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

Author: Mark Fletcher

Sunday newsagency marketing advice: 5 last minute Easter marketing tips

Easter is less than a week away, here are some simple marketing tips you could engage to try and find new shoppers for this season. Some are new, some are from by 2015 tips

  1. On Facebook give people reasons why Easter is a perfect time to send a card to a distant friend or loved-one. Sometimes people need to be told when to send a card.
  2. Last minute pitch. Have a small selection of Easter cards at the counter.
  3. Give rabbits a discount. Get people to dress up as a rabbit to get a good discount.
  4. Have an egg eating competition – who can eat the most in 30 seconds.
  5. Offer free fried eggs one or two mornings for a gold coin donation to a local charity.
  6. Make a giant papier-mâché egg with things you sell (old newspapers, coloured paper, paint). Go big, I mean really big. Taller than a person. Let the kids paint it. Make it a local thing for people to come see.
  7. Have an easter Egg hunt for over 70s. Egg hunts are usually for kids but those over 70 will have a different recollection of the season from when they were kids. Cater to them with a hunt in your shop for tasty eggs.
  8. Do good. Collect for something during the season. Given the animal themes, maybe a local animal shelter.
  9. Invite a wall of stories. If you have a wall available, cover it with paper and invite your customers to write or draw what Easter means to them. this makes the season more interactive.
  10. Give away eggs. Freely and with a smile! Contact Chocolate Gems, they have excellent counter packs of eggs you can buy in bulk. They taste delicious and make for ideal counter giveaways.

If you act in an average way for Easter expect average results.

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marketing

Promoting pens outside of stationery

This stand pitching Pentel pens outside the stationery department is working a treat. It is connecting better with browsers rather than the pen placement usually in the stationery department that would work only for destination shoppers.

I am grateful to Pentel for their work not only on the stand but also for their engagement to help drive success of the stand. Dealing direct is a dream for these and other shop floor initiatives that drive shopper engagement.

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Stationery

Promoting ANZAC coins

I heard from a newsagent yesterday that a publisher rep complained to them that I never support newspaper promotions. here is the display we have had in-store promoting the ANZAC coin opportunity.

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Newspapers

Fairfax demands newsagents display newspaper posters

Fairfax is issuing letters to newsagents who do not display their newspaper posters inside and outside their businesses.

This from a company with a track record of taking money from advertisers for then placement of stickers over headlines and photos on page one of the newspaper.

Fairfax takes the advertiser money for their financial benefit.

Newsagents stop displaying newspapers for their financial benefit – there is no evidence that displaying newspaper posters increases sales.

The action by Fairfax of their heavy-handed approach could encourage targeted newsagents to reconsider selling Fairfax products. Maybe this is what Fairfax wants.

The letter from Fairfax to newsagents not displaying posters includes a claim newsagents are paid to display them:

The sales and service fees paid to newsagents includes a component of 8% for fulfilling these poster display requirements.

This is ridiculous. The real margin Fairfax has been paying for the sale of its newspapers have been declining year on year. Sure, the cover price has been increasing. However, declining sales and the declining margin in real terms is seeing newsagents worse off in a situation where rent, labour and other costs increase year on year.

When I heard about the latest breach letter I thought it may be an April 1 prank. Alas, no. Fairfax is serious. They do want newsagents to display newspaper posters, even without evidence that doing so benefits the newsagent, even if it is not financially viable.

The letter from Fairfax includes this guide:

It will be interesting to see how this plays out, whether Fairfax takes further action. The way the breach letter has been handled suggests they will. There was no consultation from what I understand, just the letter.

The letter reminds me of the bad days a couple of decades ago when newsagents were treated like naught school kids when they did anything outside of what newspapers publishers demanded.

Publishers need to understand they have a product of declining interest from which newsagents make little return, certainly not enough return for the grief, space and labour involved.

Do we need newspaper traffic in our businesses to survive? I don’t think so, certainly not if yours is a transformed or transforming business with net new traffic drivers that are delivering.

Newspapers are nowhere near as important today as they were ten years ago. Yes, there is news in the shingle – but as I have shown recently there are smart ways to repurpose that word.

I get why a newspaper publisher would think the posters are important. However, their double standards by them obscuring the masthead of front page tells us some in their company think news is less important.

This campaign by Fairfax will most likely only target direct account newsagents. If that is the case it further highlights the challenge for the company.

