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

Author: Mark Fletcher

Shame on Sunrise on the Seven Network for promoting Lottoland versus small business newsagents

On the Sunrise breakfast TV program yesterday the hosts crossed to the CEO of Lottoland, Luke Brill, who was standing outside a newsagency, for a story (an advertisement really) about the US Powerball jackpot Lottoland was promoting.

Shame on everyone involved in the Seven West Media Sunrise program for this segment, especially the decision to have the Lottoland CEO outside a newsagency. What were they thinking?

Surely, someone in the production team on Sunrise would have thought hang on, we are part of Seven West Media, we produce shows that are featured in magazines that we rely on newsagents to promote and sell … oh and worse still through our Pacific Magazine subsidiary we publish New Idea, Better Homes and Gardens and other top selling magazines that we rely on newsagents to promote. Why are we joining in attacking and mocking them with this Lottoland segment?

If someone did think that and did comment on it, they were not listened to. Instead, what went to air was a continuation of the attack on our local family owned tax paying small businesses. Shame on everyone involved at Sunrise.

In case you missed it, here is the story that aired:

This story is an attack on small business as well as an attack on Australian taxpayers. It comes on the back of a relentless TV ad campaign by Lottoland that mocks small business newsagents.

  1. Lottoland is a company registered in Gibraltar, where they pay no income tax on money earned from overseas.
  2. Lottoland pays no local taxes like Tatts pays. $1 spent on Lottoland does not deliver the same benefit for the local economy that $1 spent with Tatts delivers. Reports indicate in Victoria alone the cost is at least $90M over three years.
  3. It has its gaming licenced through the government of the Northern Territory.
  4. Lottoland purchases have been banned in South Australia.
  5. New WA Premier Mark McGowan has said publicly he favours the SA model.

I am shocked someone in the production side of the Sunrise show did not question the story, especially the placement outside a newsagency. I am equally shocked the hosts did not bring more balance to their story.

The folks at Sunrise were happy to talk up the US$800M+ prize value and while they did explain a Lottoland ticket is a bet on the numbers drawn, there was no clarity around what a winner would actually receive. My reading of the 14,483 words under the terms section on the Lottoland website indicate that the US$800M+ would never be paid in full as they would apply the US model. In the US the IRS takes a percentage for tax. However, Lottoland pays no tax so I am not sure of the basis on which Lottoland would claw this amount from the win.

I think there are ethical and social responsibility questions for politicians to answer about Lottoland. This company is ripping millions of dollars out of Australian wallets for which there is little or no community contribution. They are doing it at a cost to local family run newsagencies – that employ locally, pay Australian taxes and support the local community.

Politicians who care about the local community and about small business should want to stop this bleed.

Lottoland think they can win the community engagement challenge with a million dollar deal to name a sports stadium. We are stupid if we let their spend at Manly pay off.

Oh, and all through this, the genius folks at Tatts have remained silent. They have allowed the Lottoland attack on small business newsagents continue. Indeed, some Tatts in-store collateral appears to have been inspired by the Lottoland ads. Totally ignorant or dumb or both. It’s Tatts, who knows?

I don’t have lotteries in my businesses so none of this affects me at the register. However, I have business relationships and friendships with newsagents who are affected, every day. That a TV show that positions itself as a show for Aussies has participated in this is gutting for them.

What should Sunrise do? They should be clear about what Lottoland is. they should trace $100 spent on lotteries at a local newsagency and compare that to the same spend on Lottoland. They should talk about the role local newsagents play. They should engage in robust and transparent debate about Lottoland versus local lottery products. The should ask politicians why they are not acting. They should look at their processes to work how how this screw up occurred. they should apologise to small business newsagents and all who work in them. They should ask Tatts why the have been silent through all this.

What should newsagent do? Write your local politician along these lines: My family runs a small newsagency business serving our community. We employ locals. We pay taxes. What do you intend to do about the Gibraltar based online gambling business Lottoland that is attacking us, taking revenue from us and not contributing to the local economy like we do?

