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

Buying for visual impact

It struck me while walking around the GNS Market Fair in Melbourne how well our channel is catered for with suppliers providing stunning visual impact in their ranges.  I saw national brands with excellent displays which would look fantastic in any newsagency.  Something happens between the trade show and the shop floor.  Only rarely do newsagents create a similarly stunning display around a brand or a grouping of brands.  While space, demographics and capital can be a challenge, too often we don’t even get part of the way there.

Buying and merchandising for visual impact could lift many newsagencies.  rebuilding stationery around brands which are advertised nationally could lift a business from looking second class to looking like it is a worthy competitor.

The Markt Fair shows we have suppliers ready to help with branded product.  The key is in our buying.

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retail

Simply Energy trumps Olympics

age_aug10.JPGThe post it note type ad for Simply Energy stuck on page one of The Sunday Age newspaper this morning covers promotion for their Olympics coverage.  When I followed the instructions and lifted the ad it tore the page in half. While I am sure advertisers love these ads, they continue to damage editorial content.

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newspaper masthead desecration

GNS Market Fair, Melbourne

gns.JPGThe first day of the GNS Market Fair in Melbourne was good. While I don’t know official numbers, our feeling is that it was busier than for the Saturday last year. It is a great opportunity to catch up with newsagent clients more so than to sell – especially since most newsagents buying a system now are switching from something else and they prefer to have these discussions in private. Our free stress balls were a hit as was our new Retailer Mobile software which we were demonstrating on the iPhone and another portable device.

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About us

Westpac joins the list of bad banks

Westpac is another bank where at several branches newsagent requests to cancel direct debit arrangements for Bill Express equipment have been refused. Since my post yesterda about National Australia Bank I received two calls from newsagents complaining about Westpac.

Your bank cannot refuse to cancel a direct debit. To do so is a breach of the Banking Code of Prctice. Here are some steps you could consider if they refuse:

  • Read the information at the Banking Industry Ombudsman website about cancelling direct debits.
  • Also read about the banking dispute process.
  • Research the process at the Financial Ombudsman Service – this is where you would formally lodge your banking dispute.
  • Write to your bank branch noting their refusal, include the date, time and the person to whom you spoke. Ask that they put their refusal in writing within 24 hours so you can escalate the issue within the bank and to the the appropriate authorities. Also ask for a copy of the instructions on which they are operating in taking this money – most likely you will find that the instructions you signed to not match current withdrawal arrangements.
  • Different banks have different processes, make sure you understand yours. However, always remain in control and demanding on time. Some newsagents have achieved refunds in one or two days.
  • 24 hours after your letter, write to the state manager advising that you are lodging a dispute with the bank. Give a copy to your local branch. This is when banks generally realise that they have made a mistake.

I am happy to list banks here which are refusing to refund money which was taken from newsagent accounts against their explicit instructions.

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Bill Express

Rural newspapers thrive in the US

Justin Fox writing at Time this week tries to make sense of why small town newspapers in the US are faring much better than their big city counterparts.  I know from the data I have from many newsagencies that rural and regional newspapers are faring much better in Australia.  Newsagents actively promoting them are far more likely to get a sales kick than with a capital city newspaper.

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Newsagency challenges

NAB lets a newsagent down

The National Australia Bank refused to cancel the direct debit for the now useless Bill Express equipment at newsXpress Parkmore in Victoria.  I was talking with Phillip Johnson this morning at the GNS Market Fair and he explained that he faxed the cancellation through to NAB and when he found money had been taken from the account he confronted them.  They have point blank refused to act on his request.  Phillip drew their attention to the Banking Code of Conduct and they still refuse to follow his instructions in relation to his account.

I would be interested to hear from any other newsagents experiencing difficulty with the National Australia Bank.

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Bill Payment

Inside the Bill Express mess

Mark Hawthorne and Jesse Hogan shed more light on the Bill Express mess in part one of a two part excellent report in The Age today.  While the report will not help newsagents financially, it will help us understand the extent to which we were duped.  It is also good to see further detail on the interest being shown by ASIC – they now have a five member team on the case.

For newsagents, the Bill Express mess will not end until there is closure on status of the equipment rental agreements newsagents entered into with parties associated with Bill Express.  My understanding is that newsagents owe around $20 million.  Many newsagents have cancelled direct debit arrangements and face a showdown with the finance company, Mobius.

While there have been threats of legal action against newsagents to recover lease payments, none has been commenced to my knowledge.  The group of newsagents behind the Class Action are ready to defend any action by Mobius on this front.   Any newsagent being pursued should know that fellow newsagents will rally to support mounting a defence.

