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

Epson Holiday Pack success

epson_pack.JPGThis Epson Holiday Pack has been a good seller over the last month or so. With six inks and 50 sheets of photo paper, it’s hard to go past the $89 price tag. What’s even better is that there is margin in this for us.

Having packaged deals like this one from Epson an the twin packs from HP demonstrates that we’re mainstream when it comes to ink and toner – this builds confidence and drives repeat business.

Often newsagents have thought that discounting is what is necessary to drive growth. The ink and toner strategy shows that range and relevance are key. Sure price plays a role but it is not the main game.

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Stationery

Digital Photography magazine a dud

digital_photo.JPGThis Digital Photography Pocket Guide ought never have been distributed through newsagents. Besides being too expensive for the slim content, the six month on sale means we make a loss on the title.

This title is a good example of where newsagents paying on scanned sales would work – it would b at least better than us paying up front to fund the title and fund theft. It’s another example of why newsagents need to collude to stop titles like this getting through.

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magazines

Anger at The Age

age_dec28.JPGThe folks at The Age have angered customers with a thin holiday edition today – to cover for tomorrow too. Today’s newspaper is, according to one customer, thinner than yesterday’s yet it is almost twice the price. Another customer wondered if news would take a rest given that the folks at The Age expect what they printed last night to be useful tomorrow.

While there are bound to be economic reasons for printing a holiday edition of the newspaper to cover two days, it is damaging their reputation and causing newsagency staff to have put up the complaints on what is a very busy retail day.

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Newspapers

Customer wisdom

dec_27_cards.JPGOut of the blue the customer standing next to me said: It’s a gamble buying Christmas cards a year early at my age. The laugh which followed was infectious. But I figure that if I buy them now, him upstairs will give me another year. Another laugh!

I was out the front of the shop yesterday, tidying the table of discounted boxed Christmas cards and my new best friend was full of wit and wisdom. It was her deal with God which made me and others around laugh. This seventy something shopper was buying her way to a healthy and happy year.

Others soon joined in and over the course of ten minutes or so I gained more insight into post-Christmas card sales than I could have got from a paid focus group.

Outside of the business context, it was wonderful talking with someone so full of life and happy to laugh at themselves. Customers are one of the best aspects of owning a newsagency…

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Customer Service

You snooze you lose…

new_idea_dec26.JPGWith no collateral from ACP Magazines’ Connections program this week, we have given our prime display spot to New Idea. The sales kick is a reminder of the value of balancing between publishers in this prime space.

I bet many newsagents are like me and give preference to the ACP displays because a full kit of display material arrives every Monday – making display decisions easy. The success of this New Idea display tells me we ought to program our use of this space to ensure balance across the magazine category and not just ACP titles.

I’d love more regular and appropriate display materials for other titles. Oh, and rewards based on year on year sales growth and not pretty displays. This week, while ACP snoozes, Pacific Magazines wins.

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magazines

Mystery shopping

This blog post by This Melbourne Nanny is a salient reminder about providing excellent customer service every time.

I welcome magazine browsers – they can take as long as they like as long as they don’t sit on the magazines, tear pages out, photocopy from them and put them back in a tidy manner.

Gone are the days of signs such as This is NOT a Library or complaints to customers when they have browsed for a few minutes. As retailers we are at the mercy of our browsers every day, in the hope they will convert to customers. Upset one and you rick impacting the reputation of all newsagents.

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Newsagency challenges

Losing money on some magazines

old_magazine.JPGThis issue of Your Toddler magazine arrived on August 8 this year. It is not due to be returned until week 5 2008 which means newsagents will not see a credit until late February at the earliest. We received six copies and have sold three – generating a gross profit so far of $5.85. The cost to us in terms of real-estate and labour from hosting this title is $17.50.

Nothing new in this, it is the magazine supply model at work. Newsagents control the key asset of retail real-estate yet we are treated appallingly.

Network Services, the distributor of this title, is the first to cut newsagents if they are a day late in paying their bill yet they will gladly abuse newsagents by supplying on loss making terms as the example above shows.

This is another reason newsagents need a magazine czar who speaks for the whole channel and controls what we are supplied and the terms. Without this, companies like Network will abuse our lack of strength and disorganisation.

