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

Author: Mark Fletcher

Promoting the OzLotto $50 million jackpot

fhn_oz_1.JPGLike many newsagents we are promoting the OzLotto $50 million jackpot in-store at every opportunity.  From the front of the shop into our Tattersalls area we have gone all out.  At our counters, too, we pitch the offer in writing and through our service.  In addition to the lottery marketing ideas I published yesterday, we have taken care to promote the jackpot inside our newsagency, at high non-lottery traffic points.  For example, our main newspaper stand – as shown in the photo to the left.

In addition to pitching the $50 million prize, we are also listing popular tickets – so our customers can have an amount they would like to spend in mind.

fhn_oz_2.JPGAt the back of the newspaper stand, with our foreign language newspapers, we are promoting the $50 million jackpot.  This is a good lottery market for us and while the pitch is not as strong as at the front, I am confident it will work well for us with these shoppers.

fhn_oz_4.JPGAt our photocopier, another busy location within our newsagency, our customers see the offer right in front of them as they use the copier and on capping on the next aisle.  They have time to dream while they copy.  We don’t want to miss any opportunity.

fhn_oz_3.JPGFinally, as customers leave our busiest magazine aisle and, hopefully, head to the counter, we have the pitch again in the aisle and across from it – to the right.  Hanging above them in the magazine aisle is an array of posters promoting the jackpot.

These are all high traffic areas deep within our newsagency and some distance from the lottery counter.  We have found this level of promotion of very special events – like the $50 million jackpot – works well and helps support our over the counter pitch.

In developing the in-store strategy yesterday morning, we sought to use our store as much as possible to promote the offer. There are some who will instantly get this and others who will only connect when we make an offer across the counter during a sale.  we have tried to cover all bases and leverage non-lottery traffic as much as possible.

Our card, gift, stationery, art and ink departments are untouched by this promotion.

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Lotteries

Beanies the gift of the month

fhn_beanies.JPGBeanies are popular premiums for magazines this month.  The current issues of Street Machine, Mountain Bike and Ralph have beanies as the free gift.  It is funny how these things run in cycles.  I wonder, however, if it dilutes the value having them on three titles at the same time – even if the target audiences differ.  On a side note – these are all blokes magazines.  Blokes like to browse.  Fewer will browse a sealed magazine.

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magazines

Out of space for Luxury Kitchen & Bathrooms magazine

fhn_kitbath_jul09.JPGUniversal Magazines is not showing signs of learning from the frustration expressed by newsagents about over-supply, long shelf life and heavy returns costs last year.  Take Luxury Kitchens and Bathrooms released yesterday – UM already has significant space allocated (for a long on-sale period) in this low volume category.  Now, we have to find room for this title.  Another long on-sale.  What happens when we have no room?  Early return is the answer from the distributor.  The challenges with early returning are the freight cost and the delay in accessing the refund.  They, universal and NDD, bank on newsagents keeping the title until it is due for return.

Once again, newsagents become the bank, funding UM and the titles they decide to publish.

I am disappointed that promises made last year by Universal Magazines about how they will work with newsagents have not been acted on.

yes, I know Universal will be upset at what I have written.  I doubt they will go to the lawyers like the did last year.  Fix it people, treat newsagents as business partnersd.  Treat us with respect.  We have a finite amount of space and cash with which to fund your business model.

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magazine distribution

Digital Britain, the new distribution channel

Newsagents will be interested to read Digital Britain, a 245 page report from the UK Department for Business Innovation & Skills which lays out plans for Britain to take a leadership position as a digital knowledge economy. At the heart of the plan is a distribution channel which imagines less paper based communication.

This report is further evidence of why we, at the end of the paper based media distribution channel, need flexible shopfits, flexible leases and flexible business plans which permit us to evolve our newsagencies.

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Media disruption

Quadrant editor responds

I have been thinking about Quadrant Editor, Keith Windschuttle’s comment published here last night since I saw it come through at 9:30pm.

Dear Mark,

Thank you for drawing attention to your concerns about the wording of the subscription form in the current Quadrant Magazine. I can understand why you and your colleagues are upset about it.