Consider a Facebook post: The Sunrise TV show this week ran a story about Lottoland and their $800M+ jackpot. They filmed this outside a family run newsagency. Lottoland competes with newsagents. We pay Australian taxes. They don’t. One you win first division with us, you get the total prize. With Lottoland you don’t When we sell you a lottery ticket it is a ticket in a lottery. Lottoland sells you a bet, not a ticket. If you want to support your local economy, local jobs, better roads and better schools, support local newsagent lottery outlets and not Lottoland. Oh, and tell Sunrise to stop promoting Lottoland.

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Competition

The opportunity of the marriage equality survey for newsagents

Regardless of your position on the question being put in the marriage equality survey next month, it is an opportunity for engagement that reinforces your local connection.

You could declare your position and promote that in your business. While I expect that would scare some newsagents, the challenge is to believe in your opinion enough to leverage your business to support the opinion.

You could host a survey party where people come in and complete the survey and have a bit of a part to boot.

At the very least you could ensure people are enrolled to vote, although the deadline is today for that. Click here to go to the AEC website where people can check. Offer to do this for them.

Alternatively, without declaring a position, you could establish a noticeboard in your business as a place for respectful statements for the yes and no positions. You could remove any statement or poster that you consider to be disrespectful or hurtful. However, I would argue that any statement against voting yes is hurtful given the evidence form the US and elsewhere where same sex marriage has been legalised … suicide among gay people has declined.

Engaging on an issue like this shows your business as engaged with the community. Sure, there is a risk of alienating either side, or both. However, not engaging shows your local business as not being engaged on what is being reported as the biggest single issue in the country this decade. An engaged business is a healthy and confident business.

Here is the post from Facebook last night that I did for one of my businesses. I used the same text with only a suburb change for each. The reaction overnight has been terrific.

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Newsagency management

News Corp. paper bundles frustrating newsagents

It seems that bundled deals are the new normal with News Corp. with more running in different locations and for different mixes of titles.

Given the poor communication from News Corp. to newsagents and to the software companies, how newsagents handle the various discount ts in-store is not as consistent as it could or should be. The result is a hodgepodge of data that I suspect will challenge the company’s ability to assess the results of the promotion.

The smarter move for News Corp. would be for them to develop a national strategy, liaise early with the software companies, agree on structure and then rolled it out to newsagents with advice for each software program to ensure newsagents do this one way – so that the data feeding back to News Corp. marketing gives them what they need.

The current approach takes up more time than it should and results in more data of little or no value.

News Corp. nationally has always been poor when it comes to data and IT. If only the folks in Victoria were listened to 15+ years ago when they lead Australia on the tech front.

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Newspaper marketing

Flexible shop fixtures

I am often asked about flexible shop fixtures that can be changed as the needs of the business evolve. In my last major shoplift I used the fixtures from Nufx. I have no commercial relationship with them, other than as a regular customer. Gary Walsh is the contact. He provided excellent service. 0477 006 233.

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Newsagency management

Father’s Day is an opportunity to reset men’s gifts

Gifts for men are a challenge for shoppers and retailers. Shoppers commonly say they can’t find anything interesting for me and retailers often say the same thing at gift fairs and from talking with gift wholesalers. This problem is magnified in the newsagency channel where suppliers assume what we can sell, and are often wrong.

We are using Father’s Day to pitch some fresh gifts for men in multiple locations in-store. Gifts not from traditional newsagency suppliers. The key to this is each display displaying range more so than volume of stock.

It is working well with gifts performing well in the business, people discovering items they did not realise we stocked, gifts that work outside of the Father’s Day traditional gift.

Some items have been imported especially, thereby providing a unique platform for pitching in-store and online. They help bring a fresh visual aesthetic to the season, which I like.

A kock-on benefit for us is the traffic the various father’s Day displays attract and they opportunity to then browse nearby Father’s Day cards. This is important as newsagencies are not the same destination for card season traffic that they were a few years ago.

I am excited for Father’s Day this year and what we can do to reposition the business as a offering gifts for a broader appeal than people may have assumed.

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Newsagency management

Newsagents frustrated with Belle subscription offer

There is no missing the subscription offer sticking out from the current issue of Belle magazine on newsagency shelves. In fact, it sticks out so much that it covers most of the magazine in the pocket located behind it – making this pitch not only disrespectful of newsagents but disrespectful of other magazine publishers. Shame on whoever is responsible.

