Dotspotter – better than the weeklies?
Dotspotter is an online offering aimed at the traditional weekly gossip magazine reader. It you want to see one of the online competitors to New Idea, Woman’s Day, NW, Who, Famous and OK! check it out.
Dotspotter is an online offering aimed at the traditional weekly gossip magazine reader. It you want to see one of the online competitors to New Idea, Woman’s Day, NW, Who, Famous and OK! check it out.
It’s disappointing to find my newsagency competing with a government owned post office for traditional Mother’s day items such as cards, wrap, gift boxes, social stationery and desktop gifts.
This two page flyer hit my letterbox and I am sure millions of others. The government ownership of Australia Post and the respect for its national brand enables them to do these things more effectively than any small business channel.
That Australia Post continues to encroach on traditional newsagent categories extends the mockery of the Federal Government’s small business policy. The Government is happy to use its own protected brand to take business from newsagents – not only my newsagency but the 865 others who directly compete with a government owned Post Office.
The advertising department at The Age continues to have more clout than the editorial department. Today we have a GIO post it type ad stuck over a pointer to a story about the maths crisis in schools.
When you remove the ad to read what’s underneath the text on the newsprint is removes as well.
In the bundles I checked today the GIO ad was folded over 50% of the time, making their message invisible unless you unfold the stuck on ad. I wonder if they have a make good clause in their advertising agreement.
In Hobart this morning I noticed this shingle above Liverpool Street Newsagency. While it’s what the publisher would want and reflects an industry standard, I wonder about its relevance for the future of newsagencies:
Liverpool Street Newsagency is doing what most newsagents do – using use the newspaper brand to ‘sign’ the newsagency.
Given flat and falling newspaper sales and other changes in our product mix, it might be time for non branded (non newsXpress, Newspower etc) newsagents to develop shingles which put their business first rather than a single product of flat influence.
Some days I am not proud of my behaviour. Yesterday was one of those days.
Construction has been going on in space which adjoins our shop for the last ten weeks. Despite assurances from the landlord that we will not be disrupted during trading hours noise, dust and difficulty with access have been almost a daily occurrence.
Yesterday it got to me. On one of the busiest greeting card days of the year – the day before Mother’s Day – I arrived at the shop to the piecing sound of an angle grinder working on steel reinforcement. This was happening in the cavity next to our main internal wall. The sound in the shop was dreadful. Customers were approaching the shop and walking out.
My team had called centre management and each time between 8am and 11am and the noise stopped for two of three minutes. I called centre management and asked for the manager. I was told it’s the weekend and she does not work weekends and that it’s not a centre management problem and that the development side of the business is responsible. I called the manager of the project from the landlord’s office. She said that it was a centre management issue.
After hanging up from these fruitless calls the security guard – the person they deputised to deal with the problem – presented at the office. Bad timing. I exploded. This is where I behaved badly, very badly While I had to raise my voice to be heard over the awful construction noise, I was too aggressive and used strong abusive language. He sooked off saying he’s not paid to listen to this. Fair enough in hindsight.
The noise stopped two minutes later and did not restart for the rest of the day.
Looking back, I am not proud of being so rude and aggressive. Even though all I could see at the time was Mother’s Day card sales collapsing, I should not have lost it with the security chap. It ruined my day as it took hours to lose the anger and pain of the experience. It was difficult to serve customers having just had the experience.
When the security chap and I late made up, we bitched for a while about how management – from the landlord’s development office and from centre management – conveniently get out of dealing with these issues.
I’m glad that the centre is finally being upgraded. Unfortunately, the most significant works are occurring in an area and abutting a wall which is only shared with my shop. It other tenants were affected then I am confident the work would be scheduled differently. That’s it’s only one, they seem prepared to cause all manner of disruption including entering our shop in the evening without having a guard present and despite their promise of a guard.
Some days I am not proud of my behaviour. I guess seeing that in hindsight is, of itself, helpul.
Facebook, the poplar social media site, is offering fre classifieds according to this report from Editor and Publisher. It’s a clever move on their part – tapping into an established and active user community.
In a related story, Microsoft has announced that it has taken a stake in CareerBuilder, the U.S.’s largest online job site. CareerBuilder is owned by publishers Tribune, Gannett and McClatchy.
A couple of months ago we created a new health section, bringing together magazines from several categories – health, fitness, lifestyle. We placed the new section next to food and moved the health related food titles so they abut the new health section. The new section is in our ladies aisle – opposite our women’s weeklies. The results have been excellent as I have blogged previously. Yesterday we checked sales for the food titles – our ACP Magazines healthy food titles have benefited the most from the move. Sales are strong. Annette’s Sym’s Symply Too Good range is also selling better but that is more due to the release of the fifth in the series.
