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

Author: Mark Fletcher

Gotch needs to change its customer interface

Too many newsagents are losing too much time waiting on the phone for the Gotch call centre. Two newsagents yesterday told me they had been on hold for more than 45 minutes. Three more called me Monday.

Gotch should urgently create a new customer facing website to deal with the calls taking up the most time:

  1. Over supply.
  2. Under supply.
  3. Permanent supply adjustment requests.
  4. Damaged stock.
  5. Basic account queries.

By pushing newsagents to deal with these through a website would bring a structure to the process, ensuring all necessary data is gathered and enabling faster processing by Gotch. Indeed, this structure ought to have been established prior to the closure of Network Services.

I have been patient with Gotch. I thought they would be further ahead by the end of May. Their out of date processes are costing the newsagency channel thousands of dollars in time every day.

I want Gotch to be successful as magazines play an important role in our channel. The current delays (friction) on the Gotch processes are imposing an additional cost on an already margin-challenged category for newsagents.

This post is about the company, Gotch and or its parent PMP, and the resources it is allocating rather than the people doing the work.

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Customer Service

Stationery News should not be sent to newsagents

IMG_0310 (2)I have been thinking about the scaling out of Stationery News to newsagents as a subscription unless we cancel. My opinion is this should not be done as it abuses the magazine supply model.

All other titles we receive are done so on a sale or return basis. Stationery News ought not be supplied unless newsagents explicitly order it.

I would love to know how the current model came about.

While I like reading the magazine. It is not commercially worth the annual subscription fee in my view, not in today’s world with more efficient and access friendly sources of news.

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magazine distribution

News Corp. should improve its accounting systems for small business newsagents

Screen Shot 2016-05-30 at 6.32.24 PMFor a company intent on telling governments how to govern and Australians how to vote, News Corp. should, in my opinion, get its own house in order when it comes to billing small business newsagents for promotions. The image on the left is the description used by News Corp. when billing newsagents for the recent ANZAC coins. Yes, the company billed the coins as The Courier Mail, a newspaper. The charge is a net charge.

News is not providing newsagents with any means of validating the charge. This is inadequate in my view. Newsagents deserve an accurate accounting of what they were supplied line by line and what they were charged for each line item. The accounting also needs to detail the returns for each line item.

The single line on the statement from News is inadequate, so inadequate that an auditor would probably want more information.

The News Corp iServices portal is no help for newsagents either, adding to the frustration.

I am posting this here at the request of several newsagents who have approached News Corp. without success in having the matter even considered by the company.

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Newsagency challenges

What’s with the Stationery News reissue to newsagents

It seems the latest issue of Stationery News has been sent to newsagents, again. This time marked as a firm sale – meaning they are unable to return it.

This appears to be a mistake by Gotch. The challenge is the Gotch communication lines are clogged and emails are delayed in getting a response.

I’ve had at least ten calls plus emails. Here is one that sums up the situation:

This morning on the Gotch distribution they supplied a magazine, more a pamphlet, called “Stationary News” as a firm sale item with a cost of $55 and a retail of $60.50 ! When I rang Gotch , after a 40 minute wait, the helpful customer service office said that he had received a few calls in regard to it and he had lodged a query but they had been unable to work out why or how this had been allocated. He also stated that the more contact that they had from Newsagents the sooner something would be done about it.

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magazine distribution

Greenslade says newspapers are heading for the cliff

Respected media commentator Roy Greenslade has written a column – Suddenly, national newspapers are heading for that print cliff fall – for The Guardian that will challenge all who have print newspapers as part of their business model mix.

I am in Ireland to address the Irish Press Council’s annual general meeting in a lecture entitled “Have newspapers got a future?”

My theme is that they have no future. Declining circulation figures tell us that people are switching week by week from print to screen. It is simply a matter of time before it becomes unprofitable to continue publishing newsprint papers.

While we know that newspapers will stop publishing when the numbers no longer work, Greenslade makes an excellent point about the poorer quality of stories as newspapers cut costs in the end days.

Space in newsprint papers can be filled. The end result is something that looks like a paper, but the content lacks any real value. It is not journalism. It is pointless material without any public benefit.

While Grenslade is writing about UK newspapers, there are parallels here.

For our part, we newsagents should long ago have reset our businesses to not rely on newspaper traffic. Those who have not are facing trouble.

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Media disruption

State and federal politicians should be required to undertake a week of genuine paid work experience in a small business every year

I first wrote here in 2013 that State and federal politicians should be required to undertake a week of genuine paid work experience in a small business every year. I believe it today more than ever. Indeed, right now in Australia, during this small business focussed election campaign, this idea ought to be out to every politician from all parties. They visit small businesses, have their photo taken, shake some hands and move on to the next photo op. Each visit is stage managed to show them engaged with small business.

