I am thinking of newsagents touched by war today. While ANZAC Day commemorates a horror, it is also a day for reflection on other battles in pursuit of what we hold dear.
I have heard newsagents talk of family loss through war and how this affected the business. I offer this post today as a placement for people to share their stories.
I hate hearing about avoidable employee theft in a newsagency. While not all employee theft is avoidable, plenty is. This typically happens in a newsagency where record keeping is not as good as it could be, where all cash brought into the business is not completely balanced against goods sold.
Every cent of revenue in a newsagency ought to be recorded in the newsagency software at the time of the sale and this ought to be balanced back through the P&L to cost of goods, back to supplier invoices or records.
Take lotteries, all instant tickets and online sales ought to be reconciled to lottery sales in the software. The revenue ought to match. If it does;t you have a problem.
Ir is not acceptable to say it is too hard to balance. It is easy to balance when you have people who are committed to serving the business and those who own it.
Too often, business owners who find it too hard to balance later discover theft for which they only have themselves to blame.
In my trip to the US a week ago I saw several more lottery product kiosks. I have now seen these in five different states and in a variety of situations including in-store in supermarkets and convenience stores as well as in public areas in transit locations.
The unit in the photo sells lottery tickets as well as scratch tickets. While there is a warning about customers needing to be 18 or older, there is no mechanism as far as I could see to properly monitor or check the age of customers. I am surprised by this given the influence conservatives have over governments in the US.
These lottery kiosks and the expanding use of Apps to sell lottery products in Australia present a greater risk to newsagent lottery revenue than whether supermarket chains sell lottery products through their petrol outlets.
The ACCC conference to consider a trial of new magazine supply rules held yesterday in response to a request I submitted on behalf of newsXpress was well attended. Major magazine publishers attended along with the MPA, lawyers, the ANF, VANA and NANA, several newsagents and a rep from POS Solutions.
While the main conference room was at the ACCC offices in Sydney, there were video links to Melbourne, Brisbane, Canberra, Adelaide and Darwin. There were six newsXpress newsagents who participated from five states and four independent newsagents. Nextra, The Lucky Charm, Supanews and Newspower were not represented.
This conference was a first for our channel. I cannot recall newsagents ever having this type of opportunity to speak directly to the ACCC on the issue of the magazine supply model or to confront magazine publishers and distributors directly on the damage to newsagency businesses of the magazine supply model.
I applaud those newsagents who participated. Our channel is full of people who complain and lacking people prepared to act rather than complain. Participating yesterday meant a day out of the business and being put in a situation which, for some, was confronting as you are face to face with suppliers which historically have done more to harm our channel than most others.
It is disappointing that associations presenting newsagents have failed to achieve this previously. Newsagents participating yesterday demonstrated that they can speak confidently and personally about the matter without getting too bogged down in minutia.
The conference went for two hours with around half in attendance speaking on the proposed magazine supply rule changes.
As I had requested the conference I was invited to make an opening statement. Click here to see the submission I made on behalf of newsXpress – my opening statement was a summary of this submission. I encourage all newsagents to read this as it summarises the concerns I have with the proposed magazine supply rule changes. Also read the MPA submission to which I was responding.
MPA and Bauer Media representatives at the conference said that the concerns raised were ill-founded in that newsagents would have control over supply and would be able to undertake early returns. My response was that if this is the case then why is it not reflected in the proposed supply rules put to the ACCC for its consideration.
There is a disconnect between what the MPA stated at the conference and what is in its submission to the ACCC for the magazine supply trial. I hope the ACCC considers this. It is covered by my submission to the ACCC.
There was considerable discussion about the failure of the magazine distributors to use the sales data provided by newsagents to set supply figures. In discussing data, a Bauer representative commented that there were many newsagency software packages, inferring working with them was difficult. I pointed out that they, Bauer, played a direct role in approving each newsagency software package for us.
Several newsagents challenged the ANF endorsement of the proposed new supply rule trial and that there had been no consultation. To this, the ANF CEO said there had been consultation citing an article in National Newsagent and a mention in an email to its members.