It was a clumsy attempt to draw attention to our appeal for subscriptions, which I now regret publishing. I have told our printers to withdraw it from all future editions. It will not appear again.

Yours sincerely
Keith Windschuttle

While I appreciate Keith responding here, he does not demonstrate that he understands the issue.  This is about more than wording.  Somewhere in their office a decision was made to target newsagents, the hand that feeds them.  They decided to print an insert into the latest issue in the magazine, on a colour paper to draw attention to the offer.  They chose words which put down their network of retailers.

Labelling this clumsy does not do the process justice – unless they have no process for considering such inserts.

I would have preferred Keith to say something along the lines of:

Newsagents,

Sorry.  I am my team here at Quadrant are sorry for disrespecting you as we have in the latest issue. We failed to consider your investment in Quadrant.  We failed to recognise that you have played and continue to play an important role in distributing and selling our magazine.

We intend to make this right.  here is our plan:

  1. Every issue from now on will promote newsagents putaways alongside any subscription offer.
  2. We will develop a one year putaway product with you so that customers prepaying you for a year can access the same benefits of those subscriptions we post.
  3. We will list your outlets on our website – under a find a Quadrant retailer facility.
  4. We will research a story about the role of newsagencies in Australian society and run this – if it meets our editorial criteria.

We cannot undo what has been published in the latest issue.  I hope that the steps outlined above show we have learned from the mistake and want to work with you mutual benefit.

Please continue to stock Quadrant.

It’s not too late Keith.

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magazine distribution

Cruzin magazine sucks cash

fhn_cruzin_jul09.JPGOur supply of the latest issue of Cruzin magazine, out today, is up by 33%.  There is no justification for this in our sales data.  The only explanation can be that NDD, the distributor, has been sent stock by the publisher and has to get it out of their warehouse.  I checked the magazine out to see if there is a reason for the increase.  I could not find anything.  Also, no posters – so no means of promoting sales growth.  We are returning several copies early but the distribution model with NDD being what it is, we will be out of pocket for this unjustified increased supply for at least a month.

People at NDD complain about blog post like this.  They say I am unfair, that I pick on them.  The best way to get me to not draw attention to their failed magazine distribution model would be for them to get it right and to treat my newsagency and all newsagencies with respect.  They need to stop treating us as their bank.

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magazine distribution

Unjustified incrrease in Two Wheels supply

fhn_twowheels_jul09.JPGNDD increased our supply of Two Wheels by one copy to eight.  We sell two or three per issue.  There is no justification for the increase by 1 copy.  Why complain about one extra magazine you say?  Imagine the cash rake NDD achieves by increasing all newsagents by this quantity.  Then factor in the theft opportunity – newsagents pay for titles stolen from their businesses.

I am also frustrated that the latest issue of Two Wheels is bagged – don’t publishers of bike magazines know that shoppers prefer to browse these titlles.

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magazine distribution

Limelight supply suffers from a great cover

fhn_limelight_jul09.JPGI Like Limelight magazine, but not enough to forgive an unjustified increase in supply by magazine distributor NDD.  If anything, we should have had supply cut by 10% instead of the increase we found today of 27%.  Limelight sales fluctuate significantly in our newsagency based on the cover – this appears to not be allowed for in the allocation model.  A couple of issues ago we sold out but that was a one off.  I bet that NDD uses that as the justtification for today’s increase.  Research will show them that our sales are very bumpy.