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magazines

Wish for newspapers to be more like Apple

Steve Yelvington has an excellent blog post on why newspapers ought to be more like Apple. Apple was in bad shape just a few years ago but turned the situation around by embracing change.

Yelvington’s wish applies as much to Australian newsagents as newspapers. Rather than embracing opportunities presented by change, the common newsagent approach is to blame someone else and complain.

The newsagent 2008 New Year resolution ought to be about reinventing the business.

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Newsagency challenges

Free newspapers grow in Australia

Readership of mX, the free daily newspaper from News Ltd for the Sydney commuter market grew a whopping 60% to 98,000 from September 2006 to September 2007 according to Newspaper Innovation. mX in Melbourne, several years older, grew 9% to 146,000 in the same period. Worldwide, free daily circulation reached 42 million in 2007. The complete roundup from Newspaper innovation can be found here.

Free newspapers are one of the strategies being employed by newspaper publishers to counter disruption brought on from other media.

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Newspapers

Borders, Sony team and open e-book store

sonyreader2007.JPGBorders and Sony have launched a co-branded e-book store according to The Book Standard. People who buy a Sony reader (see photo) have access to the site.

With the Amazon Kindle and this Sony device leading the renewed e-book pitch, expect to see plenty of action in 2008. This action will flow over to electronic editions of magazines – as we have seen already with iPhone and iPod versions of more than 50 magazines available already in the US. While there are online magazines in Australia, none of our major titles are embracing the iPhone or iPod yet as far as I am aware.

The book and magazine supply chain has changed and our businesses – newsagencies – need to change too. By embracing change early – as Borders has – we are better positioned for the future. Given the lack of active discussion among newsagents about the disruption of the supply chain, I fear many will miss the opportunities change presents. There is nothing to fear from change in my view.

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Media disruption

Where are the magazines?

Magazine publishers and distributors pushed their product outside the newsagency channel and into other outlets (petrol and convenience, major retailers) in the name of giving consumers the choice. They said that times had changed. Well, it suited them today that. Times have changed. Boxing Day is a massive retail day in some states. yet we received no magazines to support the opportunity. I guess the times have changed pitch drives only some decisions. I wish we had magazine deliveries in Victoria as some customers in my newsagencies for the first time would have purchased a magazine from us.

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magazines

Boxing Day Sale success

boxing_day.JPGWe embraced the Boxing Day Sale party with gusto today. At Forest Hill (photo) and Epping it was busy but ordered, in Frankston and Watergardens it was busier and less ordered. In Melbourne Central it was nuts – every person for themselves. In each store we have seen deep baskets with customers buying four and five packs of cards, wrap and other items on site.

Given the publicity surrounding the Boxing Day Sales in Melbourne, we have found to best to wholeheartedly embrace the opportunity by packaging special offers which deliver excellent value. It’s what they are out today for after all. Doing this demonstrates that we can mix it with the big retailers and that small businesses are relevant at sale time. From a pure numbers perspective, our experience is that it’s worth the effort in our newsagencies and our card & gift shops. The key is to plan in advance so that on the day everyone knows what to do.

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newsagency marketing

Christmas ’07 greetings

To all who read my ramblings here, have a wonderful Christmas Day. I hope you get an opportunity to shutdown, turn off work and relax. For many of us it all starts again on Boxing Day. I’m not complaining, it’s a life I have chosen.

What I have enjoyed most about this Christmas is the customers – so many wonderful stories, so many nice smiles. There is no better place than the shop floor some days.

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About us

A Christmas tradition

I was tidying Christmas cards and noticed a mature lady spending a long time looking at cards. My offer of help led to her sharing a story of a tradition she follows that goes to the heart of the season.

My customer was not there to buy a card but to look at them – to read the words of the Wife cards. Her husband died a few years earlier and he always went to great lengths to find a card with just the right words. He didn’t say much when alive and Christmas and Birthdays were the times he let her know how he felt, through the cards. She has a box of them in her ‘linen press’.

Each Christmas she visits a newsagency or a card shop to read the cards her husband would have browsed. As she told me yesterday, she feels closer to him at Christmas for having done this.

I left her to browse and went about my business, happier for the encounter.

Customers have the most wonderful stories.

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Greeting Cards

The fitdeck phenomenon

fitdeck.JPGFitdeck started selling in our newsagency when the Herald Sun ran a story about Adam Ramanauskas and his endorsement of the fitness product. We sold out of our first shipment in a week and are now working through our second shipment.