Wayne Cousins and colleagues at Fairfax should look more carefully at their approach. Newsagencies are closing – in part due to declining print media traffic. You can’t fix that by being a tougher cop. Lead by example, clean up your product, make it more compelling. Create products and marketing collateral newsagents engage with because they want to rather than because you waved your stick.

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Ethics

How large companies deal with small business

The Sydney Morning Herald had a terrific report Wednesday on how large companies deal with small business in the payment for goods and services.

The report is on the back of research by Kate Carnell,the Small business ombudsman.

“It’s pretty close to extortion really,” Carnell said. “Large multinational businesses’ payment terms have blown out considerably. They are now moving to have standard contractual payment times of up to 120 days. It’s really bad for midsize businesses and a shocker for the SME space. It will kill SMEs.”

We have all been there, waiting for payment from big business clients. The cost makes the business not worth it.

It is good see the Small business ombudsman engaged on this issue. More please.

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Ethics

Is Luke Brill, CEO of Lottoland, misleading in his offer to work with newsagents?

If we can find a way to co-operate with newsagents, we would be more than happy to do that. We’re happy to respond to things, we’re not hiding from anything.

This is quote from Luke Brill, CEO of Lottoland, as quoted at news.com.au today.

Lottoland has ignored correspondence from newsagents about mocking, attacking even, newsagents in their TV commercials. I have contacted Lottoland in Australia and overseas myself and they have not responded. Others tell me they have contacted Lottoland too. So I wonder if the Brill quote is misleading. Brill has not responded to me.

Click here for a PDF of the article – in case News puts it behind a paywall.

I don’t see a big issue with a Lottoland ticket being a bet nor do I see a big issue with them being online only as that is where the bulk of lottery products will be purchased in the future.

My issue is that they have deliberately targeted newsagents in their ad, they have misrepresented newsagents, mocked them and all in an effort to shift lottery purchases online. Tatts has stood by and let this happen without response.

The response I want from Lottoland is that they advertise their product without mocking or attacking family owned newsagencies, and that they apologise for the ads they have run.

The response I want from Tatts is they they support their retail network rather than ignore them. The Tatts inaction is a breach in my view.

Online is the big challenge facing newsagents today. This is why I think newsagents should challenge the capital expenditure demanded by Tatts for their new fits as the cost does not match future income prospects given changes in how people will purchase.

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Ethics

Q1 benchmark study under way

I am a couple of days into analysing data for the Q1 newsagency sales benchmark study comparing the performance in newsagencies from January through March 2017 with data from the same period in 2016.

While I expect this study will reveal a continuation of trends, it will also reveal new information, new opportunities.

It is terrific that many newsagents are keen to participate, keen for their data to bee part of the large dataset used in the analysis and to provide insights into the direction  of revenue sources and business performance in our channel.

Here is part of the call for participation that I sent out announcing this new study.

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Newsagency benchmark

Selling magazine holders

I found this photo from photos I took in the US recently. I like it as it is a different way to display and show magazines in the home or a waiting room. I like it as it shows engagement with a category that has it challenges.

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magazines

Why a spinner is perfect for some card ranges in the newsagency

I could have also called this post why some card companies should not pressure newsagents to get on the wood or on the wall or however else they refer to permanent card fixtures.

I heard from a newsagent last week about a card company that currently has a spinner in their business pressuring for space on the wall. The rep from the card company said the wall was premium space and if the newsagent respected the relationship they would allocate wall space to the card company.

The spinner is performing well. Indeed, in terms of return on floor space, the spinner is in the top five performing floor space allocations in the business.

It does not make sense that the card company would want to disrupt a situation that is working for them and the retailer.

This same supplier agitates for wall space by saying the number of spinners is limited. I suspect they do this without considering the performance of spinners, without carefully analysing the performance of spinners.

Here are four bother reasons, beyond sales performance, why a spinner may be a better solution for cards than being on the wall:

  1. The card department primarily serves destination shoppers.
  2. Shoppers do purchase cards on impulse. For this to happen you need to be where they are and often that is not the card department.
  3. Some card ranges can attract shoppers to a business. They can only do that if on the lease line.
  4. Some card ranges add to the entertainment / shopping experience. This is best achieved outside the card department.

So, to any card company wanting to move their cards off a successful spinner onto the wall I’d say prove to me that this makes sense, protect me if it fails.

If your rep tells you sales will improve, call them on it, ask for evidence to support the claim. Too many reps are allowed to get away with BS. They have a job to do and that is to serve their employer. Often that relationship does not drive the best outcomes for your business.

