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

Author: Mark Fletcher

This is how a supplier supports their small business retail customers

We started buying from a US based supplier (not the one I wrote about recently). They have unique products, nothing like them in Australia.

Their first order has just arrived. Yesterday, they asked if we ship as they have someone in NSW interest in a product of theirs we have just received. It was an easy sale.

Now, overnight, we have received 2 more similar leads.

While they could shop to Australia, and Aussies would pay shipping for their unique products, their choice is to support retailers who purchase through them and pass on leads.

It’s terrific seeing a supplier support its retail partners in this way.

7 likes
Social responsibility

News Corp needs to improve it’s engagement with online

A new issue of the House of Wellness advertising catalogue is out next week and people interested are told to take the coupon to a newsagency to collect. If you follow the links News Corp has published to see stockists you get a non-searchable list with truncated names.

The list is useless unless you want read through 18 pages. They could have easily made this searchable. It’s an easy fail by News Corp.

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Newspapers

We’re hiring: Retail Manager, newsXpress Malvern

We’re hiring for a Retail Manager role at our Glenferrie Road, Malvern, VIC, store.

Retail Manager: newsXpress, Glenferrie Road Malvern.

We are looking for an experienced retail manager, keen to manage their own shop. Someone with good current Aussie retail skills, ideally in innovative small business.

Product categories of interest are gifts, homewares, greeting cards and pop culture.

We provide considerable freedom, which is backed with encouragement and support from our head office team.

The use of current POS software is key to success as are online sales fulfilled through this business.

This role reports to our head office retail businesses manager. There are opportunities in the future outside the shop, too.

We own several suburban Melbourne retail businesses. They are run under management. Our retail managers spend most of the day in the shop, serving, working with customers, suppliers and team members.

While our retail businesses look a bit like a newsagency, they are not a newsagency. Our focus is on gifts, homewares and greeting cards. There is no confectionery product, no lotteries and no tobacco.

This is a full time role.

Want to know more, email us at newsXpress head office: help@newsxpress.com.au. Also, check us out online at www.cutenessoverload.com.au  and www.beanieboosaustralia.com and www.jigsawsaustralia.com and www.mintcoinshop.com.au.

No agents.

$60,000 – $65,000 + super + vehicle allowance.

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Newsagency management

Some pop culture brands are easy wins for retailers

The Golden Girls is a successful pop culture brand in Australia based on online searches, but not based on products sold. Monthly Google searches are sitting at 30,000+ yet there is little here in the way of products available from suppliers.

What fascinates me is the broad age and gender appeal of this brand. Like some other TV show brands from the 60s, 70s and 80s, it’s a brand with a ton of latent demand here.

Thanks to good data resources we can gauge consumer interest in a brand. It surprised me that the wholesalers with access to overseas businesses manufacturing products with these licences appear to not have done the search data research.

While The Golden Girls is on my mind at the moment, there are other brands even more successful, more often searched, than it for which there are no products in Australia. It’s frustrating and disappointing, and leading some retailers to explore unconventional routes.

I am interested in this because I think that in these niche spaces lay opportunities. Sure, it’s easy selling what everyone has access to. But, it is likely to be more valuable playing in these other spaces.

Now, I do get that the mug in the photo is =not Licenced product. It has been created in a way so as to not represent itself as genuinely Licenced. Rather, it is inspired by if you like.

3 likes
Newsagency opportunities

Newsagents: be careful in handling the extra magazine issues published to commemorate the passing of the Queen

The extra magazine issues out tomorrow present challenges for newsagents as you will have 2 issues of one title on sale at the same time.

Tower Systems earlier today published advice to its 1,700+ newsagency software customers. It’s in the Tower knowledge base and may change to suit changed circumstances:

Early Magazine Arrivals – Queen Commemoration Issues

Woman’s Day, New Idea, and Who will be releasing an early special issue on Thursday September 15th to commemorate the Queen. To avoid any billing issues with the title coming out twice in one week you will need to follow the below advice:

Subagents

You will have to manually change the orders for Woman’s Day, New Idea, and Who on Monday the 19th back to Friday the 16th. This will ensure that you have dockets and a corresponding charge for the Friday deliveries. To do this please follow the steps below.
  1. Go into your subagent orders screen & select generate orders & select the week ending date in which 19/09/2022 is contained. For Most users this will be 25/9/2022.

