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

Author: Mark Fletcher

When buying gifts from a rep who visits your newsagency may not be ideal

Reps can be helpful to newsagents providing advice and in-store support.

Reps can also be problematic. This is especially true in regional and rural situations where they need to make travelling the long distance worthwhile.

The best way a rep can make a long trip worthwhile is to sell more product.

If you cannot provide the return a rep and their employer needs from your one business they will go elsewhere in town or nearby. This is where reps can be problematic.

I saw this recently in a town where a rep did a swing through and lazily sold the same products to three retailers within close proximity. None were happy.

My advice to newsagents is to seek written assurances when ordering (make a diary note) and to seek out suppliers who do not have reps as they are less likely to put product in two nearby businesses in my experience.

While reps have a job to do so do newsagents. Our needs for our businesses must come first. Point of difference in key traffic driving categories is important in my view.

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Newsagency management

Why I think the ANF advice on adult colouring is flawed

The ANF published an article this week about adult colouring that focused only on products from Gotch and Network. I hope newsagents do not rely on the ANF advice as it is flawed and late, many months late.

Adult colouring is not a recent craze. Newsagents in newsagency marketing groups or plugged to trends know this and have been making good money from adult colouring for months.

The most successful adult colouring titles provide newsagents with 50% and more GP, not the 25% we get from magazine companies. The ANF article ought to have been more complete in reporting on the opportunity.

While magazine distributor supplied adult colouring titles do have a place, I am not leading with them to drive traffic as they are not top of mind for shoppers in this space.

If the ANF is going to provide retail management advice for newsagents it ought to ensure the advice is timely and thoroughly researched. Further, it should consider how this advice sits with the advice from Newspower, the marketing group in which it has shares.

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Newsagency challenges

State of Origin opportunities embraced by newsagents

It’s been terrific seeing how newsagents have embraced the State of Origin opportunity in their businesses from the sales of clothing and cheer protect trough to getting behind the state team.

I know of newsagencies that did $5,000 and more in products in towns with populations you would not expect to be big end ought to support that level of sales. I know of newsagencies doing over $10,000 in sales.

Most of the success I have herd of is from Queensland.

People spend money on what they love and there are plenty of newsagents testifying to that statement this week.

I also love the way newsagents have embraced the competition with in-store engagement including staff in the state colours and fantastic displays declaring their support. This is the type of local support newsagents can do better than big business.

State of Origin 2015 is bigger than 2014. Newsagents take note.

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marketing

Growing a rural newsagency – an inspiring success story for all newsagents

I am fortunate to see data for many newsagencies when I do the quarterly newsagency benchmark studies. Here are inspiring results for the June 2015 quarter I have for one newsagency located in a small country town with a population of less than 1,500:

  • Number of sales: down 11%.
  • Average sale value: up 27%.
  • Average items per sale: up 2%.
  • Overall revenue (exclusive any agency revenue): up 10%.
  • GP: up 18% as a result of the shift in focus to higher GP items.
  • Cards: no change at $4,000 in April – June 2015 sales over 2014.
  • Magazines: $13,000 – down 15%.
  • Newspapers: 14,000 units – up 16% in unit sales.
  • Stationery: $8,500 – up 20%.
  • Gifts: $10,500 – up from $2,000 a year earlier.
  • Confectionery:  $1,200 – up from $600 a year earlier.

This is an extraordinary result for a newsagency in a challenging situation. There are big towns nearby ti where people travel for their weekly shop as well as for gift and other purchases. The growth being achieved by the business is happening because of decisions made by the owner to transform the newsagency from the traditional into new traffic opportunities.

This story is important as it offers evidence of growth by a size and type of newsagency business with which many here could identify.

While it is hard work to grow any small business, the biggest barrier is those who run the business. They have to want growth and to be prepared to back that desire with investment in necessary decisions that pursue change. These factors are barriers ahead of capital yet lack of capital is often used as the main excuse.

The growth being achieved by this real newsagency is proof growth can be achieved on a budget – it starts with a desire for change.

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Newsagency management

Impactful visual merchandising

IMG_8276I love the aisle end display I saw at a Coles supermarket in Brisbane a few days ago. The impact is strong, unmissable. I love the single product focus on each aisle end. While I am sure Cadbury is paying for the space, the idea is one newsagents could consider.

Click on the image for a larger version.

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visual merchandising

Good way to promote magazine value packs

IMG_8278 (1)I like the grouping together of value packs of magazines I saw in a newsagency I visited earlier this week as is intensifies the visual impact of the value offer. The placement is a smart move by the newsagent involved.

The pack thickness of the packs is an issue – it is hard to get more than two bags in a pocket.

