A newsagent called yesterday angry a gift supplier they had purchased from for years has started supplying a pharmacy nearby. The apparent promise of exclusivity has been ignored with a there is nothing in writing comment.
If a rep or agent makes such a claim to you, get it in writing and make it clear this commitment is essential to you doing business with them.
Here is how we are leveraging the Captain America: Civil War movie release in the newsagency. Opening last Thursday in the cinemas, the movie blitzed the box office, delivering extraordinary numbers.
If you do not have Captain America product in your newsagency you are missing an opportunity.
In addition to the items in this centrepiece traffic-acttricting display, we have more products nearby.
I think it is essential we connect with these large movie franchises in-store, before the move opens and through the first few weeks … and then later, even years later, as people want to remember the movie.
If you do not connect, you miss the opportunity to demonstrate relevance, achieve excellent impulse purchases and, most important of all, to attract new shoppers to the business. We have been promoting Captain America: Civil War products outside the business and this has resulted in identifiable new traffic shopping with us.
While you could get into this opportunity now, it may be too late for the first major wave of opportunity. The time to order for any major movie franchise is six months or more out. For the last Star Wars movie release, for example, we ordered close to a year out.
The other comment I would make about leveraging movie franchises, aside from the magazines, occasionally, greeting cards, it is non newsagency suppliers who have this licenced product.
One of the ways we can increase engagement with pens in newsagencies is to change the way we approach pens. Or maybe not change, but add to – keep our traditional pen display and add to it by trying something like this, which I saw in a shop last week.
I watched shoppers in this business and plenty who went to the counter with a purchase tried a pen or two. A couple purchased, making the tactical move valuable for the business.
You don’t need to allocate as much space as you can see in the photo, the keys, though, are to have enough range to make a statement, to make testing easy and to change it up regularly so regulars are not blind to the offer.
When it comes to stationery we rely too much on people seeking out the stationery department and making a destination purchase. We need to do more to drive impulse purchases.
One can never have too many pens … that ought to be our motto.
The Rotten State of Newsagents – Is it any Wonder Publishers Are Pushing Digital? By John Freeman is an indictment of the state of newsagents in the UK. While I have challenged him on some points, he makes other points all newsagents need to consider.
Freeman needs to look at why newsagents cram magazines into less and less space. Next, he needs to talk about how to address the issues to respect newsagents and publishers. His article misses some key facts.
I agree with what much of what Freeman has written about UK newsagents. Plenty of shops are tired and not up to current retail standards. However, part of the problem could be the return achieved from the category by retailers in the UK. My experience with retailers is they invest based on the financial return.
Here is the content of an email sent to newsagents last week promoting newsXpress:
Innovation for newsagents.
If you want new traffic, a higher than average gross profit, a fresh in-store look and excitement about the future of your business, consider newsXpress. here is just some of what we have delivered this year:
These are just the highlights. We have also engaged on behalf of our members with the ACCC on Tatts related matters and with senior management at Bauer and Gotch on the transition.
We would love to welcome you to our newsXpress community. Click here to read what newsXpress offers. Contact us:
Four videos were also included in the email:
Check out the ad being run by Mildura newsagent John Klemm in a glossy magazine being widely distributed in the area. I like the ad because it pitches quality and customer service in the headline and then focussed on magazine enthusiasts and also pitching a strong commitment to newspapers. It is rare to see such a commitment to print.
Having seen the newsagency for myself on the weekend, the in0store experience matches the pitch in the ad.
I am not sure when this happened but US warehouse retailer Costco is now selling magazines in Australia. Their price is 20% off the cover price. Yes, 20% off. Here is a photo I have been sent from someone visiting a local Costco store.
Costco currently has eight locations in Australia with plans to grow to 25 sores within four years. While it would be easy to dismiss eight stores as not a large enough footprint to hurt magazine sales in other retailers, with revenue of $1.3B in 2015 (source: SMH), Costco is a force to be reckoned with.
While I have never shopped in a Costco, I am told some days the warehouse is packed with shoppers. Each person passing a magazine rack promoting 20% off is being told magazines can be discounted. If these people see the discounted magazines occasionally in supermarkets and regularly at the airports, the message soon sticks to not pay full price of magazines.
Magazines being available in Costco and at 20% off cover price ought to concern us. It demands a response, in-store.
From what I can tell, Costco US started selling magazines around ten years ago. I found this photo promoting 20% off cover price in the US at the Time is Money Mommy blog.
FYI, here is the blogger’s comment:
I used to subscribe to several magazines, but have cut back over the years since I don’t have time to read them. I’ve realized even though subscriptions are cheaper, it makes more sense to just buy the issues I’m interested in. Costco is the place to do it, as they give a 30% discount off the cover price. And yes, I totally bought the US Weekly with Princess Kate on the cover. Chase is golfing tomorrow, and I’m going to sit in the yard and relax while the kids nap!
