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

Cash continues to trump points in the loyalty stakes in newsagencies

Since Tower Systems launched discount vouchers in its newsagency software in February 2013, they have lead in the loyalty stakes, helping to drive terrific sales for newsagents.

I hear stories regularly of how shoppers have behaved on receiving a voucher, often looking around the shop for something else to purchase. The bigger the discount offered the more engaged them become in my experience.

The $11.18 discount offered on the voucher above will typically have no real cost to the business since the business has settings options with which to encourage shoppers to spend more than they might have usually spent. This is what a good loyalty program is about – encouraging shoppers to be more loyal than traditionally.

Discount vouchers are perfect for the times in which we find ourselves today: offering a cash discount off their next purchase captures the mind of and budget-conscious shopper.

Another thing to love about discount vouchers is that they are owned and run by the store, thereby helping to drive overall store performance. This is better for the local business than a specific supplier funded loyalty program that only seeks to drive sales of products from that supplier. That type of loyalty tends to be of lesser value to the local store.

The best loyalty program is one that lifts the overall business performance, rather than merely shifting sales between suppliers.

Points based loyalty programs have been ruined by supermarket behaviour. Most customers would not know the dollar value of a point if asked I suspect. My thinking is the value of points is the inverse of the money spent by a retailer promoting their points. Noisy points program marketing = lesser value for consumers.

Looking at shopper basket data from plenty of newsagencies where discount vouchers from the Tower Systems newsagency software has been used I can see that magazines continue to benefit – the magazine department accrues the least value in voucher dollars yet it benefits the most from purchases made with a voucher as part payment. There are some departments, however, where vouchers accrued and redeemed tend to match, demonstrating terrific efficiency.

If you are one of the 1800+ newsagents with the Tower Systems newsagency software and you’re not using discount vouchers, check them out, they could deliver a terrific bottom line performance boost.

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marketing tip

Ditch the notion of the newsagency as a hub of the local community, warm fuzzies don’t put money in your bank account

It’s nice talking about the local Aussie newsagency as a hub in the local community. It warms the heart. Aww.

I can’t think of a community hub that is commercially successful, and commercial success matters since owning a newsagency is a commercial pursuit above a community activity.

Profit matters, every day. Profit is what pays people, pays off your loan(s), pays suppliers, puts food on your table, educates your kids and gives you a nest egg for future happiness and comfort.

A community hub is likely not as focussed on profit as those who rely on your business might like.

The newsagency as a community hub spin is put about in the media and at some newsagency channel functions because it is an easily understood feel good. It’s not practical tho. In fact, I think pitching the local Aussie newsagency as a community hub is ignorant and lazy. In recent months I have heard a few people who are not newsagents themselves make the pitch, because they want the feel good story some in the media unquestioningly publish.

I heard a supplier representative make the community hub pitch – a supplier that sets newsagent margin way too low and themselves not respecting what we bring to the table.

I heard a representative of an association talk up newsagents as a hub of the community when asked about the future of the Australian newsagency. They had nothing else to offer other than the cliche.

Our channel deserves better than this.

The best local Aussie newsagency is one focussed on profitability, a business with a plan for growth in new shoppers, deeper baskets and above average gross profit percentage. It’s a commercial business that puts the needs of the business and those who rely on it ahead of any local community needs.

Now, none of this suggests you should not be engaged with your local community. Of course you should be engaged. But, community engagement is not your reason for being in business. You’re in business for the financial reward, as everyone who relies on your business for income will / should want.

The type of community engagement that could work is hosting a community noticeboard, supporting local community organisations and being seen out in the community.

One type of community engagement that I think is a waste of time and money is being the retailer of last resort by stocking items that no one else in town carries. The only stock you should carry is that which is profitable for you to carry. Another type of community service that I think is a waste is opening for more hours than is commercially sensible.

Every decision you make in and for your retail business should be in pursuit of maximising the profitability of the business as that profitability is the foundation of the value derive from the business each day and when you decide to sell. Seeing your business as a community hub first and foremost most likely denies you the opportunity if maximising profit.

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newsagency of the future

Personalised local Christmas cards are a hit

We are loving these personalised Christmas cards because customers are loving them. They show off local wonderfully in the design and that they are made locally to us.

It’s small touches like this that can enhance your local connection and encourage local support. We have found a range of suppliers through which we can do this, including this wonderful local card supplier. We continue to seek out more.

These cards are also helping us drive basket depth at the counter as they are an easy impulse purchase.

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Greeting Cards

newsXpress funds card marketing program offering $500 worth of cards as a prize in each participating store

newsXpress has launched the Christmas in-store prize for its Seasonal Edge program – a program giving newsXpress members free prizes valued at between $350.00 and $500.00 to give away to a lucky winner in each newsXpress store.

newsXpress head office is funding the promotion. With membership growth, the investment is over $400,000 being spent to drive sales for newsXpress members.

newsXpress members have been provided digital collateral as well as professionally printed large-format posters for in-store display.

The promotion runs from now to the close of business December 24, 2024. Each card purchase is an opportunity for a customer to enter. Members get to manage this how you see fit. They can give an entry for each card in a purchase, or one entry per purchase.

The sole goal of this promotion is to help newsagents win more card sales.

It’s not supplier specific or card caption specific. This way customers aren encouraged to consider all cards and thereby, hopefully, shop the card department deeper than may usually be the case.

The first Seasonal Edge promotion was Father’s Day this year. Card sales in the month leading up to Father’s Day spiked, delivering industry leading same-store card sales growth in participating stores. This is what Seasonal Edge is all about.

newsXpress members don’t pay extra for it, it’s a bonus of being in the group.

