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

Great Valentine’s Day gift packaging

smoochies.JPGI love this Valentine’s Day gift packaging from Hallmark.  It is different ot the traditional Valentine’s Day material and will appeal to a broader demographic.  While the traditional range is well covered in this year’s Hallmark range, it is this new packaging which draws attention.  The nutrition facts on the side show that a lot of thought has been put into developing the creative for this Valentine’s Day box.  We are using the box and other items using this design as the centrepiece Valentine’s Day cards and gift packaging.

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Gifts

Rearranging ACP cookbooks

fhn_aww_cook.JPGWe refreshed our ACP cookbook offer at Forest Hill this week.  We took off all the titles and reallocated space with a segment (or interest) owning each column.  From the left, next to the Symply Too Good titles: healthy, salad / summer / veggie, international food, low cost / fast, kids.  This is a regularly shopped part of the magazine department and was in need to a mini relay.  We will track sales and if a sufficient enough kick is not achieved we may consider moving these titles since it is the second best location in this aisle.

The project took half an hour – including the time necessary to analyse sales data and make decisions.

What we had before, while good for the overall ACP cookbook brand, was not logical for the shopper.  Our new layout has some sense and this will help with placing new product and keeping the display tidy.  Pretty basic retail stuff really.

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magazines

ANF wrong on collective bargaining claim

Respected legal advisor to the ANF and NANA Hank Spier has commented on the ANF announcement about the QNF application in relation to collective bargaining:

I note the ANF NewsFlash about the QNF application to the ACCC for authorisation of collective bargaining conduct.

ANF is not correct in what it says in that News Flash.

The QNF application is on behalf of QNF,NANA and VANA and seeks to have the ACCC authorise QNF , VANA and NANA to bargain on behalf of their members and anyone who may wish to join them ( opt in )in any such collective bargaining. The reasons for this opt in provision is related to lessons learnt from the Bill Express debacle.

The application does not seek the authorisation of QNF bargaining on behalf of VANA and NANA . The ACCC would never allow such an application.

The 2004 authorisation ends early in 2009 and the QNF application seeks to extend the statutory protection afforded by the authorisation.

In 2004 QNF and ANF applied on behalf of the ANF and the various State newsagents associations for each to collectively bargain on behalf of their members. ANF had conditions imposed on its role in any collective bargaining and could not collectively bargain on a national basis.

The QNF application is along similar lines to the 2004 application.

I am not aware of any ANF application to the ACCC.

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Newsagency challenges

Think twice before buying from N-Stock

N-Stock is the buying business established by VANA to seek out deals for newsagents.  The latest promotion sent out today provides further evidence why VANA should try and become a good industry association rather than getting involved in commercial deals.  N-Stock prices on some items are more than individual newsagents are paying for the same items.  Mistakes like this make N-Stock a laughing stock.

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marketing

Concern about magazine code of conduct

The ANF continues to disucss a Code of Conduct with magazine distributors and publishers.  Any code of conduct has to be a two way relationship.  It will need levers of commpliance.  The ANF does not have any compliance mechanism over newsagents.  Given this, why would a supplier agree to KPIs when a newsagent will not? 

Outside of this, the ANF sought input from newsagents more than a year ago when it was working on this code.  Unfortunately, no feedback was provided to those who provided information, leaving doubt about the position they have put on behalf of newsagents.

I see a code of conduct or some compliance agreement as essential.  However, it is better managed through commercial relationships which have compliance mechanisms which can drive better outcomes for both.

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magazines

Promoting OzLotto $15 million

ozjackpot.JPGWhile we’d usually wait until OzLotto passes $15 million before we promote beyond the usual posters, we decided to push hard given that the country is in holiday mode and there are more shoppers out, in our eare at least, than usual.  The display by our team at Forest Hill is good theatre at the front of the shop.

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Lotteries

US magazine distributor adds a surcharge

Magazine publishers, already reeling from a slowdown in advertising and circulation, have gotten slapped with word that a major distribution company is about to jack up the rates it charges to deliver issues to retailers.

