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

Participate in our January sales benchmark study

I am undertaking a sales benchmark study comparing January 2009 against January 2008. Tower Newsagents can participate by sending a Monthly Sales Comparison report: tick the box to exclude home deliveries, and tick the box for a category breakdown. Set your first date range (on the left) to January 1, 2009 to January 31, 2009 and the date range of the right to one year earlier. Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au. Newsagents not using Tower software should email for a spreadsheet template. I’ll publish the benchmark results here and elsewhere so all newsagents can benefit.

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Newsagency opportunities

Officeworks sells stamps now

officeworks_stamps.JPGI was surprised to see stamps advertised as being available at Officeworks. When we applied for one of our newsagencies Australia Post refused. They said we were too close to one of their shops. I know of an Officeworks next to an Australia Post shop. I bet they have stamps. It is wrong for Australia Post to do a deal with Officeworks yet refuse an individual newsagent for being too close.

That said, I am not surprised as I expect the two businesses have ties elsewhere which were leveraged to make this deal happen.

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Australia Post

The Age modifies subscription model

The Age notified newsagents yesterday that they are changing the subscription model, or how they deal with newsagents at least.  They are moving from fixed-term subscriptions to open-ended subscriptions.  Beyond giving newsagents only seven days notice to make considerable data and system process changes, there are questions customers will have when the previous fixed-term subscription continues.  While The Age ‘manages’ the customer relationship, newspaper home delivery customers often like to talk about these things face-to-face.  Of course, in this day of subscription based home delivery the newsagent no longer owns the customer.

As a retail newsagent, I would prefer The Age invest in over-the-counter customers.  They are as loyal yet cost significantly less than home delivery customers … except that the margin for The Age on retail sales is not as good as their home-delivery model where newsagents share the cost of subscription campaigns.

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newspaper home delivery

Promoting the Wiggles magazine

fhn_wiggles.JPGWe have decided to promote The Wiggles magazine at the counter at our newsXpress Forest Hill store this week.

We selected this title because it is back to school week in Victoria and I figured that education will be top of mind. The Wiggles magazine is educational like the show. It also has freebies which come with the magazine so it fits our criteria for use of this space.

I love how bright the display is – it’s hard to miss at the counter.

From yesterday’s sales we know this display will be a success, it is at perfect kid-in-the-trolley height.

The sales will further demonstrate the value of placing carefully and locally selected titles at counter within a well presented display.

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magazines

AFL Season record 2009 now available

afl_record.JPGYou know the year is well under way when the AFL Record Season Guide 2009 is published and available in-store. Even though the price is chunk at $39.93, we expect this to sell quite easily – we have it at one of our lottery counters as it is more an impulse item.  Curiously, I spoke with a couple of newsagents in Victoria today who did not receive any copies of this.

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magazines

Using the newspaper poster space

noposter.JPGWith no poster at all for The Age today we are improvising with the New Idea poster in its place and with a small stand of copies of New Idea below.  While we are happy to promote the magazine this way, we’d prefer a poster which relates to the content of today’s Age.

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magazines

Cramming Golf Magazine into a confined space

cramming_pocket.JPGThe quantity we receive of Golf Magazine usually fits nicely into a pocket, usually. This month, thanks to the publisher sending the current issue with a “bonus” magazine, the one pocket allocated to the title is insufficient. If we leave it as shown in the photo, product will be damaged and the publisher would be rightly annoyed at the poor representation. The alternative is to give this title an extra pocket but that means double the real-estate for the same sales.

While I could store excess stock in the back room and bring it out when space in the pocket frees, this would mean another title-specific process and with around 1,300 titles on the shelves who has the time for this?

So, what is the answer? If it were my call I would ensure that the product itself has the best possible value rather than relying on old stock (in a sealed bag!) to achieve this. But I am not the publisher. I wish publishers would think through the implications of their actions: some newsagents will leave spare stock in their back rooms and it will never make it to the shelves, others will shove more into one pocket and others will give the title more space at their own cost.

The ideal would be a more considered retailer-friendly approach to pursuing incremental sales.

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magazines

Melbourne Gift Fair report

I spent time yesterday at the Reed Gift Fair in Melbourne looking at product for our shops, catching up with some newsagents and checking in on the Tower Systems stand.

There were plenty for products suitable for newsagents who want to expand their gift range. This is a view shared by other newsagents I talked with. While the stationery related items I saw are easy to fit in our stores, I preferred some of the homewares products which could easily be sold in newsagencies.