Over the years I have seen too many supplier funded promotions that seek to drive sales for one supplier. In creating Seasonal Edge it was important to me that it served the needs of the retailer ahead of any single supplier. This is at the heart of the make up of this campaign. As we saw with Father’s Day, it works. The business is a winner, along with the lucky customer who wins the prize.

I know retailers love the promotion. I see it in their engagement in-store as well as on social media. The truly smart retailers use this on social media to drive shopper traffic, enhancing the win they achieve from the promotion.

While there is plenty of marketing noise leading up to Christmas, this campaign gives newsXpress members something different through which to pitch their businesses.

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newsagency marketing

GNS updates newsagents on Collins Debden 2025 diary delays

GNS sent this comms out to newsagents and it is more useful than the say nothing comms from Collins:

Dear Customer,

We’re excited to announce that some of our diaries have arrived from Collins. Here’s what you need to know:

Limited Stock Available – We have received some diaries in stock, and these vary by state. We are currently prioritizing fulfillment based on the order in which they were received. If you’ve already placed an order, rest assured that we’re working hard to get it to you soon! While stocks start shipping this week, we will mainly be clearing backorders in our system over the coming weeks due to the Australian market delays caused by Collins Diaries 3PL challenges.

Awaiting Further Deliveries – We are still waiting on additional stock, and unfortunately, Collins Debden is unable to provide any ETAs or solid updates regarding these outstanding deliveries. We appreciate your patience as we navigate these delays.

First-Come, First-Served Fulfillment – Orders will be processed chronologically, so those who ordered earliest will receive their diaries first.

We appreciate your patience and are committed to getting these out to you as quickly as possible.

If you have any questions or need assistance, please feel free to reach out to either your GNS representative or our Customer Service team.

Meanwhile, Collins Debden 2025 diary delivery delays continue.

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Ugh!

Excellent charity boxed Christmas cards kick off 2025 Christmas card season sales

I am seeing excellent newsagency charity boxed Christmas card sales already this year with sales significantly up on 2023.

For one of my newsagency businesses they are up 20%, off a strong number from 2023.

This growth has been driven, I think, by a few factors:

  1. An expansion of range. We have 50% more designs than last year. We source our cards from five different suppliers.
  2. The ability to capture sales online – 90% of online sales are to people nowhere near the business.
  3. A focus on charities first. Customers can buy by charity and many are. Boxed Christmas cards used to be arranged by design theme: religious, Australian, humour etc. Our charities first approach is paying off. Smart card publishers provide details on card packaging and the cards about the charity being supported,  offering another engagement point for customers.
  4. A secondary focus on Australian designs. Smart card publishers promote the Australian artist connection on their external product packaging.
  5. Going out early. The money we have stock it is out and being pitched.
  6. Marketing to previous customers. We know who they are and reach out to them to let them know what’s new and in.
  7. Tactical in-store placement so that every shopper passes the cards as they enter and leave the shop.

Charity boxed Christmas cards are a good fit for any newsagency business as the charities are local and this fits with the localness of the typical newsagency business.

On the topic of online sales, on Melbourne Cup day one of my shops that was closed for the whole day did over $500 in sales of charity boxed Christmas cards. That’s a good result given nothing was spent on marketing to achieve this. The key to the online success is the SEO work I have done to drive ranking for this website.

Charity boxed Christmas cards are an excellent opportunity for our channel. I think anyone not embracing them should consider doing so. They are an easy win, and they are a terrific opportunity to do good, I especially like this connection.

For a financial reference, for many years in my various newsagencies, sales of charity boxed Christmas cards have been 3 and, often, more times the dollar value of sales of single Christmas cards.

…

My newsXpress newsagency marketing group has, for many years, provided guidance and help to its members to maximise the charity boxed Christmas cards opportunity. Some of what I have covered above is based on that advice.

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newsagency marketing

Website sales back office fulfilment advice for small business retailers

Yesterday, Anthony from the newsXpress business and I talked through some of the back office fulfilment setup and processes in place for several consumer-facing websites we operate through the newsXpress business. It may be useful to any newsagent with a website for their business or considering one for their business:

The video is part of a series for Tower Systems on management of a website and streamlining in-store processes.

Getting sales online is only the first step in success from an online business. Back office fulfilment is key to cost management and mistake mitigation.

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Newsagency management

Advice for newsagents selling online – dealing with the challenge of shipping pricing

Retailers, small business retailers especially, can get stuck on what to do about a free shipping trigger point for their website and the actual shipping charges they apply.

We have see it slow the process of getting their new website live.

After looking at many websites across a range of product categories I have some advice that I hope is helpful. I made this video yesterday:

For the free shipping trigger, if you are not sure where to start, start with $100. Experience with the website will soon guide you as to where you might adjust this. Adjusting the free shipping trigger is easy. Where you land really depends on your own business.

What you charge for shipping, when you do charge, needs to be simple and understandable. Too often we see retailers over complicate this. If you are not sure where to start, choose a number: $10, $12, $15, any number, and start there. Once the website is live, shopper engagement will guide you on where to land.

Every online business has shipping costs. Be careful to not be sidetracked by big competitors that pitch free shipping. Sure, there are shoppers who chase free shipping. There are more shoppers who appreciate reliability, personal service, care with packaging and, most important, of all, immediate availability of stock.

The advice in this video is part of a series of short videos Tower Systems is creating for retailers having websites built by the company and connected to its POS software. The advice in this video is not Tower specific.

The goal of the video is to share information that helps you make an informed decision faster, to overcome a common hurdle on the path to getting live with your website.