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magazines

Leveraging interest in Paper Towns to drive Girlfriend magazine sales

IMG_8267The Paper Towns themed gift with purchase of Girlfriend magazine is well targeted from what people in the target demographic tell me. This branded gift needs to be put in a spotlight to use it to drive purchases of the magazine by those who might otherwise not regularly do so. We have it in front with the full cover on show. FYI Paper Towns is a popular movie out now.

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magazines

Matt Handbury speaks about Hubbed and support for newsagents

On 17 March last year The Newsagency Blog posted a release from Matt Handbury and his exit from any involvement with Hubbed and confirming his resignation as a director as Hubbed. He also said that he was yet to be repaid the funds he had extended to Hubbed for a consideration of a 51 per cent shareholding in Hubbed which was never forthcoming.

Handbury has made the following comment to The Newsagency Blog:

As newsagents have been informed over the past week, my new company blueshyft is launching a software and hardware platform through Nparcel to facilitate the introduction of new suppliers in the parcel delivery and cash payments businesses to newsagents.

blueshyft is the product of a deep investigation of the most effective and profitable execution of this new revenue stream for newsagents.  My abortive experience with Hubbed may have left me out of pocket, but my involvement with that venture and the analysis and development subsequently undertaken by my team at blueshyft has only strengthened my conviction about the unrealised potential of the Australian newsagency network.

Given that legal proceedings have been commenced by the Deputy Commissioner of Taxation, I do not wish to comment on Hubbed, other than to record that since January 2014 I have not had confidence in the management of the company. My involvement with the board and management of the company came to end in January 2014.

I have continued to be deeply dismayed by the serious overlooking by publishers, in particular, of  the value of newsagents as a critical part of adaptation to the digital economy.

I believe blueshyft is the first fully researched platform to address this issue.  Hence our adoption by Nparcel and partnership with XchangeIT.

It would cause me great sadness to find that my deep commitment to the newsagency industry – particularly on the back of the history of our wonderful business relationship established during my ownership of Murdoch Magazines – is misinterpreted in the light of my costly and frustrating involvement with Hubbed.

I am convinced that the Australian newsagency industry will regard blueshyft as a true pioneer and a valuable partner for all newsagents, helping take their rightful place at the centre of retail business in the evolving on-line retail space and the digital economy. See www.blueshyft.com.au for details on my new business and its offering to newsagents

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Hubbed

The Toowoomba Chronicle is clumsy in focussing on the newsagency channel

IMG_0001After the Toowoomba Chronicle ran the story about a newsagency closure, they ran a poll asking people if they visit a newsagency at least once a week. It’s a dumb question in my view, too narrow in focus. Embedded in the question is the suggestion people visit newsagencies less than they used to. As I noted, this is a clumsy question in my opinion.

51% of respondents said they did visit at least once a week. We don’t know how many responded – making the results useless. There is no sense in this survey.

APN and the folks at the Toowoomba Chronicle ought to have thought more carefully about how they could help newsagents rather than asking the ill-considered question they asked.

They could have spoken with newsagents in Toowoomba and discovered for themselves how they are transforming their businesses. There are some excellent stories of newsagency growth in the region, stories of new traffic helping to recast newsagency businesses away from traditional and into new areas.

Maybe the good newsagency stories are not news because they do not focus on newspapers.

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Newsagency management

Unfortunate reporting Toowoomba Chronicle on newsagencies

IMGReporting on the closure recently of the Mercer and Windley Newsagency on Ruthven Street in Toowoomba, the Toowoomba Chronicle let the newsagency channel down. They have done a soft piece that fuels wrong assumptions about the newsagency channel.

This newsagency should not have closed. The closure is the fault of the business owner.

Sure newspaper sales are declining and lottery sales are moving online. These are not new trends. A smart newsagent would have seen the trends and planned for them, changing the business to attract new traffic.

I am offended by the story as it does not reflect the story of many newsagents yet to lumps us all into a single basked, that our businesses are dying, that we ought to expect it and that the end is wistful.

Nonsense.

Newsagencies do not need to close. Those that do close do so because either the newsagent cannot get a reasonable rent arrangement to justify trading or because the newsagent has not positioned the business for growth into areas of new traffic.

I am grateful to the newsagent who drew this story to my attention.

Shame on APN and those at the Toowoomba Chronicle behind this story – you have let the entire newsagency channel down.

If you feel closure is the only option for your newsagency, there are options, steps you can take to turn your situation around. It takes hard work and you will get push back from some traditional suppliers. The result could be a turnaround that protects your investment.

