Publishers control how newspapers are merchandised and sold in Australia – especially in retail newsagencies. It’s how it has always been. Rather than giving retailers a free rein, publishers shackle these businesses with rules. If they relaxed the rules and put financial rewards on the table for real growth I am certain they would achieve sales growth beyond their current projections.
I can understand that rules make it easier to manage a channel of independent small businesses. However, this one size fits all approach is holding the more entrepreneurial newsagents back.
Here are some of the strategies I’d implement right away in pursuit of incremental sales if there was greater reward and if some of the rules were set aside for me:
Display. Stop displaying newspapers on one place and start displaying them at three high traffic locations in store.
Display. Create a free standing spring loaded display box which allows the full front page to be displayed to customers approaching the unit.
Loyalty. Introduce a prepaid arrangement which has built in cover price rewards with an appropriate mechanism to encourage more purchases. (Home Delivery costs more than single copy sales for all involved yet home delivery customers get a significant discount off price.)
Packaging. Pre-bagging newspapers on Saturdays and Sundays to provide confidence that all inserts and included and to eliminate the need for bagging at the counter. Advertising for my business on around 20% of the bag.
Marketing. Use of an electronic poster displaying more relevant and current promotions for the newspaper.
Competitions. Running a competition based on stories in the newspaper over a week with a weekly prize. Designed to engage customers in the newspaper and their purchase location.
Bundling. Experiment with two title bundling for a special price – drawing sales for one title from another.
I’ve been vague with some of these ideas and not listed others because I don’t want to give too much away here.
While News and Fairfax are right to pursue business opportunities online they have, in my view, an excellent opportunity to increase single copy sales if they allow newsagents to make business decisions about how to best retail their product. The reward for the publishers should be an increase in sales and the reward for the successful newsagents bonus commission on each sale. Simple really.
Unleash the entrepreneurs I say!
This is an easy decision for publishers.