Politicians who really want to engage with small business will seriously consider my proposal. Sadly, that means none will, from any side will. here is my proposal from three years ago:

Despite small businesses employing more Australians than any other business block we receive less attention from our politicians. This is in part our own fault driven by disconnected representation and a lack of unity on issues.

One way to redress the disconnect between small business and politicians would be to require every politician, federal and state, to spend a week a year working in a  small business in their electorate – paid real work.

The business should be chosen by random ballot – to remove the opportunity for mates looking after mates.

Besides the practical work experience, the politicians would gain a better understanding of the life and challenges of everyday Australians.

I am confident that after a couple of years we would see this small business work experience program drive a more practical narrative from politicians of all sides- and not just a small business focused narrative but one also more connected with real life.

We can’t compete with the lobbyists who are paid a fortune to guide our politicians to outcomes they want. Hence my call for a legislated week of small business work every year for every politician.

Imagine what discussions about paid parental leave, GST changes, assistance for the car industry or workplace relations changes would be like in the cabinet room if everyone at the table had done a week of real work in a small business beforehand. They would have reference points relevant not only to our small businesses but also to our employee colleagues, their constituents.

Thinking about this further today, I am confident enforcing a week a year working in a small business in their electorate chosen at random would result in better government not only for small business owners but for all these small businesses serve for it would add to the experiences of the politicians and change their conversations.

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Newsagency management

Sunday newsagency marketing tip: promote your value proposition

IMG_0219Newsagencies are regarded by shoppers as being expensive. One ay to challenge perception is with a compelling offer promoted on the lease line, to passers-by. For this to work, the compelling offer needs to be communicated in a simple and effective way and in a style that speaks to the target shopper.

Here is what we are doing on the lease line with the Hallmark BUY 3 FOR $10 card offer. It is the type of stand you might expect to see in a Typo or kikki.K yet here it is in front of a newsagency, promoting cards on the lease line, attracting card shoppers who might otherwise have walked on by.

This stand also speaks to the importance of reaching outside our businesses to attract new traffic. In a shopping centre we do this on the lease line, facing into a mall. In a high street situation is done in the front window or on social media.

Products like the 3 FOR $10 cards help us do that, they help us combat perception on price.

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Greeting Cards

Sunday newsagency management tip: automate management of multi-buy deals

IMG_0236Any discounts you offer in your newsagency should be managed by your newsagency software. I see too many staff in newsagencies applying discounts manually. This leads to mistakes that cost either the customer or the business owner. Good software handles all sorts of discounts including catalogue sales, volume based pricing in a single purchase, volume based pricing over several shopping visits, VIP shopper discounts, local community group member discounts, end of line discounts and more.

The image I have included shows the automated handling of the Hallmark BUY 3 FOR $10 card offer. The cards are $4.99 each but if a shopper purchases three at once they are discounted to a total of $10. Handling this automatically through the software sales time and cuts mistakes at the counter.

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Management tip

In more newsagencies next week

I am often asked about perspectives I share here and how representative they are. Insights come from my extensive travel. Next week, for example, I will be in newsagencies in Gladstone, Rockhampton and Mackay. This week it was Perth.

Our channel is as diverse operationally as it is geographically. Seeing a diverse mix of businesses is helpful to what I do and informing of the opinions I form.

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Newsagency management

Do your local community groups support your newsagency business?

Local community groups expect local retailers to support them but, too often, their members to not support the local businesses.

One newsagent I spoke with recently told the story of the local community group president who was aggressive in seeking financial support for their group but when asked about stationery and other suppliers for the group they said they bought from Officeworks because it was cheaper.

A price comparison showed Officeworks is not cheaper.

The newsagent declined to support the group as the years of support of the group has resulted in ignorant disrespect of the newsagency.

This is not an uncommon story – local groups expecting newsagents to support them without any commercial support for the support of the group.

these community groups need to understand we are businesses. We are asked daily to support this or that group or event or fundraiser. We can only support is we are supported. This is what being part of a local economy is all about. It is frustrating when fundraisers and local groups do not get this, when they ignorantly expect your help with no surety that they will help you fund them.

My opinion we newsagents should not support local community groups unless the support is reciprocated.

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Ethics

Pacific Magazines launching newsagent exclusive promotion

image003 (1)Pacific Magazines launches a prize-rich newsagent-only promoting starting next Monday. This promotion is a valuable opportunity for newsagents competing with other magazine retailers such as supermarkets and c-stores.