Entrepreneurial newsagents are tapping into fashion related gift items and driving a better return from floor space. This Melbourne Fair shows off those opportunities for newsagents open to change. If you come along with newsagent eyes then you will think it is a waste of time. As some people would say, this fair, for newsagents attending, is about new money. That is why those I spoke with at the fair liked it so much.  New money = new customers, better margin and more control.

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Gifts

Sunday Mail National Geographic DVD mess

It has just gone 9am in Queensland and many newsagents have already exhausted all of their stock of the National Geographic DVD which comes with today’s Sunday Mail newspaper. I have heard of customers abusing the newsagent when it is Queensland Newspapers at fault. They should not run a promotion unless they have sufficient stock for all newsagents.  Even one newsagent being out of stock by 9am on the first day is enough to label this a mess.

When the Herald and Weekly Times ran this National Geographic promotion in Victoria last year my experience was that stock availability was good. It worked for us and the newspaper brand. This does not help Queensland newsagents, many of whom have a day of frustration ahead.

News Ltd lets each state handle these things. For years they have known of problems with promotions in some states yet they do not intervene. In the meantime, newsagents and consumers lose out.

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Newsagency challenges

January newsagency retail sales benchmark study

I am undertaking a sales benchmark study comparing January 2009 against January 2008. Tower Newsagents can participate by sending a Monthly Sales Comparison report: tick the box to exclude home deliveries, and tick the box for a category breakdown. Set your first date range (on the left) to January 1, 2009 to January 31, 2009 and the date range of the right to one year earlier. Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au.

I’d like to complete the benchmark by the end of the week so the sooner I receive data the better.

Newsagents not using Tower software wishing to participate should email for a spreadsheet template.

I’ll publish the benchmark results here and elsewhere so all newsagents can benefit.

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Newsagency challenges

Home and Away magazine a runaway success

home_and_away.JPGThe Home and Away magazine, celebrating 21 years of the TV show, has been a runaway success for newsagents with many reporting selling out within 24 hours this last week. We could have easily sold two or three times the quantity we received in our newsagencies.

The success of the Home and Away magazine says something for the success of the show. It also shows nostalgia sells – the magazine covered the 21 years of the show.

The success also set me thinking about other one-shot titles which could be successful:

  • A Neighbours retrospective. (Obvious suggestion I know)
  • Great Woman’s Day or New Idea cover stories from the 1970s. If successful go with the 1980s etc.
  • When royals visit – a retrospective of royal visits to Australia.
  • Where are they now – there could be several issues and themed.
  • Sports hero nation – great sporting moments when heroes were made.

The (incomplete) list of titles I have in mind are those which can be culled from existing content held by publishers (and their associated entities) and on topics which are highly commercial and could easily sell as low cost entertainment.

It would be easy to come up with a list of twenty or thirty titles from which a top list could be developed.

The key with one-shots like this is to lock newsagents as the retail channel (of course I will say that), to promote the title heavily on TV and to ensure there is stock to meet the demand. How newsagents could make this work is through pre-orders. We have the capacity in our technology to take orders in advance and these could guide the size of the print run. Some software systems already advise magazine distributors of pre sales so there are mechanisms in place to help everyone make the most from the opportunities smart one-shot publishing offers.

I, and I am sure others, would be thrilled to work with a publisher on this.

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magazines

Making the magazine basket builder work

fhn_acp_front.JPGThis is the front of the ACP Magazines basket builder stand we have. It’s called that because it is designed to drive impulse purchases and thereby add to the shopping basked. It is planagramed with each slot allocated to a title. As it is on castors we move the stand every few weeks to counter regulars becoming blind to it.

I have watched customers purchase from the several times this week. They approach the counter with their purchase and while waiting for the person in front they pickup a magazine and add it to their basket. This is the basket working at its best. The key to this success is location.

fhn_aww_acp.JPGWhile many newsagents push their ACP stand against a wall, we like to use both sides. This photo shows the back of the stand as we created it Wednesday this week. Even though the Australian Women’s Weekly sold well without this extra pitch, we have enough stock to warrant the real-estate.

My point with this blog post is to say that co-locating magazines, on a stand such as this from ACP or something you make for yourself, works if you have a professional looking stand in the right place offering popular titles for which a quick purchase decision can be made. It is all about making every sale as valuable as possible. We can influence this more through product placement than we often give ourselves credit for.

