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

Author: Mark Fletcher

Gotch and XchangeIT fail newsagents, again

Gotch, not content with its broken magazine distribution business, has branched out into supplying gift related product to newsagents. Some of the products have suggested retail prices that are higher than supplier suggested retail, giving an inaccurate impression of margin.

XchangeIT has sent out a invoice file from Gotch for this new gift product venture that is riddled with errors. The experts at XchangeIT were clueless about the file they sent. They had not checked it.

An expert at my newsagency software company checked the file and listed for XchangeIT the problems in the data from Gotch that they sent through their facility. This was done because XchangeIT people were too lazy to do they work they should have done.

XchangeIT take a big stick to newsagents on compliance yet appear to accept no responsibility for their own lack of compliance.

XchangeIT has one job. They failed.

Gotch should have one job – distributing magazines based on what will certainly sell. They fail weekly.

People in both companies will be angry that I am writing this, they will have their excuses. In  my opinion, the excuses will be baseless.

If Gotch has the time and money for a new venture they have the time and money to stop gross oversupply and to stop the distribution errors that cost newsagents a ton of money.

If XchangeIT can send out a data file riddled with errors and that they have not tested they have no right penalising newsagents on their compliance.

22 likes
Ethics

Tatts changes new shoplift deadline, again and again

Tatts has issued three shift deadline extensions in recent weeks. Here is one announcement from a week ago:

You were initially required to have the Generation One DigiPOS Retail Image installed at your Outlet by 30 November 2017, however an extension has been granted to 30 November 2018.

Here is an announcement from yesterday:

An email was sent to you on Friday 3 November 2017 stating the requirement to have the Generation One DigiPOS Retail Image installed in your outlet by 30 November 2017 had been extended to 30 November 2018. This was incorrect.

The extension has been granted to 30 June 2018. We apologise for any confusion this may have caused.

In addition to the timing changes, there are changes to the actual look to be installed. This is sure to leave a mixture of looks out there, making a mockery of their pursuit of a consistent corporate image.

It still bothers me that they call this a DigiPOS Retail Image. It’s not. there is the image and then there is the digital marketing platform. Two different things with the latter being new capex for which tatts is yet to provide any business case and for which any business that has undertaken the works is yet to provide evidence of commercially viable revenue increase.

This post relates to my more beef about Tatts – the capex they demand of retailers in this world where there is undeniable migration  of lottery purchases to online. Tatts need to migrate purchases online, I get that. They should, in retail, contain costs for small business retailers and require them in the context of over the counter only and not online.

6 likes
Ethics

Shoppers loving personalised Christmas baubles

The personalised Christmas ornaments released by newsXpress through its stores have been selling very well.

What is most interesting is that 90% of all the many names ordered are unusual names, names you would not see on any named product stands released by traditional name product suppliers.

Shoppers have been happy to pay up front and return to collect their personalised baubles once made.

This is incremental sticky business. I label it sticky because it causes a return visit and because it gets the shopper thinking about what other personalised items the store can source. This is a big question for people with family and friends with unusual names.

These baubles are an example of one way we can make our own success, literally. They are something the majors do not and will not do.  The margin is excellent. The simple counter pitch is effective.

At the back end, the whole process is tech driven with no paperwork involved. A purpose built website is used by the engaged retailers. This also facilitates useful data analysis, to better inform other developments in this personalised space.

This personalised bauble initiative is part of a larger piece of work in this space being driven by newsXpress for its members, as part of an overall new traffic campaign.

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Gifts

The impact of the Tatts digital marketing screen in one newsagency

Here is a message from a newsagent in a business that installed the Tatts required digital marketing platform.

Since we installed the Tatts demanded technology sales have declined. Syndicate sales especially have fallen.

Yesterday, we were stuck with 6 syndicates worth more than $120.

Since the refit, syndicate sales have cost us around $1,000.

Before the refit, we sold out.

This is a direct result of the refit, we previously maybe had to be an odd share rarely… our syndicates are usually sold out well before.

There solution to this problem when we raised it with them was to print out more posters and stick up!!!

After their amazing refit, we still have to print out posters which clearly are ineffective too!

If this was me I;d explore a class action as tatts demanded I invest in their technology with the promise from them it would increase sales.