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Greeting Cards

Marketing for Lent

I saw this marketing pitch in a Coles supermarket market on the weekend. I’d never considered Lent to be a marketing season. Now I am wondering what we could promote beyond Easter cards.

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marketing

Sunday newsagency marketing tip: marketing is not about you

Small business retailers tend to like marketing they can see. Like the ad in the local paper or the catalogue in letterboxes.

You seeing your own marketing is irrelevant. In fact, it is as irrelevant as many catalogues stuffed in letterboxes.

The best marketing today is about accurate engagement measurement, faster delivery and more immediate in-store engagement.

Take the old-school catalogue . Artwork, printing and delivery will take three to six weeks and cost you or your marketing group around $1,500, maybe more.

In many locations, that $1,500 could have funded 30 Facebook campaigns reaching 5,000+ people, carefully targeted with accurate data on engagement.

While catalogues play a role, that role today is far less than two years ago.

A newsagent told me they liked the catalogue because they could see it whereas they could not see a Facebook post. Their loss, as I told them.

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marketing

200th issue of Owner Builder magazine

If you stock Owner Builder magazine, dig out the latest issue and shine a light on it in your shop. It’s the 200th issue. I like the magazine as it is Australian, niche and loved by its readers.

Take a look at the preview the publisher offers vis this Tweet on Twitter:

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magazines

Inspiring Mother’s Day display

Here is a Mother’s Day display that I saw when overseas last week. I love it for the terrific range of products and the fun of the display and that it does not look like a usual retail display. This is why I say it is inspiring.

Mother’s Day is a season that can be boring if the product mix and in store pitch is the same old. The starting point for a fresh pitch is a display that looks different, like the inspiring display ion this photo.

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visual merchandising

Interesting take on the store of the future

This article from Digiday is an interesting look at Target in the US and their store of the suture project. Specifically, I appreciate the comments about evolution rather than a big launch of a future concept.

Brick and mortar retail has a bright future in my opinion … as long as it continues to evolve to engage shoppers how and where they want such engagement.

Small step changes, continuous changes, are the key, even in local newsagencies.

The days of set and forget retail are over. We have to see regular change otherwise we lose relevance and the revenue associated with this.

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newsagency of the future

GNS Chairman writes to newsagents

This correspondence was emailed to GNS newsagent customers today:

Dear GNS levyholders,

Firstly, on behalf of the GNS Board of Directors, let me thank you for providing the working capital that has enabled GNS to provide its services for so many years.

The levy, collection of which was ended on 30 June 2016, enabled GNS to provide low prices and serve you – our newsagent customers.

The levy amount now held by GNS is of the order of $6.5m.

Your own levy balance will appear on your statements from next month.

Many of you have asked for access to your levy sooner than when you leave the industry – currently the only way your levy balance can be reclaimed.

In response to this we are now preparing to offer levy holders the opportunity to convert their levy balance to a mix of credit against purchases over a two-year period and shares.

Of course, you need not do anything and your levy balance will be paid out in accordance with the agreement when it was charged i.e. paid when you exit the industry.

The offer however will be designed to reward levy holders by allowing you to use your balance to buy GNS products and become shareholders. Shareholders of course enjoy any capital growth in the share value, any dividends that are paid and access to share buyback when exiting the industry.

Full details will be available after July this year once GNS’ audited financials are completed.

Martin Hartcher
Chairman GNS Ltd

4 likes
Stationery

Gross profit from magazines

I was at a magazine retail business in Los Angeles two weeks ago where they were arriving new stock in for the day. I got to see an invoice. This shows gross profit of 34% from the magazines supplied.  yes, the model is sale or return.

Where there is an extraordinary difference between the magazine distribution model in the US and that of Australia, this gross profit percentage is interesting.

Retail space in the US costs less as does labour. These two data point differences compared to Australia highlight the challenge of the 25% GP we see in Australia today. We are far worse off that our US colleagues. This needs to change for magazine sales in newsagencies to grow, which I firmly believe they can.

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magazine distribution

See the Tatts screens in action in a newsagency

For those who have not seen two Tatts screens in action being the counter in an outlet, here is a video I shot yesterday in a newsagency in Sydney.

It looks good, impressive. However, and it is a big however, the content I saw did not reflect the average shopper wait and counter time. In the time I was at the store, 20% of customers looked in the direction of the screen and no one appeared engaged with the content on the screen.

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Lotteries
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