Newsagents make 25% off each magazine sold. This bold subscription is offensive as it is the publisher using our real estate to convert shoppers from in-store purchase to subscription.

I get that subscriptions are part of the mix. This is different given how it is being promoted. It is stealing our retail space and maybe hurting sales of other titles along the way.

It sucks.

10 likes
magazines

Media coverage on old news of Lotterywest CEO change

The Weekend West splashed a full page oh poor me story last weekend on the departure of the former Lotterywest CEO, following a FOI request by the Liberal opposition.

It is disappointing and unfortunate The Weekend West ran this story as they did as it did not tell the full story of the harm done to small businesses and the families that own them by the decisions of the old, now removed, executive leadership of Lotterywest.

Whereas the story paints the former CEO as a victim, newsagents suffered tremendously – financially and emotionally.

Thankfully, the has changed as a result of the change of government and subsequent decisions.

If I was a newsagent in WA selling Lotterywest products I’d be banging on the door of the Editor of The Weekend West  to demand more balanced reporting rather than this oh poor me piece about a CEO who lead an organisation through a period of extraordinary bullying and financial hardship meted out against family newsagency businesses.

I am grateful to newsagents in WA who let me know abut this report on the weekend.

Read more here about the improving relationship between newsagents and Lotterywest following the state election and subsequent decisions by Premier Mark McGowan.

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Newsagency management

The value of promoting cards outside the newsagency

Now more than at any time in our history we need to promote cards outside our businesses. We have more competitors pitching cards, more businesses taking sales from us.

Relying on a good range of cards in the card department is not enough. Expecting the card company to attract shoppers to our businesses is not a plan. No, we need to promote cards ourselves.

We need to promote cards outside our businesses. We need to do this in an entertaining and appealing way, drawing attention to our business as a place for purchasing cards.

This promotion is best done outside seasons as that is the period when we are most at risk from people shopping at competitors and from people choosing to not send a card at all.

Selecting specific cards works well too as this enables you to shine a light on cards shoppers ,may not have expected to find in your business. When I have suggested newsagents select cards for such a promotiuon they have been surprised, in a good way, at some of the cards they find.

Social media platforms like facebook, Instagram, Twitter and Pinterest lend themselves to promotion of cards. There are tools we can use to easily create visually appealing content. If you are in a marketing group they may have content you can already use.

Here is some of the card-focussed marketing material published by newsXpress this month for its members. The first is one of several new videos in-house produced promoting cards:

Here is another video, this one with a retro style:

Here are some still images for static social media use as well as use through other platforms – all promoting cards.

You can’t rely on a card company to do this as they have more customers than your business, including mass retail outlets.

Reaching outside our businesses to attract shoppers for cards is important. Not once, but regularly. We must do this to remind shoppers of the wonderful cards we have, the range and that we are local.

While you can take a photo of your card department, that will not work on social media. My experience is that it is best to focus on single cards or a caption theme, and to do this is a visually appealing way.

Doing nothing here is not an option. I suspect if you do nothing card sales will decline.

Footnote: in case you think this is promotion of newsXpress, it is not. newsXpress is a reference point for me as it is where I work, it offers examples I can speak to.

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Greeting Cards

What you need to know about Amazon setting up shop in Australia and what to do about it

There have been many reports about Amazon opening distribution centres in Australia, with the first, in Dandenong Victoria, well advanced in preparation.

Little advice has been provided to small business retailers on what is needed to compete in this ever evolving online-focussed world.

At this workshop I in Sydney later this week will share insights from the various retail store connected websites with which I am involved. I will show the data: when, hope and why people shop. I will take you under the hood, back to what they search Google for.

I will explain steps you can take in your business to win business that Amazon sellers m might otherwise try and win from you. I will also share details of experiences overseas, from small and independent retailers.

I will show how you can get online in any type of business, without breaking the bank and without needing your own tech employee. Plus, I will answer every question you have about these topics.  Without obligation.

Book now. These workshops are free. All welcome.

  • August 24, 8am. Figtree Conference Centre: Mission Room, 5 Figtree Drive, Sydney Olympic Park NSW.
  • August 24, 11am. Figtree Conference Centre: Mission Room, 5 Figtree Drive, Sydney Olympic Park NSW.

