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

Author: Mark Fletcher

News Corp promoting to Qantas passengers

qantaspapersWhen you check in for a Qantas flight using the self service terminals at the moment, an ad for a News Corp. digital product is on the screen while your details are searched out. In Sydney yesterday it was The Daily Telegraph app being promoted.

it’s a smart move by News, targeting the right market for a mobile product.

Newsagents need to take in and consider these moves as they plan for 2015 and beyond. The best way to learn what newspaper publishers are planning is to look at their actions rather than listening to their words.

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Media disruption

New Idea confusion

niconfusionSeveral newsagents have mentioned shopper confusion about New Idea – that this week’s issue is last week’s. A couple joked that some will purchase both and not notice. A fresh Woman’s Day this week has some New Idea shoppers trying the opposition.

I expect this is more an issue in supermarkets and other retail businesses where there is less customer service than in a newsagency.

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magazines

Issues with vending VISA product via Touch

I am aware of an issue for newsagents vending prepaid Visa product through their POS software connecting to Touch Networks. A conference call has been arranged for overnight between Touch and their US based partner for this product to get to the bottom of the issue and sort out a resolution.

UPDATE: It’s all fixed. The problem was at the US end.

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Newsagency challenges

Video: How magazine publishers and distributors make newsagents less competitive for magazines

Here’s a short video about the impact of magazine oversupply and why newsagents early return. It was shot in my newsagency on Thursday last week.

If you work for a magazine publisher or distributor, please watch this video and learn more about the #1 issue that makes newsagents less competitive than they could be, the #1 issue that leads newsagents to quit their businesses.

I made the video because I care about the channel and I care about magazines and the vital role they play in the channel.

While I write about oversupply often, the here are not getting through, the problem we see today is worse in my view than ten years ago as we are made to look worse that our competitors.

Through the video, I am hopeful that showing is more effective than telling.

This video is the type of communication newsagent associations ought to produce. Instead, they attend meetings that achieve little or nothing for newsagents on this mission-critical issue.

We are approaching a tipping point on this.

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magazine distribution

People really do buy anything at Christmas

santabagsI didn’t expect the Santa shopping bags to work for us but they have – in yet another reminder that I am not my customer.

One lady bought one on the weekend because she had to have it to get into the Christmas shopping spirit.

Successful retail is about having the right products in the right location at the right time. Those three factors are far ahead of price in importance – as the sales of the bags show.

The best successes are from products we are not known for that are easily purchased on impulse.

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retail

A discount voucher from a billboard

pvouchThe Priceline billboard in Pitt Street Mall offered a voucher if I pressed the button – so I did. Spend $50 and get $10 off.

It’s a clever use of the billboard but old school compared to interactive billboards in some European and Asian countries where offers are tailored to the person in front of the billboard … or better still – where offers are sent to your phone based on past purchases from other retailers. That’s the future of mobile marketing to shoppers.

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retail

GAP discounts 40% just before Christmas

gap40Further to my post on the weekend about not discounting before you need to, I was surprised to see GAP is Sydney yesterday offering 40% off everything in store. While they control the entire supply chain of what they sell, the 40% off sign suggested to me that they’re having a soft Christmas. They’re smart retailers, I’m sure they are doing this because it works for them – probably because the discount is in their price. The shop was full.

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retail

A solemn night in Sydney

floralI did not intentionally head to Martin Place in Sydney tonight, the scene of the siege a week ago today that resulted in the loss of three lives … but find myself there I did. There are more flowers than I expected, filling five or six large barricaded off areas.

What really surprised me was the people solemnly filing past the flowers – many family groups together including plenty of young kids respectfully taking in the sea of colour.

I think the reaction speaks to the difference of life in Australia. A siege resulting in deaths is rare here as is gun violence, thankfully.

What happened a week ago shocked the country and I can see the extraordinary floral tributes and visiting them providing a small outlet through which people have been able to publicly express their shock and to reflect on the lives lost and the impact on those who survived.

None of this relates this blog and running a newsagency – except that it further informs my own view of the world and this blog is, in part, just that.

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Blogging

The things customers say: My mum is an idiot

mumidiotIn the newsagency on Saturday a guy in his early thirties was speaking into a Chatter Santa saying over and over my Mum is an idiot. Chatter Santa was repeating it back to him, over and over.

I heard this from behind me and looked around to see what’s what. His mum was standing next to him rolling her eyes.

You see and hear some crazy things in retail – especially at Christmas. 3 days to go.

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retail

Too many newsagency suppliers are closed already

It is disappointing that in this week of busy trade for many newsagents, plenty of our suppliers are already fully closed for Christmas – with most that are closed not reopening until January 5.

Given the tough and competitive marketplace of today, suppliers that are closed should not be surprised if newsagent customers find others who can supply this time of the year and beyond.

While I appreciate suppliers will close when trade is the quietest for them, they should at the very least have a process in place for handling urgent orders. A sale is a sale after all. Too many that are closed already have not done time.