What we have done in creating this new category and locating it next to food breaks with tradition but the results speak for themselves.
Our only problem in the food space now is the US and UK titles. Sales are soft.
The sell through rate for any magazine is an ideal metric indicating the efficiency of the magazine supply model. The crossword category is an ideal place for comparing titles. Take NDD crossword related titles for example: more than half NDD supplied crossword titles in my newsagency have a sell through rate of 30% or less. That is, 70% of what NDD sends fails to sell.
I have Dell crossword titles with an annual sell through rate as low as 6%. The overall average for Dell titles is appalling – if the NDD supply model was as good as they claim to publishers I would not be receiving this range. That NDD still supplies me says more about their business model driving their cashflow than what is best for the title and the newsagency.
Other ranges which sell poorly include: All Star, Easy and Variety. In can tell this from my sell through arte data – the same data the experts at NDD have access to when deciding what I should receive.
NDD has good titles like the Lovatts products – they have a sell through of 70%. The problem is that crosswords space for Lovatts is taken by the overseas and other junk from NDD.
Before people say I should contact the publisher – they do not supply overseas crossword product as these titles are purchased by NDD and distributed here solely by them.
Life magazine is selling very well this month in my shop. Maybe it’s Julia Gillard on the cover or the Enough Rope DVD. What is usually a soft title is doing well.
Life is a challenge since it does not easily fit into traditional magazine categories – placement different in most newsagencies. When we saw the Julia Gillard cover we decided to co-locate so more people would see her face and that seems to have worked for us.
Here’s the launch schedule to which I alluded earlier this week for new partworks in coming weeks;
May 23: FELICITY WISHES – girls 2 to 6.
May 23: YU GI OH GX – boys 8 to 11.
June 6: CHARMED DVD – females 18 to 45.
June 6: HARRY POTTER CHESS – children 7 to 11.
June 20: FIFI AND THE FLOWER TOTS – girls 3 to 6.
It’s a solid roster of new titles. Knowing the release schedule helps us allocate high proivide space through the launch season and have our putaway paperwork ready.
With no winners last night, Powerball jackpot to $30 million this week. I’d expct traffic and sales to be up more than 20%. Our experiment last week with upselling worked so we will play in that space again.
It’s been six weeks since we opened our Sophie Randall Cards and Gifts business in the same centre as our newsagency. The planning for this start-up is bearing good results. Sales are tracking well across all categories.
The average sale value is $12.50. Single item sales occur less than 20% of the time. Labour costs are under control as are other overheads. GP is above our target. We’re finding the business delivering a significantly more efficient business model.
We’ve experiences some shrinkage and have installed a camera system to help address this. We’re doing more lay-by business than expected.
Importantly, we’re not experiencing any cannibalisation of our newsagency which is on the level above.
The Age has another post it type stuck on ad. One in three of the ads I checked were folded as shown in the photo. Most were stuck partially over the coat of arms. Customers still complain about these ads.
We are working on another case of employee theft in a newsagency. The employee had a $200 a day budget and made that every day for the last year and a half, plus their wages. Tracking the evidence is straightforward. The police have what they need to send the patter to the DPP for consideration. The cost to the business could have been reduced had the newsagent checked GP or used the audit tools in their software. Managing theft is usually done best once you’ve been hit – until then it’s always someone else who is affected.
This issue of Modern Wedding Cakes has been supplied to us by NDD four times. 12/7/06: supplied 7 (we returned 6); 3/11/06: 5 (4); 7/2/07: 4 (2); 9/5/07: 2 (probably – 2).
Given that NDD has our sales data and given the commitments on their website, I cannot understand how this issue of this title has slipped through the cracks and continues to be supplied.
After the July 2006 experience the next delivery of Modern Wedding cakes I ought to have received is the next issue, not this same issue another three times.
This ‘pusher’ type behaviour suck cash out of my newsagency and, I am sure, hundreds, if not thousands, of others.
New Woman magazine this month is fat. Well, wide. So wide in fact that it takes two pockets to display. The free umbrella stuck on the side is too big to fit into a single pocket.
I like the giveaway but hate the way they have gone about this. It makes retail display challenging and leads to mess. However, I know that putting the umbrella behind the counter would dilute the benefit of the giveaway.
It seems that NDD is getting nervous at the alter of a deal with First Fleet for the packaging and distribution of their magazines. Since my first post on this issue five days ago, NDD management have reportedly been busy telling various stakeholders including its existing distributors, publishers and newsagent representatives that there is no deal and that their titles will not be distributed by First Fleet.
Maybe NDD could tell First Fleet that the deal is off and then issue a statement to newsagents and publishers confirming this.
