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

Author: Mark Fletcher

The ANF fails newsagents on its loyalty promotion

Screen Shot 2015-05-06 at 8.41.34 pmThe ANF appears confused about its support for the Rewardle loyalty program saying it is launching the program, then that it is not launching the program and then that it is launching the program. No wonder newsagents shake their heads in despair about this organisation.

Here is the headline of the ANF announcement on April 29:

ANF to launch nationwide rewards system for members

Here is the opening paragraph of the ANF statement from at around lunchtime May 6, 2015:

Re the announcement that the ANF is launching a rewards program Rewardle – this is not correct.

The image above is from an ANF email sent to newsagents later on May 6, 2015 – after the statement that it is not launching reward.

Maybe once the ANF has sorted out its position on Rewardle it could let newsagents know.

To me, this flip flopping is yet another reason for newsagents to stop supporting the ANF. Paying fees to them only encourages them.

The ANF needs to explain its relationship with Rewardle. If it is commercial, if the ANF is making a commission, it ought to disclose this to newsagents.

The ASX website has an announcement from reward (ASX code RXH) indicating that the ANF has entered into a Channel Partnership Agreement. That sounds commercial. the announcement notes that the Rewardle was introduced to the ANF by a leading national publisher. Nothing wrong with that except that this ought to have been disclosed by the ANF if it is committed to transparency – along with details on any payments they ANF is to receive.

I wish I did not have to write this post. I wish the ANF was transparent, did not flip flop and did thoroughly engage products and services before it launches them to newsagents. It’s easy to get it right. It takes poor leadership to get it this wrong.

On Rewardle itself, it will suit some newsagents but not others. Our channel is already awash with loyalty offers such as those funded and run by Bauer Media, John Sands and Hallmark and several other suppliers plush those run within newsagency marketing groups such as Nextra, TLC and newsXpress and then there are the many loyalty offers run by newsagents from the traditional points based programs through to the discount voucher front-end loyalty I have discussed.

Newsagents need to research carefully any loyalty program to ensure its appropriateness to the needs of their businesses. They need to ask whether the proposed program offers the point of difference they want and whether it engages deeply within their business. I do wonder if the ANF has looked at Rewardle carefully and considered all of the alternatives.  I suspect not.

If you think I am writing this because I have a competitive offer you would be wrong. What my newsagency software offeres is different to Rewardle – I would not compare them.

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Newsagent representation

The core of a good newsagency: local community connection

This week I am looking five cores of today’s newsagency. I have selected five that relate to every retail newsagency, or should at least. Each core is important because of traffic and that mastering it defines our business in the eyes of these we serve.

Core #4: local community connection

Our local community is important to us and we are important to our local community.

In a survey of newsagents several years ago, the local community connection was considered the most important USP (Unique Selling Proposition) of newsagents. Whether this is true for your business or not, I bet your local community connection is important to you – even if it is not the most important factor.

If your newsagency is not locally connected you may not be seen as local and as locally valuable as could be the case.

Here are my tips on boosting the local connection:

  1. Be knowledgeable about local activities, events, issues and places.
  2. Talk about local matters on your social media outlets.
  3. Support local groups with knowledge, prizes and attention.
  4. Encourage local groups to use your business.
  5. Serve your community in practical ways such as volunteering.
  6. Help even the groups you cannot help financially – with an events noticeboard and supporting them on your Facebook page etc.
  7. Talk local across the counter.
  8. Be visible at local events and activities.
  9. Encourage your employees to be visible at local events and activities.

It is one thing to say you are locally connected and another entirely to live a local connection. My advice is for you to take it seriously, to actively engage and to make a difference to your community.

The purpose of this series is to remind newsagents what sits at the core of today’s newsagency business. And I am talking about today. Tomorrow may be different. Hat we need to do right now is manage for today to achieve the best we can with today’s traffic.

I am not including tobacco and lotteries in this list as not every newsagency has these.

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Management tip

Hello competing with New Idea and Woman’s Day

helloWhile we have a new issue of Woman’s Day and a refreshed New Idea covering the birth of royal baby, UK magazine Hello is also out with its coverage of the birth and the baby. I suspect Hello will be more interesting to some customers. I see many shoppers purchase Hello for royal coverage. It has a reputation for a style and level of coverage on subjects such as this which is spectacular. The difference compared to local product is due to the much bigger audience in the UK where Hello is published.

