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

Author: Mark Fletcher

Sunday newsagency management tip: fail well

It’s natural to fear failure in personal and business life. Online and offline gossip about friends, colleagues, competitors and others is often about failure, intensifying our own fear of failure. Today, news of failure is amplified more than ever because of the ready access to the megaphones of social media.

My uneducated theory is that volume of gossip and talk by some about the failure of others reflects more about them than those of whom they speak. But that’s not what I want to write about this morning.

We need to embrace failure. Indeed, if we are to fail, we need to fail well.

By failing well, I mean we need to leverage value from the failure. This could be getting it right the next time, helping others from our experience, having fun with the failure or in some other practical and life lesson type way.

Every failure, large and small, presents the opportunity to fail well. Whether we do fail well is up to us. It is up what we do as a result of the failure. We can choose to fail or fail well. My management advice today is for us to fail well. This starts with us owning the failure. Next we have to think about how to leverage it. Finally, we need to talk about the experience with others, to share positives from the experience.

It could be that you have a dud product that you have brought into the business. Call it out. Have fun with it on the shop floor. I now of situations where this has been done in a fun way and the dud product has become a success. Think of some dreadful movie failures that have become cult classics and commercial successes.

If the failure is on a bigger scale, like a whole of business failure, own it, walk through it, learn from it and confront every challenge head on. The best advice I can give is to look ahead and take a small step at a time … oh, and don’t listen to those talking about you.

Running and hiding from failure denies you the opportunity to grow and others the opportunity to learn from your experience.

As for those who enjoy talking about the failure of others, ignore them for they live in a sad world.

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Ethics

Sunday newsagency marketing tip: make the most of prize opportunities

pplierpromosThere are plenty of exclusive to newsagents competition opportunities that we can leverage to market our businesses. The keys to success are knowing which competitions are exclusive and good supplier support.

Promoting these competitions position us competitively to others nearby selling the same products. The competitions are a point of difference for us – if we fail to make the most of these opportunities we lose out – more fool us.

I embrace these opportunities and promote them with the products they are supporting and elsewhere in the business – to get the most from the point of difference opportunity.  With one Coles a few metres in front of the entrance to my newsagency and another around the corner and a couple of minutes away, any opportunity to demonstrate additional value in shopping with me is worth it.

The WIN! A SHARE OF $10,000 FOR CHRISTMAS competition from Pacific Magazines is one such promotion through which newsagents can promote a valuable point of difference over other magazine retailers. We are promoting it at the counter, with the magazines supported by the promotion and on the lease line – facing into the mall.

This is my marketing tip today – actively embrace every promotion and competition that is exclusive to newsagents. Use them to show off a point of difference for your business. This is low cost marketing at its best. The more we embrace these the more suppliers will run them.

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marketing

Halloween results are in for the newsagency

Halloween 2015 saw an increase of just over 10% of Halloween 2013 in terms of revenue. It accounted for just on 6% of total October sales.

What is also interesting in our October numbers is that Christmas revenue is already very strong and well up on last year. Calendars are up 185% off a terrific base and cards are up 17% off a terrific base.  Magazines slowed but they are still up 2% in October year on year. Stationery is up 19% and plush is up 34%. In October for everyday plush (non premium lines) we did more than $7,000.

Halloween played a role in growth in other departments thanks to the additional traffic it attracted. It is a vital season for us.

Footnote: I am posting this to reinforce that we make our own success. We can grow our newsagency businesses through our buying, product placement, promotion and management. Every day matters.

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newsagency marketing

Inspiration and a marketing tip from The Bra Bar

brabarI love the advice on HOW TO HAVE A LOVELY DAY written on the out the front of The Bra Bar in Perth this week.

This sign made a walk in Perth inspiring.

This is a lesson in how to market your business without directly promoting it. The advice could be provided by anyone in almost any situation. It is practical and accessible. The inspiration to have a lovely day is subtly connected to their business, not in your face.

Well done to the folks at The Bra Bar.

I’ve seen people use boards like this out the front of their shop for a word of the day or a quote or a joke. The Bar Bar sign is different, more personal – I guess as personal as the products they sell. They are speaking to you. That’s how it works for me.

Newsagents could do a sign like this have and wives under headings like:

  1. What we love about out town.
  2. We love our local heroes.
  3. Guess how many babies have been born here this year.
  4. Here’s a local tradition we bet you didn’t know.
  5. The oldest club in our area is…

Think of ideas for telling stories and sharing inspiration without overtly marketing your business. It’s a terrific way to get people on the street and in the mall to stop and notice you.