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Newsagency management

Why I do not champion the convenience model for newsagents

The convenience model is one some Australian newsagents have embraced and one I know others are considering.

By convenience I mean a shop offering tobacco, candy, ready to eat food, lotteries, newspapers, top selling magazines and other high traffic everyday items people purchase locally or on the go.

Convenience businesses are strong in Australia. IBISWorld says there are 8,000 outlets although I am not sure what criteria sees a business counted by them.

I am not a fan of the convenience model as a model to be adopted by newsagents for the whole of the business for these reasons:

  1. Coles and Woolworths have several small footprint convenience models under way – showing their interest in this retail segment, following tremendous success from UK supermarkets. I am certain they will expand including on to the high street.
  2. 7-Eleven, City Convenience and On The Run are well established convenience models.
  3. SPAR is expanding in Australia.
  4. BP is expanding its presence in Australia.
  5. I cannot see any situation where a newsagents operating individually or through a newsagency group could buy better than their much bigger and centrally managed competitors.
  6. Newsagents cannot compete on advertising.
  7. Traffic is driven by location, brand awareness and price. I can’t see a newsagency business competing on these and surviving.
  8. Convenience customers are fickle – put a more convenient offer in front of them and you lose them as a customer.

Bottom line: newsagency businesses are too small and too under-resourced to compete with the players already well established in the convenience space. I am certain newsagents cannot win against the power of the slurpee and the might of Coles and Woolworths.

Another point to make is convenience relies on traffic for transport tickets, lotteries and tobacco. The first two and migrating online and the third is in stead decline.

There are far more opportunities through which to evolve our businesses where the competition is less powerful, less organised.

While I acknowledge there are newsagency businesses successfully trading under a convenience model and others will successfully enter this segment. The purpose of this post is to speak more broadly to the consideration and to encourage those considering it to be careful and thorough in their considerations.

Convenience is the business model most preferred by newsagents in the UK. However, walk down the high street of a town and you could see three or more convenience outlets from a supermarket group all competing with the local newsagent. That’s a battle an individual un-aligned newsagent will struggle to win.

What you do in your business is 100% up to you. You have to own your decisions as much as you have to own your position. My opinion should not matter to you any more than one person;s opinion to go into the mix of all you take on as you consider the future model of your business.

I have written about convenience today because it is big decision. You have to commit big time. It would be expensive to retreat.

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Convenience retail

Gift HQ popular with QLD newsagents

The Gift HQ trade show in Brisbane over the weekend to yesterday afternoon was terrific. Many suppliers I spoke with were thrilled with the business they did.

The fair attracted retailers from a mix of channels: newsagents, jewellers, garden centres and gift shops. Newsagents were there in good number. There was plenty of new product on show for Queensland businesses that cannot afford to fly to Melbourne of Sydney.

I hope this trade show continues. It is easier to digest that the much bigger fairs.

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Newsagency management

Have there been changes at Hubbed that affect newsagents?

I was asked by a newsagent recently to help them exit Hubbed as they were encountering challenges in achieving this for themselves. For those not aware of Hubbed, it is a parcel service promoted to newsagents by Hubbed in partnership with and endorsement from the ANF.

Resolving any issue starts with the paperwork from the start of the relationship. I can see the newsagent has a relationship with Hubbed Pty Limited, ACN 159 190 833 and ABN 28 159 190 833.

A check of the ASIC (Australian Securities and Investment Commission) website shows that a series of changes in 2014 including: October 10, 2014, Hubbed Pty Limited changes its name to A.C.N. 159 190 833 Pty Limited.

The next ASIC entry is: June 2, 2015. The ATO commences winding-up proceedings against the company that was Hubbed {Pty Limited lodging a Form 519. The ASIC website shows that matter is still pending.

This is important for newsagents wanting to exit Hubbed as it goes to the status of the entity with which you contracted and whether any interest Hubbed or related entities had in your business has been transferred or sold to any other entity. There is another entity, Hubbed Pty Limited, which was called A.C.N. 600 398 178 PTY LTD until October 8, 2014. The last activity on ASIC registers for that company are on October 17, 2014.

I am posting this here to seek help from others who may have more information that could help newsagents in relation to their Hubbed relationship.

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Hubbed

Do magazine shoppers prefer the easier to understand loyalty opportunity

IMG_7979In a newsagency I visited this week I got into a discussion with a shopper about the two different loyalty offers side by side. The customer said the $10,000 offer from Pacific was more appealing because I can see the opportunity. While there are rules and some hoops, the prize opportunity is clear whereas with the Bauer promotion headline is get rewards but then I have to get the app – placing more barriers to entry for the browser. I don’t understand that offer the customer said. This conversation was unprompted – I kept my bias for the more easily understood promotion to myself.