Had the ANF done its job it would have hosted national meetings where any newsagent could comment on the proposed trial. Indeed, the MPA could have organised such consultation. Instead, it relied on casual discussions with a select group of people and the submitted to the ACCC that it had consulted widely with all stakeholders.
I was given an opportunity toward the end of the ACCC conference to revisit some points made by others. At this time I asked the MPA if they had sought to understand what newsagents who are growing magazine sales had done/ The MPA representative said they had not and that it was not part of this trial.
My view is that this trial is about researching efficiency gain opportunities for magazine distributors and publishers. Those goals are wrapped up to look like there is a benefit for newsagents.
The new magazine supply model outlined by the MPA in their submission to the ACCC does not provide newsagents with any significant benefits, it will not make us more competitive, it will not stop oversupply, it will not make magazines more profitable for us, it will not stop newsagents reducing their commitment to magazines.
If the MPA did research newsagents who are growing magazine sales they would discover learnings which would be of more commercial benefit to the newsagency channel and magazine publishers.
Yesterday’s conference was another step in the process of consideration by the ACCC of the application by the MPA for authorisation for a trial of new magazine supply rules. The ACCC will consider yesterday’s conference, written submissions including the one I linked to above and any other submissions between now and mid May.
This is a vitally important matter for newsagents. If you have an opinion about the magazine supply model you need for magazines to be viable in your newsagency, I urge you to read the MPA application, my submission and consider engaging yourself. The more newsagents who engage the better regardless of your position.
There were some good discussions outside the ACCC meeting which gave me confidence that newsagents have got attention on this matter. Discussions over the next couple of weeks will demonstrate if progress can be made outside of the framework of what has been put to the ACCC on this.
I’m not sure when this happened: Ikea is in the social stationery business in a big way with colour-themed ranges. Their offer is a bit like Smiggle for a slightly older than Smuggle age group. Their n’store display and packaging is identical to what we can see in Coles right now for similar products.
Officeworks has changed its parcel delivery service and rebranded it Mailman.
The photo shows a Mailman kiosk in a Sydney Officeworks outlet. The Mailman website makes using the service look easy. The website and the kiosk combined encourage a feeling of trust and this is important in any parcel service.
Newsagents offering parcel services should research Mailman so they can be aware of this competitor and how it compares to their own offer. Look at the pricing, logistics and infrastructure.
Check out this video by Officeworks about Mailman.
Check out this video by someone not connected with Officeworks about Mailman.
It looks like Officeworks has invested considerably in Mailman, ensuring it is a force to be reckoned with.
In a Woolworths supermarket in Sydney yesterday I saw odd placement of Mother’s Day cards. Next to a high-end Papyrus card on the left they have cheap price-focused cards while on the right is an large expensive ($12.95) card. I saw this in several places on the stand.
Newsagents supporting the high-end Papyrus products with thoughtful displays commensurate with the quality of that brand ought to be frustrated to see how it is being treated here at this Woolworths.
Too often suppliers ask (some even demand) newsagents treat their brand a certain way, with respect, while allowing supermarkets or other mass retailers get away with disrespect of the same product from the brand. This does not make sense to me.
A brand requiring a certain level or quality of treatment by newsagents ought to receive the same level of treatment in other retail outlets.
This stand in use in a news and convenience outlet at Adelaide airport is terrific. It uses four sides and four strips between each side. It carries plenty of product ideal for this location: newspapers, drinks, snack food and some magazines. It also has a digital screen promoting products available in store.
Newsagents in the convenience space might like this stand.
Like many newsagents we have kept premium pens off the shop floor for fear of theft. Recently, we moved them to next to our everyday pen display. Sales have increased as a result. We think this has occurred because people have had easier access to browse the range and because they see pens they might have otherwise missed.
Our first additional sales were almost immediately on making the move. We were thrilled.
Sure, we are concerned about the prospect of increased theft. However, we have more expensive items on the shop floor elsewhere in the business and spot checks indicate product heft is not a big issue for us. We will monitor the situation and move if necessary.
The space behind the counter has been given over the product which lends itself more to this location placement.