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marketing

Newsagents could benefit from ACCC franchise powers boost

Changes to the enforcement powers of of the ACCC from January 1, 2015 could benefit newsagency businesses that operate under franchise agreements. The ACCC announcement this week outlines how increased powers could boost compliance of franchisors.

Dr Schaper said the ACCC will focus on particularly serious conduct, including breaches of the ‘key pillars’ of the revised Code.

“This is likely to include failure to act in good faith, failure to provide a disclosure document, refusal to attend mediation and unlawful termination of a franchise agreement.”

The code of conduct is comprehensive. Where it could be of particular interest to newsagents is in the disclosure obligations around the use of funds collected for a marketing fund.

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Newsagency management

Learning from calendar competitors

cclubMore Calendar Club outlets are opening as calendar season gets into full swing. While their range commitment is a point of difference, their presence is not currently harming our situation. As I noted last week, calendar sales are up 150% on this time last year.

Browsing the Calendar Club locations is instructive to find products we don’t have already and to discover the product adjacencies they prefer. Time spent browsing can be instructive.

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Calendars

Promoting Better Homes with newspapers

nxbhgWe’re having terrific success with the Better Homes and Gardens placement with newspapers on the shop floor – facing people once they are half way into the business. The pockets of Family Circle and the All I want For Christmas title are working well too. The two stands – newspaper and BHG – look good next to each other.

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magazines

Is Victoria about to see many more Tatts outlets?

superlot'A letter from the Victorian Minister for Gaming Regulation to Intralot outlets opens an issue of concern for newsagents. The last paragraph on page one of the letter notes Tattersalls will offer current Intralot outlets the opportunity to become Tattersalls outlets.

I know of newsagency businesses with Tattersalls located next to or near supermarkets that have Intralot. What will happen there if those supermarkets take up the offer to which the Minister refers?

I have been approached by several newsagents in Victoria about this letter. They are most concerned. here is what one newsagent has said about their situation:

This is a concern for us as we have a IGA Supermarket in the next town 5 minutes away which currently sells Intralot products only. In the past they have applied for a Tatts license, but were denied because Tatts recognised that there would be no benefit to having an extra outlet in country towns on a 10km stretch of highway (there are already 2 including our newsagency).

If this letter is to be believed, they would now be given the right to sell all Tatts products, which will have a significant impact on our lottery sales. We will be meeting with our local member for parliament and with our Tatts rep to discuss this issue.

I expect a letter like this would have gone through several reviews prior to release.  If it means what it says then newsagents with Tatts and a supermarketer other retailers nearby selling Intralot ought to be concerned.

If I was in this situation I’d write to the Minister for Gaming relation immediately, seeking urgent clarification.

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Uncategorized

Happy Halloween

halmanHave a great day in-store today. Halloween is an opportunity for plenty of fun. We are very close to selling out. What little we have left will be discounted from late today.

Halloween is a perfect segue from Father’s Day into Christmas. It’s also a day to blow off steam if you’re into dress-ups in-store.

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visual merchandising

When discount Christmas cards are not really discounted

xmas70percentCheck out how one shop that looks like a newsagency but is not a newsagency in Melbourne is promoting Christmas cards. Their pitch is up to 70% off. The sign should say up to 70% off a retail price we made up that has no real connection with what we actually paid for this stock.

Looking at the stock as I did yesterday, I doubt any of the cards would ever have been priced in retail at $16.95 as they claim on their sign. Their pitch is inaccurate in my view.

At $4.95 the price is about right for these cards. They are nothing special. Some appear to be remainder stock from last year while others are cards I’d expect in a discount variety store.

My initial reaction is to be frustrated at this retailer making what I think is a dishonest pitch and in doing so taking business from the nearby newsagent and card retailers. The reality is we cannot legislate that our competitors act honourably and ethically. All we can do is ensure our offer is the best it can be in terms of value and its presentation.

retailers promoting only on price may get sales for some of their deals but they will not attract loyal shoppers as their shoppers will remember price ahead of range, experience and value. Give people a brand or specific product they really want and price is less of an issue.

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Ethics

Exclusive gift with purchase from Bauer at Woolworths

wwbauerCheck out the display a colleague sent me of a display at a Woolworths supermarket offering and exclusive to Coles gift with purchase for a range of titles.