I will demonstrate live websites connecting to newsagency businesses with POS software. I will also show how to transfer stock to a website and how to manage images.

I’ll set dates for Adelaide and Melbourne in a day or two. This is an update to a session I first hosted several months ago in NSW and QLD.

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Management tip

Virgin CEO looks forward to his morning newspapers

Virgin Australia CEO talked up print newspaper in a recent Q&A:

What are some things you do every day?

I have breakfast! I work every day to some degree, obviously not all day Sunday. I suppose I have a routine. Wherever I am, I get up, cup of coffee, slice of toast and the papers – the hard (copy) papers. We still have the papers delivered – they’re delivered every day at 6am and I’m waiting for them sometimes. I spend 40 minutes doing that and the days I don’t do that I really miss it.

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Newspapers

Marketing tip: pitch Father’s Day cards at the counter

The right Father’s Day cards placed at the counter will achieve incremental card business for you, easily. The key is the thoughtful selection of cards. The next important point here is location – placed so every shopper presenting at the counter sees the cards.

Doing this is helping is achieve good Father’s Day card results for us already.

The photo shows one of two pitches at counter positions in the business. This is in addition to lease lain placement of the main range, facing into the mall.

Note: the cards in the counter units change every few days, based on the anticipated shopper mix that day.

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marketing

Management tip: think carefully before permitting reviews on social media

There is a risk in inviting people to review your business on social media. It is easy for a competitor or someone else who wants to damage your reputation to rate your down with a false review. It can be tough to recover from.

Since there is usually no verification mechanism for a review on, for example, Facebook, I think it is best to turn off the review option, thereby removing the opportunities for those who want to harm your business.

The opposite is true too. I have seen new businesses with hundreds of positive reviews within a day or two of opening. I doubt the accuracy of the reviews.

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Management tip

Lottoland ad standards issue?

Check out this latest email from Lottoland. The headline is the $644 million jackpot. That is what they use to get your attention.

The thing is, $644 million is not even close to what you are paid if your bet wins.

You have to follow the * to get closer to understanding what the ‘win’ is. Even the detail is not readily available.

*Main jackpots for bets on the US Powerball and US MegaMillions are paid out as 30 year annuity or discounted lump sum at Lottoland’s election, and also subject to 35% reduction as per T&C’s. US Powerball is not connected to the Australian Powerball. Bet on Australian & International Lotteries Online.

The marketing email does not directly link to the terms and conditions. If you go to their website you can find them there. They are long and detailed. After reading a while you can see that a win of $644 million is not paid as that, there are hoops to go through, rules that can dilute the amount.

Reading all this at their website leaves one wondering if there is enough there to challenge their marketing approach through Australian ad standards approaches. I know there have been some challenges. More may be helpful.

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Competition

Sydney gift fair struggles to regain momentum

Plenty of suppliers are yet to decide if they will invest in the Sydney gift fair in September or any other Sydney gift fair following poor fairs and growth from the Melbourne fair in August.

While the temporary location of Sydney away from Darling Harbour during reconstruction could be a factor, folks I have spoken with who have experienced gift fairs overseas in Birmingham (UK) and Atlanta (US), say they like the idea of a bigger single city fair.

I see value for retailers and suppliers in Melbourne growing as the main gift fair to attend in the year. I think such a move would sever everyone, reduce costs and drive competition. While I expect there will continue to be other fairs, I suspect they will be less important, probably more regional, even more local supplier focussed. This is what I see in the US at regional gift fairs.

The Sydney / Melbourne ‘rivalry’ re gift fair location has been a topic this week because of agitation fro the organisers of the September Sydney event chasing last minute commitment for the event next month. I am surprised at some who have said no.

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Newsagency management

Clumsy move from GNS in asking newsagents for help on what gifts to stock

An account manager from GNS contacted the senior manager of my retail stores asking what gifts we stock that GNS could consider offering.

The account manager advised that they asked us because their boss asked them to.

My initial reaction was that this is a joke. I could see no logical reason for GNS seeking this information from my stores.

It is not a joke. It happened. The request for help from us by the GNS account manager was real, it was genuine. They wanted to know what was working to determine if they could offer these gift lines.