The moves I am writing about here are part of the never-ending dance today’s newsagency business needs to give shoppers a fresh experience and to provide us with opportunities to explore new product categories in spaces previously occupied in the old set-and-forget approach to newsagency management.
While our main Mother’s Day card display in on the lease line facing out into the shopping mall, we have placed a selection of Mother’s Day cards on a stand facing shoppers as they leave our main magazine aisle.
I think it is important we place a range of Mother’s Day cards deep in the business, away from the main Mother’s Day offer and facing non a non greeting card traffic thoroughfare. I think it is from this type of location we are more likely to make the pitch to the shopper who has not visited to purchase a Mother’s Day card.
I encourage newsagents to check their placement of Mother’s Day cards. See if you can drive impulse purchases with this secondary location approach.
It has been a tough day for many newsagents in NSW affected by the shocking weather in Sydney and up the coast. I’ve seen photos of dreadful damage in-store and on the streets (rivers) in front. What is wonderful is the cheerfulness of newsagents in the face of very challenging situations. The resilience in our channel is a strength.
My thoughts are with those experiencing a tough time as a result of the harsh weather.
Small business newsagents and other retailers operating a Westpac banking agency within in their retail business heard in a phone hookup with Westpac yesterday that they are to lose their agency business.
Westpac has contracted with Australia Post to take over local Westpac agency operations.
This is a blow to these locally owned newsagencies and other small retail businesses. Losing this vital revenue is challenge enough, that they are losing it to a government agency is leading to anger. In several cases I have heard of the Westpac agency is moving to a government owned Post Office and not a LPO.
I am not affected in my newsagencies. If I was, I’d advise my customers that Westpac is putting profit ahead of small business and if it was being taken by a government owned Post Office I’d note that the federal government is is putting their profit ahead of good small business policy.
Newsagents in rural and regional situations are more affected than in the city as this is where Westpac agencies are more likely to be located.
In the phone hook-up, Westpac advised that retailers would have around a year an a half to adjust prior to losing an agency. One newsagent I heard from yesterday advised that in their case they have have been given just four months.
Westpac has advised of an ex-gratia payment to facilitate a make-good in the stores losing the agency. However, from what I understand, the amount mentioned is considerably less than what such make-good would reasonably cost in many situations.
Different newsagents affected by this move will have different reactions. I am writing about it today to give people a place to comment an to bring public attention to the Westpac / Australia Post deal.
Anyone affected and unhappy with the Westpac proposal could take the matter up with a local disputes tribunal list VCAT or QCAT. They could also seek mediation through their local Small Business Commissioner.
Promoting the Star Wars Itty Bittys from Hallmark with the Star Wars part series is a no brainer move to us even though on first glance you could say they appeal to different shoppers. Our experience is they appeal to the same shopper. A guy who collects all things Star Wars will happily add the Hallmark Itty Bitty plush to his collection.
We are promoting the new Win a Car competition from Pacific Magazines in three locations at the moment including on the lease line facing into the mall and this placement in our women’s magazine aisle. This popular competition drives sales and entries.
Since it is not running in supermarkets I encourage newsagents to get behind the new Win a Car competition from Pacific Magazines.
Be Your Own Boss on SBS2 is an excellent program for anyone in business to watch. I rate it as better than Shark Tank and other reality shows where investors seek funds. It is more practical and offering more valuable business insights to the viewer.
This show is particularly relevant to newsagents as they reinvent their businesses.
Produced by the BBC, this is a TV program I highly recommend. It’s available on SBS on demand.
Magzter is a new digital magazine newsstand. For A$9.99 a month you have unlimited access to digital editions of more than 2,500 magazine titles, their back issues, notifications of new content and access on all devices.
You can sign up for a year for A$99.99 and it only costs A$8.33 a month. There is a lite version costing A$4.99 a month for access to five issues.
It really does sound like the Netflix of magazines. Check out this from a recent article in the US PCMag:
For $9.99 per month, mobile, tablet, and Web users get unlimited access to a library of 2,500 digital periodicals. Gold Lite also offers unlimited access to any five available titles for $4.99 per month.