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magazines

Why all the posts today about Network Services?

The posts I have published today reflect data from one newsagency. The newsagent sent me the screen shots as evidence of the appalling oversupply they are suffering and have been suffering from Bauer’s Network Services.

While the company reps say one thing to the ACCC and have the ANF under their spell, the company does this month after month to small business newsagents.

No wonder newsagents continue to scream abut oversupply.

No study is needed to stop tis behaviour y Bauer. They are in control.

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Ethics

Network Services overloads newsagents with Motor magazine

photo 5Look at this evidence of Network Services increasing supply of Motor magazine to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help newsagents grow their businesses.  The actions from Bauer indicate something different. No wonder newsagents early return.

Shame on Bauer.

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magazine distribution

Network Services overloads newsagents with Harpers Bazzar magazine

photo 4Look at this evidence of Network Services increasing supply of Harpers Bazzar magazine to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help newsagents grow their businesses.  The actions from Bauer indicate something different. No wonder newsagents early return.

Shame on Bauer.

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magazine distribution

Network Services overloads newsagents with Belle magazine

photo 3Look at this evidence of Network Services increasing supply some issues back of Belle to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help them grow their businesses.  The actions from Bauer indicate something different. No wonder newsagents early return.

Shame on Bauer.

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magazine distribution

Network Services newsagents overloads with Empire Magazine

photo 2Look at this evidence of Network Services increasing supply of Empire magazine to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help newsagents grow their businesses.  The actions from Bauer indicate something different. No wonder newsagents early return.

Shame on Bauer.

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magazine distribution

Network Services overloads newsagents with Good Medicine

photo 6Look at this evidence of Network Services increasing supply of Good Medicine magazine to a newsagent without any justification in the sales data. Network is owned by Bauer. Bauer representatives told the ACCC recently that they want to support newsagents and help newsagents grow their businesses.  The actions from Bauer indicate something different. No wonder newsagents early return.

Shame on Bauer.

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magazine distribution

Sunday newsagency marketing tip: engage with your customers

Screen Shot 2015-07-04 at 10.17.11 amI posted about the cute Frizzies from ty on Facebook last week and achieved more than 600 likes and plenty of comments in a couple of days. One person commented that a Frizzie looked like a selfie of their friend Luca. Other friends joined in. I responded with an offer of a free Frizzie for Luca. The Frizzie is in the post even though he’s in another state.

This simple engagement on social media humanised the business and took us from being a business to someone having a chat with friends talking about us – kind of the way you might in the real shop except this was only and with people who have not shopped with us before. The interaction encourages those in the thread to notice us, remember us and realise we can be fun in such discussions.

We need to be as engaged and human online as we are in-store. In fact, more so as online they have even less to go on about who we are. Facebook is a terrific platform for this engagement.

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marketing

Sunday newsagency management tip: be serious about your business data

In the two weeks leading up to the end of the financial year I saw more newsagents engage with their business data than for the other 50 weeks of the year. Through my newsagency software company I saw questions about stock management, stock-takes and the like all demonstrating an engagement as business owners scrambled to have accurate year-end data ready.

Sadly, for many immediately after June 30 they will leave data pretty much along for another 50 weeks.

I sad sadly as attention to data pays dividends.

  • Good data fuels accurate reports and accurate reports guide better quality business decisions.
  • Good data is essential to holding suppliers to account.
  • Good data stops you spending unnecessarily on stock.
  • Good data tells what you can’t see in your business.

I urge newsagents to be serious about data all year round. Stop being afraid of a bit of extra work caring for data. It may show you what you need to make your business worth a few more bucks.

Use your software company. Ask for their help. Seek out training. Set rules in your business and demand all who work with you to follow the rules.

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Management tip

Tons of free Women’s Weekly magazines

IMG_8002At the Gift HQ trade show that opened in Brisbane today, two large stacks of Women’s Weekly magazines were available for people to help themselves for free.

The photo shows one stack before the show opened. The other was as large.

There was no sign explaining the context of the giveaway.

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magazines

Newsagency management tip: Apps you need to use

Here are Apps I suggest newsagents try to understand competition and improve their shopper experience:

  1. Officeworks. For price comparisons, especially ink. Essential for showing you are cheaper than this giant business than spends too much money saying they are cheap.
  2. Tatts. To understand the real threat to in-store lottery purchases. As I have written here before, the experience is eye-opening.
  3. Staples. To understand the moves of your toughest stationery competitor. In the US , they own small business stationery.
  4. Google maps. To check your businesses and others nearby selling what you sell – understand how you and they are found.
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Management tip
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