  2. Click Generate

  3. Go to the subagent orders screen and select the week ending that contains the orders for Monday 19/09/2022

  4. Locate and change each title with the arrival date of 19/09/2022 to the 15/09/2022. You will need to do this for each subagent who receives the title.

  5. This will then move the order back to the week ending in which the 15/09/2022 is contained.

  6. When you then arrive Woman’s Day for 15/09/2022, you will be asked if you want to change the arrival day from Monday to Friday. Select NO.

  7. You will then be asked if you wish to create a non-arrival for the title. Select NO.

These titles will show correctly on your subagent dockets and will correctly bill for that week.

Do NOT generate your subagent orders again after this point for the week ending that contains the 19/09/2022 as this will re-create the orders that you have moved. If you do you will need to go into each subagent grid for the week affected and zero out the Qty for each title 

Customer Home Deliveries

For home delivery customers we you will need to
  1. Print off the Run List for the 19/09/2022 and the 15/09/2022 on the afternoon of the 14/09/2022.

  2. Transpose any home deliveries for the titles affected to the run list for the 15/09/2022Customer will be billed on Mondays as normal, providing you have NOT entered a Non Arrival.

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Newsagency management

Is The Lottery Corporation shifting focus to convenience and tobacco?

It feels to me like the folks at The Lottery Corporation are interested in new outlets in the convenience and tobacco retail niches to the detriment of the historically strong focus on newsagency businesses.

Okay, I don’t have evidence to support this. It’s why I say it feels like.

Any move referencing tobacco retail would be odd as it challenges the values of TLC. I mean, seriously, any support of tobacco businesses would be problematic for any partner. I mean, lung cancer …

It’s been on my mind recently because of colleague newsagents who have had to deal with new competitors, tobacco outlets, approved by TLC for a lotteries franchise.

I mention it here to put the topic on the record, to see if anyone comments.

I may be wrong. There may be nothing to see here. But, on the other hand, there may be plenty to see here. It could be a trend.

It wouldn’t surprise me given what we see in some overseas markets.

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Uncategorized

A roster and opening hours challenge for the national day of mourning, especially in Victoria

The national day of mourning for the Queen announced this morning presents challenges for business, especially small business retailers, like newsagents, and especially so in Victoria.

Friday September 23 is already a public holiday for the AFL Grand Final.

Now, we have the day before, September 22, designated a public holiday. It’s a Thursday, with attendant magazine challenges for plenty of newsagents,  too.

We’ll all have to consider opening hours and roster settings. Given penalty rates, it presents a challenge.

Since school holidays are already under way then, that is also a consideration.

Everyone has their local situation to consider. For us in suburban Melbourne, for example, it will be a half day open on the national day mourning I think. 7am to 1pm probably.

Most sales for many newsagents will be papers, at 12.5% GP and magazines, at 25% GP. Wages will cost around $45 an hour. You can soon work out the cost of being open on this new public holiday.

Maybe the federal and state governments could join in on the mourning and waive taxes and charges for a day. Of course, that’s a ridiculous and impossible suggestion. But I do wonder about the cost to all businesses of this new public holiday. In small businesses, especially, days like this increase the cost to business owners either in financial terms or demands on their own time.

I get that there are some in the community who will embrace and appreciate the national day of mourning, and I get that the country, as part of the Commonwealth, needs to be seen to do something like this, and that plenty of Australians will want it. What is frustrating is the considerable cost that falls to small business without consultation – which, of course, would be impossible in this rare circumstance.

I mention it merely to note it.

Also, it would be churlish to not note the economic value to flow from the passing of the Queen in newspaper, magazine and mint coin sales, and more I suspect. So there is that, for which I am grateful.

I am all for a republic. The sooner the better. The Queen dying doesn’t sadden me. I feel no connection to her. I’m not aware of anything good she did for me, or anyone I know. I am aware of her involvement, by proxy, and by looking the other way, in the removal of a democratically elected government in Australia, as documented thoroughly in The Palace Letters, by Jenny Hocking.

Bloodline monarchies have no place in democracy in my opinion.

Yes, she was a strong woman of influence in the world, and she was likeable and she was the official British Head of State. But, getting the seat because of bloodline and being surrounded by such luxury and opulence public funding is problematic to me, as is their invasion of well settled lands, like Australia, where the indigenous were slaughtered.

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Ugh!