Being run as part of the Pacific nexus program, more than 1,000 newsagency businesses will be supported through the campaign with in-store marketing collateral as well as extensive out of store marketing.

The best way for newsagents to leverage the opportunity is to also promote out of store such as on social media and other platforms. This is especially true for regional newsagents who may have access to more cost effective marketing opportunities.

The prizes include an opportunity for a customer and a participating newsagent to each have a chance at winning $150,000.

I think every nexus newsagent ought to support this promotion.

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magazines

Malware from Microsoft costs the small business newsagency channel $500,000+

If you run a Windows computer no doubt you have been confronted with the Windows 10 update. This is an update that will not go away.

Microsoft has diverted from usual practice and made it difficult for everyday computer users to avoid installing this update. This is what I say it is malware. The approach by Microsoft is malicious in my opinion. Indeed, I think the Microsoft approach has been unethical and socially irresponsible.

Windows 10, while a reasonable update in itself, sucks up disk space and has a track record of breaking things like printer connections and other peripheral connections. These breakages take time and expertise to be fixed.

Newsagents have been particularly vulnerable as the use of computers in newsagency businesses is mandatory if you want to connect with suppliers in a compliant way. Computer penetration in newsagency businesses is above average compared to other small business retail channels.

I say Windows 10 has cost the channel more than $100,000 based on the number of calls my own newsagency software company has taken and a reasonable projection for the channel as a whole and allowing the time spent by newsagents who have not called for support.

Once you add in additional computer hardware purchased as a result of the Windows 10 installation, because it pushes capacity of old, greater than five years old, hardware to the limit, you reach a figure in excess of $500,000.

The approach by Microsoft all but took away the ability of small business newsagents to decide when they want to incur the business costs or the software companies that have worn at least 75% of the total cost of Windows 10 in our channel. No, Microsoft selfishly forced this on us, forced us to spend our money without the courtesy of a question.

My $500,000 estimate is real. My own software company has foregone more than $250,000 in revenue to provide advice, assistance and other services directly related to Windows 10, all work that is not part of supporting the newsagency software.

If this update is so good, Microsoft ought to have paid for the support required. But it did not. People could not get through so they turned to those who do answer their phones.

What Microsoft has done is another example of the danger of the arrogant forced software update. There is no place for this approach for small business retailers. beware software companies that do it.

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Ethics

The magazine specialist in Auckland: mag nation

IMG_0188I checked out the latest incarnation of mag nation, the specialty magazine shop today. This store is in Auckland, where the journey began for the business, but in a different location. The model now is pared back a bit but still focussed on magazines. They have less ancillary product and fewer magazines.  I am surprised they do not serve coffee as the area of this store is perfect for coffee.

For those wondering about the model and how they make it work, subscriptions are a key part, as is online. Indeed, the shop feels like a key driver of traffic for online.

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magazines

Book now for free Newsagency of the Future workshops

I am preparing material for the 2016 Newsagency of the Future series. This workshop will be completely fresh content, focused on the back half of 2016 and beyond. It will take into account trends in product channels in which we operate today, opportunities in new channels and structural changes newsagents can make to leverage the opportunities of change.

Whereas in the past I have used these sessions to get the attention of newsagents about changes coming, this session assumes everyone is aware of change because of what they are experiencing in their businesses. It looks to the future.

I see wonderful opportunities ahead as we disrupt our own businesses, breaking with tradition and not allowing our thinking to be constrained by a shingle of a bygone era.

I will share real data from newsagency businesses achieving double digit growth and explore with those attending how they are achieving this.

There will be opportunity for discussion around specifics as well as big-picture strategies.

Here are the dates organised so far. Click on any city to go to the online booking page for that event.

There is no cost. I am funding the venues and catering.

I appreciate some people outside capital cities might like me to do more regional sessions. This is challenging with my work and travel schedule for the Tower Systems and newsXpress businesses.

With the help of the video production team at Tower I will film a version of the session in the studio and make this available to all newsagents. I’ll do this after Hobart so I can address common questions asked through the sessions.

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Newsagency challenges

Magazine publisher speaks out for newsagents and independent media

Below in full is a copy of an email I received from Dave Brazier, publisher of Boar It Up Ya magazine. He speaks from the heart about challenges he faces in his business and his passion for our small business newsagency channel.

Gday Mark how are things?

I’ve just posted this onto my Facebook page, enough is enough.