10 likes
Ethics

Look at what is broadcast on the Tatts digital screens that fail to deliver sales boost

Tatts has demanded retailers install digital marketing screens at the counter, without a business case but with the claim sales will increase. Experience is showing no such increase for the stores forced to install the screens so far.

I stood at a counter yesterday and filmed for a minute, longer than most customers wait, to see the pitch. here it is.

This is a failure by Tatts in my opinion, for which many newsagents who have installed the screens so far are paying dearly.

If I was forced to install the screens by Tatts and if they were not delivering any benefit I would lodge a claim for compensation. Such a claim would include with state claims tribunals, state and federal small business commissioners / ombudsmen as well as with the ACCC through the Franchise Code of Conduct process. I would be seeking financial relief from Tatts. I would also talk with a legal firm that specialises in class action.

Note: I added the music to the video to mask shop noises.

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Lotteries

What is acceptable behaviour by employees at the counter?

What do you permit employees to do at the counter? I ask this today following a discussion with a colleague newsagent recently about rules for employees at the counter and the decision to let an employee go.

Here are the rules I have for employees at the counter:

  1. No sitting on the job.
  2. No reading for pleasure.
  3. No texting on the phone.
  4. No chatting with friends.
  5. No doing crosswords.
  6. No doing homework.
  7. No eating.
  8. No entering competitions.
  9. No browsing the Intern et.
  10. No using your mobile phone unless it is to report a medical emergency.

What are your rules?

Have you sacked any0one for non-compliance?

9 likes
Newsagency management

Tha Age labels Lottoland a pariah

The Age today slices away at Lottoland.

The company does not tell us what this percentage is but only 16 per cent of its revenue is from this source. The vast majority of the revenue it recognises is actually just a reimbursement of costs incurred “generating stakes on behalf of EU Lotto Limited”.

In other words, the revenue number appears to be as synthetic as its lottery service.

Burn.

10 likes
Ethics

Now is the time to act on the reusable bag opportunity

Coles supermarkets are ahead of many in small business retail in pitching reusable bags at the checkout. Take a look at thew photo and see the $2.00 bags they have placed at each checkout I the Coles outlets have seen in the last few days.

This is a smart move. It pitches the Coles business as concerned for the environment and on thee front foot in terms of reusable bags.

We can do this too thanks to plenty of suppliers offering access to low-cost quality reusable bags.

Select bags that look good, that appeal of what people like, place them at the counter, like Coles, and don’t seek to make too much money on them.

I think you will do better selling non-branded bags than branded as people will expect branded bags to come at no cost with purchases. I tapped to agree with that.

8 likes
Social responsibility

Facebook by the numbers

Here are numbers released by Facebook at their latest results announcement overnight. The numbers reinforce why the Facebook community is valuable for small business retailers to leverage.

• Daily active users (DAUs) – DAUs were 1.37 billion on average for September 2017, an increase of 16% year-over-year.

• Monthly active users (MAUs) – MAUs were 2.07 billion as of September 30, 2017, an increase of 16% year-over-year.

• Advertising revenue for three months ending September 30 jumped 49% YOY to $10.14b.

• Mobile advertising revenue – Mobile advertising revenue represented approximately 88% of advertising revenue for the third quarter of 2017, up from approximately 84% of advertising revenue in the third quarter of 2016.

• Capital expenditures – Capital expenditures for the third quarter of 2017 were $1.76b.

• Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $38.29b at the end of the third quarter of 2017.

• Headcount – Headcount was 23,165 as of September 30, 2017, an increase of 47% year-over-year.

[All figures US$]

Source: Mediaweek.

3 likes
Newsagency management

Newsagency management tip: take care how you price items

With more and more collectibles being sold in newsagencies, it is important that the value of the collectible is maintained. This means not writing prices on boxes and not using stickers with an adhesive that leaves a hard to remove residue.

People who purchase collectibles will stop purchasing fro you if the items they collect are damaged in a way that compromises the value of an item.

Yu have to think like them.

9 likes
Management tip

Why Afterpay is rejecting newsagents as merchants

Plenty of newsagents who have applied to to offer Afterpay in their businesses have been rejected early in the application process.

Afterpay is rejecting these businesses on the basis they sell three product categories that are not permitted under its terms: gambling, tobacco and porn.

While I have made representations on the rejections of which I am aware and explained how problematic products can be fenced off from being paid for through Afterpay, the rejection remains on foot.