Are media announces magazine publication plans for commemorating the life of the Queen

Are Media has provided this advice to newsagents re their current plans for commemorating the life of the Queen following her passing.

Monday 12th September on-sale:

  • Woman’s Day, New Idea, and TV Week to go on sale as normal

Thursday 15th September on sale:

  • New Idea and Woman’s Day, which were due to go on sale 19th September, will be brought forward and remain on sale for 10 days
  • Who will be on sale as normal
  • New Idea additional special commemorative one-shot will go on sale RRP $9.99=

Monday 19th September on sale:

  • The Australian Women’s Weekly commemorative issue one-shot RRP $12.99

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magazines

News Corp advises newsagents of supply increases this weekend

This comms was just sent to newsagents:

Dear Newsagent/Retailer,

Our Saturday and Sunday newspapers will contain significant news coverage related to the passing of Queen Elizabeth II.

In anticipation of increased reader interest, we have increased your supply for these editions.

Our regular weekend magazine inserts are printed several days before the newspaper is printed. This means that for this weekend only, we don’t have enough magazines to cover the increased newspaper supply.

You may find that this impacts your own supplies. If so, please let your customers and staff know, and convey our apologies.

And to minimise any possible delay in arrival times, additional delivery vehicles have been added.

If you have any concerns on this matter, please don’t hesitate to contact News Retail Support, your Area Logistics Manager or Area Sales Manager to discuss further.

Kind Regards,

News Corp Australia

And later today after emailing them I got this from Nine:

QUEEN ELIZABETH II SPECIAL EDITIONS – SATURDAY. Retail supplies will be increased for special editions of The Age and Financial Review on Saturday 10th September. Because of the late changes some country and metro AGE copies may be delivered without the Good Weekend magazine and on Sunday some copies will be without Sunday Life.

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Newspapers

Waking up to $8,000 in online sales overnight

I knew that when the Queen passed the $100 Platinum Jubilee Coin would sell well. I did not expect $8,000 in sales three hours.

What happened here is a testament to having the right product, being online, and being high in search results.

I am not sharing this to disrespect the Queen. Rather, I share it as an example of value we can cultivate in thoughtful diversification.

This is not an isolated situation. And, it is something any newsagent could achieve.

Now, here’s a newsXpress pitch – because access to the coins is through newsXpress. This coin has already been very successful for us. What happened overnight is the icing on the cake. And, what’s most interesting is … many shoppers bought other coins and almost all are first time shoppers with us. This is all part of newsXpress strategy – with execution details shared with members long ago, presenting the same opportunity for all.

UPDATE (12:05pm): It’s continued with people purchasing other coins knowing they will be the last with the Queen. It is fascinating seeing the depth of range of purchases.

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Newsagency management

That hit product everyone wants

We were lucky to have stock of the 75th Anniversary of the Australian Signals Directorate – 50c Uncirculated coin 2022 released by the Royal Australian Mint.

It sold out quickly and while we’d like to have had more stock, having it helped us attract new shoppers. This is good because coin shoppers are habit based shoppers and they return, and they tend to purchase other items when in the shop. They are valuable customers.

Habit based shoppers are tremendously valuable in any retail setting as their habits offer an opportunity for predictability and it is this that helps us in our business planning.

In a typical newsagency, the key habit based shopper opportunities relate to the magazines (special interest and crossword are the two best for us), greeting cards (birthday is key here), stationery (home use tends to outperform office use) and, of course, lotteries.

So when we unlock a new habit based product opportunity we analyse the results and work on ways we can leverage it for broader success in the business.

This is where the mint coin products do work a treat. But it takes time and management. I have seen some newsagents get into this space and give up after a few months. Others have worked at it, tuned it, and after 6 or so months found a level of wonderful and valuable consistency.

Too often I see retailers take a step with a new product and toss it out if that one step does not fail.

As retailers we need to work our shops and the products in them. If something does hot work, we need to look at location and the support we have, or have not provided, to the product. We need to do our best to find shoppers, to cultivate them.

Now with this new coin from the Mint we were lucky because of excellent publicity around its release. It made it a dream-run product. But it does not always happen this way.

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Newsagency management

The creative approach to seeking employees at Sainsbury’s

In London, like elsewhere, every second retail business has a sign up looking for staff. The Sainsbury’s approach is eye-catching, especially if you like a delicious looking slice of sponge. Interestingly, in the shop I saw the sign, they did not have a sponge like this for sale.