The more I thought about their request for information the more frustrated I became at their request.

GNS has no role to play in the gift space in my opinion. They would add a layer of cost, making gifts more expensive for newsagents. They would also bring to the category poor ranging and other challenges of their old-school approach to wholesaling.

I don’t think GNS handles stationery all that well. They should get this right before expanding their focus in the gift space.

I can understand why GNS would be looking at further expansion into gifts given the state of stationery sales in the newsagency channel. However, GNS leadership would get a better return by investing in strategies for driving stationery traffic for newsagencies, ensuring they have the right stock at the right time and driving efficiency in their operation.

Based on what I hear from other newsagents there is frustration among newsagents at GNS leadership on their lack of leadership on a range of fronts.

But back to the question put to the senior manager of my retail stores. I am shocked they did not think through their question. Seriously.

As I understand it, GNS is the majority shareholder of Newspower. Surely Newspower could help in this area. Why, then, go to the senior manager of newsXpress corporate stores and ask for help on what gifts GNS should stock? It does not make sense. It is like Newspower asking newsXpress for help – but probably without the knowledge of the folks at Newspower.

Either someone has not through this through or the GNS situation is parlous or Newspower has nothing to offer. I don’t know! I have no inside knowledge. All I do have is the evidence of the request for help and the advice from the GNS account manager that the help was sought because of a request from their boss.

newsXpress has a carefully selected range of preferred suppliers, many of whom will not supply newsagents direct. The supplier mix is an asset of the business, it is unique. Through its ownership of Newspower GNS is a competitor of newsXpress. Again, the request for help does not make sense.

I would be interested to know if others have been approached by their GNS account manager seeking advice as to what gifts are successful to determine what GNS could stock.

Gift, toy, plush and collectibles revenue is up year on year on a same store basis in more stores. This is driving overall GP %. There is plenty of good news out there, plenty of optimism. This is thanks in part to a broad range of niche wholesalers. It has little to with the big warehouse style wholesalers. Those types of businesses are challenged in my view.

I have not gone to GNS management about what happened as I saw no point. There would be an explanation, which I may or may not have believed. It would not alter what they have done.

33 likes
Competition

Do you sell the Cleveland mini western books?

In a newsagency in Central Queensland yesterday I saw a big range of the Cleveland western titles, eight different titles in all.

I have not seen these in my own suburban newsagencies for years and was surprised to see such a big range of new release titles.

I was pleased to see the range as they are special interest titles that will attract shoppers. Special titles are important to us, to the businesses where there are people interested in the topics covered.

While these western fiction titles may not interest plenty of newsagents, l there are other special interest titles that would appeal.

This is where the Gotch push model problematic. It may not push titles you can sell. To find such titles and order them is difficult with then poor quality technology interface from Gotch. I wish they would fix this as I am sure they would sell more titles.

Talking to some other newsagents yesterday they don’t have the western titles and felt they would sell. however, they won’t chase them because of the Gotch processes.

Small and independent publishers, the main publishers of special interest titles, should agitate Gotch on this as newsagents are the best retail network for special interest titles. It should be easier for us to source and stock these.

While magazine sales are declining, in the special interest this is less likely. Indeed, there are some segments in special interest where there is good, localised, growth.

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magazines

Tough result from Pacific Magazines

The results announced from Seven West Media include challenging numbers for Pacific Magazines, as reported by Mumbrella:

One of Seven West Media’s major areas of loss was Pacific Magazines, which reported annual revenue of $168m, down from FY16’s $201.2 (-16.5%) and EBIT fell 61.5% from $9m to $3m.

Lack of advertising spend and small circulation numbers were indicated as reasons for the decline. Pacific Mags’ cost-out programs reduced operating expenses by $28.9m.

However, digital revenue from Pacific Magazines climbed 26.3% to $16.8m.

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magazines

Being responsive on Facebook matters for online sales

Facebook notes on your business page your responsiveness to messages. People notice this. Being more responsive can win your more business.

Last week we posted about a new  item on Facebook, with a link to a web page with more details and images of the item including a video. At 9pm that night, hours after the store had closed for the day, someone messaged us with a query. Our quick response won us a $200 sale and brought someone to the shop the next day, the first time they had shopped with us.