Being a good newsagent we will promote all royal baby titles together and let our customers decide.

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magazines

What newsagents need to know about the MPA trial of proposed magazine supply rule changes

Here is a video I shot Monday this week to explain what I think newsagents need to know about the trial of new magazine supply rules proposed by three magazine publishers. It’s a long video but brings to the view concerns about the facts. Please watch it.

In the video you are provides quotes from documents and links to publicly available documents.

Click here to see the minutes of the ACCC conference as released today by the ACCC.

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Ethics

The core of a good newsagency: stationery

This week I am looking five cores of today’s newsagency. I have selected five that relate to every retail newsagency, or should at least. Each core is important because of traffic and that mastering it defines our business in the eyes of these we serve.

Core #3: stationery

There was a time when newsagents dominated stationery sales in Australia. This should be the case today as we are the best positioned businesses to serve people buying stationery for home, local businesses and local community groups. We are the best local business selling stationery.

Sure we may be a little more expensive – but our service is more personal, thorough and trusted. Too often we try and compete on price while ignoring the opportunities of our points of difference.

Despite recent sales falls, stationery traffic and revenue remain important in your average newsagency. This is why I say it is a core product category.

I say we can do more to make stationery more valuable. We can do this in a number of ways:

  1. Pitching stationery outside the stationery department – and buying protects that enable us to do this.
  2. Pricing our products to reflect our service. By this I mean charge more for the more comprehensive local service we provide.
  3. Focus on known bands ahead of generic brand product. Brands = trust.
  4. Sell singles ahead of packs.
  5. Let people try before they buy.
  6. Show people what to purchase and why.
  7. Talk about stationery,
  8. Run an education program.
  9. Ensure your employees are trained.
  10. Talk about stationery on your social media platforms.
  11. Use stationery as a reward for prizes, school awards and the like.
  12. Manage stationery – you control your buying, pricing and display. Engage with this in the best way possible.

How you approach stationery is one way you define your newsagency in the eyes of those who shop in newsagencies. The more you disconnect from expectations the more you risk not being identified as to what people expect.

The purpose of this series is to remind newsagents what sits at the core of today’s newsagency business. And I am talking about today. Tomorrow may be different. Hat we need to do right now is manage for today to achieve the best we can with today’s traffic.

I am not including tobacco and lotteries in this list as not every newsagency has these.

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Management tip

Coles shift in magazine and newspaper pitch a challenge for newsagents

ColesThis photo shows a new approach in a Coles supermarket to newspapers and magazines. This stand is located inside the main door with another near a rear checkout and more magazines located in their traditional magazine department.

This front entrance placement serves the shopper not going deeper into the business, the type of shopper who may usually have purchased these top selling everyday titles from the newsagency a few doors away.

If your newsagency is near a Coles, check whether they have made any changes like this and consider whether you should respond to ensure the relevance of your offer of top selling magazines and newspapers.

While it frustrates me to see what Coles has done here, it is competition – we have to compete more effectively.

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Competition

FREE Newsagency of the Future workshop

I will explore changes which will affect us in the next few years, new traffic opportunities and changes newsagents can make today. I will also discuss the magazine supply model and the proposed magazine supply rule changes.

Each session is free and open to any newsagent.

You can also book by emailing bookings@towersystems.com.au.

There will be more locations including Tas., WA, Cairns and Newcastle.

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Newsagency management

Woman’s Day out Thursday

Woman’s Day issue 20 is out Thursday with royal baby coverage. The following communication was sent to Connections members:

Celebrate the birth with a special EARLY edition of Women’s Day on sale this Thursday (7th May).

The brand new issue will offer 34 pages of in-depth royal coverage. Woman’s Day Editor-in-Chief Fiona Connolly said about this special issue; “With stunning photos and royal commentary from the best in the business, this very special souvenir issue of Woman’s Day will be one to savour for years to come, providing all women with a window into one of the greatest fairytales every told.”

The last Royal Baby issue saw a 35% increase in sales, so don’t miss this opportunity to ride the hype and maximise sales in store with this special SOUVINER EDITION on sale this Thursday!

In order to help you create amazing displays your stores will receive:

  • A2 Posters
  • A4 Posters
  • Header Cards
  • Banners

To celebrate one of the biggest news stories in 2015, Connections are giving you the opportunity win up to 50,000 Connections Point AND guaranteed bonus towards your Newsagent of the Year score! So get creative and use your special POS to create eye catching displays and drive impulse purchases in your store.
Keep an eye on today’s Connections Newsletter for more information on the display competition and how you could catapult up the Newsagent of the Year leaderboard.