Not only mine, but I know of at least three other mags on the verge of collapse due to the increase in popularity of internet based pages etc, resulting in massive losses in sales by the # 1 magazine sales outlets, Newsagents.

I have again stressed the importance to support local Newsagents and not the big boys (Coles, Woolies etc) before all is lost.

The following is what I’ve posted on Facebook, and would love for you to share on the Newsagency Blog.

“This email attached represents not only mine, but every other magazine publishers nightmare.

Newsagents are finding it tough, the daily grind to make an honest living for them is getting tougher by the day. Newsagents are the main source of supply for my magazines and have been since I started over 13 years ago.

If Newsagents cannot afford to keep their doors open, I cannot sell my magazines. Due to illness, this is now my main point of income. I cannot afford to lose anymore.

Online distribution does not work and is not a valid point of sale for the hours going into each issue I produce. 
The internet is quickly killing ALL print based media. Between publishers and Newsagents, it’s going to be close who’ll lose out first.

SUPPORT YOUR LOCAL NEWSAGENT – NOT Coles or Woolies.
Give the Supermarkets half a chance they’d be selling Lottery Tickets, and that’ll be the nail in the coffin for Newsagents.

Please share this with your friends, technology is becoming a massive burden and cost to so many people like me. 
Support your local Newsagency, we need them more than ever.

Note: Due to ridiculous increases in postage of magazines Via Australia Post, I haven’t offered subscriptions for nearly a year. Postage rates now are even worse.”

Dave Brazier
Mob: 0418 502 760
Publisher / Editor “Boar it up Ya” & “Shoot Ferals Australia” magazines

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magazines

Beware tap and go

Watch out for this.

A customer makes a purchase totalling more than $100. They say they want to pay part cash and part credit card. They give you the card first for the majority of the purchase value, but under the tap and go limit. They then cleverly bamboozle the staff member and no cash changes hands. They leave. The credit card proves to be stolen and you didn’t get the cash.

This is a scam doing the rounds this week.

My policy position is – for any card purchase over $10.00 require a PIN. Yes there will be complaints. They are better than the cost of fraud.

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Newsagency management

Reducing friction in the newsagency

Friction is a common theme among speakers at business conferences I have attended this year. It came uo several times at the Shoptalk conference in Las Vegas last week.

Each use of the term has been in the context of business but before I look at that, here is the dictionary definition of friction:

surface resistance to relative motion, as of a body sliding or rolling.

Those I have heard using the term are referring to points in a business that jar, slow processes down or act as some form of barrier to business success.

Given the use of the term friction I have heard from business leaders this year I wonder if it is the new in word. Like alignment was last year and unpacking the year before that.

While I am not one for business jargon, I am interested in statements and labels that help us understand our businesses and that help us work on impediments to success. I like the term friction in the business context. I like it because it is real and because every business experiences it.

Some of the areas of friction in newsagency businesses today include:

  1. Things that slow down the processing of sales at the counter.
  2. Poor business management processes that result is slower than reasonable handling of day to day tasks such as end of shift, store opening and store closing.
  3. Delays and or complications in ordering from a supplier.
  4. Poor business practices that act as a labour tax on our businesses – such as manual processing of magazine and newspaper returns.
  5. Poor problem resolution processes.
  6. Poor handling of technical outages.
  7. Conflicting pricing messages.
  8. Visual merchandising that is not relevant to shoppers today.

Friction in our newsagencies is anything that slows our pursuit of the goals for our businesses. The resolution is to either ease the friction or remove it. Our channel being what it is, sometimes we can ease it or remove it while other times we cannot – in those instances we may need to confront changing tracks altogether. This is why of don’t have Tatts in my business. I am better off financially and emotionally without the friction. There are other examples too.

I hope O have explained this well enough. Personally, thinking about friction is helping me see opportunities for improvement in the business.

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Newsagency management

Getting your EFTPOS up and running during a Telstra outage

While Telstra appears to have been of little help to small business owners I have spoken with during the current outage, some banks have been equally unhelpful in restoring access to EFTPOS processing. One bank outright stated that their EFTPOS terminal would not work until Telstra was back on, the retailer was soon up and running thanks to connecting through a 4G dongle and a router that was fit for purpose.

Sometimes having access to good technical advice is more important than short-term better rates.

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Customer Service

How did the Set For Life promotion go for you?

A newsagent I spoke with yesterday told me they struggled to get customers purchasing a Set For Life ticket to take the free News Corp. newspaper. I’ll have to throw them away was their position. So, on their behalf, I am posting this here today and asking:

How has the Set For Life promotion gone for you? Did customers love the free newspaper?

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Lotteries
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