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Newsagency management

Magazine publishers abuse delayed billing and fail newsagents

spaceModern Wedding is another magazine sent to newsagents to warehouse for an uneconomically viable on-sale period. It’s a thick title, we can only store two per pocket. In newsagencies without a back room, Modern Wedding takes up retail space that is costing as much as $9.00 per month per pocket to rent. Leaving Modern Wedding in the magazine pockets makes it a loss making title for shopping centre newsagents.

I suspect the publisher thinks that by providing this title on a delayed billing basis they are helping us. Delayed billing is no help at all.

Yesterday, I sent back half our stock of Modern Wedding because of the pocket cost and because it will not sell quickly enough to pay its way.

The publisher will complain that they cannot afford multiple drops based on sales through the on-sale. That is not my problem. That they send everything at once is unfair and something I tolerate less today than a year ago.

The MPA supply trial to test the draft code of conduct requires participating newsagents to not early return. That alone is enough to block newsagents participating.

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Magazine oversupply

Some magazines make excellent Christmas gifts

magsxmasSweet is one of those magazines that  an get lost in the sea of titles we have in our magazine department. Whenever I see it I place it at the front of the fixture so the full cover is on show. This premium placement is even more important at Christmas as shoppers search the magazine department for gifts for family and friends. Food titles are especially popular and Sweet is a title we often recommend because of its uniqueness and quality – it’s a title through which we can show off our point of difference.

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magazines

Sunday newsagency management tip: don’t discount before you need to

xmasdiscountA card shop near my newsagency yesterday had Hallmark boxed Christmas cards at 50% off. They are the only shop of seven or eight in the shopping centre with Hallmark cards boxed Christmas cards discounted. Others with discounted Christmas cards are the $2 and similar shops with unbranded product.

We will not discount Christmas cards until Boxing Day. Sales are strong – I see no reason in our numbers to discount.

Either our competitor is not moving as many boxed Christmas cards as they expected or need or they have made a rookie move and discounted unnecessarily. These last five days before Christmas will see last-minute shoppers out in force. These last-minute shoppers are usually less discerning and prepared to pay more.

In my eighteen years owning and running newsagencies I have never seen the need to discount Christmas cards including boxed Christmas cards prior to Christmas.

This is my advice today – discount when the time is right and not a moment before. Look at your data and only discount if such a move is supported by your data.

Oh, and if you are gong to make a move on price, take a moment to consider that raising your price could be the better move. While this is not appropriate to boxed Christmas cards, it could be true for many gift lines.

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Management tip

Sunday newsagency marketing tip: join online groups and be part of the conversation

nerdsWhile many newsagents are in Rotary, Lions or similar local community groups, few are in other groups that are equally important in networking, groups like online groups serving special interests. Such groups often don’t operate to a geographic boundary – and that’s okay … especially if the group is about something in which you are interested and with which you have a business connection.

Take Minecraft, a video game with an excellent pedigree and a devoted fan base. There are many online where you could participate if it was a game you were into. Subtly, through such engagement, you could promote Minecraft products – especially if you delve deeply into the collectible items and have some hard to get items.

Participating in online groups needs to be navigated carefully as you don’t want to come across as being there for commercial purposes only. Some groups have rules against members being commercial – check first.

Just being in such a group can be enlightening about product categories and licences. Members can be your mentors through their posts and take you deeper into the world of the those you may seek to serve.

Don’t be put off by not having time. Joining and reading what’s being discussed every so often can put you well ahead of competitors who do not try and get into the world of the customers they serve.

The more you know about your customers the better you can serve them.

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marketing

If you still have Dolly in stock

1ddolThe five pockets allocated to the dive different covers of Dolly had not worked. We sold one copy in a week – making the space allocation uneconomic. But before I reduced the space allocation I checked online and found that the Niall cover was in short supply. A couple of social media engagements later and two copies were sold and more 1D fans were talking about my shop. Sure it took a bit of time but, hey, I sold two more copies of the magazine and found some new customers along the way.

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magazines

Geelong Coast magazine supports newsagents

Screen Shot 2014-12-20 at 4.05.09 pmIt’s good to see Geelong Coast magazine using Twitter to promote its latest issue as being available at newsagencies. I like this because they are only promoting our channel and because this is a special interest title. Special interest titles are vitally important to us, especially titles like Geelong Coast targeting a specific geographic area.

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magazines

Finding shopping lists: getting to see what shoppers are looking for

shoplist1I found this shopping list note on the shop floor the other day and loved the opportunity to see what one shopper was looking for and where they are looking.

Take a look under Gift Shops. We have an excellent range of coffee mugs and plenty of teacher things.

I didn’t see who dropped the note. I don’t know if they purchased from us – however, the note was onear our mugs.

shoplist2There was a second note, folded with the first, for what they were to look for in Target and Chemist Warehouse.

