation today is serious.  The publishers know it.  Some are responding by investing in infrastructure to take over delivery.  This is not the answer as each territory handed back is another (often meagre) income taken from a family.

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newspaper home delivery

Promoting Men’s and Women’s Health

fhn_healthmag.JPGWhile the two displays don’t look ideal next to each other, we are trying, for the fist time, Men’s Health and Women’s Health on the counter next to our main lottery counter in addition to their usual placement. We are still trying to figure what titles work well with customers in line to purchase lottery tickets. It is easier at our traditional newsagency counter – what we place there is working well. We are committed to finding the right titles to engage lottery only customers- hopefully these health titles work.

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magazines