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

The Australian Women’s Weekly and old age

aww_june07.JPGThe Australian Women’s Weekly, the grand old lady of magazine publishing, could be in trouble if sales data I am seeing is accurate. Despite considerable investment in re-jigging the title by ACP Magazines over the last two years, the title is challenged. While sales remain considerable, they are falling in the newsagency channel. This may not be the case in other channels but I suspect not.

Look at the last year or so: a design revamp, more tweaking, three price points. These changes are unsettling to the traditional AWW buyer. Add to that the new and refreshed titles encroaching on this space: Better Homes and Gardens, Notebook, Real Living, Madison … there are many new titles playing to the same or a similar demographic. Also, habits have changed. We consume in shorter chunks now and AWW is more designed for a longer read.

Talk to executives from competitor publishers and they will tell you they are concerned. The last thing any magazine publisher in Australia wants to see is an iconic title like AWW in trouble. Trouble for AWW will reflect as trouble for the whole category.

If my information is right and AWW retail sales are falling, it will be interesting to see how the new management team in control of ACP Magazines handle this.

As a retail newsagent I need AWW to be strong. It is an anchor title in the most important part of my newsagency. I build other sales around its on sale period each month. But now I have to look for other honey pot titles to drive add on sales – titles off which I can grow weaker titles.

I first noticed that AWW was in trouble in my store a year ago when it was the most redeemed magazine title under our magazine loyalty program. It was the title our customers took as their freebie. To me, someone who failed economics and statistics, this suggested that AWW was a discretionary purchase with many no longer wanting to spend the money.

To try and kick sales we have run over the counter promotions and introduced road block display strategies based around AWW. Each has worked well, adding sales of 25 and more copies on the day – mid through the on sale period for an issue. However, one cannot do this every month.

I have no easy solution for AWW. Rather, I just want to record that AWW is unwell and we – newsagents, ACP Magazines and, indeed, all in the magazine channel – need this situation turned around.

To write this is heresy but someone has to open the issue for discussion.

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magazines

Testing customer loyalty for Take 5 and That’s Life

For the last two years we have run a co-location strategy with weekly magazines – placing them in a second location for the first two days of their on sale period. Ben Kay, manager of my newsagency feels that Take 5 and That’s Life will be as successful without this additional front of house support. I disagreed initially but now I reckon that Ben may be onto something for these titles. So, we are leaving Take 5 and That’s Life in the body of the shop. We’ll measure their sales and the sales of titles near them. The risk with co-location is that you may get fewer add on sales since the customer does not enter deep into the store. I’ll report back how this goes.

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magazines

Delicious magazine supply cut

delicious_june07.JPGOur Delicious sales fluctuate but not enough to have our supplies slashed. This month we are down 50% on last month and with such a small quantity we cannot feature the magazine or co-locate. A reasonable assessment of sales over the last four issues would not have resulted in this cut – it makes me wonder if someone has overridden the NDD scale out systems or whether their systems have a problem. I am sure the folks at Delicious would be concerned to hear about supplies being cut as we have experienced. It could be that I am not alone in the cut this month.

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magazines

Zoo weekly wins magazine of the year

zoo_june07.JPGZoo Weekly was announced as magazine of the Year and Magazine of the Launch of the Year last night as voted by newsagents.

Zoo is proving to be a good add on sale – to newspaper purchases especially. Basket efficiency is helped in our case by a great stand the folks at Zoo organised for us – this has been placed next to our newspapers. I think the key is to get Zoo away from Picture, People and similar publications as they seem to be browsed by different consumers.

