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

Author: Mark Fletcher

How do they spell angel in China?

little_angle.JPGCheck out the photo of a pair of pink booties we received at one of our shops last week.  What should have been Angel has been spelled as Angle.  The misspelling gave me a smile.  Sure, QA processes for the Australian supplier ought to have picked it up but, hey, nobody is perfect in spelling – least of all me.

Excuse the indulgence … the misspelling reminded me of a guy I used to serve petrol to when I worked at the BP petrol station in Pakenham in the 1970s.  Everyone called him angles.  I found out, after a while, that he earned this name by misspelling Hells Angels on a home-made t-shirt.

The booties will be replaced but we’ll remember them and share a joke from time to time about little angles.

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Customer Service

Promoting magazines at the lottery counter

tatts_mags.JPGWe have refreshed the magazine offer at our lottery counter.  Nothing special.  Our approach is to use two popular titles to support another.  Earlier this week we focused on Woman’s Day and New Idea bookending Good Food.  While Good Food sales are okay for us but not where they need to be.  Hence the bookending.  This title mix will be changed through the week – Take 5 and That’s Life for later in the week.

While this display breaches our Tattersalls obligations, we balance this by supporting Tattersalls outside ‘their area’.

Newsagencies are finely balanced businesses.  Suppliers need to allow us flexibility to have products and categories support each other.

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magazines

Drowning in Street Rodding magazine

fhn_streetrodding.JPGMagazine distributor NDD must know something we don’t because they increased our supply of Street Rodding magazine by 50% despite us selling less than half the last issue.  NDD gets our sales data daily, they would know that it is unlikely we will sell the 50% extra stock. I don’t blame the publisher, Graffiti Publications,this is an allocations issue.

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magazine distribution

Tattersalls network down

The Tattersalls network has been down in Victoria for over an hour.  The Tattersalls phone lines are constantly engaged. The company has not sent an email explaining the situation.  Newsagents don’t know if it is just them or the whole network.  Earlier this week a smaller group of newsagents suffered network outage, the remifications of which are still being dealt with.

Both lottery companies need to come up with more efficient ways to alert their respective networks to status.  Too much time is spent trying to get onto an overloaded call centre in these circumstances.

UPDATE (10:15PM) The Herald Sun posted a report about this online at 7:06pm tonight which claims the network was out between 2pm and 6:20pm.  This is a long time to be unable to sell tickets in a short retail week before a long weekend.

This outage is more financially painful than the Intralot outage because of the considerable higher revenue put through Tattersalls compared to Intralot – this is the difference between category 1 and category 2 products.

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Lotteries

Newsagents featured in Mediaweek article

meadiweek.jpgMediaweek this week publishes an interview with me about the newsagency channel and how I came to be involved.  Click here to see a full copy.  I appreciate the time James Manning took to understand some of the challenges newsagents face and the complexities of our business model.

Given the readership of Mediaweek, hopefully the article will facilitate a greater understanding of why we newsagents act as we do on some issues.

Our best asset is our network of retail outlets yet it is our most misunderstood and underutilised asset.  The Mediaweek article puts this opportunity on the table again.  Hopefully, publishers and other suppliers engage.

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magazine distribution

Replacing Alpha with FourFourTwo

fhn_fourfourtwo.JPGWe have placed FourFourTwo above the Herald Sun in the place we often used for promoting Alpha magazine.  FourFourTwo speaks to the same demographic, is published locally and is primarily sold in newsagencies so promoting it reinforces our point of difference.  Circulation of FourFourTwo has recently been withdrawn from many non-newsagent retailers – making our support more worthwhile for us. FourFourTwo is another title which I expect to sell well when placed with newspapers, taking the space no longer given to Alpha.

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magazines

Selling The Monthly with The Age

fhn_themonthly_apr09.JPGPlacing The Monthly above The Age in our newspaper stand works.  We will sell out of the latest issue thanks to this opportunistic placement.  I’d encourage other newsagents to find a way to display The Monthly with newspapers – for at least the first week or two of the on-sale.  Showing the whole cover is key to success for The Monthly – their covers are excellent.

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magazines

Resigning from VANA and the ANF

I resigned from VANA (the association representing Victorian newsagents) in the second week of February because of their misguided Futures Project.