The terms established by Afterpay reflect their own business terms and, I suspect, terms imposed by financiers and others with a stake in the Afterpay business. Others in this lending space have similar terms.

Newsagency businesses that are not agents and not convenience focussed have a better chance of overcoming the Afterpay ban.

This all matters because of the commercial value to retailers on the buy now pay later model. Through my work with newsxpress I see plenty of business being won by newsXpress members selling items,ms today that shoppers will pay for over time. This is business that would have gone to other retailers.

There are stores winning click and collect business from shoppers repaired to drive an hour or so to pick up something paid for through Oxipay (like Afterpay), which they could have bought locally but COD or on LayBy.

Once a purchase decision has been made people often want the item(s) immediately.  Hence the value of offering this buy now take it now pay later service. This is why the Afterpay rejection needs work.

11 likes
Ethics

Politicians in Australia to small business retailers: don’t do as I do, do as I say

The federal parliamentarian dual citizenship mess in which we have found ourselves here in Australia for months now shows how politicians treat themselves as elite, special, compared to common folk, the voters who vote them in.

While we in small business are highly regulated, subject to audit and penalised for even simple honest oversight, politicians refuse to permit themselves to be subject to the same.

While individuals are highly regulated, subject to audit and penalised for even simple honest oversight, politicians refuse to permit themselves to be subject to the same.

The moment the first dual citizenship question was raised, an ethical leader keen for democracy would have ordered an immediate full audit of the status of all politicians.

We are bereft of leadership for everyday Australians in Australia.

For months major party politicians have spun their wheels on the issue of dual citizenship and refused to agree to the type of audit that is regular for us in small business. For months they have said politicians should self regulate on this issue while at the same time imposing challenging and enforced regulation on small businesses and on individuals.

Shame on us for allowing your politicians to get away with them setting a standard for their own behaviour that is lower than standards they vote to impose on regular people.

The one party that has provided leadership on this issue is the Greens. From the outset they called for an audit. The are right. Yet their call has been mocked, especially by the government side of the parliament. This side of the parliament that is in control, in leadership, has eschewed leadership and instead engaged in puerile games.

They must think we are fools.

There ought be an audit of all federal politicians immediately, no matter the disruption or the cost.

Section 44 of the Constitution is not new. Its provision have been known for decades. It is easy for anyone to determine their status. Whether they do this comes down to how they see themselves compared to how they see the peril they serve.

We the people deserve honest leadership, leadership that is transparent and for all people, leadership that submits itself to the same standards and level of regulation as they impose on those they serve. We do not have this in Australia at the moment.

Every day, we see small business retailers squeezed by regulation, while at the same time, right now, seeing politicians refuse even basic regulation. This double standard has to stop, for the good of our country and democracy.

30 likes
Ethics

Are you paying family members properly?

I received a call from the child of a newsagency owner recently wanting to know how to handle them not being paid appropriately.

Their parents pay them in cash for a full time role. No tax. No super. No leave entitlements.

While this seemed like a good idea at the time, now that they are considering a home loan they have no employment records on which to base the application.

Family members who are not shareholders need to be paid according to the award, m accurately and on the books.

9 likes
Newsagency management

Pitching cards on social media

We love the reaction to this social media post pitching a card. It’s the type of post I was referring to when I wrote abut Facebook recently. It connects emotionally with Facebook users.

The more we pitch our businesses with a look that is unexpected for a newsagency the more people will not identify use as a newsagency.

7 likes
marketing

Recycling newspapers and magazines

I was fortunate to visit a gallery last week showing items from recycled newspapers and magazines – hers and his bags, jewellery and clothing. This is one of the higher-end bags. The range is a significant advance on similar products I have seen.

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magazines

Pitching a sugar-free Christmas

We have the New Idea Sugar-Free Christmas one-shot off-location so more shoppers see it. We have it in an easily moved free standing unit, midway in the shop near cards and gifts. It taps into the high level of interest right now in all things sugar-free. It is the kind of title people will purchase on impulse – hence the off-location placement.

3 likes
magazines

Good campaign by Oxfam on corporate tax avoidance

I support the campaign by Oxfam calling on companies to pay their fair share of tax. While it is the campaign against online sales that is getting media attention, there are plenty of businesses, big businesses not paying their fair share of tax. News Corp. in Australia has come under fire on this as have others.