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magazines

Newsagents of the year

Congratulations to Chris and Julie Leonadis of South Eastern Distribution for winning the Distribution Newsagent of the Year award at the Australian Newsagents’ Federation annual conference on the Gold Coast last night. Congratulations to Damien, Karen and Phil Vanden Bergh and his parents of West Wyalong Newsagency for winning Retail Newsagency of the Year last night. Both business owners share a common aggressive use of technology to drive their business decisions. They actively participate in user meetings and regularly challenge our us to help them extract more benefit from the Tower Systems technology

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newsagency marketing

Find It passes 10,000 vehicle ads

Our Find It on line classifieds offering has passed 10,000 vehicles today. We have another 1,000 vehicles to be loaded in the next two days. This gives us 15% of the ad inventory of carsguide, the News Ltd online vehicle classified site “that’s too big to miss” – their tag.

We’re pushing 16,000 online classified ads generally.

We will announce to newsagents next week the commencement of a lucrative revenue model for ads newsagents bring online in three high opportunity categories. Find It is the only online classifieds play which generates revenue for newsagents.

Passing 10,000 vehicle ads is a huge milestone for our fledgling operation. Watch this space.

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Online classifieds

Magazine distributor in play?

One question doing the rounds of the ANF newsagent’s conference on the Gold Coast yesterday was about the future ownership of NDD magazine distributors. Some seem to think there will be a change of ownership in a matter of weeks. Others are more wishing for change given the performance of many of the NDD titles – data from my newsagency and many others I have seen show NDD delivering the worst overall sell through rate for newsagents.

Newsagents place extraordinary faith in magazine distributors. Poor scale out decisions can cost the small business channel millions. This is why there would be strong interest among newsagents if NDD were to change hands for such may represent an opportunity to drive a more commercially viable relationship.

NDD was the centre of much discussion among newsagents attending the conference – many lamenting the cost to their business of the preparedness of NDD to supply through the channel titles which are not commercially viable on current terms at retail.

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magazines

NSW transport ticket rip off

Are these the credentials of a State Government concerned about small business? I think not.

The State Labor Government of NSW has presided over a dramatic fall in the commission paid to small business newsagents for transport tickets. With commission now at 2% of ticket price one has to wonder at the value of the transaction except for the fear of losing add-on sales.

Transport tickets used to be good business with a fair commission. Now, commission is unfair. At 2% newsagents cannot cover wages, insurance, rent, shrinkage and all the other costs of opening the doors.

A newsagent I was talking with yesterday has had $500.00 in commission taken from them because of lack of support from the NSW State Government. Where is labour small business policy in this? Victoria is next. Another State Labour Government and newsagents and other small businesses face unfair commission.

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Newsagency challenges

Hot ink brochure gets results

Ink and toner sales are going great this month in my store (and plenty of others in the newsXpress group) thanks to this flyer we have sent out to 20,000 homes around our newsagency. What makes it work is the ranging and management advice and support underpinning the brochure.

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Customers are bringing the flyer in and specifically asking for items off it. This is unusual for newsagencies which have been known as expensive. Not for ink and toner. My view is that it is important to reposition as being price aware and current in terms of offerings such and ink and toner.

Ink customers are efficient for us – usually buying other items which in-store. We are cross promoting photography magazines since many people are using the ink for printing photos.

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Stationery

Ralph TV promotional tie in

ralph_tv.JPGIf interest in the in store display for this month’s Ralph magazine is anything to go off, the launch of Ralph TV should be a hit. Our display is drawing plenty of attention. I appreciate that some customers will take offence. I have to balance that with the knowledge that competitors such as supermarkets, petrol and convenience outlets are not likely to display this material and sales are therefore likely to be strong.

I am sure there will be guys asking us to keep the posters for them once we take the display down.

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magazines

Sunny Queensland

gold_coast_rain.JPG

I am back on the Gold Coast today for the second day of the ANF conference sessions. Following my presentation today I met with a couple of and talked about the future of the channel. They are relatively new to the newsagency space and as such don’t have the baggage of politics and supplier fear and or devotion (depending of your view of the world).

These two have bold plans to push the envelope of the definition of a newsagency. They plan to keep the core but shrink its footprint and to create around this core a bold new retail concept.