Deciding on the right free shipping trigger for your website involves several factors:

  1. Shipping Costs: Calculate your average shipping costs to determine a sustainable threshold for your business. The trigger should cover these costs and ideally contribute to your profit margin.
  2. Customer Behaviour: Analyse your customer data to understand their average order value. Set a trigger that incentivises customers to exceed this value.
  3. Competitor Analysis: Research your competitors’ shipping policies. You could choose to offer a competitive or more attractive free shipping offer.
  4. Profit Margin: Ensure the free shipping trigger doesn’t significantly impact your overall profitability. Consider the potential increase in sales versus the cost of free shipping.

If shipping costs are slowing you going live with your website, make a decision, any decision, and monitor shopper behaviour, adjust as you learn.

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Newsagency management

Collins Debden pitches its diaries direct to consumers

It is challenging seeing a supplier you have supported for years go out with a direct to consumer pitch. I didn’t plan to write about Collins Debden today. An email from them this morning caught my attention.

This is a Collins Debden direct to consumer pitch.

They added me to their marketing database, without my permission. Their email includes a compelling offer:

They end with a offer of social media connection. If only they were this engaged with small business retailers of their products.

I am surprised that they are promoting direct to consumers when they are so far behind with shipping to retailers. Their fulfilment processes are strained and unable to get product to shops on time. Why would an individual feel they could fulfil a single order on time, unless Collins Debden is prioritising their direct to consumer orders. I have no idea whether that is the case tho.

I am tired of suppliers going direct after years and decades of support from retailers like us to drive brand awareness and engagement. They could not go direct as they have if we had not supported as we have.

A supplier going direct demonstrates disrespect for their retail partners. Them doing this while they are party to delays in supply to retailers is appalling. It is a failure of social responsibility on their part.

Thinking about this issue of a supplier going direct more generally …

There are ethical considerations to consider when a long-term supplier decides to go direct-to-consumer.

  • Fairness and Trust: The supplier’s decision may impact local retail businesses, potentially leading to lost sales or revenue. A good supplier will be on the front foot and engage in open communication on how to mitigate any negative effects. A bad supplier will make the move and not discuss it with retailers.
  • Customer Relationships: Customers may be confused or disappointed by the change. We need to be transparent and communicate clearly with them to maintain trust and loyalty to our business. We need to tell them what has been done to us.
  • Competition: The supplier is likely now a direct competitor, impacting your market position. Consider how you can differentiate your business and offer unique value to your customers. Look for alternative products that will serve your customers.

Ultimately, the ethical approach involves maintaining open communication, acting with integrity, and prioritising the needs of your customers.

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Diaries

Collins Debden 2025 diary supply challenges are hurting sales

We are missing out of revenue from the certain sale of Collins Debden diaries as a result of supply challenges within the Collins Debden business. I have heard from plenty of newsagents in the same situation.

Approaches to the company over the last two months have resulted in what I’d describe as spin. They have not resulted in any stock being delivered, which is frustrating since Amazon Australia appears unaffected by the supply challenges.

That Amazon has stock of what newsagents could be selling right now opens the question of whether the supply delay is part of a recalibration of the go-to-market strategy at Collins Debden. I this is a reasonable question to have when you see a major competitor of stock while yuou have no indication of when your stock will arrive.

While some newsagents have covered diary sales by accessing stock elsewhere, most cannot since the typical diary shopper is brand loyal. That brand loyalty will see them buy wherever they can find the Collins Debden diary they want. This is where Amazon having stock plays out negatively for newsagents. I first heard about Amazon being able to supply from a customer who was frustrated that we did not have stock.

With newsagents aware of cost to their business from the lack of supply by Collins Debden, I anticipate there will be claims against the company for lost sales as well as claims for financial support to move diaries when they do finally arrive. In my opinion, the company would do well to thoughtfully consider how it supports local small business retailers who have been without stock now for close to two months while a major competitor, Amazon, has had stock.

How Collins Debden handles the situation, outside of fixing the supply issues, will speak to the interest the company has in its local small business retailer network. I know plenty of retailers will be watching the situation. I wonder, too, whether there are any matters for regulators here. For example, if there is evidence of preferencing a big retailer (Amazon) over local small business retailers, could that be captured in regulations supporting small businesses.

Like all newsagents who regularly stock Collins Debden diaries, the best solution would have been on time supply and the second best solutions would have been diaries supplied a few weeks late. As of this morning, we are considerably beyond that, with the situation made worse by inadequate communication from the company.

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Diaries

News outlets talk newsagency businesses down, how can we change the narrative?

Newsagencies in decline as demand for online content outstrips print media.

It’s a headline from an ABC news story a few months ago, a story published online, on radio and on TV. I wrote about it here at the time.

The story, reporting on the closure of Mansfield Newsagency in Victoria, failed to adequately report on the state of Australian newsagencies. So called experts failed to present accurate current information about the health of local newsagency businesses.

While there have been newsagency closures, the numbers are not huge, not as big as we see in retail channels.

The ABC News story is another in a series of reports by the ABC and other mainstream media outlets in Australia to properly report on the state of Australian newsagencies. While there are businesses struggling, there are more thriving, growing.

Let’s all work at pushing back on the cliché narrative about our channel.

Rather than complain about the failures of news media and some others to adequately represent our channel, here are steps I think we can all take in our newsagency businesses.

On social media, engage with content that is different to what people expect from a newsagency. That means posting less about magazines and lottery products and more about unique gifts, clothing, books and toys you may sell.

In your social media posts, talk about what you love, and why. Write your gratefulness for local Aussie products you have been able to find for your business. Appreciate local community groups you can support thanks to the support of your customers.

In your front window pitch products people do not expect to see in their local newsagency. Your front window display has one job: to get people to notice it. Hopefully, they stop and look, and then step inside. Your window display must crash assumptions. It must be bold.