While we appreciate downtime to be with loved-ones and recharge, in retail today, more than ever before, downtime is less of an option if you want to win business when people want to shop.

It is not so long ago when we were debating retail trading in Australia. Without regulatory consideration, without political involvement, we now have 24/7 trading.

If you business is not accessible 24/7 you are 100% missing out on revenue. I say that with certainty based on the data I see for my businesses and for newsXpress businesses. You may be okay with that, and that is cool.

There are several types of 24/7 online purchases.

  1. Pure online with delivery to the customer or the person they are buying for.
  2. Online purchase and in-store pickup – this is click and collect.
  3. Online research, direct message to the store and arrangement to purchase but not through the website.
  4. Online research, making a decision to purchaase and then in-store visit to purchase over the counter.

Each of these is valuable. Each requires a website that is easily found and a social media presence connected to the website. In fact, multiple websites work even better but that is a topic for another day.

The thing is, online sales are growing at a rapid rate. In some newsagency related categories they are growing at a rate faster that any I speak with think. There are ways to use technology to engage with the online shopper 24/7.

Too many small business retailers think of a website serving their local area or the shoppers they see already. The reality is the real value of a website (or websites) is the people you sell to who would otherwise have no contact with your business. This is where retail businesses in small population locations can overachieve for their area. It is ow you can achieve a better return on inventory investment that merely by opening the doors of your shop.

Yes, this means being accessible during what would often be down-time. This is vital if you want to win business when people want to shop, if you want to maximise the profitability of your retail business.

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Gifts

Frustrating Blueshyft article

The Australian Media section ran a piece on Blueshyft, the over the counter agency offering pitched to newsagents.

The article says Blueshyft has turned newsagencies into digital shopfronts. I disagree. Sure, it gives participating newsagents agency revenue. It is not a digital shopfront. Newsagents have had that for years through other platforms and many have more recently through product selling e-commerce sites linked back to newsagencies.

The article refers to Blueshyft as a smart-tech platform. In my opinion it is not smart technology. Their data handling alone with newsagents is far from best practice. XchangeIT has let them get away with lazy tech, clogging systems with unnecessary data that a smart technology solution would not require.

My complaints aside, this is a nice enough promotional article and I am sure newsagents will be pleased to see the coverage.

In case you think this is sour grapes. It is not. I have no commercial relationship with  Blueshyft and have not sought one. I don’t have it in my businesses as it is a service that is incompatible with my view of the future of retail businesses with which I am involved.

13 likes
Newsagency management

Crosswords with newspapers

I like this placement of crossword titles with newspapers that I saw in a Hudson News outlet in the US last week. Back when newspapers were a better traffic driver I certainly placed crossword titles next to them.

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Newspapers

Tatts continues to promote online only, ignoring retailers

Here is an ad that came up in my Facebook feed because some friends, newsagents, like the Facebook page for TheLott.

Here is where I landed once I clicked Open Link.

Here is the subscription option offered after numbers were selected and prior to checkout:

Tatts promised newsagents it would stop this, yet here it is, again, promoting online, leveraging the hard work you do in your shop to promote the brand.

There is no upside in over the counter lottery sales in my opinion. Tatts is chasing customers where they are, they are making buying lottery tickets easier.

19 likes
Competition

Newsagency marketing tip: make gift buying easier

Display pre-wrapped gifts with suggested cards and make gift buying from your shop easier than anywhere else. Guys especially like this service.

This is a terrific way to differentiate your business. Wrap each gift differently, make it personal as that is what shoppers are looking for.

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Gifts

Newsagency management tip: consider a profanity filter on your Facebook page

Facebook offers you settings on your business Facebook page that enable you to mute offensive words. I suggest you check k your settings and ensure they are what you want for comments on your business Facebook page.

I saw a post recently where a business promoted new products just arrived in-store. Someone commented that they liked them and in one sentence used the ‘F’ word. They meant it in an excited / happy way whereas others reading it could see it as a swear.

With the right Facebook settings the ‘F’ word would never make it as a comment, thereby reducing the opportunity for someone else’s comment offending a reader who could be your customer.

9 likes
Management tip
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