I am hearing more of this. Entrepreneurial newsagents making decisions which are appropriate to their demographic and reflective of their skills. I am all for this – the more entrepreneurial newsagents, as opposed to process worker newsagents, the better. While some suppliers will lose out – because entrepreneurs will demand more control of their businesses, the channel as a whole will be stronger.

A side issue to the growth in entrepreneurial newsagents is that the definition of newsagent will need to be more flexible than it has been in the past. It would be a shame to see industry associations reject newsagencies of the future because they do not sufficiently stick to the past.

Footnote: the photo of the Gold Coast beach was taken this morning – so much for Queensland sun.

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Newsagency challenges

Harry Potter partwork series launches

We have our 100 copies of part 1 of the new Harry Potter partwork series right at the front of the busiest entrance to our shop. We know from experience that a bold display with partworks works. I’d expect us to be ordering more stock tomorrow – just like we have twice with Felicity Wishes.

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Parts one and two of new partworks are impulse purchases, hence our decision to use prime real estate. They also allow us to boldly promote a product exclusive to newsagents which is backed by a strong TV campaign.

We’re confident about Harry Potter and early sales data supports that view.

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partworks

The newspaper front page

age_june06.jpgThis is the type of front page I want to see from The Age newspaper: clean and no barriers between me and the content on offer.

It’s what a newspaper is about – as opposed to having the brand damaged by the stuck on ads which the advertising people at Fairfax are pushing with advertisers.

I’m traveling so have taken the front page from The Age website.

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Newspapers

Emporium magazine a dud?

Emporium magazine, the vanity magazine from Myer and being sold through newsagents as a secondary channel appears to be a dud if the sales data I have seen is anything to go by. I am seeing sell through rates of 10% and less so far.

New titles are expensive for newsagents. We carry them on the shelves for, often, two months, only to find sales not as good as hoped – meaning we wait another month or two to claw back the returns value. We’re our of the cash for three or more months.

This is where a magazine czar could help us by controlling the titles which have access to our network.

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magazines

Calling in the Small Business Commissioner

We have lodged an application for investigation and mediation with the Small Business Commissioner of Victoria over the three and a half month disruption to our newsagency during major construction in and directly abutting our tenancy. The cost to us of lost trade and damaged stock from two floods is approaching $100,000. The Commissioner is charged with mediating disputes such as this in Victoria.

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Uncategorized

Selling Australia Post

post_june07.JPGThe government owned post office opposite my newsagency is leveraging their government guaranteed monopoly traffic to take more of my stationery sales.

The brochure released this week offers storage boxes, notebooks, lever arch files, calculators, Dymo label machines, fax rolls and other items newsagents have been known for. Now with the Government owned Australia Post pushing more into this space it’s getting tougher.

The actions of Australia Post say a lot for the small business credentials of the Federal Government. This ought to be an election year issue.

Australia Post, because of its brand and the low cost of landing customers in its corporate stores, has an unfair advantage with a business like mine. All I seek is a level playing field, fair competition.

It is time the Government held Australia Post to account and challenged their loose interpretation of the Act under which they operate.

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Australia Post

The Monthly is late

The Monthly is a good magazine but I can’t sell it if I don’t have the stock. The latest issue has been out two days already. Last month we received stock more than a week after publication. Newsagents need to receive stock on the day of publication so they can leverage off media interest.

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magazines

Tattslotto internet sales jackpot

tattersalls_online.JPGAt least one division 1 and six division 2 winners in Saturday night’s Lotto draw bought their tickets online.

I say “at least” because Tattersalls does not indicate if winners purchased online. The data I have is from the Golden Casket office. I wouldn’t be surprised if they stop publishing the number of prizes won through internet sales – especially if newsagents and other retail lottery agents step uyp their pressure against Tattersalls and other lottery businesses driving sales from the retail channel to online.

The belief in luck being what it is, the win on Saturday night will drive online lottery sales.

