Newsagents are better retailers of magazines and newspapers than supermarkets and some other retailers.
Newsagents offer broader support of the category – more than good placement. We are less demanding when it comes to costs such as shelf space, marketing subsidies and other costs of business. We add value through a range of magazine related services like co-location, beacon branding, loyalty programs, category promotions and other initiatives.
I would like to see publishers respect the service newsagents provide by reducing their use of other retail outlets. Help us reinforce our position as magazine specialists. If developed professionally and executed co-operatively such a strategy would improve newsagency foot traffic and increase customer spend on magazines.
Publishers think that by making a product ubiquitous it is easier to purchase, more likely to be purchased. I’d suggest the opposite is true. People can think that they will have other opportunities to purchase a title and some end the week or month having not done that. Also, seeing a title everywhere may blind people to it – that’s what I wonder.
Reducing retail outlets gives us an opportunity to build healthier businesses around newspapers and magazines and, as a result, invest more in the category. The return for publishers would be greater effort from the specialists.
I am not about to lay out my plan here but I would note that today’s conditions offer an excellent opportunity to build magazine sales based on respect of magazine and newspaper specialists rather than driving competition through more outlets.
There are proactive newsagents keen for such an opportunity.
Mark
I would like a definition on what uou mean by “other retailers”, I am sure you are talking 7 Elevens and the like.
My business fits into what you say is “other retailers”, I receive full commission on printed matter but fit into a category called Bookstall however I am not a Magazine specialists. I would like your view on this type of “other retailer”
We got a call today from the local pub saying they had one of our bundles, but low and behold the local paper is dropping off 20 papers for their customers and doing me out of sales. The hotel is 300m from my front door and I did not get asked for my input.
They complain that our sales are dropping but they are giving so many copies away free to all and sundry, why pay for it when you can get it free.
They should look at who help build their channel and why now they have sold us out for quick circulation increases. I will not be going to any effort to promote the local paper at all any more, if it sells good if not who gives a sh#@t, I’ll put my energies into making money out of other areas.
Derek,
I am talking about a mix of supermarkets, petrol and convenience – outlets which impose challenging rules on publishers which dilute the value of magazine sales achieved in these locations.
Mark- Thankyou for that!
Luke- I do remember you saying you are the one who is in control of your business in a previous post. Very good statement.
I must say what a crazy attempt to increase sales, I am sure their must be a link from the hotel to someone at the paper. If someone wants a paper from your shop they will find it, maybe it is a good idea to put something that makes money in its existing place.
Mark
it sounds to me like you mean all sub agents which many newsagents have been forced to supply.is that what you mean?
Andy,
While some sub agents may be in my mix, the majority would be direct account outlets with a higher cost to the publishers.
Mark,
we have 3 newsagencies and 4 convenient stores incl 7-11 store in 100 meters apart in the same street . don’t you think they are too many?
Eric- Ridiculosly so to say the least.
Mark, when newsagents stop selling confect and cigs, I’ll stop selling papers and mags which by the way are offered as a service as 12.5% margin is no incentive to push these products
Scott, I think you are missing the point of the post. Newsagents were started by publishers as their specialists. They then moved away from us and went direct to many retailers. Some of those retailers are not supportive. By being more supportive newsagents they could benefit.
When i started as a newsagents 30 odd years ago newsagents were the place for mags ,but due to the increased number of outlets my sales mix is greatly changed.The Pubilshers have gone every where but the local knocking shop, then they are not happy that newsagents no longer view mags as the be all and end all .By having all there extra outlets the numbers of people who see those add on titles e.g womens day xwords ,the other one shots ,Thats Life specials is reduced.With the main mags falling should they not be going this way . They want it all ways .short sighted i would say and now it is coming back to bite them with a lot of small accounts re NDD
it seems to me that if we dilute our market share futher we will start to shut up shop.7-11 now have lotto who next.i think i need to put in a pertrol bowser as every one want some of my business and most times are forced to let them have it.
Nice post David
Now Newsagents are diversifying is that a worry to Distributors?