Okay, for context:
- This compares 2022 with 2019. Jan-June.
- We took over in December and did a part relay to refresh positioning.
- We particularly focussed on special interest, craft & hobbies, crosswords, children’s and music.
- We actively promote magazine range, especially fringe titles, on social media.
- We pitch magazines we want to feature next to newspapers.
- We have a loyalty offer, which is being appreciated.
- We also do some other things, but I don’t want to give too much away.
Yes, I hate that the GP is only 25% and that too many magazine publishers are holding cover prices back and therefore holding our income back. I also don’t like the old school treatment of us. But, with a product category doing close to $500K on a full year, it’s important to us, and, we are successfully leveraging magazine shoppers into other purchases.
Oh, I say the numbers are rare in that for many newsagents comparing the same 6 months, the results are between down 15% and up 5%.
Mark our magazine sales about $300,000 a year but they are declining at 20% a year at the moment. Our town population is good and the rest of the shop is good. Id like to know more about what you are doing.
Paul, it’s all there in the post: relay, a loyalty program, promoting outside the business.
But, it started with a choice that in this business there is a magazine growth opportunity. That’s not the case in all newsagencies, including some others I own.
Almost all our focus is outside of the Aussie weeklies and major Aussie monthlies as we have many competitors selling those nearby. No, our focus really was on the titles through which we could differentiate.
Paul,
Magazines 2019 -2022
SALES: 2019 with $16 Discount resulted with:-Numbers sold 17,319 presumably at marked coded price-Sales amount $138,084 and Gross Profit after adjusted Discount of $16 @ 25% $34,521. Real Sales figure $138,164 (not shown) plus Real Gross Profit $34,505 real difference $16 less off Sale and G.P.
SALES 2022 with $1,268 Discount resulted with: -Numbers sold 19306 presumably at marked coded price-Sales amount $159,712 and Gross Profit after adjusted Discount of $1,268 reducing G.P. to 24% $37,686 real difference $1,252.
SUMMARY:
In both cases Sales reductions are equal to Gros Pofit reduction with the large amount in 2022 being geater enough to reflect a change of 1% in the G.P. margin.
Both takings achieved an average sale price of $8 per magazine.
Sales difference is $20,376 MORE than 2019 with $3,181 or $61 per week extra than 2019 @ 25% GP
Obviously it works and more is better than less as well as the transference of buyers to our specialty range is good.
This could be backed up with online website promos as online subscription is our competition here.
I asume this oulet to be on High Street or a small accessable shopping centre as the increase in Locked Down are consistent with SOME local newsagents during this time. Other depratments with the agents sspecially the early morning traders diminished in the areas of Newspapers, Drinks,Cigarettes Front counter sweets and with some stagnated lotto sales although with most Lotto sales inscreased marginally. Sctratchies went through the roof.
Overall a geat result. It will be ineresting to see the sustainability figures diuring the next year or so.
Graeme,
Yes, on the high street.
The comparison with 2019 is to slice our the Covid lockdown periods.
This business has experienced every better growth in cards, gifts and toys in 2022 over 2019. Those results are a key factor in magazine sale growth.
The overall GP% of the business is up 4 percentage points and it is here where the value hits the P&L.
The business does not have lotteries, tobacco related products and only minimal candy.
Yes Mark it is a great result.
I am illustrating that even, though the margin is low 25% the discounting in the magazines increased the total G. Profit and only reduced the margin by 1% to 24% yet improved the customer base as well as the bottom line as well as the rub ff to the higher G.P. offers you mentioned.
Take advantage of the high traffic low margins is the name of the game and best way is to increase the sales of those items. Can’t do this with newspapers however you did it with mags.