Anderson News earlier this week informed publishers that it would impose a 7-cent charge for each copy of a magazine that it delivers to stores, and warned that any publisher that refuses to pay the fee could no longer count on Anderson to distribute its magazines.

Go to the New York Post for more on this story.  While the magazine distribution model is different here in Australia, I’d expect distributors to be looking at revenue opportunities from publishers.  They are chasing revenue from newsagents through (sometimes but not always) distributing more product they know will not sell.  One distributor is working on a book model.  Another distributor has started promoting potato chips.

Be sure to read the whole Post article, especially about returns and retailers paying only for scanned sales.

Newsagents need to look seriously at their situation around magazines.  Making money only off of what sells does not work for many titles.  Our network is our asset and unless we start to price access to that others will make even more from this.

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magazine distribution

Magazine management workshops help newsagents

Following four filled to capacity workshops already this year, Tower Systems has scheduled four additional free online Magazine Management training sessions.  The additional magazine management training sessions will cover the latest requirements for fficient and compliant magazine EDI returns and control.  They are to be held:

  • Tuesday January 20 11:00am
  • Thursday January 22 2:00pm
  • Tuesday January 27 11:00am  
  • Thursday January 29 2:00pm

Access is free.  To book, please go to the Tower website, click on support and select User Meetings.  You can have the website update your Outlook calendar as well.  You can also book by emailing bookings@towersystems.com.au.

here is what one newsagent said who participated in one of these sessions last week:

Thank you to Rowan & Michael for the great session on Magazine Management.  It was my first experience at online conferencing and I found it very easy to listen and also to see what was going on. I certainly had many of my questions answered and will now need to re-look and have another go at the fine tuning process. I’m sure I’ll be in touch again when I get stuck!! Thanks Guys – much appreciated – especially down here on the south coast of NSW.  Regards, Rosemary Rosemary Oates Tuross Head Newsagency

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Customer Service

Magazine counter promotion works

Further to my post Wednesday about our counter promotion of Super Food Ideas.  We have sold twenty copies in two days.  This is almost triple our usual sales in the first two on-sale days.  While the oven timer gift is a key driver, customers would not know unless we promoted this at the counter.  Most titles we promote at the counter enjoy a considerable sales lift – because we select them carefully.

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magazines

Not all retailers call for a ban on hijabs and hoodies

I was surprised to hear reports today that a retail association has called for a ban on hijabs and hoodies.  If someone wants to buy product for which there is an age requirement – tobacco and gambling – then I’d ask for ID.  If they are out to steal from the business then there are plenty of other ways to disguise their identity.  A ban such as that reportedly proposed would not reduce theft from retail businesses.

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theft

Kick start your newsagency in 2009

5ways.jpgI think smart newsagents have a bright future this year – despite the downbeat reports I blog about from time to time about newsapers and magazines.  To put my money where my mouth is I have organised 5 WAYS TO KICK START YOUR NEWSAGENCY.  This is a two hour workshop packed with business building ideas.  The workshop will run in Melbourne, Sydney, Brisbane, Adelaide, Perth and Canberra.  It is free to attend.  I promise you will find it worthwhile.  No sales pitch, just good business ideas for you.  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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Media disruption

An iTunes for newspapers?

Rich Gordon at Poynter.org poses this question and tells readers than an iTunes for news already exists – the Amazon Kindle.  regulars here will know that I have followed the release and growth of use of the Kindle with great interest.  While not available in Australia – due to the complexity of telco coverage here – in the US and the UK it is generating considerable interest as a book and newspaper reader.

From a newsagents perspective, the Kindle cuts us out.  We can’t even sell subscriptions for a small clip. 

The supply chain between publisher and consumer has been turned on its ear.  It started with music, migrated to film and now is impacting print.  This disruption to our traditional business model is the best opportunity we newsagents have had for decades to reinvent ourselves.