I have seen so many businesses pitching for employees. Most the signs were boring, nothing special. A few, though, were creative and enticing, like Sainsbury’s. Oh, and Leon, a chain coffee outlet. While their coffee is mediocre, like 80% or so of coffee outlets in the UK IMHO, their approach for recruiting is excellent.

Then, there was this one in the window of a pizza restaurant. In a bold and clear move, they advertise the wage rates:

If you are having trouble finding new staff, consider a different pitch on a sign in your window.

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Newsagency management

Ryman the stationer does stationery so well

I am grateful for the opportunity over the last few days to have seen several Ryman the stationer businesses in London. They do it well. Usually in a small format. They make excellent use of the space. The shops are easy to navigate, and appealing. Prices are keen, too.

The photos illustrate the value of a consistent group-wide approach in their retail story.

They do stationery well, better than anything else I see here in the UK.

Plenty of inspiration here.

Thinking about each of the Ryman stores I have been to the takeaways are:

  • Brands matter.
  • Efficient space use – not overcommitting to a category or brand.
  • Product adjacencies are key to drawing people in.
  • Pitching a value offer, even if they offer is not the best going around.
  • Employ staff who understand what you sell.
  • Always be selling, even at the sales counter when ringing up a sale.
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Stationery

Interesting report on migration from the cities

Big business representatives continue to call for people to get back into the CBDs, into offices and shops.

I think CBDs were in trouble before Covid. They are expensive, inefficient and out of date. Of course it’s big business calling for the return, because the CBDs is where they aren invested.

Locally on the high street and regionally, it’s more efficient, enjoyable and relevant.

But enough of that pitch.

The ABC yesterday published an interesting story somewhat related to this.

Pandemic migration causes culture clashes and class gap in regional Australia, research finds

The culture of regional Australia could be changed forever, according to new university research, and not everyone is happy.

A two-year qualitative study by RMIT has found a mass migration of city dwellers set off by the pandemic has widened the class system in Australia, with clear winners and losers in regional areas.

Researchers followed 21 households that made the move away from city life to coastal hotspots and lifestyle towns in Queensland, New South Wales and Victoria.

It’s well worth a read.

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retail

The cliche in all good newsagents is ignorant

It’s illustrated cover day… Hang on… IT’S NEW ISSUE DAY! Our lovely packed Autumn issue is out NOW available in all good newsagents

This pitch was put out by a publisher this week in the UK. I see the same phrase used in Australia from time to time.

in all good newsagents.

It’s a marketing phrase from decades ago that has no value, no place in business today.

Embedded in the phrase is that if the product is not in a newsagency you visit or contact, that’s a bad business.

Also, the phrase assumes that the newsagent controls what they sell. In some product categories, like magazines, in Australia we do not control what we sell.

I wish the phrase would no longer be used, by any supplier, not just those supplying newsagents.

I did a search through Google and Twitter. The phrase in all good newsagents is widely used. Ugh.

Burnouts Australia, Ozcorp cards, Mama Disrupt, Chillfactor, Fishing World, Natgeo Kids, Science Illustrated … these are some of the businesses using the lazy and ignorant phrase. Magazine publishers especially need to understand that they have far more control where their product goes than newsagents.

I get this is a small issue, probably bothering only few. But, it’s on my mind … and now I’ve written about it I can move on.

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Ugh!

Two magazines worth pitching

Here are two magazines worth placing either with newspapers (next to your top seller) or at the counter. They are working well as impulse purchases for little effort. Both titles are worth pitching on social media too – easy wins.

The first is the AFL record for the 2022 AFLW Season 7.

The second is the Doctor Who magazine with the cover story of the new doctor.

I know there will be some who say there is no point in promoting magazines. There is, especially for what can be habit based purchase opportunities as well as for titles in the news – it shows us as being relevant.

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magazines

Hey, Are Direct, it’s about time you offered newsagents scan-based trading

Supermarkets have had scan-based trading for years with magazines, from back in the days on the now defunct Gordon and Gotch, then to Ovato, and now to Are Direct.

Scan-based trading is where retailers pay the magazine distributor for what is sold. That’s it.

The distributor / publisher carries the cost of shrinkage (theft, damage) etc.