I have not announced my resignation until now because the Board asked to meet with me to discuss my concerns with the Futures Project. I am not sure why they felt a need to talk to me when so many others had expressed concerns yet were not invited to a Board meeting. My meeting with the VANA Board took place two weeks ago and I’ve heard nothing since so I suspect I have not changed their plans.

The Futures Project is about getting newsagents to operate their back offices according to strict data and other rules on the belief that this will drive better business decisions.  While there is no doubt that good data is essential to good business decisions, this does not, of itself, drive good business decisions.  This is where the Futures Project is misguided and why it will fail.

I have other concerns about the Futures Project:

  • Cost. This will cost each newsagent thousands of dollars a year with no guarantee of return. It will cost VANA hundreds of thousands of dollars. I am told they are contemplating borrowing this.
  • Poor due diligence. There is no science behind the Futures Project, no research. It is being driven by one or two ill-prepared people and has got this far more because of ignorance and bluster rather than professional assessment.  Without wanting to disrespect the VANA Board, they do not have the knowledge or background to reasonably assess whether this project, as presented, is right for their membership.
  • Newsagent outcomes. The goals of the project and the project plan as outlined to me do not match.  It will fail in its present form.  The consultant to the project is, in my view, the only winner.
  • Not association work. The Futures Project is a commercial project. VANA should get their association offering right before they borrow on behalf of member newsagents to fund this folly.  Where were they on Alpha? What did they do about Bill Express?  Nothing.

So, I resigned from VANA. The $1,800 a year I will save will be better invested elsewhere in my business.

Sometime in the future, VANA members will realise that the Futures Project was a folly, just like the failed accreditation project which cost a ton of money and wasted years.

In resigning from VANA I also resigned from the ANF. The new CEO was keen to meet and talk when I was introduced to him twelve weeks ago and I’ve not heard from him since. While I was but one member, he asked for me to set aside half a day a week or so later.

Once the QNF/NANA secretariat model is released I will look at that with considerable interest. I like the idea of a lean non-commercially focused association.

Footnote: If I am wrong I will be waiting for the I Told You So card.

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Newsagency challenges

The future of newspapers

Jon Faine moderated an excellent discussion yesterday morning on local ABC radio in Melbourne on the future of newspapers.  I found the discussion between Michael Gawenda (former editor of The Age), Eric Beecher (former editor of the Sydney Morning Herald) and Sally Warhaft (editor of The Monthly) to be most interesting.  They covered disruption brought about by the Internet as well as challenged brought about by the current economic situation.

I hope they load the discussion to their website as I am sure many newsagents would find it interesting – our channel gets a fleeting mention from Eric Beecher.

A conversation for another day could be about the challenges faced by businesses and professions built around newspapers. Look at newsagencies.  Our channel was createdby a publisher in the 1800s on the goldfields of Victoria.  We have been servants ever since.  We are struggling to contemplate life out of service.

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Media disruption

Queensland newsagents challenge Minister for Small Business on new Award

At a small business forum in Brisbane on Monday evening, Federal Small Business Minister Craig Emerson was asked about the looming reintroduction of penalty rates. After protesting at being ambushed by the question, he went on to demonstrate a good grasp of the issue but offered no comfort to the small business owners in attendance.

The Minister requested a full written submission from QNF on the issues and has undertaken to try to pursue the matter. This is a good outcome – if he honors his undertaking.

The changes to rates are a challenge for newsagents since around 75% of what we sell is at fixed price – meaning we have less capacity to manage our businesses to better cope with chunky penalty rates.

I am told that following the meeting there was discussion with the Minister about the status of the ANF in representing newsagents. Those participating made it clear that the ANF does not represent the majority of Queensland newsagents.

I am grateful to colleagues in Queensland for sharing information about this.

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Newsagency challenges

Being charged extra for opening early

Colonial First State, landlord for our newsXpress Forest Hill store has introduced an extended trading hours charge.  We have been charged because we open before the official centre opening hours each day.  They have applied this charge retrospectively – from July 2008.

We are still waiting for compensation water damaged stock removed from our shop when CFSPM contruction went wrong and we were flooded in 2007.

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Retail tenancy

Do newsagents need a newspaper distribution contract?

News and Fairfax are said to being close to putting new distribution contracts to newsagents for their consideration. The current contracts were negotiated in 1999 as part of the process of deregulation of newspaper and magazine distribution in Australia.