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magazines

Officeworks set to sell newspapers

Officeworks, the expensive stationery retailer, is in the process of negotiating arrangements to sell News Ltd newspapers in its stationery businesses. Each News Ltd office (Herald and Weekly Times in Victoria, Queensland Newspapers in QLD, Advertiser Newspaper in SA, MATP in Sydney etc) is in the process of working with Officeworks on the details at present.

The News Ltd offices appear to be approaching this differently in each state. Some, it would seem, more fairly than others.

While I accept that News needs to put its products where it thinks it can achieve incremental sales, every newspaper sold outside a newsagency is further dilution of newsagencies as the go to stores for news and information.  I am not calling for protection here, just noting that specialist news and information retailers are valuable and at some point we will look back and wonder when we decided they are not.

I have informally put the newsagent case to several people in News Ltd over the last 24 hours and all I can get, in most cases at least, is the company line. But that is their job I guess.

The reality is that News Ltd executives have no idea if this will achieve incremental sales. They will not know until the deal is long done. I am aware that nationally, the News plan is to conduct a trial.  However, I am skeptical of this as such a trial needs to actively include newsagents in areas where Officeworks is to get product and to run for at least six months to gavther enough data.  Will they ensure they have accurate base sales data?  Will they look at basket data as well because of the knnock on effect?  Will they measure newsagency store traffic before and during the trial?  A trial is more than putting the product in and then measuring what happens.

They risk moving sales from newsagencies, as their moves into supermarkets, convenience stores, petrol outlets and all manner of other retailers has done.

In the meantime, in some states, News Ltd demands that newsagents place their newspapers in the most expensive location in-store and that they have expensive purpose made shop fitting installed. Newsagents who stand to suffer from the Officeworks move could consider refusing to accede to these demands without more proactive support from News.

In one state, News looks set to supply an Officeworks location which is 150 metres from a newsagency, 50 metres from a supermarket selling newspapers and 50 metres from another well-established sub agent. Where is the sense in that?

News will say that the distribution newsagent still makes their money as Officeworks will be supplied as a sub agent. While that is as it should be, for the work they will do, it is the retail channel that suffers.

The more retailers selling newspapers, the less specialist newsagencies are as the go to news and information outlets.

Oh, and News will wonder why anger grows in the newsagency channel in some states about the labour intensive freebie.

Footnote: I labelled Officeworks as expensive at the start of this blog post.   They spend a lot of money promoting their price guarantee where they will beat anyone elses advertised price by 5%.  Price check Officeworks against nearby newsagencies and you will find many everyday stationery items at lower prices in newsagencies. The key difference is that newsagents do not have the budget to tell consumers that they are cheaper or at least look cheaper as is the case with Officeworks.

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Newsagency challenges

Promoting People’s Friend with newspapers

fhn_peoplesfriend.JPGFollowing the tremendous success with promoting the Australian Women’s Weekly in a small stand in front of our newspaper stand, we are now promoting People’s Friend in the same way.  It will be interesting to see if we can achieve above average sales as a result of co-location of this title.

The newspaper stand is the second most visited point in our Forest Hill shop so it is logical we try and gain the maximum value from this traffic.

We are careful to ensure that all newspapers can still be accessed and their covers easily seen.

People’s Friend is our third or fourth most popular weekly title – reflecting our demographic.  My sense is that this space in front of the newspapers will work best for titles which already sell well in our shop.

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magazines

Brilliant magazine cover attracts retail attention

fhn_prop_investor.JPGThe brilliant cover on the latest issue of Australian Property Investor magazine earns it a good counter location as shown in the photo.

While we are giving away in our newsagency what other retailers charge for – primt counter space – the experience is helping us understand about the covers which work best in our particular demographic and that is good for our business.

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magazines

Gold Coast Bulletin newspaper goes half price for February

As part of their Doombusters Campaign, the Gold Coast Bulletin is offering their Monday to Friday editions for half price. The consumer needs to clip a coupon and present this to the newsagent the next day to get the paper at half price. The newsagent has to collect the coupons and submit them to the Gold Coast Bulletin to be reimbursed for the discount.

While I am all for innovative marketing around newspapers, this campaign is administratively messy. It also, for a whole month, educates consumers that the newspaper is worth 50 cents and not the usual dollar.  It will be interesting to see if this remains a February only deal.  It will also be interesting to see if there is any counter offer – maybe not because of the Gold Coast location.

The newspaper publisher has not advised the QNF, the state association, of the campaign. Nor have they let the software companies know – those responsible for back end infrastructure to make the process financially accurate, efficient and easy for newsagents.