Don’t miss out on this amazing sales opportunity!

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magazines

New Idea royal baby souvenir issue

Pacific Magazines has advised newsagents there will be an updated version of the current issue of New Idea – with coverage of the recently arrived royal baby. This is an opportunity to raise awareness of New Idea later in the week.

This issue is an updated version of New Idea (cover-dated 11 May), featuring all the official royal photos! Note this is part 2 of the split distribution, and will be delivered THURSDAY.

I have asked Bauer Media about their plans and they advised they would let me know once they have a decision specific plans.

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magazines

The core of a good newsagency: magazines

This week I am looking five cores of today’s newsagency. I have selected five that relate to every retail newsagency, or should at least. Each core is important because of traffic and that mastering it defines our business in the eyes of these we serve.

Core #2: magazines

We are the magazine specialists and which this status comes at a high retail space, labour and opportunity cost, today it is a specialisation that is important to us.

Regardless of the unfair treatment of our channel by some publishers and distributors we need rise up and make the most of the magazine opportunity. It is a core category for which newsagents are known.

No, this does not mean no early returns or that magazines should be at the front of the shop. Here is what we must do as a minimum to respect magazines as a core activity:

  1. Display by area of interest in a defined magazine department.
  2. Use header cards or signage to make the shopping experience easier.
  3. Where possible, use full face displays.
  4. Ensure your staff have excellent product knowledge.
  5. Offer a good putaways service.
  6. Target special interest titles.
  7. Offer a loyalty program
  8. Relay magazines at least annually.
  9. Promote magazines on social media – titles supermarkets do not carry.

Look at magazine placement and display and ensure you leverage this for other products, higher margin products. There is where there is value on the magazine category – leverage it through smart adjacencies and placement.

The purpose of this series is to remind newsagents what sits at the core of today’s newsagency business. And I am talking about today. Tomorrow may be different. What we need to do right now is manage for today to achieve the best we can with today’s traffic.

You don’t have to put posters out or do aisle end displays for magazines unless you are certain these activities drive sales in your business.

My own experience is that you can grow magazine sales by being tactical in-store … placing the right title with a kick-ass cover in a high traffic location.

I am not including tobacco and lotteries in this list as not every newsagency has these.

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magazines

Justice League attracting male shoppers to the newsagency

IMG_6214The terrific floor display unit in the newsagency supporting Justice league licenced product is attracting new traffic. While predominantly male, younger kids do drag in parents including mums and sisters. This new traffic is valuable to be business – the shoppers attracted are purchasing other items from us and this is helping drive sales of magazines, gifts and cards.

Newsagents attract new traffic with the right products in the right location.

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Gifts

The core of a good newsagency: newspapers

This week I am looking five cores of today’s newsagency. I have selected five that relate to every retail newsagency, or should at least. Each core is important because of traffic and that mastering it defines our business in the eyes of these we serve.

Core #1: newspapers

Sure we don’t make a fair margin from them and reasonable supply is a challenge and their promotions can be frustrating – but newspapers are important to retail newsagents.

  • Newspapers provide good traffic. What else we leverage that traffic into is up to us.
  • The most important newspapers for us to sell are foreign language titles and local papers if we are in regional and rural locations.
  • Newspapers can be space friendly. Placing them in less expensive space tends to not hurt sales. Placing them without the full cover on show tends to not hurt sales. So, we can reduce our costs.
  • We can use the traffic generated by newspapers to promote other products. Key magazines do well when placed next to them – such as Better Homes and Gardens.
  • We can place products so that people purchasing a paper are pitched other items on the way to the counter and then as they leave the shop.
  • We can ensure every newspaper sold is sold with a flyer or offer to attract the shopper back into the business.
  • So while we can be frustrated with newspapers, they do present opportunities for us which we can leverage into other sales.

The purpose of this series is to remind newsagents what sits at the core of today’s newsagency business. And I am talking about today. Tomorrow may be different. Hat we need to do right now is manage for today to achieve the best we can with today’s traffic.

I am not including tobacco and lotteries in this list as not every newsagency has these.