While we can be angry about what is happening at Costco, that would achieve little. We are better off responding commercially, in our businesses.
I good response from newsagents would be to actively and consistently promote their discount voucher, magazine club card or similar good-value loyalty program. This is what I do in my newsagency. I mention discount vouchers and magazine club cards as they are differentiating offers whereas loyalty points are not – they are not understood and of dubious value, and shoppers get that.
The Costco range is small and magazine purchases will be on impulse. Our best pitch remains to be the destination magazine specialist and to to this in cost effective and commercially viable ways.
Look at the audit log maintained by your newsagency software. Look for patterns of misbehaviour. Look for fraud. If you are not sure, ask your software company and they will help – as there are patterns easily identified that can reveal theft from your business.
This is a challenge as most will not look, preferring ignorance.
While it is good to see newsagents using Facebook and other social media platforms to talk about and promote their businesses, too often the pitch is for product available everywhere, including outside the newsagency channel.
Marketing most noticed is that which stands out, is different to what everyone else with a similar business is doing, unless you want to stay in the chorus and not be noticed.
My marketing tip today: promote what is unique to your business.
I love this employment available poster I saw in the window of a Hong Kong store last week. I love the style, the pitch and the opportunity. From the outset, prospective candidates would understand the opportunity and plenty about the business.
This sign is better than the old: Casual position available, enquire within we see in too many shop windows. Note the commission opportunity and staff discounts. Inspiring!
The Who cover story about Prince is an excellent opportunity for all newsagents to drive a sell out. Place it at the counter, with newspapers and in the best location with weeklies.
This is a perfect issue to go above and beyond for as impulse purchases are each to achieve.
Our competitors are not treating this issue any differently – this is our opportunity!
A newsagent wanting to close their IPS account checked on supply for The Saturday Paper from their distribution agent, who already supplies newspapers to the business. The distribution agent has refused. This is kind of like the taxi driver who refuses a short distance fare. Refusal to serve ought not be allowed.
This sign at the Lady M cake shop in Hong Kong somehow made the cakes even more appealing. This is a bakery where they control the volume of product they have available yet here they are, long after establishing the business, restricting what customers can purchase. This is similar to the Lego model where they supply to Australia at a volume that always leavers retailers wanting more than is shipped. This constant desire by retailers and their customers drives more interest, or so business strategists think. There must be something in the model of planned scarcity as I am seeing more global brands use this approach. I know of several suppliers to newsagencies and similar businesses engaged in planned scarcity. Most get it right while a couple don’t Those that don’;t turn people off their brand, including the shoppers they want to attract with the model.
At Lady M, the model seems to work – it should as their cakes are delicious.
In Hong Kong this week in plenty of retail businesses I saw excellent examples of products focussed on collectors who spend up big on their passion.
Look at this pen I saw at a S. T. Dupont store, Central, Hong Kong. It is a jewell encrusted train, limited edition, pen. The price is A$34,000.
This pen is on display for the ‘museum factor’ – to attract people to look, and to sell. yes, people purchase the pen.
Could we sell this in a newsagency? No. Well, probably no. However, in the right situation, I am sure a newsagent could sell one.
We can sell any expensive item in the right circumstances, regardless of the limitations we place on ourselves under our shingle and regardless of the limitations some suppliers place on us because of our shingle.
At our core, we are special interest businesses. In our magazines and some other departments in our businesses we serve people with passions. So, shy not an expensive pen for the train enthusiast? maybe not a $34,000 pen but why not a $500 pen?
In my own newsagency I regularly sell limited edition collectible items priced at between $500 and $1,000. I recall when we got into these some in the channel poked fun. They would not poke fun at the money through the register as a result.
The key is to not look at what we sell in the traditional way. This train pen is not a pen, well it is, but not to most shoppers. No, to a train lover it is a showpiece item for their collection. That it is a pen is of little consideration.
Seeing this pen, and the other collectible pens for other special interests, was a reminder of the value of collectors and the importance of serving them with the same passion with which they collect.
Newspower sent out an email to newsagents today marketing their services:
News from the National Manager
We are very pleased to report an outstanding response to the Newspower Easter Colouring Competition this year with over 25,000 entries across Newspower stores. What a fantastic opportunity for newsagencies to engage with families and schools in their community. This Easter tradition, sponsored by Staedtler, is just one of many seasonal promotions we support at Newspower, with individual members able to work with their local primary schools and local media.