This is a stunning stand promoting an excellent gift. It’s certain to drive sales of the promoted titles in Woolworths.

It is disappointing that Bauer promotes supermarkets ahead of newsagents with opportunities like this, shopper competitions and discount magazine bundles.

Every magazine customer lost from the newsagency channel to supermarkets is a cost to us beyond the loss of Bauer title sales.

The pie tray gift offered by Bauer is excellent.  Getting the gift with purchase right and promoting it on a good stand with good marketing collateral can drive sales – as the exclusive to newsagents Christmas tin with Better Homes and Gardens has shown.

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Ethics

Nic & Rocco reissue of damaged stock by Bauer wastes newsagent time and money

magssweetsensatAlmost a year ago, Bauer Media issued Nic & Rocco Sweet Sensations. I blogged about it at the time. Today, they sent it out again. This time it’s stock that has been around the block. Many copies are damaged.

What a waste of time and money! What an appalling and unfair treatment of newsagents. I consider it to be unethical.

There should be no reissue of any title without newsagent permission. Bauer demands we pay them on time yet they do not provide reasonable levers with which to control our level of indebtedness.

Shame on those at Bauer who facilitated this abuse of newsagents.

I’m early returning Nic & Rocco Sweet Sensations.

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Ethics

Which is the better accounting solution for your newsagency: MYOB or Xero?

I’m often asked to recommend an accounting system for newsagents to use. Today, my recommendation is Xero. It’s easier to use and offers easier connectivity to your newsagency software – saving time, cutting mistakes and providing a more easily attainable whole of business view.

I have experience with MYOB, Quick Books and Xero and it’s the Xero experience I like the most.

In two of my stores we are fully integrated with Xero from the sales counter. Xero receives sales data, cost of sales and other information – eliminating bookkeeping time and enabling us to produce an accurate P&L a day or two after the end of the month. This helps is with business planning and in-store business decisions.

Connecting Xero directly from the newsagency software without the need for middleware is useful and cost saving. This is an area where MYOB has proved to be frustrating over the years.

If you use neither and rely on your accountant to produce a P&L six monthly or annual your business decisions will suffer from lack of information. A monthly P&L is vital in today’s competitive situation.

Click here to read advice from an Accountancy practice comparing MYOB and Xero. Click here for a comparison published at DigitalFirst. As with any business decision don’t rely on my advice – do your own homework. Google searches can produce a range of comparisons.

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Newsagency management

Checking out gift suppliers for newsagencies

giftsI am grateful for the time given by gift suppliers in Adelaide and Perth yesterday where I got to see some exciting new products and existing products presented in a new way.

There is no better way to buy gifts than as when they are presented in a best-practice way when you can see a full range story as you would want it in your own shop.

While it’s terrific to meet with reps in-store, being face to face with products in a showroom is more useful. It works better for the supplier with more orders too.

The last two days are a reminder of the value of being outside the business working on it.

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Gifts

I don’t want Inside Out

ioutWith the arrangement between News Life Media and Coles which sees Inside Out magazine priced at $2.00 less in Coles than my newsagency and with two Coles curer markets in my centre I see no point in carrying this title and promoting my business as being more expensive. More important, I need to make a stand to the publisher who disrespected our channel with their Coles deal.

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Ethics

Leadership change at Bauer

Bauer Media today announced that Australian CEO Matt Stanton is to leave the business for Woolworths and that David Goodchild from Bauer in the UK will take on responsibility for Australia, New Zealand and Hong Kong. Mumbrella has the details including the announcement to Bauer employees. It’s telling that Goodchild will keep his current role:

From 5 January 2015, David Goodchild (44) will be in charge of Bauer Media Australia, New Zealand and Hong Kong. He is the successor to Matthew Stanton, who will be leaving the organisation of his own accord in order to take up a fresh challenge in a senior role at Woolworths. Goodchild will be assuming his new role in addition to his current responsibilities as Chief Executive of H. Bauer Publishing in the United Kingdom.

Bauer Australia moves from a full-time CEO to a part-time CEO. I’m not sure what this means for the local business given that many challenges remain that are unique to Australia.

The other telling note in the Bauer statement is Goodchild’s long-term publishing credentials.

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magazines

Is Coles engaged in predatory pricing for Newspapers in Port Lincoln?