At your counter pitch products people do not associate with a newsagency counter. This means no chewing gum, everyday candy or similar. Have products people don’t associate with you. However, the need to be products easily purchased on impulse.

From the front door and for the first 3 metres inside the shop pitch products people do not expect to see in a newsagency. And, change how it is displayed weekly. You want people saying things like this is nothing like a newsagency or every time I come here it’s changed. These types of comments tell you that you are getting things right.

The key to each of these steps is you offering in your newsagency business products people do not usually associate with a newsagency. That means buying from suppliers who do not traditionally supply newsagencies or go to the trade shows you might typically attend.

Playing outside what is expected for your type of business is key to you pushing back against the narrative of mainstream media that: Newsagencies in decline as demand for online content outstrips print media.

The decline in print media, which is between 10% and 12% a year currently, has nothing to do with newsagency closures in my opinion.

Some newsagency shops close because the lease is at an end and the owner has plans for elsewhere. Most close, however, because the newsagency is not relevant to today, which brings us back to product. The products you offer in your shop are the best way you can state your purpose, show your difference, ensure your relevance locally, and online.

It’s hard work, every day. As retailers who own and run our own businesses, we choose this. Our future is ours to make, and in doing so we need to take every opportunity to push back against the ill-informed narrative about our channel put about by mainstream media.

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Newsagency management

A website for your newsagency could be a perfect plan b

Too often retailers think a website connected with their shop needs to reflect what they sell in the shop. While this can often work, it is not essential.

There are plenty of retailers, including newsagents, who run websites from the back of their shop, using the resources of the shop without additional overheads.

There are newsagents who started this way, with a website as a completely different business, who then discovered that the products sold through this other business could also sell in their shop.

I know of one newsagent who stumbled across the opportunity when unpacking goods for the website they ran from the back office. A customer noticed the items being unpacked, items you’d never expect to see even in an innovative newsagency. Soon enough this newsagent had a section for these products in the shop and attracted a whole new range of shoppers as a result.

I know of another newsagent who let a friend use spare space at the back of the shop to run a new online business. Soon enough the two were working together offering the online products in the shop once they discovered that something they never considered would work worked a treat.

A website connected with your newsagency could be a perfect way to explore what you could sell. That a website can easily reach many more times the people your shop reaches, it is easier to experiment. That it is new means you can experiment outside any boundaries you impose upon yourself in your shop.

This approach of experimenting completely outside what you do in your shop today is what I call a plan b., It’s you experimenting in pursuit of fresh traffic and revenue for your business, through which you might find a financially rewarding path beyond what the physical shop currently offers.

Websites are easy to setup and run, they can evolve too, as you learn more of what can sell.

By all means offer what you have in your shop online. Think, too, about the opportunities of playing completely outside what you do today and through this attracting revenue from shoppers you will never see and from products you thought you would never carry.

Connecting your website to your newsagency software is easy, offering one place for managing all inventory and all sales. This is time and labour efficient. It also protects against theft.

We had an idea for a very niche website for one of my newsagencies a couple of days ago. We have the domain name and are working on inventory. Always chasing change.

5 likes
Newsagency management

Overthinking a website for your retail business can be a mistake, and here’s why

Here’s a quick video I did yesterday morning showing why it’s wrong to overthink your website when planning for it. I see too many retailers, including newsagents, overthink their website, wanting everything to be perfect, thinking they know exactly what people will buy.

We created www.hugsandlove.com.au for one of my own shops in suburban Melbourne. It took less than two weeks to go from idea to being live. We’ve spent nothing on marketing and we have quadrupled the product range since launch. We have been deliberately frugal in our investment in the website and lazy in terms of chasing sales – to show others what they could achieve even being time poor.

Also, we did not add any tech skills to the business to make the website happen.

In this video I step you through some of the transactions and explain how seeing these helped us evolve the website. I hope some find it useful.

How you approach creating and running a website for your shop is 100% up to you. This video is my experience for this website and this shop. It’s one of ten websites we have created over the years for my shops. Again, the goal was to mirror something any newsagent could do.

We are at a point in retail where having a website for your business is as essential as having a fax machine was decades ago – every business had one.

As I note in the video, this quick and dirty website of ours for this suburban shop will add $50,000 in retail sales in the first year. I can see that doubling the next year with small effort. $50,000 in sales is close to $25,000 in GP, for no additional labour or retail space overhead. That’s good for business. Double it and you’re at $50,000 hitting the bottom line profit of the business.

These results are coming from shoppers the business cannot easily reach by opening the front door of the shop. Every retailer would be happy for this type of growth on top of what the physical shop is achieving.

I know of newsagents doing hundreds of thousands of dollars a year online. This is the financial opportunity anyone can chase. It starts with your first website and leaning into what it shows you.

11 likes
Newsagency management

What can you do if your marketing group contract auto-renews or you are bound by a long lock-out period?

Following my last post (Monday this week), Does your marketing group contract auto-renew? Does it include a lock-out period?, I outline below options you may consider if you find yourself in a marketing group contract you want to leave.

I am not a lawyer. This is not legal advice. In my opinion, a marketing group contract should be so simple straightforward and fair that it does hot need a lawyer to interpret or understand.

If your marketing group contract or agreement is complex and not easy to understand that’s a warning sign right there.

CONTRACT AUTO-RENEWAL.

If you have found your contract has auto-renewed, think about whether it was clear it would and whether the newsagency marketing group contracted you prior to the auto-renewal trigger advising you that auto-renewal was imminent. The ACCC is on record as saying that auto-renewal should be clear and that you should be contacted prior to auto-renewal with enough time for you to say no thanks.