While newsagents and those who represent them will focus on the terms of the proposed contracts, I’d suggest newsagents first consider whether contracts are appropriate.

Distribution newsagents beat themselves up every day fulfilling their obligations under the current contracts for, in most cases, less than minimum wage.

Newsagents are paid less in real terms today for every newspaper they handle than ten years ago when the current contracts were negotiated. Newsagents cannot sustain themselves as the working poor.

By saying no to contracts we are saying no to being a distribution newsagent. This would be a big deal for most newsagents as we would be rejecting the very purpose for which our channel was created.

Not having a contract would give newsagents more freedom to define their own future. While many may fear such an opportunity, others have already found the freedom to be personally and financially rewarding.

I’d encourage newsagents and their associations to open debate on this and seriously question whether having a contract is important.

For the new contracts to be interesting, they need to improve compensation for newsagents and provide more local business control over the profitability of newspaper distribution. They would need to allow newsagents to be business people and not process workers.

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newsagency of the future

NDD likely to block newsagents on Alpha magazine

I know from my own experience recently with magazine distributor NDD that they are unlikely to respond to requests from newsagents that they not supply Alpha.  I wrote to NDD asking that they not supply certain titles.  They threw up all sorts of barriers and eventually refused to give me permission to control the titles I get for my newsagency.

If NDD follows the same approach for newsagents who ask to not be supplied Alpha we could find ourselves forced to take Alpha.  It is this lack of control which has led some newsagents I have spoken with to close their accounts with NDD.  I guess they have exercised the ultimate control.

It should not come to this.  If I am expected to carry the risk of stock in my newsagency then I ought to have absolute control over the stock I carry.  It is my money after all.  NDD appears to have forgotten that.  Just as News Ltd has forgotten that it was newsagents who made Alpha the sales success it is today.

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magazine distribution

Easter card sales up in newsagencies

Easter card sales are up on last year in the newsagencies for which I have sales data.  I’d expect to see the season end with double digit growth in some stores.  This is excellent given the economic conditions and that, at this stage, the same growth is not being seen for Easter Eggs.

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Greeting Cards

Promoting Donna Hay at the counter

fhn_donna_hay_apr09.JPGWe are promoting Donna Hay magazine at the counter.  While the free shopping list pad is not original and the publisher provided one poster of marketing collateral we decided to give it a go.

Publishers need to understand that not all newsagents are the same when it comes to promoting titles.  The more they invest in our business with professional collateral the more likely we are to engage with their title.

We like to change our displays regularly, at least weekly and usually more often.  regulars quickly become store-blind.

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magazines

Promoting Burke’s Backyard to attract shoppers

fhn_burkes_apr09.JPGAfter a week at the counter, we are promoting Burke’s Backyard right out the front of the shop.  We have done this because we had the marketing collateral to create an appropriately bold display and because we think the title will appeal to passers-by in our centre.

At the counter it worked okay, but not as well as expected.  This is another reason for trying a new place.

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magazines

Alpha magazine coverage spreads

Posts and comments here about Alpha magazine and the plans of some newsagents to boycott the title have been covered by mUmBRELLA, a respected site covering media and marketing in Australia.  I especially like that they have also published the picture showing how one newsagent converted the Alpha stand into a New Idea stand.

It is good to see the newsagent stand against a supplier get broader coverage.  This is a challenge for us because Fairfax and News would never publish the story.

I’d urge newsagents to continue to engage on the Alpha issue. Let your News Ltd representatives know what you think, comment on Alpha posts here, If you move Alpha, put a sign up advising your customers why, If you remove Alpha altogether, be sure to let News Ltd know why.

As I noted in an earlier post, what News Ltd has done to newsagents with Alpha is un-Australian.  Personally, I consider it to be unethical.  We need to have the balls to maintain our rage.  If sales of the magazine suffer, advertisers will notice and News will become engaged.

Now if only newsagent associations would get behind this issue.

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magazine distribution

Interest in the Australian magazine system

I have been talking over the last few weeks with people in two different countries about the Australian magazine distribution system.  They wanted to know specifically about EDI standards and how compliance is driven.  In each case, their country is considerably behind Australia in terms of management of supply – invoices are manually processed, returns are manual and credits can take three months or more because of this.