I’m told that Coles is not passing on freight costs imposed by News Corp. for flying its print products into Port Lincoln. In doing so, Coles is selling The Advertiser at a significant discount to newsagents who are passing on the freight cost.

What Coles is doing sounds like it could be predatory pricing as defined by the ACCC. Funding for the freight must be coming from other parts of the business as they would not make enough from newspapers themselves to cover this.

My question is: is Coles doing this to damage the small business newsagencies with which they compete? Such an allegation would be hard to prove. That said, harm to the newsagents and benefit for Coles are the only outcomes I can see from the Coles action.

I have contacted Coles about this ion behalf of the newsagent who brought it to my attention and so far have received no response.

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Ethics

AFR story on retail tenancy incomplete

mallsbounceThe AFR story yesterday on specialty stores recording 2.8% year on year revenue growth in shopping centres in Australia is incomplete as it did not record that these stores have been hit with at least 5% year on year rent increases as agreed in their leases.

Newsagencies are included in the speciality store cohort. Given the 2.8% is an average, I suspect many will have recorded a sales decline. This is the challenge for long term leases – you agree to an increase based on expectations and assumptions and have to pay it regardless of what actually happens.

I’d have liked the AFR to more completely report on the situation for specialty stores – so their readers understood what while 2,8% is good, it is not enough to fund the increase in rent faced by these businesses.

Min my own situation, sales are up 17% year on year in the last quarter so I am ahead on the 5% increase in my lease. This is due to constant change in the business and thoughtfully playing outside what is expected of a traditional newsagency business.

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Newsagency management

News Corp. promoting the reimagined newspaper

futurenewsAt the News Corp. offices in Adelaide the company is promoting The Advertiser – your paper reimagined. Nowhere in the promotion spread across the front of the high-profile office building is the newspaper promoted. This promotion is all about their new app.

News Corp. is doing what it needs to do for its future relevance in a world where how and when we consume news continues to change at a rapid pace.

Newsagents need to observe carefully the actions not only of News Corp. but all newspaper publishers for their actions can better inform our own business plans and, in particular, the role print newspapers play in our future.

There is no significant upside in the future of print newspapers. I say significant because there will be spurts of growth there and there based on stories or some promotional activity. However, there will be no sustained, bankable, growth in the sale of print newspapers. I think News Corp. knows this and that is why emblazoned across their Adelaide office is this digital only promotion. If I was a News Corp. shareholder, I’d be happy to see this positioning by the company.

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Media disruption

Back to the future: cutting 250 magazine pockets from the newsagency

magdeptWe have just cut 250 pockets from our magazine department with the removal of two double sided fixtures to make way for an expanded gift offer in-store. NOTE: We have not cut magazine range. This move is a back to the future approach…

In the early 1990s the push from Gordon and Gotch leadership at the time was for newsagents to move away from partial cover display – where we layered titles such that around a third of a title showed – to what was called full-face display. With less space now as a result of removing two fixtures, we are moving back to a partial cover display in some segments, where we can fit up to three titles in a pocket that used to host one title.

This approach enables us to reduce the overheads associated with magazines. The rent saving to the department will be close to $10,000 a year. I am confident we will not lose any magazine sales. In fact, I am confident we will continue to grow magazine sales at in excess of 10% year on year.

Magazines are important to newsagents as they continue to deliver excellent foot traffic. Leverage that foot traffic into purchases of higher margin items and you make the magazine foot traffic even more valuable.

Too often I see newsagents reduce fixtures as a lever to reduce titles. While this may be appropriate in some situations, it may not in others. Think about such moves carefully. It could be that cutting floorspace allocation delivers the savings you need to maintain your current title range.

Thanks to this latest move and our year on year magazine unit sales growth, the value of the magazine department to this business is stronger than ever.

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magazines

Not sure about interest in Katy Perry

magskatypWhile we are actively promoting the various Katy Perry titles out at the moment I am not sure about shopper interest. The best indication is what we hear across the counter. In terms to Katy – nothing. No matter, we’re pitching the Katy titles in two locations … with kids titles and teen girl titles.

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magazines

Calendars with magazines

crosscalHere’s another simple placement that drives calendar sales – this time puzzle themed calendars with crossword and puzzle magazines. I’ve seen shoppers come in to spend Under $10 and walk out spending $30. Tactical placement drives a deeper basket.

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crosswords
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