Personally, I am lucky with Bill Express.  I signed a four year equipment lease.  Yes, I did not thoroughly read the agreements.  I joined late and expected others had.  Dumb, I know.  My equipment contract ended at the start of this year.  They tried to get me to sign an extension for the plasma advertising screen they installed – I was one of the first trial sites.  I refused to pay – the $5,000 charge for a screen which cost under $1,000 to purchase was nonsense.  Also, by that time, I was skeptical of the model and some of the practices being used by the company.  Bill Express never pursued me.

My personal position aside, I will help any newsagent out of the Bill Express mess in any way I can.

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Bill Express

Promoting Annette Sym’s cookbooks

symply_toogood.JPGWe have been promoting Annette Sym’s Symply Too Good to be True cookbooks at the front of the shop this week. Annette’s brand is well known and her healthy eating cookbooks sell easily. She is a great supporter of newsagencies. Customers often buy two or more of these – hence the value in displaying all five cookbooks on the stand.  In our regular magazine display, Symply Too Good to be True cookbooks to transition between the ACP cookbooks and women’s health magazines. They also sell well as an impulse item at the counter and when displayed with Diabetic Living – Annette’s recipes are Diabeties Australia approved.

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magazines

A dud of a magazine

g_guide.JPGOn May 6 I blogged (complained) about the Guerrilla Guide Recording and Production and the ridiculous eight month on-sale period. Yesterday, having sold no copies in three months, it was time for this title to go. We have carried the financial risk, provided our real estate and labour for no return. This title has been a dud.

I am sure other newsagents are in this same position. We need to set a price for access to our network.  We need to be firm in applying this. Such a fee, for titles outside the top 200, would reduce the volume of loss making titles we receive.

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magazine distribution

The fat magazine

conthome.JPGThe latest issue of Contemporary Home Design, besides a long shelf life, is fat. It is fat because of the free magazine bagged with the latest issue. Newsagents can only fit one copy in a pocket. This means it either gets a coveted flat stack placement or takes up more retail pockets. As with most freebies which are sent with product from Universal Magazines, there is little genuine value.

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magazines

Bliss Victoria

vicmag.JPGOn first glance I thought Bliss Victoria was a local magazine related to produce from our own state of Victoria. It is actually a US title which is bound to confuse some who pick it up, like me I guess. Maybe it is just me but I think we are seeing an increase in imported titles hitting newsagencies.

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magazines

Flo’s pumpkin scones, yum!

kingaroy-mall-lady-flo-promo-aug08_5.JPGDonna and the team at newsXpress Kingaroy Mall engaged in local marketing at its best when they had Lady Flo Bejelke Petersen in to sign her new book containing her world famous Pumpkin Scone recipe. Being local is important to newsagents.  We see ourselves as a community hub so it makes sense that we seize opportunities to reinforce this, as the folks at Kingaroy did with Lady Flo.

Thinking about this today made me wonder how many newsagencies have a Lady Flo in their area and whether any move has been made to embrace the opportunity.  In my own situation I’ve neglected to research this.

With fuel prices the way they are, focusing more on local makes sense.

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newsagency marketing

New Idea extends on-sale

The current issue of New Idea will remain on-sale until Wednesday August 13 newsagents were advised today.  This will leave two issues of New Idea on-sale at the same time.  The extra on-sale makes sense given that this issue of New Idea also has the Seven Network Official Olympic Viewing Guide.

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magazines

Coles promoting phone recharge

Coles is running radio ads in Melbourne promoting 25% off mobile phone recharge sold at their outlets.  This is their way of letting consumers know that they are back in the mobile recharge game.  They were hit hard by the collapse of Bill Express too but 25% off!  Someone is taking a hit at that level of discount.

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Bill Express

National TV campaign for newsagents

I am pleased and proud to announce a national TV campaign for newsagents to run on Free-To-Air (7, 9 and 10) and Foxtel, Austar, Optus pay TV networks on UK TV, Hallmark, Bio, W for Women, Arena, Discovery Travel & Living, E!, Fox Classic, History, Lifestyle Food channels over the last two weeks of September. For details of this campaign please click here.

The script for the TVC, to be voiced by quintessential Aussie male actor, is as follows:

From the goldfields of Victoria in the 1800s to today, newsagents have been the backbone of communities across Australia. 

Your local newsagent is a friendly place to find the day’s news, that special greeting card, your favorite magazines, stationery for home or business and a warm smile. 

From early in the morning, newsagents are open when you need them and ready with personal service bigger businesses have long forgotten.

Newsagents are people too.  They’re your neighbours and mates, a good Aussie tradition. 

Next time you want a magazine, a birthday card or some stationery, support your local newsagent and keep business local.

The reason I have announced the plans for the commercial is get newsagents to send me photos which can be used.  The people in our network – newsagents and their team – are our key asset and I want them to feature on TV.