From Target, this shopper was looking for calendars, Forever Friends products, Top Gear / car products and a large cup for dad. We can help with each of these. I don’t know if we did.

I am fascinated by the groupings on the lists by shop. It reveals how some people shop as well as the challenge of attracting shoppers to shop on impulse with us as we were not on their list, not obviously at least. It also reinforces the importance of marketing the business by purchase destination.

We have to think about what pulls people into our businesses. This time of year, cards are an obvious choice. If we have an excellent range of Christmas cards at the front of the shop that could be the lure. It’s what a card shopper attracted to the business notices next which matters. There needs to be a second lure for when then are finished shopping the Christmas card display.

The same is true if they step into a newsagency because of the better magazine range … whet else is pitched to that shopper, what is done to gets them shopping the shop?

Every destination needs to have another opportunity nearby. Each opportunity encourages shoppers to break away from their plan, to move away for their shopping list.

The two lists I picked up from the shop floor this week reminded me of the challenges and opportunities we have in our newsagencies as we leverage existing excellent traffic and evolve into retail businesses of the future. It also reminded me of the value of talking more to shoppers to learn what they are looking for.

I would love to be able to read the lists of every shopper in our shopping centre who has one. I appreciate it is impractical … but it would be fascinating, educational and inspiring.

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retail

Selling out of Bethlehem at Christmas

bethlehemWe have had a soap called Bethlehem as part of our gift soap offer for Christmas. We have sold double what we expected to sell and could have sold plenty more. Customers love the name but the scent, the look of the soap and the presentation as a gift.

The Bethlehem soap has worked in many situations where people are not sure what to give to a friend, neighbour, teacher, doctor, priest – it’s been a go to item for us in gift selection help.

The experience reinforces the value of trying again. We have offered soap previously without this level of result. This time, we have found a product that works perfectly for us in terms of customer love, return on floor space and return on inventory investment.

Based on our first experience I thought we could not sell soap. Of course – not all soaps are the same. This range works a treat and I am glad we have it to ourselves in our centre. It is generating good traffic for us as word of mouth spreads.

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Gifts

Get The Australian for $1 for a month with PayPal

Screen Shot 2014-12-19 at 11.47.59 amNews Corp. is promoting a 28 day digital subscription to The Australian through PayPal in an email campaign that hit this morning. At the end of $28 days the subscription flips to $6 a week – a big jump.

What’s interesting about this campaign is that it has been promoted by PayPal via email as a last minute Christmas gift. $1 is not much of a gift. I’d be interested in the drop-off at the end of 28 days.

That there is no paper component of the offer is interesting too.

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Newspapers

Warning: Microsoft will not call you and log into your computer

Microsoft, or any major IT company for that matter, will not call you out of the blue and ask to log into your computer. If you let the caller in you will be hacked and the implications for your business could be considerable.

Be suspicious, very suspicious, of anyone who calls to ask to log into your computer. 

One newsagent was hit yesterday and they have been compromised as a result.

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Newsagency management

Matthew dumped: making up stories about abandoned products

matthewWe all see it in our shops, the product left abandoned far away from its usual location. Usually, it is a common product, nothing particularly noticeable. Sometimes, it is a personal product – and I wonder whether there is a back story to it being abandoned.

On the weekend I found a personalised Christmas bauble, for Matthew, shoved in with our men’s health and fitness magazines. I got to thinking about why Matthew was abandoned: had he been naughty and this was punishment, had the customer found something else to spend money on, had Matthew brought it down to a parent to show them?

While the future of the newsagency does not hinge on answers to these and other questions, I enjoy letting my mind wander when I see things like this. It personalises what goes on in the shop and is a factor in how I look at my time in the business.

In many ways, many times a day, people’s lives are touched – in good and bad ways , happy and sad ways – by experiences in our businesses. Thinking about this helps our connection with our own businesses. the thoughts personalise our connections with our businesses.

While I will never know the real back story of the abandoned Matthew Christmas bauble, it’s been good to think about it.

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retail

Socks in the newsagency

sockssellingSales of socks have been excellent for us since we put the stand in a few weeks ago. Initial stock sold, we reordered and it is selling too.

I’m sure most people purchasing the socks did not come into the newsagency with this in mind. The success is an example of the value of a diversified yet thoughtfully selected mix of products placed tactically on the shop floor.

Just having the socks is not enough. They need to be in the best location – and that is not necessarily the busiest location.

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Gifts

Hats in the newsagency

hatsWe sold most of the hats off our hat stand in a few weeks and replenished from another store. Once they sell we’ll quit hats – because of space challenges more than anything else. That said, we’re thrilled with the results … especially that we did not expect them to sell as ell as they have.

The experience with the hats is a reminder to not allow our prejudices or blinkered view get in the way of good margin revenue for the newsagency.

this Christmas we are playing with many different product categories, exploring how far we could go into allied and completely different areas. It’s fun and rewarding.

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Gifts