While the Oxfam campaign focusses on the impact on poor countries, Australia would be a better country if big businesses here paid their fare share of tax and if they did not receive the handouts they receive.

Small business does more heavy lifting as a percentage of turnover than big business. That needs to change. It will only change when we have politicians on all sides who stand up to big business.

9 likes
Ethics

Facebook community growth is as important as shopper traffic growth

Growth in the number of likes for your business Facebook page(s) is as important as growth in shopper traffic through your front door.

I see a direct correlation between the two, if you use Facebook well. Of course, if is the important word in that statement.

I have been actively using Facebook for business for many years. It is an excellent platform of reaching new customers and talking with existing customers. It is an important tool in business growth.

HOW DO YOU GET MORE LIKES ON FACEBOOK?

This is simple, provide good content, content that gives people what they come to Facebook for – entertainment, inspiration, a laugh. The more you do this the more your post will be liked and shared. The more likes and shoes the more people you reach.

Growth in likes for your page begins with your content. If your page likes are not growing, look at your content.

While you can ask people to like your Facebook page, resulting likes may not be as valuable as those who like your page of their own accord.

You can also buy likes. That, however, is a waste of money.

HOW DOES A BUSINESS USE FACEBOOK WELL?

Businesses that use Facebook well entertain. This can be by making people laugh, smile, feel emotional or be happy overall. They do it by being human, real and engaged. They do it by not trying to sell. They do it y not being commercial.

Photos are real, not studio shots, showing products in use more so than on the shelves. They show customers, happy customers.

They share something of themselves.

A newsagency uses Facebook well by not writing about products newsagents sell.

HOW DO MORE LIKES OF YOUR BUSINESS TRANSLATE INTO MORE SALES?

Someone engaging with your business Facebook page is similar to someone browsing your shop. Both can lead to sales.

People being on your page and engaging with your page brings them close to you and proximity = sales.

The more people who like your business Facebook page the more people you can pitch and offer to or reach out with an event or product announcement, them more people who will hear what you have to say.

Take Facebook seriously as a key business tool. The benefits are real and valuable.

10 likes
Management tip

The important charity connection

Australians love charity connected Christmas cards.

I know because of the number of requests I see in0store and through social media. Some customers make card purchase decisions based on the charities being supported.

People want to support charities they know and trust.

While the ideal situation is that suppliers negotiate with charities and promote their support on products in-store, we, at the store level, can engage with charities ourselves and thereby pitch charity support where a supplier has not taken up the opportunity.

I think this is especially important at Christmas where so many boxed card packs have a charity message.

If your boxed cards do not have a city connection, consider partnering with a local charity. For a modest donation they may allow you to include a sticker on each product – promoting their work and your support for them. This is the key element in driving sales.

It does not always have to fall to your supplier to leverage a charity connection. Indeed, supporting a local charity can work particularly well. This can help you be on the front foot with other charities and community groups that ask for money or products as a donation. You can point to your current engagement and suggest they make a submission for next year.

It can be frustrating the number of requests for support. I see it from a retailer and from a supplier perspective., Almost daily there is a request for money or some other form of support, often without a commercial benefit.

The challenge is that if businesses are not profitable they are unable to support these requests. hence the importance of a commercial benefit. This is where supporting a local group or charity could work for a local business in that their members and supporters could be leveraged to support the business.

If you do have boxed Christmas cards offering national charity support, actively promote this in-store and on Facebook. relying on the note on the product to do it is not enough. Be active, talk about the charities supported, their work and your pride in being able to support them.

It is vital you make the most of any charity connection as early in a season as possible.

8 likes
Greeting Cards

News Corp newspaper promotion in Coles

I noticed this promotion with 25,000 double movie passess on offer in a Coles supermarket on the weekend. It was being promoted on in-store radio as well.

This is a sweet deal. It is being managed by Loyalty Pacific News Corp and Coles. To get in on the deal the shopper needs to purchase using your FlyBys card.

Thinking about it, it is smart marketing as they are focussed on getting the supermarket shopper to add a newspaper, or two, to their basket.

Coles is an easy platform as all stores in their large national network are corporate owned, the whole organisation is KPI engaged and they have platforms for driving this – in-store radio, front of store displays and an integrated loyalty program.

6 likes
Newspaper marketing
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