Newspower continues to measure the value of membership. We have drilled down to identify the costs to a newsagency business that can be reduced and avoided.
As an example of reduced costs, a member of Newspower gains significant savings, especially when it comes to design, printing and distribution of our seasonal marketing campaigns. Have you ever thought about what it costs in time and dollars to have posters and flyers/brochures designed, approved, printed and distributed every time? An example of this is our Mothers’ Day campaign that features glorious pink, crimson and yellow gerberas in eye-catching visual merchandising material. Posters feature the bright visual of the flowers with additional cut out flowers in different sizes, which can be utilised to build brilliant in store displays highlighting all the gifts & cards for Mother’s Day. Our proven approach helps you, our member sell more products to more customers more often!
Newspower’s real point of difference for you, our member is the increased brochures/flyer program. We keep up with industry research to make sure you get the best ‘bang for your buck’ with design and content – and brochures, delivered to homes, are consistently amongst the most cost effective forms of reaching your customers. The Australasian Catalogue Association reports that more Australians read a brochure every week than watch television or listen to commercial radio!
There are tremendous results from our Inkpower Program so far with some stores have more than doubled sales! For stores that have not carried ink before they are now positioned as an ink retailer – a destination for customers.
In 6 weeks since the brochure was distributed my ink sales have gone up 278% by units and 415% by dollar turnover. I am selling more genuine cartridges than ever, and still doing well with compatibles. This is the best return I have had on any Newspower promo – long may it continue! David Brindley – Angle Vale Newspower
Wishing you all a very successful month and you and your family a lovely Mothers’ Day this year.
Helen Dowling
National Manager
Newspower Australia
Newsagents should read the excellent report, Staff theft costing retailers 11 times more than shoplifting at Better Retailing on staff theft. The opening par is a wake-up call on an issue most newsagents prefer to ignore:
Shock new figures reveal staff theft has soared by 129%, costing retailers on average 11 times more than shop theft.
I know from my own work through my POS software company working in several retail channels that theft costs between 3% and 5% of total turnover. However, the majority of independent retailers do not get serious about managing theft until they have been hit.
In every instance of employee theft I have seen over many years, retailers have had the tools necessary to track and stop the theft before it was ultimately detected, usually when less than 5% of the ultimate amount stolen had been taken.
Talk to your software company, ask about the theft mitigation tools available and engage. Do not wait to discover theft by some other means before you act.
Check out Lotterywest on Twitter and compare their engagement to Golden Casket and NSW Lotteries – two of the Tatts Group brands on Twitter – and you see different engagement. Whereas the Tatts brands promote their products, Lotterywest promotes products but with a strong community connection. The difference starts with the Lotterywest tagline: You play. You give. There are many Twitter posts that demonstrate the commitment to giving, and not all are from Lotterywest themselves, like this one fro the RSL:
While I am no marketing expert, I think there is an extraordinary value in the community engagement of Lotterywest and this value is seen in in-store engagement in newsagencies.
The space and prime location commitment of 7-Eleven and other c-stores in Hong Kong is not diminishing. They are always at the front of the shop, inside the door, with easy access.
While every display is crowded and full covers rarely are shown, that the space, location and range commitment is maintained speaks to revenue success I suspect. As I have noted here in the past – many magazines in Hong Kong are in sealed plastic bags, reducing browsing.
kikki.K is making its mark in Hong Kong with store openings in good locations. Their approach is as consistent as in Australia. Emotionally pitched displays in their windows and in-store. Retail in Hong Kong is competitive and displays are high-end. The kikki.K offer is competitive and fits in the busy city. Here is the Mother’s Day themed window display I saw at the Times Square outlet.
While in Hong Kong for the Gift Fair this week I have noticed how cigarettes are packaged and presented. While there are warnings, brands are noticeable.
Here is one shelf of a display in a c-store.
Here is a close-up look at the Marlboro amber burst and purple burst products. While there are warnings on the packs, the brands are the focus with strong design elements to make them stand out and appeal.
Here is a poster I saw in Japan a month ago. It remind=s me of the selling of cigarettes in Australian 20+ years ago, when the brands were pitched as aspirational.
New contract terms law will apply from November 12, 2016. These laws are designed to increase protection for small business from unfair contracts. Click here to see an excellent Q&A with the ACCC about this. And here is an excellent video from the ACCC about the new laws.
Since I go on (obsess maybe) about the post-it type ads stock over newspaper headlines and mastheads I thought I should comment on this ad that covered access to The Age on my phone yesterday. The thing is, I don’t mind this type of ‘stuck on’ ad as it is easily dismissed, does no damage to the product and barely impacts my experience. I was surprised, however, to see this movie linked to The Age as it’s more Herald Sun product.