I am glad that this is a newsagent only offer but am frustrated at how it has been communicated and is proposed to be managed.  To have the details released one working day prior to implementation is nuts.  It feels desperate.

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Newsagency challenges

Promoting weekly magazines to lottery customers (part 2)

fhn_weekly_mags.JPGFurther to my blog post from earlier this week, we refreshed our display of magazines on the approach to our main lottery counter. We have reduced space for the main weeklies and introduced a broader range of titles more likely to appeal to our weekend customers.

The mix you see in the photo today is different to what we would have for next weekend.

While there is a risk that a display like this at the front of the newsagency reduces traffic further into the store, I am certain that it attraacts people walking pact who might otherwise not have entered.

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magazines

Sarah Palin fails at the register too

sarah_palin_magazine.JPGWe returned the three copies originally supplied of the Sarah Palin magazine (Historical Collectors Edition) today.  Beyond Sarah being old news (for now), the $21.50 price point and the challenge of where to display the special interest title meant it would fail in all but the most specialist of newsagencies.  We gave it a shot for a month and took it off the shelf today three weeks early.

Thankfully, none were stolen.

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magazines

Suppliers welcome at newsagency management workshop

5ways.jpgSeveral newsagent suppliers have asked if they can alos attend the 5 WAYS TO KICK START YOUR NEWSAGENCY workshop which starts on February 9.  The answer is yes!  The ore we talk collectively about growing our newsagencies the better.  So, suppliers are welco.e  that said, we will start closing off registrations for this free workshop early next week.   All newsagents are welcome regardless of the marketing group to which you belong or the software you use. This session is about neither – it is about providing you with practical business building initiatives you can implement today. Click here to download the flyer with dates and booking details.

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newsagency marketing

Valentines crossword tip

lovatts_valentines.JPGNewsagents with a Valentine’s Day display should grab copies of the latest issue of Lovatts BIG Crossword magazine and place this appropriately in the display.  The Valentine’s Day themed cover is bright and sure to be noticed – it is certainly too good and too topical to leave languishing in the crossword section while you’re busy pushing Valentine’s Day.

Bringing magazine product into a seasonal display such as this is important because it reminds the irregular customers who visit for Valentine’s Day (and other seasons) that you see other categories of products too.

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crosswords

Keeping your newsagency computer running in the heat

We published advice to Tower Newsagents tonight on helping newsagent computer systems survive the heatwave which others who visit here may find useful:

  1. Ensure there is good ventilation. Clear out unnecessary papers and other junk crammed around the hardware.
  2. If the computer is in a very hot place and is acting in an unstable way, consider training a small fan to circulate air. Do not remove the cover because most boxes are designed for optimum airflow over important components with the cover on.
  3. Place something under the case to lift it off the ground or shelf (but keep it stable) to improve airflow.
  4. Reduce internal dust. Turn everything off, unplug the computer box, remove the cover, blow out dust, place the cover back on.
  5. You will have more water around for drinking – be careful. Computers do not like to drink.
  6. Don’t have too many devices running off the one socket.
  7. Use a battery backup to deliver clean power in the event of a blackout or power spike. We sell these.

The heat problem is compounded in some situations by a considerable build up of dust in the computers.  Some preventative measures would have stopped this in most cases.

Stay cool everyone…

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Newsagency challenges

Charging to access the newsagency channel

I spoke with a potential new supplier to the newsagency channel yesterday and they claimed that an organisation (not a marketing group) representing newsagents they spoke with asked for six figure sum to access the newsagency channel.  For the six figures they would endorse the new product and circulate promotional provided by the supplier.

Any organisation charging a fee to access newsagents has an obligation to disclose an access or any other fee associated with newsagents.

Those representing newsagents must ensure that the maximum margin possible from every transaction is left at the newsagency counter and not in an office or chunky pay packet in an office somewhere.

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Newsagency challenges

Brand confusion on Super Food

superfood_expensive.JPGI was surprised to see the Super Food Ideas Simply Summer cookbook selling for more than the Super Food Ideas magazine.  $4.95 vs $2.90.  Super Food is a brand which has built a following on a price based offer.

This latest cookbook does not pitch a price based offer and, I suspect, will not connect with the same consumers as the magazine.

That said, we are being inundated with these small format cookbooks at the moment.  All the usual publishers have new titles out plus we are getting stock from publishers not usually in this space.

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magazines