The this from Girish Ramdas, Magzter CEO:
“The ‘all-you-can-eat’ model is an increasingly popular format for all media, from movies to music, and magazine publishers can’t ignore the demand,” said company president Vijay Radhakrishnan. “With our user base, technology and content, we expect even more to join our newsstand in the coming weeks.”
Bloomberg wrote about Magzter in January offering a more tempered view.
Magazine publishers have said that digital editions will not cannibalise print. I tended to agree with them. Today, I am not so sure, especially in the special interest area. Sites like Magzter annoy me access to a vast library for A$9.99 a month. Those with a love of special interest topics but who do not want or need stacks of magazines at home will be drawn to the Magzter type of service.
I have spent the $9.99 to try Magzter out for a month. My initial reaction is wow! I am stunned at the number of titles covering topics I am interested in which I had not heard of. For example, Retailer – an indian magazine about retail and consumers. It offers a fascinating insight into retail from which I can learn.
There is a mix of Australian publishers with product on Magzter but some equally interesting omissions. It is a relatively new service – it is too early to assess long term potential impact for our Australian titles.
If I was a magazine publishers I’d want to be in this space. My justification is that it would be incremental to more print subscription and over the counter single copy sales. I’d also want to be in this space in case it becomes the new normal. That is a possibility. You only have to look at how we consume filmed entertainment now.
Where are newsagents in this world? The smart ones have diversified, attracting shopper traffic through new product categories, enhanced services and locally engaged marketing. This is what I am doing.
Fairfax published a profile recently on niche magazines titles and MagNation, a speciality magazine retail business which is 10 years. While it is a good story and supportive of print magazines, the article fails to acknowledge that many newsagents actively support niche titles.
One reason our channel does not support more is because of the barriers within magazine distributor processes to us taking on nice titles in an equitable way.
Frankie was once niche and it did well for us. Once they moved into supermarkets, it lost some interest for newsagents.
We want a point of difference in the magazines well sell and niche titles can help us with this. I am all for nice magazine publishers reaching out to newsagents direct.
We had a customer yesterday come in specifically to purchase Dolly because of the gift with purchase. Unfortunately, we did not have stock of the specific gift they wanted but they did browse and make another purchase. That they came in specifically because of the gift is good news to celebrate. This is the second month in a row of a good gift with Dolly.
Newsagency businesses are your quintessential independent specialty retailer … but how much of a specialty retailer are you? What do you offer in your business that is specialty or unique?
What do you offer to differentiate between your business and other retail businesses offering items in the same categories on which you rely to drive traffic?
Specialty retailers are sought out for their specialisation. For a newsagency business this could be magazine range, gift categories, in-store services, collectible lines or something else.
What is your specialisation? If you have one (or some) what are you doing to leverage your specialisation? If you don’t have a specialisation, you have to wonder what makes your business different, what will drive new traffic and loyalty?
The photo shows how one retailer I visited recently leverages specialisation – promoting a crafters night. In addition to offering a service, this promotion promotes the business as being a specialist in the crafter space.
With the changes we are seeing in and around the newsagency channel today, specialisation is important. To me, specialisation is about offering products and or services which are unique to the business in the area.
If your business is convenience focussed the only point of difference will be convenience. That’s a highly competitive space requiring a different focus and skill set to specialty retail.
What are you doing to attract new shoppers to your newsagency?
Yes, I am talking to you – if you are a newsagent.
What are you doing today, this week, this month, this quarter to drive traffic to your store?
Newsagents used to rely on suppliers to drive traffic to their businesses. No more. With our major suppliers supplying other retail channels, few actively promote a single channel over another. So, it falls on us to promote our businesses.
While banner groups will market stores under their banner, this marketing is more about brand awareness. The reality for any newsagency business is that marketing to attract new traffic to your shop falls to you – as it should.
So, what are you doing to market your business, to drive new traffic?
It is vital you have an answer to that question and that the answer is good and successful for your business. Too often retailers will say they don’t know what to do, that they have no experience. I say you don;lt need much experience to get started marketing your business. It’s like learning to walk: take a step, fall, get up, take a step.
Driving traffic is about differentiation in range, local community connection, out of store advertising and other smart marketing engagement.