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Newsagency challenges

Terrific Mother’s Day sales at the newsagency

IMG_6145We have had a terrific weekend of Mother’s Day card and gift sales – giving me a lot of confidence about Mother’s Day this year. We have our cards located on the lease line facing into the mall to attract shoppers and to help them not interfere with everyday card shoppers.

We have deliberately not cluttered the Mother’s Day displays of gifts (on the left) and cards (on the right). the wide aisle between makes it easy for other shoppers to get into the shop and see past the Mother’s Day for the next layer of cards and gifts we have on offer. While seasonally driven traffic boosts are terrific, we work hard to ensure that our everyday sales are not hurt.

We are chasing double digit growth for Mother’s Day. It’s important to have a goal for seasons and year round.

To traditional newsagency suppliers who say this does not look like a newsagency, I say check our sales. Year on year we are ahead of the channel, particularly in magazines, so this from of store pitch to attract shoppers is benefiting traditional categories.

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Gifts

Sunday newsagency marketing tip: promote your magazine point of difference on social media

foodmagsI regularly promote the depth of range of magazines in the newsagent on social media including Facebook. This screencap shops a facebook post from yesterday – for a selection of healthy eating magazines.

When doing this I tend to focus on titles not widely available elsewhere. I also promote four or five titles to speak to range. Plus I will boost the post with a small spend, usually $5, targeting a specific demographic appropriate to the magazines I am promoting.

It is important we promote our point of difference in the magazine space when promoting our business as we cannot rely on shoppers to think we have any deeper range than supermarkets.

Posting regularly about your magazine range is a differentiator as supermarkets and other outlets nearby will not do this.

My marketing tips today are: use social media to promote depth of range in magazines, boost your posts and post regularly. Let people in your area know that you are the go to magazine specialist.

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marketing

Sunday newsagency management tip: trust yourself

Talking with a newsagent last week they were worried about a business decision they thought was right for their business yet their accountant disagreed.

The accountant is in another town, an hour away. They have never seen the newsagency. Their only interaction with the owners (who have owned the business for two years) is a six monthly review of the financials.

The owners decided to make some changes to the business that required capital investment of $20,000 in fixtures. The changes were to move the business from traditional, old-style newsagency fixtures, to something more flexible and attuned to retail today.

The accountant said they would not meddle with the old style newsagency. Being new to the business the owners started second guessing their instincts to significantly change the business.

By all means seek out advice from professionals – but when it comes to what is right for your business, listen to yourself ahead of them. In this instance, money was not an issue. The only question was whether this business should pursue change. Of course it should and an accountant who has never visited the shop and who was looking at good numbers based on changes made already is too out of touch to offer advice.

My management tip to newsagents today: trust yourself.

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Management tip

Leveraging My Kitchen Rules

IMG_6155We are promoting the My Kitchen Rules cookbook above newspapers, with cookbooks and next to weeklies for the first couple of weeks to leverage the opportunity. This location with newspapers puts it in front of the most eyeballs and demonstrates our valuable support.

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magazines

Mumbrella covers MPA newsagent magazine supply rule change proposal

Media news website Mumbrella yesterday covered the ACCC conference held last week to consider the application by the MPA to trial new magazine supply rules. I appreciate the time they took to learn about the proposed trial and the concerns it represents for newsagents.

This the first time I can recall such public coverage of the uncompetitiveness of magazine supply to newsagents compared to our competitors. It is good to see the story out there.

Newsagents interested in the issue of magazine supply should read the Mumbrella report.

I wish the ANF would be more complete in its coverage, more transparent with newsagents. Yesterday, they published a post which I say shows the ANF acting as a mouthpiece for the MPA when they should be the mouthpiece for newsagents. In a comment to the post the ANF says: there are no plans to disallow early returns. The problem for the ANF is that rule 4 from the MPA says:

A Distributor will not be required to accept Early Returns from Retailers, except where such Early Return is made by a Retailer to correct an error in allocations quantity.

The ANF needs to stop defending the trial by saying any trial is better than no change. They need to robustly represent newsagents if they are to recover credibility from their current low point. They need to demonstrate to newsagents that they are fighting for them and not publishers.

As I told Mumbrella yesterday:

“Newsagents want to be magazine specialists, they want to be the go to place for all your special interests. That is only going to continue if we can find a way for that to be economically viable,” he said.

