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

Author: Mark Fletcher

$20 million superdraw strong

syndicates_20mil.JPGOur Tattslotto syndicate sales have been strong for the $20 million superdraw tonight.  Regulars and newcomers to syndicates have delivered excellent sales.  I felt we needed a larger prize to entice people. I was wrong.  Our team has done a great job promoting syndicate sales.

newsXpress in partnership with Golden Casket ran two large syndicates through newsXpress outlets and both easily sold out.

Clearly with the right in-store pitch and products through which to engage customers are happy with a $20 million first division price pool.

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Lotteries

Promoting the Combat Tanks Collection

combat_tanks.JPGThe Combat Tanks Collection partwork is generating good traffic.  The TV campaign running currently is having a positive impact.  We are promoting the title at the front of the shop to also get to people who have seen the ad but have forgotten to purchase it.  We are also pushing putaways for people likely to want to collect the series.

The Combat Tanks Collection is an excellent opportunity for newsagents as we have this exclusively.

Regulars here will know why I like partworks.  Partworks customers are more likely to purchase other items when visiting to collect an issue than a regular magazine customer.

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Newsagency opportunities

Competing with the Government for greeting card sales

australia_post_cards_sale.JPGThe government owned Australia Post shop opposite our newsagency at Forest Hill is offering 50% off all greeting cards until May 31.  They are promoting this in the window and in-store.  If this were any other retailer I would not be concerned.  That it is the Government owned post office with access to various privileges associated with such ownership and that they are so blatantly targeting an independently owned small business is appalling behavior.

This 50% off card deal is not just at our location.

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Uncategorized

Digital photography magazines not selling

digital_photo_mags.JPGWe sold one copy each of the latest issues of Better Digital and Digital Photography and Design magazines  Their single-digit sell-through rates make them among the worst performing titles in my newsagencies.  I put the poor sales down to over-satisfaction in the segment thanks to other titles and that more up to date informatiuon on digital photography is available free online.  The publishers of these titles need to urgently get a hold of current sales data from newsagencies and review print runs accordingly.  We cannot afford sub 10% sell through rates.  They could also consider engaging in a marketing campaign to drive trafffic to the titles.  While there is a cost for such marketing, there is also a cost for newsagents to have this stock sitting idle on their shelves.

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magazines

Yachting World magazine oversupplied

yathting_world.JPGSales of Yachting World magazine are falling yet the magazine distributor has seen fit to increase our allocation.  I cannot understand how they justify an allocation increase with a poor sell-through rate.  As these things usually go, the publisher will blame the distributor and the distributor will blame the publisher.  All I know is that my supply has been increased without justification.  If only I had the same control over the distributor when it comes to cash flow!

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magazine distribution

Promoting Who stars without make-up issue

who_non_retouch.JPGThe latest issue of WHO features 12 stars without make-up.  This is an annual feature published by WHO.   Given the news coverage this is likely to attract and the interest in the non-retouch issue of Dolly, we are featuring WHO next to the Herald Sun in our main newspaper stand.  We will leave this in place through the weekend and assess sales Monday.  Topical features like this provide an opportunity to reacquaint customers with a title like WHO.

Note the use of the old Alpha magazine stand.

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magazines

News International drives “dictatorial” relationship with UK newsagents

Here is the text of a news release from the National Federation of retail Newsagents website about the treatment of newsagents by News International in relation to proposed new contracts:

LONDON DISTRICT QUESTIONS NI’S DIRECT TO RETAIL TERMS AND CONDITIONS OF BUSINESS

An emergency meeting was called by NFRN London District President Omkar Patel yesterday in order to review the imposing Retail Terms and Conditions of Business posted out to London and Birmingham newsagents during last week.

Despite increasing requests from News International over recent months in wanting to work more closely with independent newsagents and the NFRN, it is clear that News International have formulated the new Terms without any consultation or prior presentation to the NFRN. The resulting four pages of Conditions – together with a stinging tariff of administration charges – clearly looks to impose a draconian trading relationship with its retailers.

Omkar Patel said: “It is crystal clear to us that News International is driving a dictatorial relationship with its newsagents on everything from holding deposits for the lifetime of trading with NI, mandatory weekly payment of account, incredible charges of +3% above Bank of England base rate for non receipt of payment on the day and all this even if the invoice sent to you is massively inaccurate due to missed returns and voucher credits. And if NI wants to change any of its terms with retailers they simply promise to give you just 7 days notice!”

Mr Patel said that the NFRN will urgently engage with News International on a fifteen point agenda that will aim to clarify, modify and provide a more balanced and positive direct trading relationship with the Publisher. “It is absolutely critical that News International listens to our point of view very carefully if it is to truly support the positive sales of its newspapers through our members,” Mr Patel emphatically stated.