The retailer makes margin from what they sell. They do not have margin ‘stolen’ by theft, or damage or failed supply … and I include damage and failed supply because the Are Direct process for handling claims by newsagents is a mess, time consuming, starting with the assumption the newsagent is wrong. Indeed, it is so bad that plenty of newsagents don’t even lodge a credit claim.

Scan-based trading is unfair in that newsagents don’t have access to it while their competitors do. This provides them an unfair advantage, facilitated by the magazine Are Direct and magazine publishers.

It’s unfortunate that Are Media spends on the old-school display competitions and similar yet fails to deal with the unfairness at the core of the magazine distribution model to newsagents.

The magazine distribution ‘experts’ at Are Direct will say it’s a data issue, that newsagents cannot provide the same accurate sales data flowing from supermarkets. This was nonsense when put 10 years ago, it is nonsense today. I say that as the owner of the newsagency software company serving more newsagents than. any other with newsagents icy software.

I tell you what … turn on scan-based trading for newsagents with accurate data and even more newsagents would achieve the desired accuracy.

This is an easy step for Are Direct to take, a fair step, a socially responsible step and pro small business retail step.

Look at a local newsagency competing with a major supermarket a couple of doors away. When it comes to magazines, the supermarket has a better deal, they make more money and save more time from how they are dealt with by Are Direct than the local small business newsagent.

Every single person at Are Media who is in contact with newsagents needs to understand this, they need to understand the unfairness of the situation as in related to newsagents.

Turn on scan-based trading for newsagents and create a fairer model for our channel, show your support for us in a practical way, show us some respect. 

28 likes
Ethics

Supermarkets vs. newsagents for Father’s Day cards

Of course I am going to say local Aussie newsagents offer the best range of Father’s Day cards, I own newsagency businesses and have been part of this ever-evolving local retail channel for many years.

I am biased.

But I’ll try and look at it objectively.

Here’s the Father’s Day card range in one of my shops.

It’s broad in terms of designs and in terms of captions covered, and there is the biggest difference compared to supermarkets – the captions covered.

I get that card companies like to have supermarkets in their channel mix – but not all card companies do. Supermarkets play a role in supporting engagement by Aussies with greeting cards. But card lovers, those folks who want range and who love good cards, they’ll shop at their local newsagency because there they will see range, get personal service, have choice and, most likely, have access to a loyalty offer that is actually valuable for them.

I have been to 8 local Coles and Woolworths supermarkets over the last few days and each had two stands from the one company – one major had one brand and the other major had another brand. Their caption range was limited. The stand looked messy. I suspect it is only tidied when the paid merchandise diner visits weekly or, maybe, twice a week.

In local newsagencies the cards are tidied daily, with the stands kept shopper friendly. So, as well as range, there is the shopper experience. This is where local newsagencies tend to excel. Here’s the display in one of my other newsagencies:

Yes, supermarkets offer volume, but they do not offer the personal engagement that is key to sustained success with greeting cards.

It’s our job as newsagents to get it right with cards because sales continue to e good, growing for plenty of us, and the margin is excellent. It is our job to keen the displays tidy, organised, to work with suppliers on range, to ensure we have a broad range of captions, to ensure that we are pitching cards in multiple locations in the shop – to engage with the impulse as well as destination shopper.

The Father’s Day season brings in more traffic ,which is good. Our job is to provide an experience that encourages them back before the next major season. We can do this, supermarkets tend to not.

I am approaching the rest of 2022 as a card growth opportunity. We have a number of changes afoot in one of my shops, including leveraging an opportunity I’ve not seen done in a newsagency before. If it works, I’ll be thrilled. If it does not work, hopefully I will learn something from it. At the core of what we are doing is a desire to expand the range of card shoppers we attract, and that starts with building the ball park, like in Field of Dreams. yes, I really do believe in if you build it, they will come.

Okay, it’s cliche and twee, but embedded in the phrase is a goal and hope and they are motivators for and local small business retailer. Having a goal is key.

More soon …

14 likes
Greeting Cards

What is the best EFTPOS rate for newsagents today?

Looking at various rate offers for newsagents out there, here are the current best rates. If you know of any better, please comment.

  • Visa / Mastercard: .70%
  • eftpos: .35%
  • Tap & save: .35%

Other factors that can play into the value equation are terminal rental, easy access to fast support, assistance in resolving chargebacks and regular rate reviews.

4 likes
Newsagency management