Emporium magazine, the new quarterly published by News Ltd for Myer has been out for a week today and is struggling. Beyond a supply model from distributor, NDD, which does not appear make sense – some newsagents who could sell the title were not allocated any and others who would sell 4 or 5 were allocated ten times this – the title is struggling.
First up there is the issue of collateral material. Very little has been supplied. This makes launching the title with any visual noise challenging. It makes the cynic inside me wonder about the newsagent role in the Myer / News Ltd / NDD partnership. Maybe our role is to give the title presence on the shelf more so than to achieve sales.? Hmm…
Emporium is a good product and certainly presents well in its category. The problem is that the category is well served so finding shelf space is difficult. I need new titles in the fashion area to work immediately to justify the premium space. In my store, after a week, Emporium is not working. We have located it in the fashion area as well as in a special display in a high traffic area near the counter.
I plan to give Emporium another two weeks. If I have not sold at least 10 of the 25 supplied I’ll return everything receive early. Carrying 25 copies until September if they are not selling does not make sense.
The Kroger supermarket group is replacing magazines at the checkout of its 2,500 stores with financial products according to this report.
While I understand the important role supermarkets play in the magazine retail mix, it frustrates me knowing how much publishers pay, directly and in-kind, to have their product in premium position. 4,600 newsagents provide premium positions for no additional charge. One day, the major publishers will realise the value of that support.
Our 3loves, free online dating site has come out of beta with a new design and close to 7,000 active profiles. For a free site, 3loves packs a punch if we do say so ourselves. Compare it to RSVP, lavalife, redhotpie, match, adultmatchmaker or indeed any of the paid for sites. 3loves delivers what they deliver with absolutely no cost involved.
3loves has been in beta release since late November. With the new site design just launched is better functionality and even stronger scammer barriers. We are striving to keep 3loves scammer free.
3loves was targeted earlier this year in a Google ad campaign siphoning traffic off for RSVP. Once we outed the scam, the campaign which benefited the Fairfax site was shutdown. We learnt a lot about affiliate marketing and how NOT to promote our free online dating offering.
We’re using 3loves to generate traffic for our Find It online classifieds model which is being launched in partnership with newsagents. Ads currently running on 3loves include three which directly benefit newsagents.
Free daily newspapers are growing so much in the US that a conference has been created to discuss strategies. Newsagents ought to have a fly on the wall representative at the conference. Free dailies are here to stay, they are a valuable part of the print mix for publishers. Our interest is that we need to be educated about trends before they impact our businesses – hence our need to be at this conference.
Thanks to Newspaper Innovation for the tip.
Samir Husni, Mr Magazine, is the subject of an interview with Mark Glaser at PBS’ Mediashift. It’s interesting reading.
This will be music to newsagent’s ears since we crave to be the magazine specialists.
Supplementary magazine returns are those returns sent by newsagents to magazine distributors ahead of their recall date. This is usually done because of gross over supply, an uneconomic shelf life or lack of shelf space.
At a meeting of 35 newsagents in Newcastle this morning all but two reported that they have trouble getting the PBL owned Network services to credit newsagents for supplementary returns on time. These newsagents cite month after month of having to call and email chasing credits – often resending the returns from two and three times.
There is no such delay by Network on the other side. They expect newsagents to pay on time and cut off supply if this is not achieved.
The anger in the room of newsagents toward what seems to be a sloppy and labour intensive supplementary return credit practice was palpable.
All newsagents are looking for is for the Network accounts department to treat newsagents as they, Network, demand newsagents treat them. Waiting two and three months for credits for supplementary returns is an awful impost on these small businesses.
It was odd today in Newcastle to hear of so many newsagents reporting that their supplementary returns go missing. Network management must be aware of the problem.
Regional magazines are more popular than ever, or so it seems. Coast, Cravings and Dish are good examples of the genre, covering a specific region from the perspective of the title’s subject matter. While SA Life is the pin-up child of regional magazines – it’s taken the SA market by storm – a swag of more niche titles have entered the market.
Regional magazines, such as the three above, are usually of high content and production quality. They have to be to break through the clutter on newsagency shelves.
In my own newsagency, as best we can tell, we have more than 15 Australian regional magazines. Not SA Life however. .
A challenge for regional magazines is where to place them. While their subject matter dictates current location, there are so many that I’d like to create another area featuring regional magazines and thereby underscore an important point of difference we offer. Such a display may be short term given that few of these titles pay their way. Of the titles we carry, data shows that only three have sales which come close to justifying their existence.
We’ve replaced the Tower Systems website and with that upgraded the positioning of our newsagency software. The new website design reflects the strength of our offering and our continuing leadership in the newsagency marketplace.
The photo is a shot from the counter at my newsagency – newsXpress Forest Hill in Victoria.
Yeah, I know that this post is a shameless plug.