Three newsagents in the last week have told me their newsagency marketing group contracts were auto-renewed without advance warning from the marketing group that it was going to happen. I think any independent party with authority considering this would say renewal action was unfair and that the newsagent could opt to leave the group now.

RESTRAINT OF TRADE – POST CONTRACT LOCK OUT PERIOD.

Some newsagency marketing agreements seek to deny the newsagent the right to join another marketing group for a period of time after the end of the agreement. I have heard marketing groups with such a restraining clause claim that it is to protect their intellectual property shared with the business while they were in the group. The question I have is what intellectual property?

In situations where I have seen newsagents threatened by the group they are leaving, or the lawyers for the group, I have not been able to discover any intellectual property worth protecting.

In a recent report, the ACCC highlighted that restraints which go beyond what is reasonably necessary to protect a franchisor’s legitimate interests are likely to be unfair. For the purposes of this discussion, a franchisor would be the newsagency marketing group.

NEW REGULATIONS.

In November 2023, reforms passed by parliament make unfair contract terms illegal, attracting substantial penalties under the Competition and Consumer Act 2010 and the ASIC Act 2001, with each unfair term forming a separate contravention.

I think it is possible that a newsagent with an agreement that auto-renews and / or with an end of contract lock-out restraint period barring them from joining any other group could challenge the validity of the contract.

While I am not a lawyer and this is not legal advice, if I found myself in this situation I would do several things, all at once:

  1. Write to the franchisor / marketing group explaining my opinion that the contract is unfair and seeking immediate termination of the contract without penalty and without any restraint period. And, if the letter I would request that all correspondence is in writing and only in writing.
  2. Contact my local state government level small business ombudsman seeking their help in resolving the matter.
  3. Seek assistance from Australian Small Business and Family Enterprise Ombudsman on the contract.
  4. Complain to the Australian Financial Complaints Authority (AFCA). They small businesses with a free and independent dispute resolution scheme to assist with resolving financial complaints.
  5. Engage with ASIC, lodge a report of misconduct online.
  6. Write to the ACCC complaining about what I consider to be an unfair contract.
  7. Contact my local small claims authority (VCAT, QCAT, NCAT, TASCAT, SAT etc) to see if they would accept a case seeking to declare the contract invalid and agreeing my my immediate exit from the group.

My point here is that there are options for you, actions you can take that do not require a lawyer, actions that could free you from a contract you no longer want for your business.

I have seen newsagents consider taking steps to get out of a contract only to give up, saying it is too hard. I have also seen newsagents take a couple of steps and be permitted to exit a group as long as they don’t tell anyone.

If you are in a marketing group for your newsagency and want to leave but have been told you cannot or been told that you have a lock-out restraint period, it is possible one or more of the steps listed above could help you out. Doing nothing achieves nothing for your business.

The difference between being in a group doing little for your business and a group doing plenty could be tens of thousands of dollars in net profit in a year.

A good newsagency marketing group is profitable for the newsagency. Belonging just to belong to something is not commercially astute.

I am not going to list marketing group contracts here that I consider to be unfair in part because I have seen some groups with different contracts for different people, which in itself is odd and somewhat concerning. One group has recently become more threatening against newsagents who want to leave, causing considerable distress for the newsagents impacted.

One final point: everything I have written here could relate to some card company contracts I have seen.

Before you sign any agreement, read it, be sure you understand it and ask someone you trust for their opinion.

19 likes
Ethics

Does your marketing group contract auto-renew? Does it include a lock-out period?

If you are in a newsagency marketing group, get out the contract you signed and read what it says about termination.

Be sure you understand the term of the contract, whether you have to give notice and if so what length of notice is required and whether there is a period after the end of the contract in which you are not permitted to join another group.

If you are not sure about these things, seek professional advice. Indeed, you should have sought advice prior to signing the contract. It is never too late to seek advice.

TERM.

Newsagency marketing group contracts vary from one year to six years from what I have seen. Personally, I think anything more than one year is too long. Aren’t you better off staying with a group because of the value gain from it rather than because they have legally bound you in a contract? Shouldn’t groups want you to stay because you want to stay.

If they really trust what they offer and the benefits they deliver for you, why lock you in?

Oh, and I do understand the need for an initial term when you first join, to learn from each other, to unlock value for each other.

NOTICE PERIOD.

Some contracts require you to give notice months ahead of the contract renewal period and your failure to do this locks you in for, sometimes, another long period. In my opinion, a notice period of two months is reasonable and anything more is unfair for the small business retailer.

AUTO RENEWAL.

I think auto renewals in a contract are a gotcha, especially if the auto renewal period is long, like a year or more as is the case for some newsagency marketing group contracts I have seen.

I suspect businesses put auto renewal and a long (like a year or more) lock in period in contracts because they know people will not realise they need to give notice to not renew. They are businesses. It’s all about their revenue.

LOCK OUT PERIOD.

Another thing I have seen in newsagency marketing group contracts is a post contract termination lock out period. I have seen them make this case to protect their intellectual property, which I think is a joke. What intellectual property? Okay in the first year maybe, but what after that time? None of the newsagency marketing groups has a system with training, regulation, branding requirements and more like you see in a McDonalds.

If you are happy with your newsagency marketing group contract, this post is not for you.

If you are unhappy, please dig out your contract and look at your options.

If you have been given a newsagency marketing group contract to sign, please read it carefully. Some have worse provisions than the few I have mentioned here, provisions that are very expensive – like demanding you access some products / services only from the supplier they dictate. I saw one newsagent recently pay thousands of dollars more for something than they would have paid had they not been in that group.

Buyer beware is the point here. Do your homework. be sure you fully understand the contract. Be sure you are happy with all terms prior to signing.

Not all newsagency marketing groups are the same.