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magazine distribution

Making the most of the OzLotto $50 million jackpot

With OzLotto jackpotting last night to $50 million, we have an excellent opportunity to leverage the bonus traffic.  Here are some initial thoughts:

  • Set a goal.  Decide now the growth you want on last week’s OzLotto sales.  Track this daily.  The growth target ought to be at least 50% up on last week.  Offer a reward for achievement.
  • Use the counter.  Make sure that you have compelling impulse opportunities at your lottery counter.  Set a goal for sales of impulse products and track this daily.  Too often, newsagency counters are cluttered and block impulse opportunities.
  • Engage your team.  Ensure that everyone has their upsell pitch – make sure that newspaper, magazine and card customers are offered a ticket in the $50 million.  Obsess about this at non-lottery counters.
  • Promote.  Pitch the jackpot at high-traffic points in-store such as at the newspaper stand, with weekly magazines and at your photocopies.  But make the pitch specific – promote syndicates or a particular ticket type.
  • Make the opportunity your own.  Give people a reason to buy from you.  Maybe a chance to win a lottery ticket hamper, or a special second chance draw.  Separate your OzLotto jackpot opportunity from others.

Smart suppliers should use the jackpot traffic to offer trials of their products.  For example, a booklet of crossword puzzles from Lovatts, a booklet of a popular review from Top Gear, a booklet of recipes from Gourmet Traveller or Delicious, a booklet of room make overs from Real Living. I have pitched this idea to publishers before and should get it that they don’t like it or cannot justify the cost.

Newsagencies will see a considerable traffic lift this week – this is an opportunity to introduce magazine titles to this one-shot traffic.  Smart suppliers will help us leverage this.

How we leverage the bonus traffic for this week and beyond is a test for our businesses.  We ought to share ideas and challenge each other.  This is a rare opportunity.

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Lotteries

Quadrant treatment of newsagents makes news

The treatment of Australian newsagents by the publisher of Quadrant magazine is gaining more coverage.  MediaWeek ran a piece Monday, Crikey ran a piece in their news yesterday and the Bangkok Bugle blog covered the issue yesterday.  On top of this, many newsagents have told me they have written to the publisher and to Gordon and Gotch, the distributor, to request that the title be no longer supplied.

Newsagents provide low cost access to retail real-estate to a broad range of magazines.  We tolerate publishers promoting subscriptions in their pages.  What we ought not tolerate is publishers disrespecting the value we add through our retail network.  This is what Quadrant has done.

Curiously, I had a customer ask me across the counter yesterday is we stocked Quadrant.  I said no and explained why.  He said wankers and took a couple of steps before turning and saying – them, not you. I stood at the counter wondering how many he will tell the Quadrant story to.

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magazines

Using the stocktake sale to clear stock

fhn_swobbles_jun09.JPGSwobbles get the star treatment as we launch our STOCKTAKE SALE.  We have a table of swobbles at half price right at the front of the shop.  In the one day they have been up sales have been good – they will not last long.  The stock was acquired in a way which enabled the half price deal to be economically viable for us.

We are using the newsXpress stocktake sale to quit several lines in advance of refreshing our offering.  We will roll the sale through various incarnations over the next six weeks – rather than putting everything out at once.

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Gifts

Melbourne Observer powers along

fhn_observer_jun09.JPGThe Melbourne Observer is one newspaper trading against the trend in our experience of weeklies.  Our sell through rate is consistently above 90%, 40 copies a week or more.  Observer customers are likely to buy Take 5, That’s Life, crosswords, People’s Friend and or the Australian Women’s Weekly.

What I like most about the Observer is the loyalty of the customers and the loyalty of the publisher to newsagents – they regularly promote newsagents in the newspaper.  Their loyalty is something on which we can bank and build.

Newsagents with an older demographic should consider stocking this title.  Place it near your newspapers.

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Newspapers

Gold Coast panache magazine partners with newsagents

gold_coast_panache.jpgThe publishers of Gold Coast Panache Magazine know how to get the attention of newsagents.  A colleague has let me know that instead of making 25% commission from the current issue, newsagents make 100%.  I’d expect most newsagents carrying the title have it in a good location from which to achieve an excellent sales result.  The newsagent offer coincides with upgrading of the title from a stapled to a perfect bound finish.

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magazines

Amazon Kindle sells out in three days

Amazon started shipping the latest version of its Kindle reader late last week.  All initial stock was sold out in three days according to Information Week.

While note avauilable here, the buzz is building demand for the Kindle or similar devices here.  I’d expect the eventual launch to be like the iPhone which was delayed in reaching Australia.  The market will explode.