While I have serious issues with our magazine distribution model, it is cleasr from talking with others that the Australian system is nowhere near the worst in the world.  That said, it does not stop me wanting the AAustralian magazine distribution system to be better and fairer to newsagents.  I want to see costs for newsagents reduced, supply which more closely matches sales and better ranging control so that we carry a commercially viable range and not what three distributors separately think we should have because it suits them.

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magazine distribution

Acrylic displays made to order

dsc06496.JPGI am often asked where newsagents can source acrylic slatwall fixtures made to order.  We have had many such fixtures made by Murooba Products.  Owned by ex newsagents Doug and Anne Denham, the fixtures they have made are serving us well.

Click on the image for a larger photo of  some aisle end card fixtures they made for one of our Sophie Randall shops.

Regulars here will know that I think that traditional newsagency shopfits are no longer suitable for our needs.  Purpose built fixtures do not offer the flexibility we will find necessary in the coming years.  Acrylic units like those from Murooba can be moved or replaced easily – through the seasons or as the longer term needs of the business change.

Murooba can be contacted on 03 5248 3729.  For the record, I have no commercial involvement with Murooba.

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retail

Mediabiznet reports on call for magazine supply adjustment

My March 22 blog post calling for urgent adjustment to newsagent magazine supply has been picked up by mediabiznet – an information soruce for media and marketing industries.  It is good to see the issue of magazine oversupply, especially imported titles, being covered by others.  I wish they had linked to the original blog post as it provided more details on why the adjustment is necessary.

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magazine distribution

Podcast changes newsagent opinion about sales based replenishment

I have received some excellent feedback from newsagents who have listened to the first newsagency industry podcast which was published by Mediaweek last week and in which I participated.  The most significant feedback has been around ACP Magazines’ Sales Based Replenishment program.  Several newsagents commented to me that the podcast changed their opinion about SBR and that they now support the initiative.

I like SBR because it relies on good use of technology in newsagencies.  The reward for newsagents is eliminating sell-outs, especially for monthly titles which experience an unexpected spike in sales.

The podcast helped explain the benefit as well as some of the history to the latest incarnation of SBR.

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magazine distribution

Newsagent frustration at increase in Golden Casket payout limit

Golden Casket in Queensland has advised its retailers, including newsagents, that they are to payout up to $1,500 on a prize – up from the $500 limit.   This move is causing concern among newsagents in terms of the cash they will need to carry, especially after a superdraw, and the time it will take to be credited by Golden Casket for the payout.

In Victoria we payout up to $4,000.  While there is discretion to the upper end of this amount, in my own newsagency we always try and make the payment because it reinforces our business as the go to place for lottery products.  In today’s marketplace we need to seize every opportunity possible to build customer loyalty.

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Lotteries

Australia’s oldest paperboy?

robbie_mcgregor.JPGRobbie McGregor has delivered newspapers to homes on the same route in Pakenham for fifty years.  He is featured in Century of Faces, a 44 page special report in a recent edition of the Pakenham-Berwick Gazette to commemorate the centenary of this wonderful local newspaper.

Robbie has worked for seven owners of Pakenham Newsagency – one of the early owners was the Bishop family.  I worked for the Bishops in 1970 and 1971 after school.  This is when I first met Robbie.  Back then, as I am sure is the case today, Robbie was your ideal paperboy – on time, accurate and cheerful.

Kudos to the folks at the Gazette for featuring Robbie McGregor, paperboy, in their Centenary of Faces.  I am grateful for the memories.

We have plenty of stories like Robbie’s in our newsagency channel.  We ought to share more of them.  They make for good listening.  They are also an important record of traditions.  These local stories are what connect us with our communities and give locals another reason to trade with us.

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newspaper home delivery

Promoting Annette’s Sym’s Symply Too Good cookbooks

symply_too_much.JPGLike many other newsagents, we received many copies of each edition of Annette Sym’s Symply Too Good To Be True cookbooks on Friday.  While I suspect (hope) that the Network Services magazine allocation system made a mistake, we are trying to make the most of the situation by creating a display at the entrance to our main magazine aisle.  We have dressed an old stand and given it over entirely to Annette Sym’s popular brand.  I certainly saw customers browse products from the stand today after they had made their selection of another title elsewhere in the aisle.

Looking at the photo now the only issue may be our placement next to the Darrell Lea stand.  Hmm…

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magazine distribution