I know of at least twenty newsagents currently in groups they want to leave but cannot. Some have received legal letters threatening against leaving and others have received less formal yet equally distressing communication. In most cases, that communication was the first time i a year their business received direct communication about their business from the group to which they belong. These newsagents would leave in a heartbeat if they did not feel trapped. None of them want a legal fight, and I suspect some in the marketing groups know this, and use it to their advantage, and the disadvantage of their members.

If you are in a newsagency marketing group, get out the contract you signed and read what it says about termination.

18 likes
Ethics

ALNA industry breakfast in Perth highlights the value of Lotterywest

I am grateful to ALNA and Lotterywest for the opportunity to attend the industry breakfast in Perth yesterday.

It was terrific hearing from the Minister for Small business as well as the new CEO of Lotterywest about the value they place on lottery retailers, who are predominantly newsagents in Western Australia. They spoke to the value of their local small business retail network and the connection with local communities through the grants made by Lotterywest.

The meeting was another reminder of the value of Lotterywest being a state owned enterprise. I bet premiers on the east coast wished they still owned lottery businesses given the financial value invested back into the WA community each year. It was also a reminder of excellent work done by ALNA for newsagents here.

The other aspect of government ownership is the relationship with retailers, it is very good. retailers feel listened to and valued, as opposed to the type of relationship lottery retailers experience outside of the state. Compensation is considerably higher too.

The other value of yesterday’s meeting was the opportunity to catch up with industry folks before and after the breakfast. Invaluable.

In case you are not familiar with the Lotterywest Community Grants Program, it provides significant funding to community organisations across the state. These grants support projects that benefit the community in a variety of ways, including:

  • Community development: Funding for projects that aim to improve the quality of life for residents, such as building new community facilities, providing training and education programs, and supporting social activities.
  • Arts and culture: Grants for arts and cultural initiatives, including exhibitions, performances, and festivals.
  • Sport and recreation: Funding for sporting clubs, recreation centres, and community events.
  • Health and wellbeing: Grants for health and wellbeing programs, such as mental health services, drug and alcohol programs, and disability support.
  • Education and training: Funding for education and training programs, including scholarships, vocational training, and adult education.
  • Environment and conservation: Grants for environmental and conservation projects, such as habitat restoration, wildlife conservation, and sustainable practices.

Local retailers often feature in grant presentations.

12 likes
Lotteries

Reserve Bank consultation on card fees

Following the federal government’s announcement about debit card fees, the reserve bank today announced details of its consultation on card fees. The issues paper provides good background on the move:

The Reserve Bank of Australia (RBA) is conducting a review of merchants’ card payment costs and surcharging. Australians use cards extensively to pay for goods and services and benefit from the convenience and security provided by card payments. However, in an environment of heightened concern around the cost of living and ongoing changes in payment preferences, merchants and consumers are increasingly focused on card payment costs and surcharging. These two issues are linked as merchants would be less likely to surcharge consumers if card payment costs were lower. Accordingly, it is timely to review whether the RBA could do more to put downward pressure on merchant card payment costs by promoting competition and efficiency and whether the RBA’s surcharging framework remains fit for purpose. This review also recognises that some years have now passed since the surcharging framework was introduced.

Retailers have an opportunity here to have their say in relation to payments. Take your time to read the issues paper and understand the extent of this first phase of a bigger project.

The RBA is seeking views from interested stakeholders on the issues raised in this paper. Written submissions on the issues discussed in Section 2 should be provided by 3 December 2024 to: pysubmissions@rba.gov.au

This is a hot topic for retailers and consumers. Having your say puts you into the conversation.

While associations, groups and other collectives will lodge submissions, my experience with government enquiries is that they appreciate hearing from individuals, or in this case, individual businesses.

13 likes
EFTPOS fees

2025 Australian Firefighters Calendar demands unreasonable on retailers

The supplier of the 2025 Australian Firefighters Calendars has made this demand of retailers, via a major wholesaler, GNS:

To move forward, I will need written guarantees by the directors of your company that all GNS customers will not sell my calendars online. I will not supply GNS unless I have directors’ guarantees that GNS customers will not sell my calendars below my listed price until January 1st, 2025. I have attached a supplier form for you to sign.

To their credit, GNS responded well:

At GNS, we believe in upholding the law and ensuring our customers’ freedom to conduct business as they see fit. As such, we are not willing to impose any restrictions on how you go to market with your products. Unfortunately, this means we will not be receiving any stock of the Firemen calendars.

What makes the move about the 2025 Australian Firefighters Calendars interesting is that these calendars are widely available online. A quick search shows them as available online in Australia via Amazon, Calendar Club, eBay, Just Calendars, Mega Office Supplies and more. It is even listed on the catch.com.au website.

I can’t figure out why the supplier would demand the directors of GNS to agree that retailers they supply will not sell the calendars online.

Of course, the directors of GNS can’t impose such a restriction on their retailers. Their response is good.

The move makes the 2025 Australian Firefighters Calendars less appealing in my view. No matter, there are plenty more Australian designed and made calendars supporting worthy causes available for newsagents and calendar retailers to stock. That’s what we are doing: focussing on calendars we can sell in-store and online, calendars where the supplier does not place restrictive requirements on how we run our business.

The 2025 Silo Art Calendar is a good example of a calendar well worth stocking. It raises money for a good cause, shines a light on Australian towns and, best of all, features Australian art. This is a calendar we sell plenty of in-store as well as online. People love posting it as a gift to friends overseas. We have offered this calendar for years. It’s been a huge hit.

If you are looking for calendars to stock for 2025, look at Bartel, Browntrout. Waterlyn and other local companies that have terrific calendars available.

It would be good to know if sales of the 2025 Australian Firefighters Calendars are impacted by the restrictive conditions.