Click here for a review from Cnet and suggestions on how to make the Kidnle better.

Click here to see the magazines Kindle owners can subscribe to.

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magazine distribution

Newsagents act on Quadrant magazine

Newsagents are taking action against Quadrant magazine and its shoddy treatment of these small business owners used for the retail and distribution of the magazine.  I have heard from many who are now refusing to carry Quadrant on their shelves.  Some are writing to the Chairman of the Quadrant Magazine Ltd Board of Directors – Elizabeth Prior Jonson.

We are used to publishers spruiking subscriptions in the pages of magazines they sell.  Quadrant goes beyond spruiking in the latest issue of the magazine – they put down newsagents.

Quadrant, like around 65% of the magazines newsagents sell, is cash-flow negative for us.  It is a titled we carried (literally) to support range. I suspect they will soon discover the cost of their public ridicule of the newsagent channel.

FOOTNOTE: The last maagzine to so blatantly attack its retail partners was Fisherman & Boatowner in 2007.  See what I blogged back then.

UPDATE (1530): Crikey.com.au covered this today.  Hopefully it brings more attention to the issue.

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Ethics

Green magazines doing well

greenmags.JPGThe ‘green’ magazine section we created in our home and living category around two months ago is driving good sales.  Last week, we had one customer buy four of the titles we have on display.  Discussing her purchase, she made it clear that having the titles together and in this location were key factors in her buying all four.  What she discovered in our newsagency and our interest in her purchase has provided good word of mouth material to reinforce the value of a newsagency for special interest magazines.

These are small yet important decisions we can make in our newsagencies – grouping titles together to connect with interests we know exist which are not represented in the traditional magazine department layouts publishers have pitched to us in the past.

The key to what we have done with the ‘green’ magazines is to bookend the column with related and popular magazines.

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Environment

Promoting free Avon lipstick with InStyle

fhn_instyle_jul09.JPGWe are promoting InStyle magazine at the counter and featuring the gift of Avon lipstick valued at $22.99 which comes with every copy.  The offer will suit our customers and is likely to be successful in this impulse location.  Receiving a good mix and quantity of  marketing collateral is key to creating a display which drives the sales result we want from InStyle.

Before people say they did not get the free Avon lipstick, this is not a promotion being run with all newsagents.

For years we used this counter location for a selection of magazines, and a hotchpotch of other things you often see on a newsagency counter.  Once we pulled it back to promote a single title we achieved greater success with the benefit of being able to track the single item we feature.  Hence our certainty over promotions like this week for InStyle.

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magazines

Promoting Ralph

frank_ralph_jul09.JPGWe are promoting Ralph magazine in the body of our newsagency in Frankston with a prime location feature display.  Ralph sells well here and this great looking display (using excellent collateral from ACP) created by our team should work a treat for us.

fhn_ralph_jul09.JPGAt Forest Hill, Ralph magazine does not do so well.  To attract new customers we have a display at the exit of the men’s magazine aisle.  We have added soe other titles to create a small browse area.  We have found this approach works well for us with other titles.

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magazines

Quadrant magazine screws newsagents

qadrant_newsagent.JPGInside the latest issue of Quadrant magazine, the publisher blatantly disrespects the newsagents who are crucial to its business model.  here is what they say:

If you bought this magazine from a newsagent, you are missing out on a lot.  Subscribers get so much more.

This paints newsagents as expensive, unable to provide the benefits of subscription and a place where one misses out.

We don’t ask to sell Quadrant.  The publisher chooses to use the newsagency channel, to access our real-estate, to use our labour.  They do this because it helps them sell magazines.

While Quadrant magazine Ltd is not the first publisher to pitch for subscriptions in magazines sold in newsagencies, they are in a small club of publishers who disrespect newsagents by putting newsagents down in their subscription pitch.

I have removed Quadrant from the shelves and returned the title early.  I have cancelled future supplies.  Until the publisher respects what newsagents offer I see no reason to have this title in my newsagency.