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newsagency marketing

ANZ says it will cancel Bill Express direct debits

Any newsagent encountering difficulty in canceling a direct debit through the ANZ for their Bill Express equipment should know that the official ANZ position as being fed through their PR people is that the bank will cancel direct debits in line with customer instructions. If any more newsagents have trouble canceling direct debits please let me know by email at mark@towersystems.com.au.

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Bill Express

Co-locating magazines

co_location1.JPGWe achieve some good sales success with co-location of some magazines. Co-locating works particularly well with Notebook, Real Living and Martha Stewart Living. While we regularly co-locate weekly magazines and major monthlies on rotation, we permanently co-locate Notebook, Real Living and Martha Stewart Living because they sell well in the Women’s Interests and well as in the Home categories.

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magazines

Supporting Mick Baker

mick_baker.JPGMick Baker of Rochester newsagency is in the Sun-Herald City2Surf Charity Challenge to raise money for Alzheimers Australia in memory of his mother, Natalie.  You can sponsor Mick’s participation and support his charity at his Hero page on the City2Surf website.  Mick’s a great bloke, I’ve known him for more than twenty years.

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Social responsibility

Reenergising your newsagency

Embracing Change is the theme of the inaugural newsXpress conference on the Gold Coast in September. The agenda packed with presentations focused on practical advice for newsagents.  Peter Sheehan, author of the book excellent Flip will present the conference Keynote speech.  I read Flip earlier this year – it speaks to newsagents and the challenges we face right now.

Included in the very practical agenda is a series of Show & Tell sessions where newsagents speak from practical experience on innovation in their businesses.

If you are looking to re-energise yourself and your newsagency and are considering joining the newsXpress marketing group this conference would be a good way to experience the newsXpress difference.  A limited number of positions are available for non-newsXpress members.  For further information please email paulw@newsxpress.com.au.  Non members will have access to all conference sessions except for one which is for members only.

Disclosure: I am a Director of newsXpress and a speaker at the conference.

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newsagency marketing

Coming to Cairns and Townsville

I’ll be speaking at the QNF regional conferences in Cairns and Townsville on August 17 and 19 respectively about strategies we can use to reclaim our businesses for a brighter future. For too long newsagents have been faithful servants. Our future depends on us thinking and acting as business owners and ending the agent era.

UPDATE: Click here for the Cairns registration and click here for the Townsville registration.


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Newsagency challenges

Excellent Tatts flyer

888.JPGTattersalls has produced an excellent retail flyer to promote a competition around the 08/08/2008 date. The small flyer (80mm x 125mm) is perfect to hand to customers, the 8/8/8 headline will connect with lottery customers, the image in the LCD TV screen connects with the Olympics and basing entry in the competition around a System 8 purchase is smart. It is the size of the flyer I like the most – it is perfect for a newsagency counter pitch.

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Lotteries

Economic abuse of newsagents

country_collections.JPGWhile stories about scammers who fleece cash from unsuspecting folk is everyday fodder for the TV current affairs shows, an equally costly cash scam goes unnoticed.  I am talking about the magazine supply model and, in particular, very long shelf life titles with a track record for poor sales performance – sales which leave more than 50% of product unsold. This situation is costing Australian newsagents millions each year.

Take the Country Collections 2009 Diary which arrived in newsagencies yesterday. Last year we received 17 at or newsXpress Forest Hill store and sold less than half. This year, by the miracle of the magazine supply model which we are told works well for newsagents, we received 34 copies. This product has a shelf life of six months. By the time we will receive a credit for returned stock we will have been out of pocket for six months.

To the suppliers who wonder why newsagents act as they do sometimes, try and put yourself in the position of dealing with this situation created by Universal Magazines. Multiply that across many other smaller publishers who abuse the system in the same way. This financial abuse is stopping newsagents focusing on other more commercial opportunbities.

While Universal Magazines will have their reason for what they do and Network Services, the distributor abetting the Universal model, will have their reasons, they do not matter.  What matters is that it is an abuse of newsagents to expect us to carry a product for six months, pay for the real estate and pay for theft and pay for stock well before it is sold – and do all of this for an unsatisfactory margin.

It is titles like this Country Collections 2009 Diary which hurt sales at the top end.  Maybe one day other magazine publishers will understand this and join newsagents in their fight.

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magazines

Found! An Olympics guide

olympic_mag.JPGI have found another Olympics publication not distributed to all newsagents. Australian Olympic Team came out a couple of weeks ago. This title and the Beijing guide I blogged about earlier this week could have formed the centrepiece for a good retail display on the Beijing Olympics. I have rung around a few newsagencies and cannot see any consistency in the scale out model.

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magazines
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