18 likes
Calendars

Advice for newsagents on preparing to make a case for rent relief from your landlord

If you want/need to make a case to your landlord for rent relief – short or long term – here is a list of what I suggest you assemble to enable you to make a case. This is what I’d ask from you if you seek our help. Your evidence is key. Too often retailers ask for rent relief without making a business case and then wonder why their request was rejected.

  1. Current profit and loss (most recent year or to the end of the most recent quarter) and for the same period a year earlier. This does need to be recent to be relevant.
  2. Sales comparison for recent period (more than 3 months) to same period a year ago..
  3. Details of every step you have taken to improve traffic and sales including external marketing and costs associated with each activity. Assemble this in a spreadsheet. This will be important to show you are doing your part for your business.
    1. Itemised.
    2. Numbered.
    3. Provable.
  4. Details of steps you have taken to manage costs. Again, show that you are professional and thorough in your approach to your business.
  5. Changes made to the business over the last year. Assume your landlord has not been to the shop and seen the work you have undertaken.
  6. If possible, comparisons with other newsagencies – an understanding of how you compare, especially if it shows you as doing better than most in key parts of the business.

Take your time. Be thorough. The more complete and professional your documents the more notice will be given to your request for assistance.

Once you have all of this information together look for a narrative, a story, which supports the proposal you want to make to the landlord.

By narrative, I mean a case, a story, the reason – to justify your request. The data you have gathered will/should support this.

If you do not have a specific proposal, what you actually want – work it out.

It is not enough to say you want a better deal, a discount on rent or some other relief. Landlords get that all the time. Your request needs to come with something for them. Be specific and ensure you have the data necessary to justify your claim.

If your P&L shows your profit is stable or improving, your case will be hard to make.

If profit is falling your case is easier, not too easier, but easier nevertheless. You should not manufacture figures to suit your case though. Look at the accurate data and listen to what it tells you.

If your P&L shows profit declining or you making a loss, consider what you actually want as a result of this.

Too often retailers go to a landlord with a problem and not a solution. Work on your solution and use the information you have gathered to justify the solution to your landlord.

The best people to pitch a landlord for assistance are the business owners. There are some horror stories in the newsagency channel about so-called leasing experts who have left newsagents worse off than ever.

Prepare your proposal, based on verifiable evidence and present it without emotion.

The proposal should be in writing, not too long, with the documents you have assembled as attachments to support your case.

Usually, a landlord will want a meeting. Ensure there is an agenda. Go with prepared notes and your evidence. Do not get sidetracked. Do not engage in emotive arguments.

Your sole focus ought to be on the outcome you want and the evidence you have which supports this outcome.

FOOTNOTE: be true to yourself. If what you want is not supported by your own business data then don’t ask for it. Landlords get requests every day from tenants asking for a better deal. Those who achieve it are those who have made the case.

MY EXPERIENCE: I have followed this advice in major shopping centre settings as well as in a couple of high street settings, and achieved a good outcome each time.

This advice is part of the extensive business support advice provided by newsXpress. newsXpress is a marketing group serving 200 newsagents.

13 likes
Newsagency management

News Corp and Nine Media seem to care little about print newspaper customers

Every week I hear another story of problems with newspaper delivery to retailers: late deliveries, missed deliveries and more.

The most recent issue relates to a regional Victorian town where the local retail newsagent no longer receives newspapers in time for when they open at 7am. The delivery contractor delivers papers to another retailer two minutes away from the newsagent, then does home deliveries and, finally, to the local newsagent.

Often, deliveries to the newsagent are short, sometimes less than half what they can sell.

Contact from the retail newsagent to News Corp and Nine Media has achieved no resolution. It appears they have either no interest in resolution or no ability to direct the delivery contractor to deliver the papers when they deliver to the cafe two minutes away.

The situation is ridiculous, petty.

Most newspaper delivery contractors I know of do a terrific job and provide excellent service to retail newsagents. Not this one though. Some decisions seem targeted.

I wonder if the disinterest of the publishers has anything to do with the retail newsagent handing their run back a year or so ago. If that is the case, it’s petty. It that is not the case, the newspaper publishers have a broken system that they appear unwilling or unable to fix. Either way, they appear uninterested in the issue and its resolution.

In the meantime, local newspaper readers miss out. Maybe that is what the publishers want. Who knows?

This specific situation does seem to have an easy resolution, if the newspaper publishers want the resolution. The delivery contractor could be directed to deliver to the two sub agents – a cafe and the retail newsagent – at the same time, as they are two minutes from each other.

Years ago, newspaper publishers were demanding of newsagents in terms of delivery times and accuracy. Threats were made. newsagents complied rather than risk losing their business. Today, it’s different. The newspaper contractor in this story has demonstrated no interest in resolving the delivery time, quantity and contact issues – it’s not possible to contact them during the day to resolve issues.

Again, newspaper customers are those that miss out. Newsagency staff are impacted too as they are the front line dealing with customer complaints.

If only News Cop and Nine Media cared about the mental health of newsagency staff and cared about their newspaper reader customers.

21 likes
Ethics

Retail sales up in August in Australia

Continuing the trend some newspaper publishers ignore, retail sales in Australia were up in August according to the latest data from the Australian Bureau of Statistics.

Overall, the retail sector in Australia demonstrated strong resilience and growth in August 2024. The combination of warmer weather and ongoing consumer confidence contributed to the positive performance.

This is good news for retailers. The even better news could be in the bus

While newsagents sell falls into a range of segments tracked by the ABS, there is this indication around books and newspapers in their August data:

Of the various segments newsagents cover, clothing is the strongest.

It’s valuable looking at the ABS data against your own data comparing a month to the same month a year earlier. I say a year earlier as at a store level tha type of comparison is more useful.