The graphic is from the Tattersalls website. There is no doubt about their desire to drive lottery sales online. As a lottery retailer, one who invests significant real-estate, labour and management time in supporting their brand, I’d prefer that they equally supported their retail network and offered a way for m to share in the mutual success of the online venture.

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Lotteries

Age newspaper masthead desecration

The Age newspaper today has another stuck on ad across the masthead on page one:

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Here is the damage caused by lifting the Commonwealth Bank Mastercard ad from the masthead:

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There are two slight tears along the lines of the adhesive. I can’t tell what Epicure “goes”. I can’t see the second person in the photo on the right.

There are not many professional newspaper people who would put advertising revenue ahead of their newspaper product in this way.

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newspaper masthead desecration

ANF Conference feedback

I spent this morning at the ANF Conference on the Gold Coast. Part of that time was delivering a presentation on using best practice IT to navigate to the newsagency of the future. The mood at the conference was upbeat with newsagents keen to talk about moves they are making in their businesses in pursuit of a brighter future.

Unfortunately I had to return to Melbourne this afternoon for a couple of important meetings. This is a crazy busy time at Tower Systems at present, which is great, and the day off between main ANF conference days is too much time away for me so I will fly back into the Gold Coast for my second presentation first thing Wednesday.

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Uncategorized

Newsagency of the future

I delivered the first of two workshops at the Australian Newsagents’ Federation’s Convention on the Gold Coast this morning. My topic was using best practice IT to navigate to the newsagency of the future.

Tom Carter, a newsagent in South Australia, was the first person I ever heard talk about the need for us to consider the newsagency of the future and that was years ago. The business he owns with his wife, June, is one of the examples in my presentation. I have blogged about it here before.

It seems to me that newsagents are like the deer staring in the headlights. Many are paralysed by fear of what they see in front of them. Newsagents know that newspaper sales are flat or falling, magazines the same, lotteries starting to move online and stationery sales being chased by every person and their dog.

While the bright lights of this reality stop most, there are some good examples of newsagents using technology to drive extraordinarily successful businesses. Rather than spending too long on a grand plan, these entrepreneurial newsagents are evolving their businesses today and with excellent success. In my presentation I talk about four businesses – yes there are plenty more than that – including June and Tom Carter’s newsagency in Adelaide.

Many newsagents, the ones staring at the headlights, are waiting for answered to be delivered to them. These are the newsagents most at risk.

The call to action of my presentation to the ANF Convention today and again on Wednesday is that the newsagency of the future is here, now, in our newsagencies and that all it takes is for us to use our IT systems – regardless of the brand – to cultivate data to guide our decisions.

The hour long presentation barely opens the door on consideration of the newsagency of the future. It’s likely I’ll develop an expanded presentation to share with newsagents elsewhere later this year.

Footnote: There are some who called on me to not attend the ANF convention because of the war between the ANF and the state newsagent associations in Queensland and New South Wales. I accepted the invitation from the ANF mid way through 2006, during a moment of peace, when I spoke at the QNF State Conference on a similar topic. Given the 1,400+ newsagents in the Tower Systems community, I felt it appropriate to accept the invitation and encourage newsagents to become more entrepreneurial.

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Newsagency challenges

10 obvious things about the future of newspapers

10 obvious things about the future of newspapers you need to get through your head is a blog post newsagents (Australian retailers and distributors of newspapers) must read. While it is written more for publishers, it goes to the heart of the newsagent challenge – embracing change in the distribution and retail of newspapers.

Too many newsagents are kidding themselves that the newspaper game will not change and that their businesses can motor on in bliss.

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Newsagency challenges

Newspaper masthead obscured (again)

GIO would have to be happy with obscuring The Age newspaper masthead today. It is a pity that Fairfax, publisher of The Age, rates ad revenue ahead of one of the most respected newspaper brands in the country.

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These stuck on ads create a trash problem around the stores where newspapers are sold.

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Newspapers