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magazines

Back To School magazines

t5bts.JPGTake 5 this week ought to interest newsagents who are running a Back To School promotion as it comes with a 32-page Back To School cookbook plus an opportunity to enter a Back To School competition.  It makes sense to include magazines like Take 5 in the more traditional Back To School promotion – to promote departments outside of stationery and chase add-on purchases from customers attracted to the Back To School sale. 

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magazines

Network weekly magazine returns a breeze

I have heard that some folks are scrambling to be ready to handle the new weekly returns process being introduced by Network Services.  The introduction of weekly returns is no surprise, it was announced more than six months ago.  The operational processes were established well before then.  I am not sure what the fuss is some quarters is about.

Tower Systems predicted this move by Network Services when they moved to fortnightly returns some years ago and so catered for weekly returns at that time.

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magazine distribution

Promoting Super Food Ideas at the counter

fhn_sfood_ideas.JPGWith Woman’s Day sales up 30% Monday and Tuesday and a sell-out likely, we replaced our Woman’s Day counter display this morning with one for Super Food IdeasSuper Food comes with a free kitchen timer, making the $2.90 price exceptional value.  As is often the case, we were given little in the way of marketing collateral – one crushed poster – so we made our own.

With many newsagency regulars visiting two or three times a week, changing the main counter offer display mid-week is worthwhile.

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magazines

Magazines and 2009

Media Life has published an interview with Martin S. Walker, Chairman of Walker Communications, in which Walker is asked to predict what 2009 holds for magazines.  While it has a distinctly US focus, it is an interesting read.

Personally, I think the magazine department is in for a rough year.  How much this impacts on newsagents will be determined by publishers, magazine distributors and us newsagents.  Fair allocation should see us only carry the cost of lower sales.  Unfortunately however, I suspect we will have to carry the cost of unfairly high supply for fringe titles.  Smart retail will be about mitigating the impact of poor decisions by distributors.

I am anticipating January magazine unit sales down between 10% and 15% on last year in many newsagencies.  While this is only based on sales data for the first twelve days, I am confident that the dataset I have is indicative.  The newsagencies which will buck this trend are local holiday destinations, where there has been major development or a shop fit or where some other local factor (a loyalty program maybe?) is softening the impact.

The way to deal with this challenge is to focus more attention on magazines.  Ensure the layout is the best for your demographic, keep moving product so it looks fresh, create and maintain hot spots where you can drive impulse purchases, drive a point of difference around the category and manage supply – as if that is truly possible.

I have been fortunate to have had the time to visit thirteen newsagencies in the last week.  In each case, most of the discussion has been around opportunities for magazines and not problems.  The newsagents I have spoken with understand they can make a difference and have been prepared to engage in pursuit of that.

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magazines

Hoax sells Quadrant

pushingquadrant.JPGThere is nothing like a hoax on an editor to sell a magazine as the folks at Quadrant are finding I am sure with the latest issue. 

While a low volume special interest title, it is a challenge to find a copy of Quadrant anywhere thanks to the the hoax which has been widely reported.

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magazines

Has VANA found the pot of gold for newsagents?

VANA, fresh from announcing to its newsagent members in Victoria that it has failed to achieve an increase in newspaper home delivery fees in negotiations with the Herald and Weekly Times, claims that through its new (marketing) group, newsagents will be able to achieve between 35% and 40% gross profit.

I am told that VANA reprepsentatives are rolling through Victoria this week and next chasing more newsagents to be part of this new group as not as many signed up as they needed.

As a VANA member, I would prefer to see them focus attention on outcomes for all newsagents through Association services before they make wild promises for a new commercial venture. 

Many Victorian newsagents pay $1,500 or more a year to be part of VANA.  I suspect they would like to see a return on that investment before paying around $500 a month to this new VANA group.

Part of the hgefty monthly fee for the new group apparently relates to collecting data to help in measuing business performance.  Many newsagents already have this data at their fingertips thanks to smart software.