The strongest growth product categories that I see in newsagencies right now are:

  • Homewares.
  • Clothing.
  • Books.
  • Sensory.
  • Toys.
  • Collectibles.

Price point wise, I am seeing stronger growth for higher price point items compared to lower cost, like under $50.00.

Another data point in the ABS data that’s interesting is that Victoria is the equal strongest state / territory in terms of growth. Reading the Herald Sun you’d not think this is the case.

The ABS data is useful as to can help to inform consumer sentiment and that helps us.

6 likes
Newsagency management

If you are considering a website for your newsagency

I am hosting a free workshop on Zoom for anyone considering a website for their business. We’ll explore keyword data and what it means for website traffic generation. We’ll also look at different websites newsagents have for their business. Anyone is welcome. It’s not a sales pitch, nor is it newsagency software specific. Information shared will be useful for you to action right away. I will also cover some of my 0wn website failures and what they taught me.

Here’s the link to join in: https://us06web.zoom.us/j/84836347652?pwd=ZYjW3LdaBg1MjLC9bL5YcWUfPGEabX.1 Meeting ID: 848 3634 7652 Passcode: 633738

6 likes
newsagency of the future

Retail transformation: newsXpress Prospect Marketplace, Launceston Tasmania

Join me in a chat with Ravi as he shares us his journey from engineer in India to flourishing retailer in Launceston Tasmania.

Ravi’s newsagency at Prospect Marketplace near Launceston Tasmania looks nothing like a newsagency. This is a wonderful and inspiring business transformation that has locals loving shopping there.

It is a true treasure hunt retail experience, offering shoppers of all ages fun and inspiring engagement opportunities.

What Ravi has achieved in what was a traditional retail newsagency is an inspiration to other newsagents. He’s done it on a tight budget, using items bought at markets and elsewhere to bring character and warmth to his shop.

I love seeing retail transformations like this and are grateful for the opportunity to share.

I was in Ravi’s shop yesterday, September 30. It’s close to four months since I was last there. As Ravi and I discuss in the video he has made the changes on a tight budget.

The customers are loving what he has created, as I got to see for myself when in the shop.

This is an inspiring business.

16 likes
newsagency of the future

Newsagency of the future: Navigating your newsagency from traditional to relevant starts on the shop floor

This very rough sketch from me depicts a typical local small business newsagency layout, a design often encouraged by The Lottery Corporation, newspaper publishers, and magazine, card, and stationery companies. The focus always was on providing ample space for each supplier, with little consideration for the needs of the business paying for the shopfit.

The result was a zoned business that was inflexible and primarily served the suppliers’ interests. Too many newsagents today continue to operate with similar layouts, despite their inherent inefficiencies.

The bold colours represent high-traffic product categories, such as lottery, magazines, and newspapers. However, analysis shows that customers in these categories rarely purchase other products. For example, around 80% of newspaper purchases do not include any other product based on the mst recent newsagency sales basket analysis.

The current traditional local small business newsagency shop layout actually discourages efficiency, particularly for lottery products, which often demand a prominent front-of-store location. This can hinder the sale of other products.

The red, blue, and yellow lines represent the typical customer journey through a traditional newsagency. These lines illustrate the inefficiencies and lost opportunities in such a layout.

The failure to adapt to changing times is a significant reason for the closure of many local small business newsagencies in Australia. It’s time for the industry to embrace change and move away from outdated business models.

In 2009, I proposed a flexible newsagency design that could be easily adapted to evolving needs. Unfortunately, many businesses have continued to cling to traditional layouts, leading to financial losses.

It’s crucial for newsagents to push back against suppliers who demand excessive space or prime locations. These demands should be based on sound commercial reasons, not simply the supplier’s desires.

By analysing foot traffic patterns and customer behaviour, newsagents can identify opportunities to improve their layouts and increase sales. It’s time to modernise and adapt to the changing needs of customers.

Here are five steps I recommend for creating a more commercially viable use of your space:

  1. Remove newspaper and magazine specific fixtures from the floor of the shop.
  2. Use everyday (low cost) and non product specific fixtures for newspapers and magazines on the back wall of the shop.
  3. In the freed up floor space introduce tables, desks or similar everyday found objects onto which you place gifts in a storytelling mode. Displays should have few of each item and they should be arranged to represent a story around a theme. Open up the space in such a way that people are drawn further into the shop.
  4. Remove all convenience lines from your counter and replace them with products people will purchase on impulse, products people don’t think of you as carrying and products for which you’d like to me known.
  5. Look at your stock. Urgently get rid of any product you gave not sold at all in the last six months. Dead stock kills businesses. It really does. If you have had a products on the shelves for not sold any of it for six months that is dead cash, dead space and a measurable opportunity cost for the business.

These 5 recommended steps are to get you started. The list for transforming your newsagency from traditional to relevant is long, much longer than 5 steps. Most of the steps will be unique to your business: the place from which you start, your desired destination, your location and your resources. Changes are needed daily.

Transforming a traditional newsagency can be done. There are plenty in the channel who will help. My details are: mark@newsxpress.com.au and 0418 321 338.

It doesn’t matter how traditional your local small business newsagency is, how big or small your shop is, whether you’re in the city or country or how little you have in resources. There are always steps to a brighter future you can take.

This blog post has enough advice anyone can act on without having to pay for anything. That’s a reason I started the blog and continue to write here – to provide a free resource for local small business newsagents in Australia they can consider and act on if they consider it appropriate for their business.

The advice I have provided is advice I have followed myself in businesses I have purchased that were traditional at the time of purchase. The 5 steps are basic, and they work.

17 likes
newsagency of the future
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