Fitdeck is a product every newsagent should sell – complimentary for buyers of Men’s Health and Women’s Health. We have it at the counter in part because it is in the news and people will recognise it and in part because people ask if we have it. I love that the Fitdeck website promotes that it is available at all leading newsagents and bookstores.

If you found this blog post through a Google or other search are are looking for Fitdeck, you can contact our newsagency at 03 9878 2515.

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magazines

Magazine cover price debate

There is an interesting discussion going on in the UK about the cover price of newspapers and magazines. Some newsagents want no cover price printed on publications so they can set the prices themselves. The National Federation of Newsagents in the UK, recently decided to investigate the feasibility of removing cover prices.

An issue driving the UK discussion – who carries the cost of the supply chain – is relevant in Australia. While magazine publishers and distributors have made great strides in cutting costs out of their supply models in recent years, the refusal of some to transact efficiently with newsagents has denied us the opportunity to cut costs out of our businesses.

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magazines

Boxed cards strong to Christmas Eve

There was a time when boxed card sales fell off and single card sales took over – usually a week or so out from Christmas. At our Forest Hill store, where we have the longest history with boxed cards, this year has been different. Boxed card sales continue to be strong. We’re not engaged in discounting so the cards are selling on their merits.

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Greeting Cards

Andrew Rieu writes for Limelight

limelight-jan08.JPGAndrew Rieu has joined Limelight magazine as a columnist. This will broaden the appeal of the title and give us good promotional hook. I mentioned a couple of days ago about the Melbourne Observer newspaper with Rieu on the cover – it sold out. So did Limelight last month with the Rieu DVD. We have sold 80% of the current issue of Limelight. Staying on top of people and topics helps us be opportunistic retailers. For example, Limelight will be of greater interest as a putaway thanks to the Rieu column.

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magazines

Christmas for magazines

car_mags2.JPGThe motoring magazine display we created last week has led to a 30% increase in the sale of motoring magazines over the same period last year. Six months to date we have recorded little year-on-year growth for motoring titles – until our display was created. Much of the growth has come from the titles included in the display – we were careful to choose titles which made for good Christmas gifts – such as the HSV Yearbook.

The base off which we achieved the 30% growth for motoring magazines over five days was 145 copies.

We obsess about magazines, implementing all the newsXpress magazine strategies as well as some local strategies chasing opportunities we see.

The motoring display we created has been more important to us this last week than displays suppliers have had us do in our newsagency – in part, because it focuses on the category as opposed to a title and in part because it present Christmas gift-giving opportunities. I am disappointed that our initiative, while more valuable for sales, will not be recognised by any of the magazine publishers as it falls outside the same-size-fits-all approach to marketing against which they measure and reward newsagencies.

I’d like our key suppliers to look for more opportunities to reward entrepreneurial effort which generates incremental business – such as this motoring display.

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magazines

Promoting Madison

We have three aisle ends at our Frankston newsagency now for magazine displays: one for the ACP magazines’ Connections promotion of the week and the other two for titles we choose. We joined Connections a couple of weeks ago. The aisle ends work well when the publishers provide sufficient and appropriate material of use – as happened for Madison last week.

madison_frankston.JPG

This display is the first ever done by Simon, manager of our Frankston store.

The challenge is when Connections promotes a low selling title or for which you do not have the stock to justify the real-estate investment.

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magazines

British Homes and Gardens abuses system

brit_garden.JPGWhy do we need to have two issues of this British Homes and Gardens magazine on our shelves at the same time? I am sure the importer and distributor will have a reason but as a retailer funding their decision it makes no sense to me. This behaviour denies newsagents the opportunity to effectively retail and it sucks us of cash. It is yet another of a broken magazine supply chain where newsagents and their efficient distribution system are abused.

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magazines

Weather pain

The rough weather these past couple of days have thrown Christmas trading into chaos for several newsagents In know. Yesterday and Thursday were particularly bad in Melbourne – across the suburbs. While stock has been damaged, the more inconvenient pain has been the loss to communications from the shop – hitting the financial services and payment methods. If people can’t pay on a card they often leave the goods at the counter and walk out. In some stores, credit and debit cards are used for a third of all transactions.

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Newsagency challenges