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Newsagency challenges

A second bite from a magazine display

vm_cosmo.JPGMany in-store magazine displays are visible from the front only, seeking attention from people walking into the newsagency.  We have capped our Cosmopolitan display this week with a small display – three cover run ons stabled to create a three sided presenter – which makes the cover visible to customers walking from another section towards the counter.  This gives Cosmopolitan greater visibility.  Blokes leaving our bloke aisle will (may) see it.  Ladies leaving our women’s aisle will see it – probably for the second time as they will have noticed the major display when walking in.

While we are not visual merchandising experts, creating a display which promotes to traffic in more than one direction must increase the chances of driving the action the display is pursuing.

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magazines

Promoting crossword magazines to lottery customers

fhn_cwrod_front.JPGWe are promoting crossword titles on a stand leading into the counter from where we handle the majority of our lottery sales.  Starting from the left, we have the Lovatts full size titles followed by a column of smaller format Lovatts titles.  In the middle we have two columns of the Women’s Weekly Puzzle Book which came out yesterday.  This is followed with a variety of small format crossword titles and a column of Puzzler titles.

Our reasoning for choosing crosswords is that it is the holiday time and people who do not usually do crossowrds might be looking for some low-cost entertainment.

This promotion is in addition to the column of crosswords we have next to our women’s weeklies and our regular crossword category.

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crosswords

Promoting Woman’s Day at the counter

fhn_wd.JPGWe have given Woman’s Day prime position at the counter this week because of the free Taste of Summer cookbook.  This is an excellent promotion from Woman’s Day for this time of the year and placing it at the counter will maximise the opportunity for us.  We have not overburdened the display with too much collateral since the product itself is what will drive sales.

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magazines

OnQ in liquidation

OnQ was placed into voluntary liquidation on December 23, 2008 by resolution of the company’s creditors.  It remains unclear what impact, if any, this will have on the Bill Express equipment which sits in the back rooms of thousands of newsagencies around the coountry. 

On Q is the company which committed to paying rebates to newsagents for the Bill Express / DialTime equipment and services. The rebates were the reason many newsagents signed with Bill Express.

OnQ oine of the Bill Express related companies which would have been part of the ANF due diligence process in the lead up to their endorsement and promotion of Bill Express to newsagents.  The ANF did not conduct any due diligence.

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Bill Express

Making good newspaper news in Australia

There is plenty of good news we can make about newspapers in Australia, to balance my three posts from earlier this morning.  While none of the items below will ‘protect’ the whole category, combined, they make newspapers interesting for newsagents who embrace them.  We have an opportunity to make business decisions in pursuit of better sales:

  • Local newspapers sell.  Take the Melbourne Observer.  Once customers know you have it they are loyal.  We can sell 100 copies a week.  Customers come to us because we have it.  There are plenty of local newspapers like this around the country.
  • Foreign language newspapers are growing.  Unit sales are up 10% year on year and even more in many newsagencies.  They drive good add-on sales in various categories.  The key is to display them well and offer a good range.  The challenge is the restrictions applied by some distributors who will not provide direct accounts and therefore lose sales.  Foreign language newspapers account for 12% of our newspaper sales at Forest Hill.
  • Special interest papers sell.  Newspapers about racing, motor sports, collectibles, markets – local interests.  Some newsagencies feature these and have found regular customers and good growth.
  • Rewarding loyalty works.  With publishers placing their product in various locations – petrol, convenience, coffee – newsagents could run their own loyalty club specific to their store and thereby own the customer.  The key with any loyalty program, however, is to not reward usual behaviour but reward above average behaviour.  Some newsagents reward usual behaviour in other categories and it does not benefit their bottom line.
  • Sell the free local newspaper.  Most local newspapers are delivered free of charge.  Some newsagents give them away in their shops.  Since this is a service for which there is a cost, consider a charge to reflect your investment.  A smart publisher will support this and thank you for promoting their brand.
  • Co-locate.  Putting newspapers in a second location in your shop, at the lottery counter for example, will win additional sales.  The key is to change this.

While there is no doubt that newspapers are challenged, newsagents can take actions in their businesses to soften the impact of any downturn.  My list is far from complete.  The key is to do something rather than watch the tide come in (or the tsunami if you believe that).

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Newsagency challenges