While there is a considerable difference between the newspaper distribution models in the UK and Australia, it is appropriate that Australian newsagents are  well informed on moves by News in the UK.

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Newsagency challenges

Wrapping paper behind the counter

wrap_counter.jpgIn our gift shops we have sheeted wrapping paper behind the counter.  It is attractive and commercially viable in this location.  Sheeted wrapping paper is possibly something that could work in newsagencies rather than the usual behind the counter product mix and clutter.

We change the paper to match fashion trends as well as for key seasons.  It is surprising the number of customers who present at the counter and purchase paper on impulse based on what they see on the wall behind.  Above the paper we have a selection of boxes which also sell well from this counter location.

Ideally, the wall behind is slatwall.  This provides good flexibility and allows for displaying sheeted paper as shown in the photo or other items from time to time.  Change is important given the frequency of visits by newsagency regulars.

If you have room behind your counter, consider this or something else different from what you have now.  I’d be surprised is it does not generate worthwhile business.

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Newsagency opportunities

What’s the connection between Gardening Australia and dishwashing detergent?

gardening_aust_jun09.JPGThe free sachet of Squeek dishwashing powder on the cover of Gardening Australia this month is a lame tip-on.  It has been used before, it is of little value and, as the photo shows, it is easily damaged when a browser puts the magazine back on the shelf.  Tip-ons are meant to drive sales.  The sachet of Squeek is a distraction for an otherwise good magazine.  What does dishwashing detergent have to do with gardening anyway?

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magazines

Another example of dressing old fixtures

womens_health_frank1.jpgFurther to my last post, here is another aisle end from our newsagency in Frankston – promoting the May issue of  Women’s Health.  Again, the customer can purchase off of the display.  Also, the display covers the older magazine fixtures and gives the shop a brighter feel.  I appreciate that some will argue that we should be paid extra for this in-store work.  maybe we should.  In the meantime we will continue to boldly display marketing collateral for titles which we know will respond to such in-store effort.  Women’s Health is one such title.  Every time we create a bold in-store display, sales lift.

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magazines

Dressing the old magazine fixtures

belle_frankston.jpgThe magazine fixtures in our Frankston shop are the old (inflexible) style.  This does not stop them being dressed with collateral for brands we are happy to support.  The aisle end display for Belle is a good example.  Belle responds well to this type of display in terms of sales lift.  Note the acrylic fixture off of which customers can buy the title.  While I can appreciate that a more modern shop would struggle to support this older type of magazine display, it works a treat at Frankston.  Our annual magazine sales are close to $500,000 and year on year our decline in the current market is below average.  I put this down 100% to brilliant in-store merchandising by our Frankston team.

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magazines

Promoting the Zoo Weekly cash giveaway

zoo_weekly_cash.jpgWe have a column in front of our counter at Frankston which our creative team finds ways to dress.  This week, the column is dressed with collateral promoting Zoo Weekly and the $50,000 cash giveaway.  We started using the column for magazine promotions earlier this year and it is working well.

The acrylic unit off of which customers can purchase Zoo is essential for a display like this.

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magazines

Promoting Weight Watchers magazine

weight_watchers_frank.jpgWeight Watchers magazine moving to monthly is working in our newsagencies.  Our team at Frankston is pitching the latest issue at the counter.  They have done this before – the title performs well in this location next to our two busiest register points.  Indeed, I have seen seveal stores where Weight Watchers sells better from the counter than in the usual location.  I think this is due to the transition to monthy.  I’m happy to pitch it at the counter based on sales achieved.

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magazines

Is Playboy on the ropes?

While sales of adult magazines are increasing in my newsagencies, Playboy is in difficult waters internationally.

The current trend in my newsagencies is double digit growth for adult titles off a low base.  I have no explanation for this and it is contrary to what I would expect given the satisfaction available online without cost. Last night, I went back over the data for the January through March 2009 versus 2008 sales benchmark and found that, overall, Adult magazine sales are down 8% in newsagencies.

Playboy, on the other hand, is reporting growing losses.  ABC News in the US has a good wrap up of the current situation including an explanation of why the magazine itself is unlikely to fold.

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magazines

Dismissing the Kindle DX

I heard Gay Alcorn, editor of The Sunday Age, speaking with Jon Faine on 774 ABC radio in Melbourne yesterday as they guest in a weekly feature on media.  The part of the discussion which piqued my interest was Alcorn’s ignorance of the new Kindle DX.  Alcorn’s comments were at odds with reporting out of the US.  They lacked the objectivity of a good reporter.  She more or less dismissed the device.

The new Kindle from Amazon, which is not available in Australia, supports books, magazines and newspapers.  Indeed, it is well supported by several publishers.  The Kindle is certainly showing US publishers how to cut the distance between their journalists and consumers and thereby eliminate many distribution costs.