People at the ANF seem to think I am against change in magazine supply. Not true – I am all for change, fair change. It is unreasonable for newsagents to accept anything which does not improve our ability to compete as that is of no benefit to us.

The folks at the ANF need to realise that newsagents deserve professional, thorough and energetic leadership – backed with open communication.

On the ANF website yesterday the ANF appeared to suggest the no early returns was for the purpose of this trial only. The documentation submitted to the ACCC by the MPA does not indicate that. Further, if this was the case the MPA members could have ensured fair supply and therefore seen early returns decline – and negated the need for the trial. Publishers do not trust this will happen because magazine distributors Gotch and Network have driven newsagents to use early returns as the only reasonable in-store magazine management tactic.

Finally, I have heard from several newsagents that they have been approached by ANF representatives to discuss this matter and the ANF reps comment about what I have written here. To date, no one from the ANF has contacted me on this issue.

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Ethics

Print newspapers fading from hotels

IMG_6062I am noticing fewer newspapers available in hotels now than at any time I can recall. More hotels are offering free online access through services like Press Reader which was available in a hotel I was in this week. Press reader provides access to the full content of more than 2,000 newspapers from around the world. No wonder hotels offer this over one or two print newspapers.

1 likes
Media disruption

Avengers the hot licence for newsagents

IMG_5996Avengers merchandise is strong with no sign of it slowing. In Hong Kong this week I saw retailers leveraging Avengers at a mega level. The photo shows one display in a mall I visited. Back home, we are selling Avengers products to guys and girls of all ages.

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marketing

Terrific newsagency opportunity in Port Lincoln

11023334_10204515850961249_8856623529390678926_nnewsXpress Beers Port Lincoln in South Australia is a terrific business. Innovative, loved by customers, and respected in the local community.

The business is now for sale. Rather than hiding this as many newsagents do, they have a sign in the window – inviting expressions of interest from locals.

I mention it here today in case the idea of a sea change appeals. Port Lincoln is a wonderful place.

I have known this business for many years and remain in awe of their commitment to connecting with the community and embracing change.

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Newsagency for sale

Newsagency of the Future workshop dates

I have organised dates for Newsagency of the Future workshops for more cities. At this session I will explore changes which will affect our channel in the next few years, new traffic opportunities and changes newsagents can make today to improve their future. I will also spend time on the magazine supply model and open discussion about the proposed magazine supply rule changes.

Each session is free and open to any newsagent. The dates are as follows (click on the link to book):

You can also book by emailing bookings@towersystems.com.au.

There will be more locations and dates added including Tasmania, Western Australia, Cairns and Newcastle.

My goal is for you to have practical steps you can take right away and new information to consider in your business planning.

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Newsagency management

Magazine week: How to make magazines more profitable in your newsagency

Each day this week I will post about magazines from an overall business perspective in newsagencies. I am doing this because some suppliers think my submission to the ACCC of the proposed trial of new magazine supply rules I made on behalf of newsXpress reflects a move against magazines. Nothing could be further from the truth. I am fighting for fairness because of believe in magazines for the long term.

How to make magazines more profitable in your newsagency.

  1. Manage your space effectively – i.e. NOT full face for slow moving title. This works well in special interest areas.
  2. Track theft – look at the discrepancy report when doing your returns. Act on titles being stolen from you.
  3. Track and manage the time you spend on magazines. Automate all processes.
  4. Do not label weeklies and high volume monthlies – save time and money.
  5. Look for bulk sale opportunities: nursing homes, businesses, community groups.
  6. Offer putaways. Cutaway magazine customers are the most valuable type of magazine customer.
  7. Early return when warranted – don’t become a lender to publishers on titles you don’t make money.
  8. Pitch outside your business to show off your point of difference.
  9. Review your floor space allocation for magazines. Is the amount of space allocated appropriate? Is it in the right location in-store?
  10. Work your magazine traffic by placing products at each entrance to magazine aisles which magazine shoppers could purchase on impulse.
  11. Place other products next to magazines.
  12. Only use magazine fixtures which can be used for other products. Do not have fixtures purpose made.

For too long newsagents have been treated by magazine publishers and distributors in a paternalistic way. Just because we ask for fair and equitable supply so we can compete with others selling magazines does not mean we want to turn our back on the category. It means the opposite. We see a bright future for magazines if we can achieve fair supply.

Footnote: I am calling this magazine week for no reason other than to label the series of posts.

5 likes
magazines
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