Do I feel screwed by Quadrant?  Yes.  Their clumsy marketing ought to result in newsagents taking the title off the shelves.

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magazine distribution

Promoting weekly magazines to passers-by

fhn_weeklies_jun15.JPGWe are promoting weeklies again this week at the front of our newsagency but this time with a bigger selection of titles.  We have also included two crossword titles because these sell well with weeklies.

Whereas last week we pitched Woman’s Day and New Idea alone on this display, we felt that a broader selection works better for us in this spot.

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magazines

Missing a poster for the newspaper

fhn_age_poster.JPGWith another generic poster supplied for The Age today we have decided to promote Women’s Health.  I refuse to put up a poster which reads: THE AGE ON SALE TODAY.  The Women’s Health poster promotes the issue out today – two magazines in one so there is good reason to feature this.

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magazines

No need for newsagents to rush software decision

POS Solutions are telling newsagents (through their blog) that they have 15 days left to access the 50% invetsment allowance.    With many newsagencies turning over less than $2 million, there is no rush – the 50% tax break is available until the end of this year.

To help reduce confusion, click here for details on the tax break (investment allowance) offered by the federal government from late last year and enhanced in this year’s budget:

The Small Business and General Business Tax Break legislation has received Royal Assent and is now law.

The business tax break, in the form of an investment allowance, provides:

Small business entities (turnover of less than $2 million a year):

An additional tax deduction of 50 per cent of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 31 December 2009 and first uses the asset, or installs it ready for use, or (in the case of new investment in an existing asset) brings the asset to its modified or improved state on or before 31 December 2010.

Other business entities (turnover of $2 million or more a year):

  • an additional tax deduction of 30 per cent of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 30 June 2009 and first uses the asset, or installs it ready for use, or brings the asset to its modified or improved state on or before 30 June 2010.
  • an additional tax deduction of 10 per cent of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 30 June 2009 and first uses the asset, or installs it ready for use, or brings the asset to its modified or improved state between 1 July 2010 and 31 December 2010.
  • an additional tax deduction of 10 per cent of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 1 July 2009 and 31 December 2009 and first uses the asset, or installs it ready for use, or brings the asset to its modified or improved state on or before 31 December 2010.

While I would not ant to get in the way of newsagents who want to improve business efficiency through an investment in technology, I’d suggest that there is no need to rush unless your revenue is above $2 million (retail sales plus agency commission).

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newsagent software

Catch Magazine shows off the benefits of the digital magazine

Catch Magazine, a digital magazine for fly fishing fans, is an excellent example of what can be achieved in the digital format compared to print.  Besides visually stunning content, they are using the medium to provide readers and advertisers a level of engagement which commercially valuable as well as entertaining.

Catch Magazine is an excellent example of how magazine distribution is changing.  The barriers to entry for new publishers are lower than ever.  There is little or no distribution cost.  No wastage.  Engagement, readership and advertising responses, thoroughly tracked. The environment story is strong – Catch Magazine: keeping trees vertical is a compelling pitch.

I’d encourage newsagents to take the time to click on the link above, read an issue of the magazine and then pick up a fishing magazine from your shelves and compare the experience of the two.

I understand the appeal of having a magazine in your hand to read anywhere you want without needing power or a clunky device.  I also understand the appeal of having access to content like that at Catch Magazine for no cost and available on my laptop or iPhone or other device – free.

There are interest categories which are logical for a digital platform.  A while back here I wrote that special interest categories appear to be insulated from the magazine downturn.  I am now seeing evidence that this is not the case.  More titles on digital platforms will fan this.

Our businesses are locked into the print medium.  The excitement is around the digital medium.  We need to change our businesses to be more physically flexible so that we can embrace change opportunities.

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magazines

Aged news versus real news

Why is aged news better than real news?  This is one of several fascinating questions posed by Jason Jones to the Assistant Editor and other representatives of The New York Times in a report produced for The Daily Show on TV last week.  Watch it…

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
End Times
www.thedailyshow.com
Daily Show
Full Episodes		 Political Humor Newt Gingrich Unedited Interview
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Media disruption
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