While it will not suit anyone working for a newspaper publisher to contemplate dramatic change to the business model of your employer, editors and journalists who agree to take part in discussion of any aspect of their work need to be open minded about the disruption of new devices like the Kindle.  Alcorn’s dismissiveness of the Kindle gave me reason to take less notice of her other views.

Imagine if the Kindle was here in Australia, now.  The newsagency business model would be turned on its ear.  We need to contemplate and prepare for such change.  Even it it does not unfold this way, the preparation will make us stronger and more focused on pursuing our own future.

One reason newsagents do not engage in contemplation of considerable change is the comments from publishers and journalists working for publishers that the changes in the US and elsewhere are not relevant to Australia.

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Media disruption

Overloaded with Photoshop magazines

photoshop_mags.JPGAustralian newsagents are overloaded Photoshop magazines.  We have more than the five titles in the photo through the course of the month at my Forest Hill shop.  I am confident that we could lose half the titles we receive and still achieve the same revenue from Photoshop related titles.  This oversupply is an example of why newsagents need to have control over the titles which gain access to our retail network. Until we centrally manage access to our retail network we will continue to receive more titles than we need.  While magazine range represents an important point of difference for us, it is unsustainable for 4,500 newsagents to provide the point of difference.

The code of conduct being discussed by magazine distributors will not address this issue.

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magazine distribution

Online women’s magazine launched

The Slate Group, an online publishing subsidiary of The Washington Post, has launched DoubleX, and online “magazine” for women and written by women.  Launches of new online titles like DoubleX continue apace.  This is another reason magazines are more affected this recession than previously – there is considerably more choice online.

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magazines

POS Solutions DOS software penalised

Click here to see the letter sent our by XchangeIT about the POS Solutions DOS software.  This dispels any doubt about the future of POS Solutions DOS software.  The financial penalty for DOS users makes a move to compliant software compelling for newsagents.  This move has been on the table for at least several years – all the software companies, including POS, knew about it.  Click here for details of the offer to switch to Tower Systems Windows software.

The information in this announcement is not new.  It was announced at the QNF State Conference earlier this year and even foreshadowed at the ANF conference last year.  The announcement brings timing closure to the old DOS software.

Disclosure: I own Tower Systems.

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newsagent software

Promoting the nightshirt and bed socks with Dolly

fhn_dolly_jun09.JPGDolly magazine gains access to our prime retail counter promotional position this week with the free Davenport nightshirt and bedsocks which come with the title.  We think the gift speaks to the demographic and is unique enough to justify the prime space allocation for Dolly magazine.

Both Dolly and Girlfriend are chasing a tough demographic at the best of times.  Today’s challenges are evidenced by the regularity of tip-ons with each.

The other important and topical interest for this issue of Dolly is that it is retouch-free.  That is, photographs have not been retouched.  This is receiving good media coverage and should, therefore, be more top of mind to customers.

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magazines

Pitching magazines around newspapers

newspapers_mags_may09.JPGWe are pitching Home Beautiful, the Melbourne Observer, OK!, Time and Super Food Ideas around our newspapers this week.  We have cover the two biggest magazine publishers, support an independent newspaper, recycle an old magazine display unit and support two lower volume magazines – good use of newspaper space I’d say.  The OK! display is the Alpha magazine stand recycled.

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magazines

This blog facilitates publisher engagement

Following a discussion here about marketing collateral provided by publishers, Quentin Long, Managing Director of Australian Traveller has written to newsagents with news of a change which came out of comments published here.

Dear Newsagent Partner,

At Australian Traveller magazine we recognise that our newsagents are our most important business partners – the more you succeed, the more we can succeed. Therefore we are keen to support you in any way possible.

After much discussion with some of your colleagues in the industry and our distributor NDD, we have concluded that one way to assist you is to launch an Opt In Program of Merchandising.

You have been selected as an appropriate agent for this program based on the sales history of our magazine in your store.

This opt in merchandising simply means we will endeavour to supply you with posters and cover run ons as part of your magazine deliveries absolutely FREE.

here are no allocation implications whatsoever and you can opt out at any time.

You can then use these materials to create displays to appeal to your customers with a product they may have never considered.

We believe you are in the best position to determine whether this program would work for your store.

It is easy to opt in to this program.  Simply reply to this email with “YES” in the text and I will add you to the list.We will follow up in three issues time to see if the program has been helpful to you and if you would like to continue to be part of the service.

Thank you in advance.

Cheers
Quentin Long
Managing Director
Australian Traveller magazine

I hope newsagents take up this offer and opt in to receive the collateral and that, better still, they use this collateral to promote Australian Traveller.  A publisher directly engaging with us and responding to newsagent requests is something to cherish.

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magazines